Panama’s key geographical position has played a significant role in the industry of production, storage, and distribution of energy. This sector, although broader, has two primary activities: Hydrocarbons and Electricity. Both sectors fall under the scope of the National Energy Secretariat and the Public Service National Authority.
In the hydrocarbon’s side, significant efforts have been advanced to create special regimes to benefit the importing, processing, storage, and trading of fuel products, derivatives, and alternative fuels. These regimes are tax exempt and heavily regulated.
We advise and assist our clients in obtaining the different permits granted by the National Energy Secretariat to operate from Fuel Free Zones.
List of currently operating Fuel Free Zones:
- Aeropuerto Internacional de Tocumen, S.A. (Tocumen International Airport)
- Autoridad Maritima de Panama (Cristobal & Balboa)
- [PTP] Petroterminal de Panama, S.A. (Charco Azul, Chiriqui)
- Petroport, S.A. (Cristobal)
- Payardi Terminal Company, S. DE R.L. (Bahia Las Minas)
- [PATSA] Petroamerica Terminal, S.A. (Rodman)
- Decal Panama, S.A. (Taboguilla Island)
- [COASSA] Colon Oil and Services, S.A. (Coco Solo, Cristobal)
- Melones Oil Terminal, Inc. (Melones Island)
- Telfers Tank, Inc. (Telfers Island)
- Costa Norte LNG Terminal, S. DE R.L. (Telfers Island)
The electric sector is also heavily regulated. Its market rules are a reflection of a consistent stride to ensure a constant and efficient supply of electricity in Panama.
Our country has several hydroelectric and thermal generating power plants that not only cover local needs, but serve as an important trading commodity in the foreign market, through the exportation of electricity.
Panama is part of both SIEPAC (Central American Electrical Interconnection System) and ICP (Interconnection between Panama and Colombia), therefore is capable to trade, import,, and export electricity with countries in the American continent.
Addressing concerns in these sectors requires highly specialized attorneys, as most regulations are proprietary of each sector. We at De Castro & Robles are proud to be in the capacity to provide advice on such matters.