South Korean construction firm Posco E&C has received a contract $650m engineering, procurement and construction (EPC) contract for the 180,000m3 LNG terminal and 380MW combined-cycle power plant at Colon in Panama.

Under the contract, signed with Gas Natural Atlantico and AES subsidiary Costa Norte LNG Terminal, Posco will construct the combined cycle power plant, which is expected to be the largest of its kind in Panama.

The power plant will generate electricity required to meet the energy needs of around 15 million households. It will also ensure a stable supply to the industrial complex near the Panama Canal and Colon area.

Posco E&C senior executive vice-president Kun Soo Oh said: "POSCO E&C was consecutively awarded two projects since December 2015 [by AES], in the Philippines and Chile.

"These awards have helped POSCO E&C to increase its competitiveness in overseas power plant markets."

The LNG terminal will be built in Colon Province, 60km away from Panama City.

LNG World Shipping cited a Panama Canal Authority (ACP) source as saying: "This terminal will focus on the use of LNG as a fuel source for electrical power generation for the Panamanian market, a redistribution point for a future small-scale LNG plant in the region and an LNG-bunkering facility as an alternative fuel for vessels transiting the Panama Canal."