Panama was recently ranked the third most attractive country into which invest in clean energy
As a result of its capacity to transit and store LNG, a new law in was established in YEAR to encourage the construction and operation of power plants based on natural gas. Since then several plans for the construction of LNG plants have been approved.
Due to its strategic location, Panama is key to plans to connect the electricity grids of North and South America
Central to this is the Colombia-Panama electricity interconnection project, which will see the construction of a 600-kilometer were transmission line between the two neighboring countries that will produce 300-400 megawatts of electricity. After some years of dormancy, the project re-launched and is expected to be completed by 2020. Panama is also part of the landmark SIEPAC system, a project has been constructed for the transmission lines to connect 35 million consumers in Panama, Costa Rica, Honduras, Nicaragua, El Salvador, and Guatemala, at an estimated cost of USD 300 million.
Panama is becoming a LNG hub for the region
In Panama there is one regasification project which is under construction, a second one is under development and a third one is under study. These facilities will change the energy matrix of Central America and the Caribbean and will reinforce the role of Panama as an energy logistics hub, adding natural gas to its offer of liquids fuels transhipment and it key role in the bunkering business. The expansion of the LNG market through small LNG transport strategies and the potential use of natural gas by vessels are opening a new scenario for the energy logistics business in the country.