Panama's President José Raúl Mulino has announced a new natural gas pipeline project, the first major step in creating an energy corridor along the Panama Canal. 

Announced during an official visit to Japan, where Mulino was accompanied by Minister for Canal Affairs Jose Ramón Icaza and Panama Canal Administrator Ricaurte Vásquez Morales, the pipeline is part of a broader strategy to strengthen Panama’s competitiveness and meet the demands of the global energy market.

The Panama Canal Authority's Board of Directors has approved a transparent and competitive selection process for a concessionaire in phases, with the expectation of attracting world-class companies.

This will include a pre-qualification phase for interested companies starting this year, followed by dialogue and a final selection phase, with the final concessionaire scheduled to be chosen in the fourth quarter of 2026.  

Mulino described the project as one of the largest investments in the canal's history, with significant economic benefits. 

"The pipeline is a strategic bet by Panama to remain a key country in the global economy, generating development for Panamanians and ensuring the sustainability and competitiveness of the Panama Canal," Mulino said.

The pipeline is projected to create over 6,500 jobs during construction and nearly 9,600 during operation, generate an average of $160 million in annual revenue for the state during construction and more than $1.5 billion during operation. 

According to the announcement, the project’s annual value to the national economy is estimated at $590 million during construction and $2.7 billion in its operational phase.

The pipeline is central to the Panama Canal Authority’s revenue diversification strategy, which aims to expand its services without requiring more water. This strategy also includes developing an intermodal logistics hub with new container transshipment ports and a connecting road.