Construction of a pipeline to move liquefied petroleum gas (LPG) across Panama could start in 2027, the head of the Panama Canal said on Tuesday.

Canal chief Ricaurte Vasquez said that the canal, which is expected to tender the project soon, could receive initial interest from bidders as soon as the first quarter of next year, with the process to be carried out through 2026.

The canal is eyeing the pipeline to move U.S. LPG bound for Asia from one side of the canal to the other, he added.

The total investment to complete a so-called “energy corridor,” which would include three pipeline segments to move different types of gas, is estimated at between $4 billion and $8 billion, Vasquez said.

Following the expansion of its area in a Supreme Court ruling , the waterway is moving to offer different projects for companies to build so it can expand the services it provides to clients.

The pipeline, once operating, would represent an economic boost equivalent to 3.6% of Panama’s gross domestic product (GDP), a presentation from Vasquez showed.
Source: Reuters