CB Fenton, Kanfer plan LNG bunkering, distribution hub in Panama

CB Fenton, part of Ultramar (Chile), and Norway's Kanfer Shipping have signed an MoU to develop LNG bunkering and a small-scale LNG distribution hub in Panama, they said on December 22.

The parties have joined forces and are now seeking a partner in the LNG trading space. The joint venture will be chartering ships from Kanfer, buying and supplying LNG to the maritime industry as well as gas to power clients in the region, the companies said.

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 fleet of dual-fuelled ships and to power-intensive industries, and power stations in Central America and the west coast of 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,” said CB Fenton CEO Marco A. Guerra. “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.”

The companies believe that facilitating LNG bunkering to the ships passing or calling Panama is good for the Panamanians as LNG is not only far more environmentally friendly than conventional fuels but could also have an impact on the tourist and cruise industry in the country.

“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 Kanfer managing partner Stig Hagen.

The two companies said they are now seeking partners to make the business proposition even more appealing to the industry.

“We believe the right partners shall have experience with bunker trading and/or commodity trading and know-how about LNG or natural gas,” Hagen said. “We will actively be seeking such partner and structure the project for having LNG bunkering and distribution services available in 2025/26. Kanfer last year signed a shipbuilding contract for two ships plus options. They also have a unique design for both sea transportation and floating storage at a time. Both solutions could fit the project in Panama.”