Liquefied natural gas (LNG) shipping company Gaslog Ltd said on Wednesday it had struck a deal to lease a tanker for 10 years to a gas-to-power project in Panama being developed by a Chinese company and supplied by Royal Dutch Shell.

Gaslog will convert the Gaslog Singapore, currently used as a conventional LNG tanker on the short-term spot market, into a floating storage unit (FSU) that will receive and store LNG off the coast of Colon, a port on the mouth of the Panama canal, Reuters reports.

The LNG will then be piped to an onshore regasification facility and the consequent gas used as feedstock in a power plant being built by Sinolam Smarter Energy LNG Power Co, a unit of private Chinese investment firm Shanghai Gorgeous.

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