Panama advances gas pipeline for new interoceanic energy corridor

Panama President José Raúl Mulino has announced the start of the process to develop a gas pipeline as the first step towards a new interoceanic energy corridor.

The project, slated as one of the largest investments in the history of the Panama Canal, forms part of the Panama Canal Authority’s strategy for revenue diversification, which aims to expand the service offerings and increase the cargo movement capacity beyond maritime transport, and thereby consolidate Panama as a strategic hub for global trade.

The strategy also contemplates the development of an intermodal logistics hub that will include terminals for container transshipment – the first two both on the east bank of the Canal – storage areas and a road along most of the length of the west bank of the Canal between the Centennial bridge about 20km inland from Panama City to the Atlantic bridge on the edge of the Atlantic.

“The pipeline we are announcing today is a strategic bet by Panama to remain a key country in the global economy, generating development for Panamanians and ensuring the sustainability and competitiveness of the Panama Canal,” said President Mulino in making the announcement.

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No details about the proposed gas pipeline have been released but the Canal’s board of directors has granted authorisation to begin the concessionaire selection process, with a formal launch soon to take place in Panama.

Pre-qualification of interested parties will begin this year with the aim for the final concessionaire selection stage to close in the fourth quarter of 2026.

Benefits expected include the creation of more than 6,500 jobs during the construction stage and nearly 9,600 in the operational phase.

Average annual revenue to accrue for the state is estimated at approximately B/.160 million ($160 million) during construction and more than B/.1.5 billion during operation.

The average annual added value to the national economy is estimated at around B/.590 million during construction and B/.2.7 billion in operation.

In August the Panama Canal completed 111 years of operations and claims a robust sustainability strategy with a strong focus on decarbonisation and climate change adaptation.

On that day the first two of 10 tugs with hybrid electric propulsion were christened, promising significantly reduced emissions, improved energy efficiency and lower underwater noise, as well as substantial fuel savings and extended maintenance intervals.