Choke points could emerge to inhibit global LNG trade expansion in 2018
As the market embarks on a second year of record level LNG supply from the Atlantic Basin and strong competition from Asia for those volumes, a potential choke point is emerging: the Panama Canal.
The canal can transit just one LNG vessel a day, laden or ballast, and only during daylight hours. The vessel transit restriction will be in place until October 2018 when capacity is expected to double to two vessels a day.
In this video, S&P Global Platts Senior Director for Global Gas and LNG Madeline Jowdy examines how concerns about the Panama Canal can affect trade flows and investment decisions.