A consortium led by BlackRock has purchased two ports on either side of the Panama Canal for $22.8 billion, just weeks after President Trump threatened to use force to regain control over the energy-rich waterway. The deal involves several dozen ports worldwide and aims to address concerns about neutrality in the new federal government.
According to reports, Larry Fink, BlackRock’s CEO, pitched the idea to Trump, offering to buy the ports from CK Hutchinson, owned by Hong Kong billionaire Li Ka-Shing. This move comes as part of BlackRock’s expansion plans globally in search of fresh profit opportunities.
The Panama Canal is a critical waterway for US energy exports, particularly liquefied natural gas (LNG) sold in Asia. However, its use has been limited due to weather conditions and market economics. Cheniere Energy’s chief operating officer stated that the company uses the canal only when it is economically viable, citing delays and unfavorable market conditions.
The deal marks a significant shift in the Panama Canal’s ownership, following years of discussion about boosting its capacity to handle increased LNG exports. BlackRock’s acquisition comes amid heightened tensions between the US and China, with Trump having previously threatened to regain control over the canal due to concerns about Chinese-linked ownership.
This latest development has raised questions about the implications for the global energy market and the future of US energy exports through the Panama Canal.
Source: https://oilprice.com/Energy/Energy-General/BlackRock-Buys-Key-Panama-Ports-Amid-US-China-Tensions.html