Multinational oil corporation BP is planning on reopening and reversing the flow of a crude oil pipeline in Panama to bring Atlantic basin crude oil to west coast American markets. The pipeline was originally created to pump Alaskan crude from the Pacific to Atlantic side of the isthmus, yet was shut off in 1996 once the flow of oil from Alaska began to slow. The reversing of the pipeline will cut the travel time of crude oil from Africa going to refineries on the west coast of the United States by 30 days. BP has agreed to ship 65,000 barrels a day through the pipeline beginning in 2024 for seven years. Venezuela had previously expressed interest in using the pipeline to bring crude to the Pacific ocean for shipment to China, hoping to diversify their oil exports away from the United States. The reopening of the PTP pipeline, along with expanding oil reserves along the Panama Canal, will help to further elevate Panama’s position in the world as a major transfer point for products entering American markets.
Source:
BP Backs Plan To Reverse Panama Crude Oil Pipeline (Reuters.com)
