LNG to drive Panama's Energy Hub Strategy

Posted on 2021-03-02

The use of liquified natural gas (LNG) regasification infrastructure will be a key aspect to turn Panama into a regional energy hub.

So reads the country’s 2020-30 energy transition strategy released by the Panama Energy Authority that calls for greater use of natural gas and renewable technologies.

Panama was Central America’s first country to incorporate LNG with the start-up of AES's Colón complex in 2018.

Action lines for LNG envision legislation to allow free access to related facilities and a “clear” regulation for the fuel’s export under a wider push to supply Central America and the Caribbean.

In recent days, Colon LNG Marketing (AES-Inversiones Bahía-Total) and Tropigas Natural signed a first contract to dispatch LNG via cistern truck in Panama and to Costa Rica.

The strategy also emphasizes decentralization using small-scale renewable energies and storage for distributed generation, electromobility, energy efficiency, and digitization.