Panama Canal: 'The Only LNG Way is Up'

Panama Canal administrator Jorge L Quijano led a delegation that met customers in Japan, South Korea, China and Taiwan last week.

"These meetings allowed the Panama Canal to obtain valuable information from shipping industry executives in Asia to develop projections for various segments and to improve service provided at the waterway," the Panama Canal authority (PCA) said April 6.

Asked what details the meetings provided for future LNG projections, the PCA told NGW: "More than 100 LNG vessels have transited the expanded canal, accounting for more than 8.1mn Panama Canal tons (PC/UMS) through the waterway. This segment has surpassed the canal's original expectations of one transit per week and, on average, 5.2 LNG vessels have transited the canal per week. As of April 6, more than 60 reservations for LNG vessels have been made for the upcoming months. However please note that this number can change on daily basis and will continue to grow."

This marks a sharp increase from the eight LNG tankers it expected to transit in August 2016, shortly after the expanded canal's June 2016 opening.

PCA's April 6 press statement said the delegation met Japanese LNG importers Astomos, Tokyo Gas, Itochu Steel, and Nippon Steel & Sumitomo Metal Corp to promote the expanded canal and that their meeting served to identify future trends that will be considered in long-term planning at the canal. Separately, the delegation also met Mitsui OSK Line (MOL), NYK Lines, K Line and the Japanese Shipowners' Association.

The Panama Canal delegation met shipping industry executives in South Korea in early April  (Photo credit: Panama Canal)

It added that in South Korea, the delegation met state importer Kogas, as well as private importer SK, and visited the Samsung SHI shipyard in Geoje to view the construction of Neopanamax LNG vessels, specially designed to transit through the enlarged canal. 

In China, the delegation met Cosco Shipping Lines president Xu Lirong, ranked 5th among the canal's customers, before travelling on to Taiwan. 

Cheniere’s US Sabine Pass trains 1 and 2 supplied 2.64mn metric tons of the world's LNG imports in 2016, according to the recently published annual report of GIIGNL (the International LNG Importers Association), although only 19% went to Asia through the canal. The largest share went to Latin America (58%), mainly to Mexico and Chile some of which also transited the canal, followed by the Middle East (14%) and Europe (9%).

Mark Smedley