Panama Canal Plans Gas Pipeline, Port Expansions to Boost Global Trade Efficiency
Panama Canal Administrator Ricaurte Vásquez announced plans for a natural gas pipeline and new ports at both ends of the Canal to enhance trade reliability and meet growing U.S.-to-Asia energy demand. LPG volumes through the Canal are expected to double over the next decade.
(P&GJ) — Panama Canal Administrator Ricaurte Vásquez outlined major infrastructure projects aimed at strengthening the Canal’s role in global trade during a fireside chat at the Houston International Maritime Conference (HIMC).
Vásquez said the Canal is advancing plans for a natural gas pipeline and the construction of two new ports at each end of the waterway. The projects are designed to improve reliability, diversify operations and meet growing energy transport demand amid global supply challenges.
“We are working hard to ensure that environmental and climate conditions do not disrupt operations,” Vásquez said. “But, through these projects, we are also guaranteeing that the Panama Canal remains committed to diversification with investments that provide operational assurance for the industry.”
According to Vásquez, liquefied petroleum gas (LPG) volumes through the Canal are expected to double within the next decade, with much of the traffic originating from the U.S. Gulf Coast and bound for Asia.
“Almost everything that comes from the U.S. going to Asia goes through the Panama Canal,” he said. “If we do nothing, we’re going to lose that part of the market share. Our long-term vision for the Canal includes capturing that growing volume.”
Vásquez also confirmed that the Canal is preparing to prequalify companies for participation in the new port projects. “We are having one-on-one meetings with terminal operators and shipping clients probably the first week of December. We are moving fast,” he said.
The HIMC, organized by the Port of Houston, brought together global maritime and energy leaders to discuss strategies for improving supply chain efficiency amid climate and market uncertainty.