Trans-Panama Pipeline

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The Trans-Panama Pipeline is a 81 miles (130 km) long oil pipeline, which runs across Panama near the Costa Rican border from the port of Charco Azul on the Pacific coast to the port of Chiriqui Grande, Bocas del Toro on the Caribbean.

Contents

[edit] History

The Trans-Panama Pipeline was opened in 1982 as an alternative to carry crude oil from the Pacific to the Atlantic Ocean.[1] Between 1982 and 1996 the pipeline transported 2.7 billion barrels of Alaskan oil to the U.S. Gulf Coast ports. After declining Alaskan oil shipments the pipeline was closed in 1996. In November 2003, the Trans-Panama pipeline was re-opened for transportation of Ecuadorian crude oil to U.S. Gulf ports.[2]

[edit] Capacity

The capacity of the pipeline exceeds 860,000 barrel per day.[2]

[edit] Operator

The pipeline is owned and operated by Petroterminal de Panama S.A., a joint venture of the Government of Panama and Northville Industries.[1][3] The Government of Panama, currently owning 40% of the company, plans to acquire rest of shares in the company.[4]

[edit] Reverse flow

In 2005, Venezuela began talks about reverse using the pipeline for its oil exports to China.[3] In May 2008, BP signed an agreement with Petroterminal de Panama S.A., according to which the pipeline will be modernized and reversed to ship BP's Angolan and other crude oil to the U.S. West Coast refineries. Modernization works are expected to take two years. According to the agreement, BP will acquire 5 million barrels of storage capacities and commit to secure shipments of 65,000 barrels per day.[1]

[edit] References

  1. ^ a b c "BP Finds Shortcut To US West Coast Refineries", Downstream Today, 2008-05-28. Retrieved on 2008-05-31. 
  2. ^ a b Gordon Fellers. "Where are the world's oil transit chokepoints?", Pipeline & Gas Journal, June 2004. Retrieved on 2008-05-31. 
  3. ^ a b "Central America Energy Data, Statistics and Analysis - Oil", Energy Information Administration, November 2007. Retrieved on 2008-05-31. 
  4. ^ "Republica de Panama acquires Petroterminal de Panama SA (pending)", Thomson Financial Mergers & Acquisitions, 2008-04-22. Retrieved on 2008-05-31.