Caribbean Fuels Holding is undertaking a multi-phase initiative to transform Panama into a key hub for fuel storage, distribution, and refining in the Americas. With over 15 years of experience as a fuel broker, the company is shifting its focus to infrastructure ownership to establish a long-term energy platform that controls critical segments of the supply chain.
The first phase involves the rehabilitation of a 109-hectare site in Gatún, located within the Panama Canal zone. Previously abandoned and deteriorated, the site is being restored as a modern storage and distribution terminal. Caribbean Fuels has committed an initial $25 million to repairs and environmental remediation, aiming to increase storage capacity from 1.2 million to 2.2 million barrels of fuel oil and diesel. The upgraded facility is intended to serve domestic needs and regional markets by stabilizing supply along one of the world’s most important logistics corridors.
In addition to infrastructure improvements, the project incorporates workforce development by creating jobs and providing technical training to support the surrounding communities. Company president Walber Castillo described the effort as rebuilding an industrial ecosystem with lasting economic benefits.
A more ambitious second phase is planned in Portobelo at María Chiquita, where Caribbean Fuels intends to construct a refinery complex. The initial refinery capacity is projected at 250,000 barrels per day, with room for modular expansion. The development will integrate port facilities, storage for crude and refined products, and an ethanol plant aligned with Panama’s fuel standards. Construction is expected to begin within six to eight months and continue over five to eight years.
Vice president Ramón Martinelli highlighted that the refinery is designed to exceed Panama’s domestic fuel demand, with less than 10% of the output anticipated for local consumption and the remainder slated for export. Given Panama’s strategic location as a maritime transit point via the Panama Canal, the refinery and expanded storage capabilities position the company to address underdeveloped marine fuel bunkering services—a sector Caribbean Fuels aims to revitalize by offering competitively priced fuel to vessels.
Beyond Panama, the company is negotiating to expand operations into the Dominican Republic, where a growing cruise and shipping market currently lacks dedicated fuel supply infrastructure. Caribbean Fuels plans to leverage its Panamanian base to extend distribution across the Caribbean basin.
The company’s strategy reflects broader shifts in global energy markets driven by supply disruptions, refining constraints, and geopolitical uncertainty. Its proximity to the United States, identified as the primary export market, offers a significant advantage amid rising demand for refined products.
Panama’s stable, dollarized economy, established logistics network, and association with Mercosur reinforce the country’s attractiveness for regional trade and investment, supporting Caribbean Fuels’ growth plans. While hydrocarbons remain central to its operations, the company is also preparing for the energy transition by allocating portions of its Portobelo land for renewable energy projects, including solar and wind power, in response to national limits on hydroelectric development.
Caribbean Fuels Holding’s phased approach—from brokerage to infrastructure ownership, then refining and export readiness—aims to establish a comprehensive energy platform in Panama. The company emphasizes sustainability, social impact, and economic revitalization as integral parts of its long-term vision. “We are creating capacity for the future,” Castillo said, “not only for the company but for the country as a whole.”