Panama Canal Weighs Pipeline to Move Gas, with Eye on Asian Clients

• The Panama Canal is exploring the construction of a pipeline to move liquefied petroleum gas (LPG) across the trade passage, canal administrator Ricaurte Vasquez said on Monday, with Japan seen as a top potential client for gas coming from the U.S.
• The canal, one of the world's busiest maritime trade passages, is looking to diversify its operations after getting the green light in a court ruling last year.
• "We're exploring the possibility of rolling out infrastructure with the capacity to move up to a million barrels per day (bpd), but the market is much larger," Vasquez told Reuters following a press conference. "Meeting the needs for growing volumes (of gas) through Panama is of the highest priority, but also of the highest complexity," Vasquez said.
• The move comes amid a backdrop of escalating tensions between the U.S. and Panama, sparked by U.S. President Donald Trump's claims about reclaiming the Panama Canal.
• Initial studies show that "possible traffic capacity through the Panama Canal could reach 2 million bpd (of LPG) in a decade," Vasquez added. The canal expects to make a decision about the pipeline in the next 12 months, Vasquez said.
• Investments of $8 billion in infrastructure and sustainability projects are already earmarked for the canal, spread out over the next decade.

(Source: Reuters)