GE officials aren't disclosing financial terms of the deal announced Wednesday, which marks the third deal to provide engines for Panama Canal tug boats since 2008.
The authority bought 26 engines to power 13 boats now in service, and four more engines are currently being built at GE Marine, a division of the northwestern Pennsylvania GE Transportation business.
It was not immediately clear when the new engines would be built or when the boats using them would be in service.
GE officials say Marinsa International will install the engines and support the Panama Canal fleet. Marinsa is GE's authorized distributor for Panama.