The Panama Canal is set to open a bidding process for the development of a new pipeline aimed at transporting energy products, complementing the operations of the vital waterway. This pipeline will enable the movement of liquefied petroleum gas (LPG) between the Atlantic and Pacific Oceans, a strategic step to enhance the Canal’s operations.
The initiative comes in response to the challenges posed by the climate-driven droughts of 2023 and 2024, which caused a decrease in the Canal’s deep-draft transits. In November 2024, Panama Canal Administrator Ricaurte Vásquez revealed a plan to diversify operations and solidify Panama’s position as a key global shipping hub. The new pipeline project is expected to support the sustainable development of the Panama Canal’s West Bank route, incorporating alternative methods of transporting products beyond sea-based logistics.
This new infrastructure aims to bolster Panama’s strategic relevance and increase the Canal’s capacity, ensuring its ongoing competitiveness. The Canal Authority (ACP) has already submitted a request for authorization to proceed with the bidding process, which will be guided by a private initiative proposal. This proposal was carefully assessed by the ACP and external advisors to confirm its feasibility.
The Panama Canal’s goal is to conduct a transparent bidding process that encourages the highest level of competition, targeting companies with the technical and commercial expertise needed to develop and operate the pipeline.
ACP emphasized that this initiative is critical for the long-term sustainability of the Canal, facilitating global maritime trade and boosting social investment within Panama. Additionally, the Canal has recently launched a new initiative to prioritize vessels powered by low-carbon fuels and fitted with energy-efficient technologies, aligning with global shipping decarbonization goals. Starting in October 2025, the Panama Canal will introduce a weekly NetZero Slot for Neopanamax vessels that meet strict low-carbon emission criteria.