CB Fenton and Kanfer to establish hub for LNG bunkering and small-scale LNG distribution in Panama

C.B. Fenton & Co. (CB Fenton), part of Ultramar (Chile), and Kanfer have signed an MoU to establish a hub for LNG bunkering and small-scale LNG distribution in/out of Panama. 

The parties have joined forces and are now seeking a partner in the LNG trading space. The purpose would be that the parties define a joint venture (JV) structure where the JV will be chartering ship(s) from Kanfer, buy LNG and trade them to the maritime industry as well as gas to power clients in the Region.

Panama is among the most important water ways on earth and a strategic location for bunkering. Every year there are more than 13,000 ships passing through the locks of the Panama Canal and a significant number of those ships have waiting time before entering the locks. About 80% of the conventional bunkering is done on the Pacific side (Balboa). For this reason, the parties have agreed to perform a feasibility study for a floating storage unit (FSU) of LNG on the Pacific side. 

This FSU will then be a source for smaller ships to supply the growing fleet of dual fueled ships with the cleanest fuel available, but also distribute the energy to power intensive industries and power stations in Central America and West Coast South America. 

“We are delighted to partner with Kanfer for such an innovative service. More than 90% of the world trade is moved across the oceans and we believe that it requires cleaner fuel options. An LNG Bunkering and distribution hub in Panama is in line with our sustainability strategy and will add value to the trade lanes using the Panama Canal. Our purpose is to contribute to the quality of life in our region of influence, through facilitating the foreign trade,” said CB Fenton’s CEO, Marco A. Guerra.

“SEA-LNG is pleased to see continued development of new LNG bunkering infrastructure in strategic maritime locations. In addition to the previously announced bunkering services in Egypt/ Mediterranean, the Suez Canal and the Red Sea, Kanfer Shipping is now teaming up with partners to offer much-needed LNG bunkering services in Panama. This will bolster LNG bunkering capabilities in the region to support the rise in newbuild orders for LNG Fueled ships and continue to lay the foundation for the network of bunkering locations to support the future transition  to bio-LNG and e-LNG. Waiting is not an option and Kanfer Shipping is playing a critical role in the adoption of LNG as marine fuel,” said Mr. Adi Aggarwal, General Manager Sea-LNG.

“We cannot do anything about the LNG prices, but together we can reduce the infrastructure cost considerably. We are confident that Panama will be an important LNG bunkering hub and even though LNG is said to be a transition fuel, we will see more of bio-LNG and synthetic LNG in years to come. We should even start researching for bio-LNG in Panama,” said Managing Partner in Kanfer, Stig Hagen.

Photo credit: Luis Aleman on Unsplash
Published: 23 December, 2022