THE Panama Canal Authority (ACP) has confirmed plans for an energy pipeline in a bid to relieve pressure and increase resiliency.

While the ACP did not specify which product would be transported through the pipeline, chief executive Ricaurte Vasquez previously told Platts that a pipeline could potentially free up more transit slots for LNG carriers.

The project will be incorporated into the “sustainable development of the Panama Canal’s West Bank route, which includes activities and alternatives to transporting products by sea”, ACP said in a statement.

Its construction will “strengthen Panama’s strategic position” and “ensure the canal’s long-term competitiveness and sustainability”.

Vessels would be able to discharge their cargo at one end of the canal, before it is pumped to the opposite side and loaded onto another vessel, freeing up transit slots that otherwise would have been used transporting that cargo on the water.

Sustainability is high on the agenda for the canal following the drought which caused severe restrictions on draught and transit slots for much of 2023-2024.

Relieving pressure demand for slots could be crucial if drought becomes more frequent thanks to climate change.

ACP will now begin a “transparent bidding process” for the project as it seeks to create competition for the tender and attract “the participation of companies that are technically and commercially qualified” to build the pipeline.

No indication of a completion date for the project was given by the authority.