The Panama Canal expansion will allow the transit of larger ships, with greater volumes of oil and LNG, according to the US Energy Information Administration (EIA).
The Panama Canal currently has a limited role in global crude and petroleum product transport. The canal's current size restrictions means smaller vessels, with capacities of approximately 400,000-550,000 barrels of light sweet crude oil, are the only ships that can safely pass through the canal. These ships are referred to as Panamax tankers, and their smaller cargos lead to a higher per-barrel cost.
However, the Panama Canal is undergoing an expansion that will allow for the passage of larger vessels with capacities of approximately 400,000-680,000 barrels of crude oil. These larger tankers have the potential to increase crude and petroleum product transport through the canal.
Source: US Energy Information Administration; Surveyor (2002); Maritime Connector.
Larger vessels or vessels that are slightly over the draft limit can use the Trans Panama Pipeline, which runs parallel to the canal and has both the loading and unloading points for a complete transfer, however doing so adds to shipment costs. In addition to oil transit, the expansion of the Panama Canal, now slated for late 2015, will be able to provide passage for up to 80% of global shipping of LNG. It currently allows passage of only a small percentage of LNG shipping and only shipping by the smallest of LNG tankers.
Principal contributor: T. Mason Hamilton. Source: EIA.
Edited by Katie Woodward
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/22092014/panama-expansion-to-allow-larger-ships-1292/