• 2 hours Conflicting News Spurs Doubt On Aramco IPO
  • 3 hours Exxon Starts Production At New Refinery In Texas
  • 4 hours Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 22 hours Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 22 hours Oil Gains Spur Growth In Canada’s Oil Cities
  • 23 hours China To Take 5% Of Rosneft’s Output In New Deal
  • 24 hours UAE Oil Giant Seeks Partnership For Possible IPO
  • 1 day Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 1 day VW Fails To Secure Critical Commodity For EVs
  • 1 day Enbridge Pipeline Expansion Finally Approved
  • 1 day Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 1 day OPEC Oil Deal Compliance Falls To 86%
  • 2 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 2 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 2 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 2 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 2 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 2 days Aramco Says No Plans To Shelve IPO
  • 5 days Trump Passes Iran Nuclear Deal Back to Congress
  • 5 days Texas Shutters More Coal-Fired Plants
  • 5 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 5 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 5 days Chevron Quits Australian Deepwater Oil Exploration
  • 5 days Europe Braces For End Of Iran Nuclear Deal
  • 6 days Renewable Energy Startup Powering Native American Protest Camp
  • 6 days Husky Energy Set To Restart Pipeline
  • 6 days Russia, Morocco Sign String Of Energy And Military Deals
  • 6 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 6 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 6 days India Needs Help To Boost Oil Production
  • 6 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 6 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 6 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 6 days District Judge Rules Dakota Access Can Continue Operating
  • 7 days Surprise Oil Inventory Build Shocks Markets
  • 7 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 7 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 7 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 7 days Oil M&A Deals Set To Rise
  • 7 days South Sudan Tightens Oil Industry Security
5 Players To Watch In The FinTech Revolution

5 Players To Watch In The FinTech Revolution

Artificial Intelligence and Blockchain tech…

Kobe Steel Scandal Could Rattle Nuclear Industry

Kobe Steel Scandal Could Rattle Nuclear Industry

The scandal at Japan’s Kobe…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

$5B Panama Canal Expansion Opens Sunday, Promising To Change Global Trade

Panama Canal

As the Panama Canal prepares to inaugurate its first-ever expansion on Sunday with a price-tag of US$5.25 billion, news agencies are lauding it as a game-changing development that will reshape global trade.

Some 40,000 workers toiled away for almost a decade to dig the canal’s new access lane—the first expansion of the Panama Canal since it was built in 1914.

The expanded canal will allow ships carrying up to 14,000 containers to traverse trading coasts between the U.S. and Asia much faster.

“Previously, the size limitations of the canal created logistical bottlenecks for U.S. propane exports to reach markets in Asia, forcing shippers to perform ship-to-ship transfers,” according to the U.S. Energy Information Administration (EIA).

“The new, larger Panama Canal locks will allow most Very Large Gas Carriers (VLGC), the type of ship that carries propane and other hydrocarbon gas liquids (HGL), to transit, likely reducing or even ending the practice of ship-to-ship transfers.”

Due to the vessel size restrictions prior to the expansion, the majority of hydrocarbon shipments through the canal last year were refined products, according to the EIA.

Related: NASA May Have Just Transformed Aviation With 100% Electric Plane

According to a Panama Canal Authority manager quoted by news agencies today, the new canal can accommodate ships carrying up to 5,000 containers and will allow nearly three times as many containers to pass, while importantly removing a critical bottleneck for natural gas between U.S., Asian and South American ports.

“We’re opening up new markets that were never even considered before,” a canal official said, as reported by USA Today.

A new class of ship, the NeoPanamax, will now be able to pass through the canal, which means that 400,000-600,000 barrels of oil per tanker—with four transits per day--can get to market faster.

By James Burgess of Oilprice.com

More Top Reads Fro Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Helmut on June 28 2016 said:
    All that's needed now is The movement of Containers or just any Freight.
  • David Petray on June 28 2016 said:
    I lived in Panama (US Army) for a few years. Beautiful country. Friendly people. I've often thought about retiring there except for one thing--the government is corrupt. That a government is corrupt is not news for anyone who has lived south of the Rio Grande. You might say that the US Government suffers from the same disease, and it does, but whereas the US Government may have a common cold of corruption, Latin America suffers from terminal cancer of corruption. If the Panamanian people work hard to keep corruption out of the Canal Authority, Panama may become the most successful nation in Latin America. I doubt that it can be avoided, but I hope so.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News