Sinolam International, a Singapore-based investment company focused on oil, gas, and power investments in emerging markets in Asia and Latin America, has confirmed the formation of an independent tribunal in an arbitration case related to the cancelation of permits for a gas-to-power development in Panama, spurring concerns over regulatory risk in the Latin American energy markets, the future of liquefied natural gas (LNG)-to-power infrastructure, and the impact of investment disputes on cross-border energy capital.
The World Bank’s International Centre for Settlement of Investment Disputes (ICSID) has officially constituted its tribunal in Sinolam International versus Republic of Panama (Case No. ARB/26/12), a move said to mark a pivotal step in the arbitration process regarding the revocation of permits for a gas-to-power development in Panama, a 441 MW power generation project and LNG terminal in Colón.
The three-member panel, chaired by Anglo-Spanish arbitrator Joseph Tirado , alongside Spanish experts Antolín Fernández Antuña and Lluís Paradell Trius , will now hear claims that Panama’s 2024 cancelation of Sinolam’s energy license amounted to unlawful expropriation under the Panama-Singapore free trade agreement (FTA).
“The naming of the panel acknowledges the validity of Sinolam’s claim. It signals the 2024 revocation of the company’s energy license is worthy of a formal international treaty dispute review into the merits of the allegation the cancelation was an unlawful asset expropriation rather than a routine regulatory decision,” emphasized the firm.
A U.S. Federal District Court in Virginia remanded its lawsuit against AES Corporation, originally filed on December 19, 2025, in the Circuit Court for Arlington County, back to the Virginia state court on April 24, 2026, granting Sinolam’s request over the other player’s objections.
Sinolam LNG Terminal and Sinolam Smarter Energy LNG Power Co. , which are energy infrastructure developers focused on LNG-to-power solutions in emerging markets, previously welcomed the $33.4 billion AES acquisition by the BlackRock-led consortium, as it could strengthen financing in the context of any future resolution of the litigation.
The dispute now transitions from the initial registration phase to the formal tribunal constitution phase under a fully operational, independent three-member international judiciary panel. Assembling this panel of jurists is interpreted as a recognition by the international legal community that the dispute is active and significant.
Kenneth Zhang , CEO of Sinolam International, commented: “Sinolam enthusiastically welcomes the official constitution of this distinguished ICSID tribunal. The seating of this panel instills confidence in our case.
“This milestone validates our resolve to protect international investments and ensures our search for justice will be evaluated by a world-class tribunal of independent legal minds.”