Panama envisions greater competition under new hydrocarbons framework

Panama’s hydrocarbons industry requires an overhaul to facilitate the entry of new actors and the adaption of existing agents to opportunities arising from the energy transition.

That is according to the country’s energy department which has issued a request for information (RFI) to update the hydrocarbons regulatory framework. 

“The national hydrocarbons policy must promote the supply of suppliers throughout the value chain together with the alternatives that green hydrogen will provide. Likewise, a good legal design will promote transparency, security, and competition,” argues the department. 

The authority adds that Panama’s geographic position and infrastructure support the expansion of the country as a regional logistics hub for fuels, biofuels, and alternative fuels such as green hydrogen, ammonia, and methanol. 

Last year, the government reactivated a committee to update sector regulations. 

The consultancy work – should a call be launched following the RFI – would include conducting a study of the current market for four scenarios to 2025, 2030, 2040 and 2050; preparing a new legal and regulatory framework; and proposing an institutional strengthening strategy to improve oversight. 

The RFI is available here, in Spanish. 

For related developments, click on the following links: 

The Republic of Panama and Energy Transfer Announce the Signing of a Memorandum of Understanding to Study the Development of Liquified Petroleum Gas Assets in Panama 

Panama energy transition scenarios envision investment of up to US$8.8bn 

Panama promotes hydrogen distribution center for the region