During an official visit to Japan, President José Raúl Mulino, joined by Canal Affairs Minister Jose Ramón Icaza and Canal Administrator Ricaurte Vásquez Morales, announced the start of the Canal Pipeline Project. This will be the first major development within a new energy corridor planned along the interoceanic route.
The project aims to diversify revenues for the Panama Canal, reduce reliance on water-intensive shipping, and strengthen the country’s position as a key hub for global trade.
What the Plan Includes
The Canal’s Board of Directors has approved the process to select a concessionaire for the project. The timeline will unfold in three phases:
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Pre-qualification of interested companies (set to begin this year)
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Interaction and dialogue with those pre-qualified
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Final concessionaire selection, expected by late 2026
Officials emphasize the process will be transparent and competitive, with participation from leading global companies.
Projected Benefits
According to government estimates, the pipeline could become one of the largest Canal-related investments in history, delivering:
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Over 6,500 jobs annually during construction and nearly 9,600 in operation
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About B/.160 million in yearly revenue for the state during construction, rising to more than B/.1,500 million in operation
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Added value to the national economy of roughly B/.590 million per year during construction and B/.2,700 million once operational
This initiative is part of a wider logistics strategy that includes new container transshipment terminals and improved road links between the Atlantic and Pacific.
Why It Matters for Panama
Pipelines connected to major trade routes have proven to be transformative in other countries. For example, energy corridors in the Middle East and Europe have secured long-term revenue streams, attracted investment, and provided stability in times of changing global shipping patterns.
For Panama, this project could serve a similar role by:
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Expanding trade services without using additional canal water
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Diversifying income in a period of climate-related challenges for the Canal
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Reinforcing Panama’s status as a logistics and energy hub for the hemisphere
As President Mulino stated in Tokyo, the pipeline represents “a strategic bet by Panama to remain a key country in the global economy.”
Written on: September 7, 2025
