News

Panama’s infrastructure continues to improve at a rapid pace. The latest addition is the region’s largest thermal generation plant based on Liquefied Natural Gas (LNG), which is expected to significantly impact energy supply and consumer prices.

The Gatún Generator, a joint investment between InterEnergy Group Ltd. (51%) and AES Panama (49%) will generate 670 megawatts (MW) and is expected to “help provide greater reliability and stability to the electric generation system,” according to coverage in El Capital Financiero.

While electricity news may not seem very important to the real estate market, it is always exciting to see Panama making such huge strides forward. Panama is still a relatively young country, and the infrastructure improvements are happening at a rate, transforming Panama into a modern powerhouse.

Around the country, you see the type of projects found in established democracies around the world. The Metro, the first in the region, is certainly an example, as the build-out continues to connect neighborhoods around the city. But then there are projects like a plan to develop an advanced biorefinery plant in Panama to produce lower-carbon aviation fuel, the next big thing in the international air transportation industry.

At a regional level, Generadora Gatún will transform Panama from an occasional importer to a full exporter of energy to other countries in the region, the paper reports. At the national level, the plant will allow distribution companies to “contract the energy they need and stop depending on the occasional market (spot), which will lead to a decrease in the price of energy in the spot market and better prices for consumers.”

According to Esteban Barrientos, general manager of Generadora Gatún, although demand for energy in Panama and the region will continue to grow, the new facility will “allow for a reliable and stable electrical system, which will guarantee the firm power capacity that the country requires and will allow for the addition of more renewable energy in the future.”

The Gatún Generator is in early energy production tests, in preparation for its start of operations, scheduled for October of this year.