Panama is banking on LPG. Canal to cushion decline in global trade

The Panama Canal is preparing for a slowdown in global trade by focusing on the growing transport of liquefied petroleum gas (LPG) and agricultural goods.

According to canal administrator Ricaurte Vásquez, LPG is a promising product with increasing value—the canal has already regained over 95 percent of its share of US LPG exports to Asia.

In response to this trend, Panama plans to build a pipeline with a capacity of two million barrels per day, which is scheduled for completion by 2030. In addition, two ports are planned to be built by 2029 and a large reservoir, Rio Indio, by 2031 to ensure the canal's freshwater supply.

These infrastructure projects require investments of US$8.5 billion. Despite a 14 percent increase in revenue and a 19 percent increase in transits in the last fiscal year, the canal expects a decline in freight volume of around 40 million tons for the current year.

(reuters, lup)