Panama seizes $191.7m oil corridor to bypass its own canal

Panama has finalized the purchase of the remaining shares in Petroterminal de Panamá, achieving full state ownership of a key oil transport network that serves as an alternative energy corridor across the country.

The government acquired the final 41% stake in Petroterminal for $191.7 million, completing a process that began with the original 1977 agreement. The system includes marine terminals at Chiriquí Grande on the Caribbean coast and Charco Azul on the Pacific, connected by a 131-kilometer pipeline.

Strategic infrastructure now under state control

This infrastructure allows crude oil and refined petroleum products to transit Panama without relying on the Panama Canal. The corridor handles approximately 10 million barrels per month, while the deepwater terminal at Charco Azul can accommodate very large crude carriers (VLCCs), reinforcing Panama’s position in global oil logistics.

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Authorities have stated that current operations and commercial contracts will remain unchanged following the acquisition. The purchase was financed using Petroterminal’s existing revenues and projected cash flows, eliminating the need for external funding.

Continuity assured as Panama expands influence

The transaction reflects Panama’s growing focus on controlling critical maritime assets. Earlier this year, the government took over the Balboa and Cristóbal container ports after terminating CK Hutchison’s concessions, later transferring their management to subsidiaries of Maersk and MSC. Unlike that contentious process, the Petroterminal deal was executed through a pre-established purchase option, avoiding legal conflicts.

With full ownership secured, Panama gains greater authority over the corridor’s future, including potential expansions and integration with broader energy and maritime development plans.

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