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Panama Canal Authority to announce opening of bidding for LPG Pipeline

On Friday, the Panama Canal Authority announced that it had authorized the bidding for a new pipeline to transport liquefied gas (LPG), across the interoceanic watersway.

The planning for projects to increase the capacity of the trans-shipment and storing of goods has increased since the Panama Supreme Court ruled last year that areas near the Canal should be returned to the Panamanian administration.

The pipeline will allow LPG vessels discharge at one end while other tankers pick up cargo at the opposite end. This will reduce the traffic of vessels on the waterway.

Japan's purchase

The project will help to increase the supply of U.S. LPG, said Ricaurte Vasquez, the Canal's director last month.

In a press release, the canal said it would seek out companies that are technically and commercially capable of executing the pipeline's construction and, eventually, its operation.

The release added that "this complementary activity will be integrated into the sustainable development on the West Bank of the Panama Canal, which includes alternative activities to the transport of products by sea."

The authority of the canal said that bids would be accepted in the months following approval by the board.

(source: Reuters)