Panama launches interoceanic gas pipeline project

Panama Canal launches interoceanic gas pipeline project

Panama

PANAMA CITY, September 4, 2025 – Panama has initiated a project to construct a gas pipeline along the Panama Canal to create a new interoceanic energy corridor, the Panama Canal Authority announced on Wednesday.

The canal’s board of directors has authorised the beginning of a pre-qualification and selection process for concessionaires to carry out the project. Pre-qualifications are expected to begin in 2025, with final selection in Q4 2026.

Part of a broader push to diversify revenue streams and increase Panama’s competitiveness as a transit hub in global energy trade, the project is slated to be one of the largest investments in the canal’s history. The Panama Canal Authority estimates the project can bring average annual revenues of USD 160 million during the construction phase and more than USD 1.5 billion once operational.

The pipeline is expected to carry products such as ethane, butane and propane and potentially free up transit slots for LNG tankers.

President of the Republic José Raúl Mulino announced the project during an official visit to Japan. “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,” Mulino said.

As part of its revenue diversification strategy, the Panama Canal Authority is also aiming to expand its service offerings with the construction of container trans-shipment terminals at the ports of Corozal and Telfers, on the canal’s eastern bank, and a new road along the western bank.

Photo courtesy of the Panama Canal Authority