Expansion of the storied Panama Canal came to a halt in February when talks between the canal authority and the construction consortium failed to resolve a $1.6 billion dispute.

Both parties are pointing fingers for creating the unplanned, additional costs to complete the third set of canal locks—th most expensive element of the expansion that’s needed to balance vessels between different water levels.

Canal authority administrator Jorge Quijano said in a statement that the door is open for a reasonable resolution, but
work must resume immediately as required by the contract. He said the consortium—which includes Spain’s Sacyr Vallehermoso SA, as well as companies from Italy and Belgium—directed the workers to stop work. Subsequently, other contractors have come forward to complete the work, but Quijano hasn’t provided details about an alternative plan.

The June 2015 completion date remains intact. Some speculate the dispute stems from the consortium’s low, $3.1 billion bid on the project. Major U.S. construction company Bechtel had submitted $1 billion more in its unsuccessful bid fro the work.

Midstream businesses are among those counting on the expanded Panama Canal. Houston-based Kinder Morgan Partners has been in talks to deliver Texas crude to California through the waterway, which would help domestic crude compete with imports from Saudi Arabia.

Meanwhile, a handful of North American projects have been announced in early 2014. After a successful open season in fourth-quarter 2013, Phillips 66 Co. is proceeding with its Cross-Channel Connector project, which will carry 180,000 barrels (bbl.) per day of refined petroleum across the Houston Ship Channel via pipeline. The project could be complete as soon as the fourth quarter.

Enbridge has pledged $200 million toward an expansion at Sunday Creek Terminal in northern Alberta. The project will
support production in the Christina Lake oil sands and will include a 350,000 bbl. storage tank along with associated piping and pumps. In-service date for the project has been set for the third quarter of 2015.

Valerus announced it will be supplying two turn-key compressor stations to Crestwood’s Marcellus operations in Doddridge County, West Virginia. The compressors will handle 120 million cubic feet per day of gas. ?

Deon Daugherty contributed to this report.

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