LNG Leading the Central American Switch as Pacific Coast Import Plans Materialize

Low-cost liquefied natural gas (LNG) is heralding new times for Central America, as the super-chilled fuel displaces costlier and dirtier oil-based products for power generation.

Central America has been one of the big losers of the petroleum age, and the region faces huge trade deficits in oil, a leading electricity source for the region along with hydropower.

The 2018 inauguration by AES Corp. of a $1.15 billion LNG-to-power project on the Caribbean end of the Panama Canal marked a decisive step away from oil-fired electricity for the region.

This year, plans for LNG imports on the Pacific side of the isthmus have begun to solidify as well.

Mexico’s government has in recent days cited Central America as a potential market for LNG export projects envisaged for the...