ACP squashes LNG transit capacity issues

The Panama Canal Authority (ACP) declined issues in covering the transit demand from the liquefied natural gas (LNG). 

The authority responded to Bloomberg’s report claiming that the natural gas industry is blaming the Panama Canal Authority for transit delays as only one LNG tanker is guaranteed a transit daily.

To remind, the Bloomberg report also claimed that the Authority is blaming the LNG industry for not sticking to the timetables.

In a response to the media company, Jorge L. Quijano, the administrator of the Panama Canal Authority, said that the canal has enough capacity to handle all the vessels transiting the expanded Panama Canal. He added that no Neopanamax vessels, including LNG carriers, were facing delays.

In response to claims that one daily transit for LNG tankers is not enough, Quijano said that according to the year-ahead booking data demand is currently at less than seven slots per week. In addition, 40 percent of the vessels reserving a slot to transit the expanded Panama Canal, cancel their reservation.

The issue is the proximity of cancelation to the transit window, preventing other vessels from booking that slot.

Currently, LNG carriers average only four transits per week, which goes against claims that the LNG industry needs additional transit capacity.

LNG World News Staff