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Panama Pipeline Deal

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The Republic of Panama and Dallas-based Energy Transfer have signed a Memorandum of Understanding to study the feasibility of joint participation in a proposed Trans-Panama Gateway Pipeline project.

The non-binding MOU signed yesterday in Dallas by Energy Transfer executive chairman Kelcy Warren and Panama President Laurentino Cortizo Cohen would expand Energy Transfer’s international operations into new markets while providing Panama the opportunity to establish itself as a distribution center of petroleum products to markets globally.

Energy Transfer owns more than 90,000 miles of pipelines and associated infrastructure in 38 US States and Canada, with international offices in Canada and Beijing.

The project under consideration by the parties includes the development, construction, and operation of a terminal on the Pacific side of Panama and another on the Atlantic side connected by a pipeline for the receipt, transport, and export of LPG to international markets.

Any decisions made by the parties will be based on the outcomes of joint feasibility studies and an economic analysis related to the transportation of LPG in Panama.

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