The Republic of Panama and US midstream company Energy Transfer have signed a memorandum of understanding (MOU) to study the feasibility of a liquefied petroleum gas (LPG) pipeline project.

The project, if it goes ahead, will expand Energy Transfer’s international markets, and establish Panama as a global petroleum products distribution hub.

The non-binding MOU was signed in Dallas, US, by Energy Transfer executive chairman Kelcy Warren and the president of Panama Laurentino Cortizo Cohen.

The proposed project includes the development, construction and operation of an LPG terminal on the Pacific side of Panama and another on the Atlantic side of the country, connected by a pipeline, for the receipt, transportation and export of LPG to international markets.

The partners will carry out feasibility studies and an economic analysis for the transport of LPG through Panama and any final decisions will be based on these.

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20th July 2021