Panama as a regional energy hub

A 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 with Panama becoming a regional hub.

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 reports CentralAmericaData.

In a lengthy report, Martesfinanciero.com details the features of the AES Colón project, “which will generate 380 megawatts through three natural gas turbines -one of them steam based- for the country and will provide greater energy efficiency, because 60% of the gas or fuel will produce 100% of the generation of the service.”

The timing is good as Panama looks to diversify its economy with increasing presssure on the country’s financial services, set off by the Mossack Fonseca scandal, and aggravated by the Wakedmoney laundering allegations.

Senior vice president and director of global operations at AES, Bernerd da Santos said in report by Martesfinanciero. that “… ‘The location of the plant in Colon is privileged. We are building a plant to produce electricity that will provide stability to Panama’s energy system, which is mainly hydrologic, and will also complement the supply of natural gas, with a tank with a capacity of 180 thousand cubic meters for other uses, because 25% of that fuel will be for power generation and the rest, 75%, can be used by industries, vehicles and even for the bunkering system because of the global trend of cargo ships changing fuel from oil or diesel to gas, or installing a dual system for the use of both hydrocarbons’. “