The Panama Canal Authority (ACP) and a Spanish-led building consortium expanding the major world cargo route on Tuesday moved nearer to a deal to keep work going amid a cost dispute. The two parties each proposed a joint financing package.

According to Reuters, halting work on the project to widen and deepen the canal would be a setback for companies eager to use the century-old waterway to ship liquefied natural gas (LNG) exports from the US Gulf coast to Asian markets. The Panama Canal project was originally slated to cost $5.25 billion.

While the two sides are at odds over who should pay for $1.6 billion in cost overruns, both have agreed to put up at least $100 million each to keep the project running. The cost overruns could put the overall project bill at close to $7 billion, the report said.

However, building consortium Grupo Unidos por el Canal (GUPC) said it had asked ACP for a $400 million in advance. GUPC is led by Spanish construction company Sacyr Vallehermoso SA, Reuters said.

The Panama Canal project will create a new lane of traffic along the canal and double the waterway's capacity. Work on the expansion began in 2007 and is 72% complete, the report said.