Panama Accelerates Caribbean Energy Exploration to Strengthen Regional Energy Security

Panama’s National Energy Secretariat confirmed plans on May 24, 2025, to advance offshore oil and gas exploration in its Caribbean waters, leveraging legacy seismic data and regional partnerships to diversify its energy portfolio.

Energy Secretary Juan Manuel Urriola detailed the strategy at the Panama Week Texas 2025 investment forum, highlighting technical assessments from a 2017–2018 survey covering 5,840 linear miles of 2D seismic data.

The initiative aligns with Panama’s 2018 Energy Plan, which modernized legal frameworks for hydrocarbon development. Geological studies by ION Geophysical identified submarine structures resembling Colombia’s Kronos and Gorgon gas fields near the shared maritime border.

A technical delegation visited Colombia in May 2025 to collaborate with state-owned Ecopetrol, analyzing cross-border reservoir potential. Panama’s energy pivot follows Guyana’s offshore oil boom, which spurred 184% GDP growth from 2019–2023.

The Panama Canal Authority (ACP) further supports energy infrastructure development, approving an 80-kilometer interoceanic liquefied petroleum gas (LPG) pipeline in April 2025.

The $1.2 billion project will transport U.S.-imported LPG from the Caribbean to the Pacific for Asian markets, complementing AES Corporation’s 381 MW LNG plant in Colón, operational since 2019.

Secretary Urriola emphasized energy security as a priority, noting Panama’s 100% renewable grid milestones in late 2024 while advocating for gas as a stabilizing force amid volatile global markets.

Panama Expands Energy Infrastructure with ACP Pipeline

The ACP’s pipeline project aims to address rising LPG demand, forecasted to double globally by 2035, and reduce canal congestion for gas carriers.

Panama’s strategic investments position it as a regional energy hub, with AES Panama announcing potential natural gas exports to Colombia starting in 2025.

Legal frameworks under Law No. 8 of 1987 and petroleum-free zones incentivize foreign investment, attracting firms like Repsol and ExxonMobil. The government has not disclosed exploration timelines but reaffirmed adherence to environmental regulations during data reevaluation.

This push reflects broader Caribbean trends, with Suriname and the Dominican Republic also expanding gas exploration. Panama’s dual focus on renewables and hydrocarbons aims to balance economic growth with infrastructure readiness, ensuring adaptability in a shifting energy landscape.