The Panama Canal’s $5.25 billion expansion project was completed this week. This will provide LNG shippers from the U.S. Gulf Coast with faster transit routes with the first shipment scheduled by BP Plc for late July.
The 138,517 cubic meter-capacity British Merchant will be sent from Trinidad & Tobago to the Pacific market.
According to the Panama Canal Authority, there are no other LNG tankers scheduled to traverse the Panama Canal this year. Part of this lack of LNG shipments is because U.S. shippers are focusing more on Europe and South America as the price spread to Asian markets is tightening due to lower prices and an oversupplied market.
Though the expansion may have come online at an inopportune time as far as LNG market activity is concerned, it will undoubtedly prove to be a critical piece of the logistical puzzle in matching supply and demand. The authority estimated that 20 million tons of LNG, or 300 ships, will pass through the Panama Canal annually.
“We are thrilled that we currently have 170 reservations for Neopanamax ships, commitments of two new liner services to the expanded canal, and a reservation for the first LNG vessel, which will transit in late July. Our customers care that their supply chain is reliable and that they have a diversity of shipping options. The Canal has always been reliable; today, we offer the world new shipping options and trade routes,” Panama Canal Administrator Jorge L. Quijano said at the ceremony for the inauguration of the expansion.
Frank Nieto can be reached at fnieto@hartenergy.com.
Recommended Reading
Deadline in Trinidad and Tobago’s Bid Round Extended
2024-02-29 - Bids for the 13 shallow water blocks offshore Trinidad and Tobago are now due on May 27.
Iraq to Seek Bids for Oil, Gas Contracts April 27
2024-04-18 - Iraq will auction 30 new oil and gas projects in two licensing rounds distributed across the country.
TotalEnergies Starts Production at Akpo West Offshore Nigeria
2024-02-07 - Subsea tieback expected to add 14,000 bbl/d of condensate by mid-year, and up to 4 MMcm/d of gas by 2028.
E&P Highlights: Jan. 29, 2024
2024-01-29 - Here’s a roundup of the latest E&P headlines, including activity at the Ichthys Field offshore Australia and new contract awards.
Vår Energi Hits Oil with Ringhorne North
2024-04-17 - Vår Energi’s North Sea discovery de-risks drilling prospects in the area and could be tied back to Balder area infrastructure.