Early this month the Panama Canal Authority (ACP) approved the launch of a tender process for the construction of a LPG pipeline, designed to facilitate the transfer of gas between the Atlantic and Pacific oceans. The project on the West Bank of the Panama Canal, referred to as the “energy corridor” project, is aimed at the diversification and sustainable development of canal operations.
Based on a Private initiative proposal, the Canal will develop a bidding process, looking for the participation of technically and commercially qualified companies for the development and subsequent operation of the energy pipeline.
Instead of requiring gas tankers to pass entirely through the Canal’s locks, the new system will transfer cargo between ships at either end of the Canal via a pipeline. This approach avoids the costs associated with water tolls, locomotives, pilots, and tugboats, leading to substantial savings in operating expenses. It also eases vessel congestion through the waterway, making these slots available for transiting container and LNG vessels.
The LPG shipments, originating from Texas and Louisiana, would primarily be destined for major consumers such as Japan, China and South Korea.
The ACP has not disclosed the reference amount of the project, the date of the bidding, or the execution time. Panama Canal tenders are published in the Panama Canal’s Internet Bidding System – Sistema de Licitaciones por Internet (SLI).