The Panama Canal Authority (ACP) is preparing to step into new territory (port operations) with bold plans to develop its first-ever terminals. According to Bloomberg (via Maritime Executive), ACP intends to tender the construction and management of two specialized ports designed for LPG tankers, one on each side of the isthmus.
The terminals will be linked by a pipeline, creating a shortcut for liquefied petroleum gas shippers who want to move cargo between the Atlantic and Pacific without relying on a canal transit. The project builds on a long-discussed idea: a trans-Panama LPG corridor, born out of surging U.S. Gulf Coast production and the unrelenting appetite for propane and ethane across Asia.
Traditionally, very large gas carriers (VLGCs) haul this trade through the canal. But prolonged droughts in recent years highlighted the system’s vulnerability, limiting transits and forcing shippers to rethink logistics. With the proposed pipeline, cargoes could be offloaded on one coast, transported overland, and reloaded on the other side – bypassing draft restrictions and costly delays.
ACP chief Ricaurte Vásquez has hinted that demand from China’s petrochemical industry could further fuel the need for this solution. At the same time, diverting LPG volumes out of the canal would open valuable slots for other energy trades, like LNG.
For the canal authority, the initiative is more than just infrastructure – it’s a strategic debut into port operations. “We are coming into the game of port terminals”.
The bidding process for the LPG pipeline was approved back in April, and ACP is now preparing to launch the tender for operators to run the new terminals on both coasts. A historic step for one of the world’s busiest maritime crossroads – and perhaps a glimpse into the future of Panama’s role in global trade.
Picture: Federico Rios/The New York Times/Redux
