The Panama Canal has authorized the opening of a bidding process for a new pipeline that will transport liquefied petroleum gas (LPG) through the interoceanic route, the authority announced on Friday.
Since the Supreme Court of Panama ruled last year on the return of areas near the canal to its administration, planning for projects to expand its transshipment and storage capacity has accelerated.
Key Features
- LPG Ships: The pipeline will allow LPG ships to offload at one end of the canal, while other tankers can pick up loads at the other end, reducing traffic of such vessels through the navigable waterway.
- Japanese Benefits: Japanese purchases of US LPG would be favored by this project, as stated last month by Canal Chief Ricaurte Vásquez.
The canal authority will seek the participation of qualified technical and commercial companies to develop and eventually operate the pipeline. This complementary activity will integrate into the sustainable development of the western bank route of the Panama Canal, including activities and alternatives to maritime product transport.
Following board approval, offers will be received in the coming months, according to a statement from the canal authority to Reuters.
