LNG to drive Panama's energy hub strategy

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 energy department 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.

Read First liquefied natural gas distribution contract for Panama and Costa Rica

Other planned LNG developments in Panama include the 441MW Gas to Power Panama and 671WM Telfers projects.

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

The energy department will accept comment on the 2020-30 roadmap, available here, for 30 days at infoenergia@energia.gob.pa.

The proposed strategy followed a public engagement process conducted in 2019 that included meetings with stakeholders.

Photo credit: AES Panamá