Colon LNG Terminal

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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Colon LNG Terminal, also known as the Costa Norte LNG Terminal, is an LNG terminal under development in Colon, Panama.

Location

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Project Details

  • Parent: AES (50%), Inversiones Bahía, Ltd (50%)
  • Location: Colon, Panama
  • Coordinates: 9.357222, -79.898611 (approximate)
  • Capacity: 1.5 mtpa, 0.31 bcfd
  • Status: Operating
  • Type: Import
  • Start Year: 2018

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

Colon LNG Terminal, also known as the Costa Norte LNG Terminal, is an LNG terminal under development in Colon, Panama.[1]

The Costa Norte LNG Terminal is owned by energy company AES (50%) and Panamanian Inversiones Bahía, Ltd (50%). In May 2017, French energy company, Engie, and U.S. company, AES, both agreed to enter into a join-venture to market and sell the gas imported to the Costa Norte LNG terminal. The terminal is planned to have a capacity of 1.5 mtpa, of which almost half will be used for the AES owned power plant currently under construction at the same site. The rest of the gas will be sold on the market.[2]

The South Korean firm, POSCO, was awarded the contract to build both the power plant and LNG terminal.[3]. Besides its primary purpose of providing gas to its on-site power plant, it is also said to be able to power 15 million households and some industry near the Panama Canal and Colon.[4]

In 2012, Panamanian President Ricardo Martinelli signed a law which would increase the role of natural gas in Panama's economy. The law provides incentives for the promotion of natural gas projects that supplied local power plants for energy generation, increasing the likelihood of natural gas project proposals in the future.[5]

In August of 2018, AES inaugurated AES Colón, the 381 MW combined cycle power plant and the first liquified natural gas (LNG) terminal in Central America. The plant and regasification terminal were expected to begin commercial operations on September 1, 2018 and the LNG tank, which will be the largest in the Caribbean, is expected to begin operations on schedule in the second half of 2019.[6]

In October 2019, the terminal started full operations with the inauguration of its storage terminal.[7]

Articles and resources

References

  1. Colon LNG Terminal, News, accessed April 2017
  2. ENGIE and AES Agree to Expand their LNG Marketing Partnership to Central America, AES, May 5, 2017
  3. Costa Norte Project, BNamericas, accessed September 2017
  4. Posco to Build Power Plant and LNG Terminal in Panama,Energy Business Review, accessed September 2017
  5. Panama: Law Encourages Natural Gas Energy, Central America Data, accessed September 2017
  6. AES Announces Inauguration of AES Colón CCGT and Central America’s First LNG Terminal Business Wire, accessed February 2019
  7. "AES inaugurates AES Colón LNG storage tank Offshore Energy, Oct. 18, 2019

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