Backwards Step for 670 MW Gas Plant

The National Public Services Authority has canceled the license it had granted to the Panama NG Power to build and operate a thermoelectric generation plant in Colón, Panama.

Wednesday, December 20, 2017

Ending a process that lasted more than seven years, the National Public Services Authority has permanently canceled the license that had granted to Panama NG Power S.A. to build a thermoelectric plant with an installed capacity of 670 MW.

Read the history of this process here, starting from 2011 when a provisional license was granted to Panama NG Power S.A., for the first time, through the call for tenders to generate energy based on natural gas in 2013 and the difficulties the company experienced in complying with the deadlines required by the ASEP during the process.

From the resolution given by the ASEP on December 6, 2017:

IT IS RESOLVED: 

FIRST: DECLARE that the company PANAMA NG POWER, S.A., did not comply with the provisions of Resolution Three of Resolution AN No.10381-Elec of August 31, 2016, by which Resolution Two of Resolution AN No.7333 was modified -Elec of May 6, 2014, modified by Resolution AN No. 7369-Elec of May 21, 2014, regarding the presentation of the Financial Closing for the construction and operation of the thermal generation with natural gas project, to generate electricity, called TELFERS, on October 13, 2017.

See full resolution by the ASEP. (In Spanish)

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According to the Panama Canal Authority, NG Power only has permission to build a 130 MW plant, so it will have to go through a new procedure if it expects to develop the 670 MW plant, as planned from the beginning.

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New Opportunity for $900 million Gas Plant

January 2018

One month after its license was canceled, a judicial ruling has reactivated the project to construct and operate a 670 MW natural gas plant, under the responsibility of NG Power.

With the ruling from the Supreme Court of Justice, the cancellation of the license to build the 670 MW thermoelectric plant, announced in December 2017 by the National Public Services Authority, is now null and void.

License Revoked for 670 MW Gas Plant

December 2014

The National Public Services Authority has revoked the final license granted to Panama NG Power for the construction and operation of a power plant in the province of Colón.

From the order given by the National Authority for Public Services in Panama (ASEP):

It is resolved: