GLNG: Panama Canal seeks to increase transit volumes from US LNG producers

US LNG producers are seeking to increase volumes shipped through the Panama Canal and are currently in the midst of negotiations with the canal’s authorities to secure additional slots, Reuters reported on May 9.

The canal has long served as the preferred shipping route for US LNG producers based in Louisiana and Texas; however, a lengthy drought had left American LNG companies frequently choosing instead to utilise alternative routes such as the Cape of Good Hope and the Suez Canal.

With daily crossings reduced as a result of the low water levels, LNG producers were hit in the wallet, and forced to select more costly and longer routes when attempting to ship cargoes to Asia.

However, the situation at the canal has improved recently thanks to increased rainfall raising water levels, and consequently demand for slot allocations has been soaring.