Norwegian company Kanfer Shipping and CB Fenton, part of Ultramar (Chile), have signed a memorandum of understanding (MoU) with Melones Oil Terminal (MOTI) to commercialise small-scale LNG bunkering and distribution in Panama.
In December 2022, Kanfer Shipping and CB Fenton joined forces to set up a hub for LNG bunkering and small-scale LNG distribution in/out of Panama .
Now, the companies are bringing onboard MOTI, one of the largest marine fuel oil terminal operators in Panama which provides marine fuels storage services, and its affiliate company Trader Tankers to commercialise the LNG bunkering hub in Panama and more specifically in Balboa.
The parties see LNG as the transition fuel for the maritime industry and consider Panama a strategic location for LNG bunkering.
MOTI is located on the Pacific side of Panama where about 80% of the conventional bunkering is being done and the parties want to establish a small-scale LNG terminal on this side, to serve the ports along the Pacific side and do small-scale LNG distribution along the coast.
According to their joint statement, the partners are on a good track to realise their plans as they have identified most of the LNG sources in the region.
For the next step, the group aims to commercialise this project and will start a feasibility study which will include finding another partner from the LNG bunkering and distribution value chain.
Kanfer noted that discussions with such parties have already commenced.
The parties’ target is to see the service up and running with Kanfer’s bunkering ships by late 2025 or early 2026.