Panama: An LNG Hub for the Region
Panama is known for its strategic geographical location and for being the first Central American country with an Liquified Natural Gas (LNG) terminal.
Panama is well known for its strategic geographical location and as a trade and financial hub for the Americas. With the first LNG terminal in the Region and a long-term government strategy, Panama is well-positioned to be the LNG hub and a key player in Central America’s energy integration. For LNG exporters, Panama can now be a destination rather than just a transit through the Panama Canal.
Costa Norte Terminal, located in Colon, at the Caribbean entrance of the Panama Canal, is the first LNG facility in Central America. It has a 180,000 cubic meters storage tank, designed as a hub facility, can fill tankers and reload gas carriers. The LNG imported to Panama is from Texas and Louisiana and is destined for Panama and other Central American countries.
The National Energy Plan (PEN) envisions that by 2030, 15% of Panama’s generation capacity will come from LNG. The LNG terminal offers an excellent opportunity for US exporters and LNG suppliers. This will generate market opportunities in services and equipment for LNG use in residential, commercial, and industrial sectors, also in fuel for heavy-duty (buses, mobile cranes, cement mixers, tractors) and other vehicles, as well as specialized trucks for LNG distribution in Panama and the Central American region.
If you would like more information about the opportunities in Panama’s energy market, please contact Jeane Zuniga, Commercial Specialist at Jeane.Zuniga@trade.gov