The government of Panama said the construction began on the country’s first LNG-to-power project at the entrance of the Panama Canal in the Colon Province providing 350 MW of new capacity.
Built by AES Corporation’s Gas Natural Atlantico the project will include the construction of a 350 MW combined-cycle natural gas-fired plant with a 10-year power purchase agreement, and a 180,000 cbm LNG storage tank and regasification facility, to supply gas to the plant.
Panama’s president Juan Carlos Varela said that besides boosting the country’s energy diversification, the project opens the door for Panama to become an LNG distribution hub in the region.
Work on the project is expected to be completed in 2018 with a total cost ranging at around US$1.1 billion, the government informed.
In March this year, Engie signed a deal with Gas Natural Atlántico to provide up to 400,000 tons of LNG per year from 2018 on a 10-year period to power the project.
LNG World News Staff