Commodity Market Report
Panama LNG long-term outlook August 2017
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Report summary
As a non-producer of natural gas, Panama has relied strongly on oil products for power generation, especially heavy fuel oil. The government views LNG as a less-polluting low-cost energy source to substitute coal, fuel oil and diesel for power generation. Empresa de Transmisión Eléctrica (ETESA), the national operator of the electricity grid of Panama, held two auctions in 2015 for long term contracts of firm power supply, exclusively for thermal power plants. The auctions were won by Gas Natural Atlantico and Martano Inc., and involve natural gas power plants in the Colon province that will each provide 350 MW firm power. Gas Natural Atlantico involves a regas terminal project, Costa Norte LNG terminal (also known as Colon LNG terminal) that should start operations in 2018.
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