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Panama Canal making way for US LNG

exports

February 21st, 2018 13:21 GMT by Lucy Hine

3 minutter

Cheniere Energy becomes largest LNG user shipping 62 cargoes

through the expanded waterway in 2017.

Two loaded LNG carrier transits per day are becoming standard for
the expanded Panama Canal as US exports start to grow with
shipments set to double before the year-end.

Following a meeting with US LNG producer Cheniere Energy, the

Panama Canal Authority (ACP) said: “ ..two-LNG-transit days have
become more and more frequent as the result of the optimisation
achieved by traffic scheduling and close coordination with canal
customers.”

The ACP said it is also offering more flexibility for LNG bookings to
accommodate exporters needs, even if this route was not in their
original plan.

“As expectations for growing LNG shipments materialize, the

Panama Canal is already working towards significantly increasing
the number of LNG vessels that can transit the Neopanamax locks
in a day,” it said.

Shippers of LNG single out Panama Canal pitfalls

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The ACP had originally kicked off with one reservation slot per day
for LNG vessels.

But the booking system has come under fire from owners and
charterers who have struggled to get their vessels booked in as
trading plans change and more frequent users take priority.

In this week’s meeting representatives from the Panama Canal led

by administrator Jorge Quijano, hosted executives Cheniere,
including managing director, commercial operations and asset
optimisation Eric Bensaude.

The Cheniere MD said his company was the largest LNG user of
the canal last year with 62 transits.

Since the expanded Panama Canal opened in June 2016 its

Neopanamax locks have accommodated more than 280 LNG
transits and traffic is expected to grow.

Quijano said that as US exports climb LNG transits could increase

by 50% from September.

Bensaude said: “The Panama Canal and the LNG industry are,
together, going through a learning curve.”

He said he is confident in the Panama Canal’s capabilities to adapt

in addressing the needs of the growing LNG sector. “The success
of the Panama Canal is essential to the satisfaction of Cheniere’s
customers and to the LNG industry as a whole.”

“The meetings with Cheniere allowed us to hear about customers’

experience transiting the Neopanamax locks first-hand, and to
collaborate on ways we can continue meeting this growing demand
from the LNG industry,” Quijano said. “We look forward to working
with all of our customers as the industry expands even more.”

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