The Panama Canal Authority (PCA) this week met with US midstream operators — as well as producers, traders and equipment manufacturers — to kick off a concession process for a proposed LPG pipeline across the isthmus.
Midstream operators Phillips 66, Energy Transfer and Fortress Investment Group, all of which operate US LPG export terminals, participated in the meetings, PCA said Thursday.
PCA announced earlier this month it would launch the concession process for the project, described as a 76km, 2.5mn b/d pipeline system to ship ethane, propane, and butane between the Atlantic and Pacific, freeing up space on the Panama Canal.
Companies that pre-qualify will be able to participate in the concession process, which is scheduled to conclude by the end of 2026, according to PCA.
Others included in this week's discussions were CB Fenton, Eneos, ExxonMobil, Gyxis, Itochu, Japan Bank for International Cooperation, Mitsubishi, Movement Industries, Nippon Koei, Otamerica, Promigas, Puma Energy, Regent Energy, Shell, SK Energy, Sumitomo, Sumitomo Mitsui Banking, Ultranav and Vitol.
The US last year exported 5.07mn metric tonnes (t) of ethane (245,000 b/d) through the Panama Canal, according to Kpler data. Propane shipments via the canal totaled 30mn t, or 1.02mn b/d, and butane shipments totaled 3.5mn t, or 105,000 b/d, according to Kpler.
Delays at the canal, which is a major thoroughfare for crude, containerships, and LNG vessels, have pushed LPG shippers into longer routes to Asia via the Cape of Good Hope, driving up freight costs.
The meetings this week came as PCA finalizes plans for next year's long-term slot allocation process.
