The enhanced Panama Canal is going to be a boon for US liquefied natural gas (LNG) exports to Asian markets and parts of South America, says the US Energy Information Administration (EIA).
In a new report the EIA says the Canal – which inaugurated its new locks last Sunday – will significantly reduce travel time and transportation costs for LNG from the US Gulf Coast to Asia and to South American countries with Pacific coasts.
After the $5.3bn expansion project, the Canal’s deeper, wider new locks mean it can now accommodate 90% of the world’s LNG tankers with capacity up to 3.9 billion cubic feet (Bcf), the EIA says.
Prior to expansion only 30 of the smallest LNG tankers with capacities up to 0.7 Bcf could use the inter-oceanic waterway.
As an example of improved travel times the EIA says a vessel using the Canal to travel from the US Gulf of Mexico to Japan will reduce its voyage from 34 days to 20.
The impact should be similarly dramatic on journey times to some South American countries. For instance, the journey to regasification terminals in Chile could come down from 20 days to 8 or 9 days.
Part of the US government’s Department of Energy, the EIA is responsible for collecting, analyzing and disseminating energy information to promote sound policy making, efficient markets and public understanding of the energy sector.
