Oceaneering Resumes Subsea Load-Outs At Panama City Facility

(Oceaneering, 8.Nov.2018) — Oceaneering International, Inc. provided an operations update on its manufacturing facility in Panama City, Florida and its recovery from Hurricane Michael.

“Exceeding our own expectations, production activities at our Panama City facility have resumed. Subsea hardware load-outs are in progress, and umbilical deliveries are scheduled to begin this week,” said Oceaneering’s President and Chief Executive Officer Roderick A. Larson. “Our production equipment has undergone extensive testing and is mostly operational. We do, however, expect repair work to continue through the end of December. We continue to believe that, on balance, we fared well relative to the severity of the storm.”

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#LatAmNRG

Panama, US To Sign Pact To Expand Access To LNG

(Reuters, David Lawder, 17.Aug.2018) – Panama on Friday will sign an agreement with the U.S. Treasury and Energy departments aimed at paving the way for more private investment to expand the importation and distribution of U.S. liquefied natural gas in Latin America.

David Malpass, Treasury undersecretary for international affairs, said he hopes the “framework agreement” is the first of several with countries in the region to encourage investment to increase access to cheaper, cleaner energy.

The agreement is part of a Treasury-led initiative called America Crece, incorporating the Spanish word for growth, aimed at boosting U.S. LNG exports, developing Latin American energy resources and downstream demand.

Malpass is in Panama for the signing and the inauguration of a major new LNG terminal and 381-megawatt gas-fired power plant in Colon, Panama, run by U.S. power company AES Corp.

He said in an interview that new investments encouraged by the agreement will help turn the AES Colon project into an LNG distribution hub, with cargoes imported from the United States sent to other countries in the region, including Guatemala, Honduras, Nicaragua.

These countries and many Caribbean islands now rely largely on oil to generate electricity, with Venezuela a major supplier.

In 2017, French utility Engie and AES established a joint venture to market and sell LNG to third parties in Central America using the Panama terminal as a distribution hub.

The $1.15 billion AES facility on Panama’s Caribbean coast, which is expected to begin commercial generating operations on Sept 1, and LNG tank distribution operations in 2019, took in its first U.S. LNG cargo in June.

The Panama agreement allows for the U.S. agencies to help address regulatory and other barriers to investment, Malpass said, which can create opportunities for downstream demand and distribution.

“The framework agreement itself squarely addresses the obstacles that the private sector may be finding in that country,” Malpass said. In the case of Panama, he added, the framework agreement with the United States is a signal from Panama to the world that it welcomes investment, in particular private sector funding of projects.

The agreement also aims to encourage increased electrical grid access in rural areas of Panama and Central America and adoption of new technologies such as battery storage to improve reliability and foster economic development, he said.

(Reporting by David Lawder; Editing by Steve Orlofsky)

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FDI in LAC Region Falls for Third Straight Year

(Energy Analytics Institute, Ian Silverman, 12.Jul.2018) – Foreign Direct Investment (FDI) in Latin America and the Caribbean fell for a third straight year in 2017, reported the Economic Commission for Latin America and the Caribbean or CEPAL by its Spanish acronym.

The details were revealed in CEPAL’s annual report titled “FDI in Latin America and the Caribbean 2018.”

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VTTI Announces Acquisition in Panama

(VTTI B.V., 25.Jan.2017) – VTTI B.V., an independent provider of energy storage, announced an acquisition of a 230,000 m3 facility in Panama, resulting in a joint venture between VTTI and Global SLI.

This deal sees VTTI take a 75% interest in PetroAmerica Terminal, S.A. (PATSA), a terminal strategically located on the Pacific side of the country, close to the Panama Canal, with a wide range of refined products storage.

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AES Awarded Panama’s First Gas-Fired Plant

(AES Corporation, 11.Sep.2015) – AES Corporation announced that its subsidiary, Gas Natural Atlantico S. de R.L., won a competitive bid process conducted by the Electric Transmission Company, SA (ETESA), the state’s electric transmission company, to supply 350 MW of new capacity. The project will include the construction of a 350 MW combined cycle natural gas-fired plant with a 10-year Power Purchase Agreement (PPA), and a 170,000 m3 LNG storage tank and regasification facility, to supply gas to the plant, as well as to potentially serve growing demand for natural gas in Central America.

“Together with our local partner, Inversiones Bahia, we are very happy to announce that we were the lowest bidder for ETESA’s 10-year PPA for 350 MW. We will construct a low emission combined cycle power plant, which will be fueled by LNG via the new regasification terminal on Panama’s Atlantic coast,” said Andrés Gluski, AES President and CEO.

“Building a state of the art LNG regasification terminal near the entrance of the enlarged Panama Canal will enable Panama to become an energy hub for Central America and the Caribbean, by supplying lower cost, reliable and sustainable fuel, which will benefit many sectors, including electricity generation, transportation and ship bunkering.”

AES expects to sign the 10-year PPA by YE:15. The project is subject to customary regulatory approvals including, but not limited to, an environmental impact assessment study and a definitive generation license. These approvals and financial close are expected before commencement of construction. Construction of the project is expected to begin in early 2016, with commercial operations expected in 2018. The total project cost is expected to be in the range of $800-$900 mln, which will be financed with a combination of non-recourse debt, equity from partners and AES equity of up to $210 mln.

AES entered Panama 16 years ago and since then has made a total investment of more than $1.3 bln in the country. Currently, AES owns 777 MW (471 MW on an ownership-adjusted basis) of mostly hydroelectric generation.

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