The company AES Panama launched its liquefied natural gas storage system in the province of Colon, from where it plans to supply the entire Central American region.
This liquefied natural gas (LNG) distribution system will supply the 381 MW thermal plant located on site, also owned by AES, which began operating in August 2018.
AES and Engie have agreed to create a joint venture to market and sell liquefied natural gas to third parties in Central America.
The new company will use infrastructure of the Costa Norte LNG Terminal, which is currently under construction in Colón, Panama, owned 50/50 by AES and Inversiones Bahia.
The total capacity of Costa Norte LNG Terminal is approximately 1.5 million metric tons per year (mtpa), of which 25% will go to AES Colón's 380 MW combined cycle plant (CCGT), currently under construction at the same site.
The 380 MW natural gas plant to be built by AES in Panama promises to change the country's energy matrix, and the way energy is generated and distributed in Central America.
The economic flow that has already started with the construction of the gas plant in the province of Colon will be felt not only in the energy sector in Panama, which could become an energy generating and distribution hub in the region, but also in other productive sectors that will benefit from greater stability in energy costs and generate greater dynamism in logistics and shipping.
Like the entire private sector, the Association of Free Zones of Costa Rica is complaining about the high cost of electricity and lack of concrete actions to resolve the situation.
Before considering Petrocaribe, companies operating under this regime in Costa Rica are suggesting a further diversification of the energy matrix in order to lower costs.
Energy EPM which already has a presence in Guatemala, El Salvador and Panama, has reaffirmed its interest in the region with the opening of another branch.
From a statement issued by EPM Group:
The Board of EPM authorized at its meeting on Tuesday the establishment of a branch of its organization in Costa Rica as part of an internationalization strategy that seeks to explore new business opportunities in the neighboring country, listed as one of EPM's target markets.
Private sector leaders have asked President Evo Morales to start negotiations for the import of gas at a cost of $500 thousand per year.
The Chairman of the Bolivian State Power Corporation, YPFB, along with the Ministry of Hydrocarbons would be responsible for negotiating supply to the Central American country, according to statements by the nation's President Evo Morales.
Companies from the sector are to meet on February 13 in Santo Domingo at a Forum on the panorama for natural gas in the Caribbean.
On Feb. 13 A "Forum on the Panorama for Natural Gas in the Caribbean" will be held in the Dominican Republic. During the event the prospects for natural gas in the Caribbean basin will be analyzed in terms of energy security, economic development and the role of natural gas as a cleaner source of energy for countries in the region.
The Mexican government is considering constructing a pipeline and eventually a refinery to supply the region.
Miguel Hakim, Mexican Secretary for Latin America and the Caribbean, said his country is considering building a refinery and natural gas pipeline which would cross the isthmus and would be an alternative option for generating power at low cost. Petroleos Mexicanos (Pemex), has $2 billion to invest.
Johnny Araya , candidate for the ruling party, has proposed a tax package aimed at improving collections and gas exploration to boost new energy sources.
Araya proposes the creation of the National Tax Administration Agency in order to combat tax evasion and improve tax collection. According to him , the fiscal deficit is affecting governance and competitiveness.
The industrial sector is willing to import the LNG needed without state intermediaries in order to reduce production costs.
"On 11 June, the Administrative Court accepted a law which is forcing the Ministry of Environment and Energy (Minae) to decide, within fifteen working days, on the possibility of the private sector importing liquefied natural gas (LNG)," reported Elfinancierocr.com.