BUILDING PRESSURE
Today, LNG business is not a part of canal operations. The expansion of the canal, to be completed in April 2016, will open new routes for the transport of LNG through the waterway, offering interesting opportunities for the operators of the sector to enhance their business.
Victor Carlos Urrutia, Panama's National Secretary of Energy, told TBY that, “LNG pricing in different regions differs considerably. There is currently no cost-effective means of transporting LNG from the Atlantic to the Pacific. The largest consumers of LNG, such as Japan, obtain it from the Atlantic, where prices are more favorable.” However, the expansion of the Panama Canal will yield major benefits for the commodification of LNG, which has so far not been deterred by long-term contracts and point-to-point deliveries, according to Urrutia. “There is not really a fluid commodity market for LNG today, although strong potential exists to develop one. We have hopes of Panama becoming a center for storage solutions. In the long term, ships will be using LNG for propulsion, and that will make the LNG business more flexible. The government is actively assessing the situation and its alternatives, and the moment it is deemed favourable we will make our move.”
The expanded canal will be able to handle estimated 12 million metric tons of LNG on a yearly basis. Once completed, the widened waterway will be able to handle ships as long as 1,200 feet and as wide as 160 feet: today the current size of the canal allows transit for ships up to 965 by 106 feet. According to data and calculations published by Panama Canal Authority (ACP), LNG ships will cross the 77km long canal 350 times on a yearly basis, shortening the route between US and Asia by 24%. As a consequence, the routes between Trinidad NS Tobago and Chile, between Peru and Spain will be shortened
Leading countries in Latin America and North America are currently focusing on encouraging the installation of new sources of energy, based on natural gas, in order to the availability of energy and to satisfy the increasing demand of energy.
Exporting LNG from North America is turning into a reality and it is an important source for Latin American importers. Latin American buyers and North American sellers are now forging new alliances in order to achieve commercial success.
The US is the leading producer of LNG worldwide. The new potential for LNG from the US is appealing for Panama, as one of the main buyers of LNG in the world is Asia, which historically uses the canal for the transit of goods coming from the eastern coast of the States. Instead of crossing the Suez Canal, the Panama Canal will shorten the route by 5,356 nautical miles.
In June 2015, the US Trade and Development Agency signed an agreement with Panama Canal Authority (ACP) to support the planning of an LNG import terminal, that will support the implementation of maritime and energy projects, allowing the canal to boost its activity over the medium term
At a global level, usage of natural gas is growing more and more. According to Agencia Internacional de Energía (AIE), the demand for LNG will increase at a rate between 1.7% and 2% by 2035.
BUILDING PRESSURE
TABLE OF CONTENTS
Year In Review
What A Year
Impressive growth figures far ahead of the Latin American average are a testament to the government's business-friendly policies. The resolution of Canal expansion in 2015 should also provide a boost, with dollar appreciation the most dangerous shark in the water.
read articleInterview
HE Luis Ernesto Carles, Minister , Labor and Workforce Development
TBY talks to HE Luis Ernesto Carles, Minister of Labor and Workforce Development, on the current state of the Panamanian labor market, and the ministry's coordinated efforts with the private sector to train human capital.
read articleInterview
HE Alcibíades Vásquez Velásquez, Minister , Social Development
TBY talks to HE Alcibíades Vásquez Velásquez, Minister of Social Development, on the importance of developing high-risk groups in Panamanian society, and working with national and international organization to address illiteracy and unemployment.
read articleInterview
Carlos G. Fernandez, President, Chamber of Commerce, Industry, and Agriculture
TBY talks to Carlos G. Fernandez, President of the Chamber of Commerce, Industry, and Agriculture, on the Chamber's involvement in the nation's economy and politics over the decades, and the advantages the Panamanian market offers to international investors.
read articleInterview
Ricaurte “Catín” Vásquez, CEO, Central America and the Caribbean at General Electric (GE)
TBY talks to Ricaurte “Catín" Vásquez, CEO for Central America and the Caribbean at General Electric (GE), on emerging demand segments, modernizing the power grid, and the potential of LNG.
read articleFocus: LNG
Building Pressure
Today, LNG business is not a part of canal operations. The expansion of the canal, to be completed in April 2016, will open new routes for the transport of LNG through the waterway, offering interesting opportunities for the operators of the sector to enhance their business.
read articleInterview
Dr. Jorge A. Motta, National Secretary, Science, Technology and Innovation at SENACYT
TBY talks to Dr. Jorge A. Motta, National Secretary of Science, Technology and Innovation at SENACYT, on partnering with educational institutions, promoting innovation, and modernizing the private sector.
read articleInterview
Jose Ramón Icaza, General Manager, Mar Azul Project Management
TBY talks to Jose Ramón Icaza, General Manager for Mar Azul Project Management, on trends in the construction sector, the impediments to developing beach-front real estate projects, and consolidation and expansion.
read articleInterview
HE Jorge Arango Arias, Minister , Agricultural Development
TBY talks to HE Jorge Arango Arias, Minister of Agricultural Development, on the developmental strategy for the industry, the importance of utilizing new technology, and the plan to attract foreign investment in the sector.
read articleInterview
Vilma Moreno de Arias, Executive Director, Centro Medico Paitilla (CMP
TBY talks to Vilma Moreno de Arias, Executive Director of Centro Medico Paitilla (CMP) and Dr. Ramon Crespo Berges, Medical Director, on how the health sector is evolving, the importance of human capital, and future of the industry.
read articleInterview
Joaquin Villar-Garcia, Rector, Columbus University
TBY talks to Joaquin Villar-Garcia, President of the Directors' Council and Rector of Columbus University, on the evolution of education on Panama, important achievement of the university, and ensuring an internatioanl standard of instruction.
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