Panama Canal LNG Expansion

The Panama Canal, a vital trade route for U.S. LNG exports, seeks to increase transit for LNG vessels. After a drought-induced capacity decrease, the Canal is in discussion with U.S. LNG producers to address rising demand following the replenishment of its water levels. The possibility of prioritizing LNG vessels through revised slot allocation and client surveys is being explored to attract LNG business from new U.S. facilities. The Canal faces a balancing act between increased LNG traffic and maintaining its position as an open channel for diverse international trade. Recognizing the long-term threats of climate change, the Panama Canal plans to construct water reservoirs. The newly elected president supports accelerating this process. To reflect the growing value of water, the Canal also plans to update its pricing system in the coming year.

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