Friday, 5th September 2008 - 14:17CET

Enemalta gas division privatisation: operator to invest €25m in new plant

Enemalta and a Maltese-Italian consortium have signed a draft agreement for the privatisation of Enemalta's gas division. The new company is binding itself to invest €25m in a new gas bottling plant once a final agreement is reached.

The governemnt announced that the agreement was signed between Enemalta ,Gasco Energy Ltd. and Liquigas Malta Ltd., two joint venture companies between Multigas Limited and Liquigas S.p.A. of Italy.

The agreement will be the basis for the final agreement, pending parliamentary approval of a sub-emphyteutical deed.

When the final agreements are signed, Enemalta will be transferring the management and operation of its LPG (Liquified Petroleum Gas) activities to Gasco Energy Ltd. and Liquigas Malta Ltd.

The Gasco consortium was chosen following a competitive tender issued by the Privatisation Unit within the Ministry of Finance, the Economy and Investment.

Gasco Energy Ltd. will be building and operating a new state of the art and fully certified LPG bottling and storage facility at Bengħajsa with an investment of over €25 million. The new storage and bottling plant will fully respect the EU stringent criteria as established in the Seveso II Directives, recently adopted by Malta.

The documentation was initialed by Enemalta chairman Alex Tranter, Multigas chairman Louis A Farrugia and Paolo Dal Lago, chief executive of Liquigas S.p.A., on behalf of Gasco Energy Ltd. and Liquigas Malta Ltd.

Previous article • Air Malta to introduce service fees for non-online bookings
Next article • New collective agreement at One Productions

Article © Allied Newspapers Ltd., printed on Sunday, November 22, 2009. This article is for personal use only, and should not be distributed.

Comments

Maurice Vassallo (on 8/9/08)

The price will invariably go up over a period of 5 years if not less as has already been agreed with the consortium

Alfred Farrugia (on 5/9/08)

@ J Farrugia and Joe Cordina. While on the subject, comparing things like with like, Marsa residents were there well before the Enemalta power Station. However we aquired nothing!. oh yes i forgot.. we were compensated with the infamous Open Centre

john fenech (on 5/9/08)

May I ask is this a state approved private monopoly, because according to this article Enemalta will be transferring the management and operation of its LPG (Liquefied Petroleum Gas) activities to Gasco Energy Ltd. and Liquigas Malta Ltd. That is, it will cease all activities related to gas bottling and distribution.

Since one of the partners is SPA of Italy we expect a reduction on the price of bottled gas! But if this will be asking for too much was there any kind of agreement to keep the gas price stable after the take over.

Alfred Farrugia (on 5/9/08)

Congratulations to the successful bidders – I am not related to them! Can Malta’s small market support two providers? If it does, would it not be better to have some competition, even though two providers might form a duopoly?

Does anybody remember that in Sliema we used to have “town gas” delivered directly to our homes’ appliances?

How about compressed natural gas (CNG) for other purposes, including cars?

http://www.cngnow.com/EN-US/Vehicles/Pages/GlobalGallery.aspx

http://www.cngnow.com/EN-US/Vehicles/Pages/default.aspx

http://www.cngnow.com/EN-US/Pages/default.aspx

Joe Cordina (on 5/9/08)

Well Qajjenza residents have muyshroomed only recently, the gas plant was there well before them and so they knew what they were up against. On the other hand they had bought the land or home at a relatively cheap price which will surely go up when the move is made. SO WHY ALL THIS WEEPING

J Farrugia (on 5/9/08)

N Attard and s agius. The plant was there before you even dreamt of living nearby. So don't start squeaking for refunds or whatever. You opted to go there at your own and your own families' personal risks. Always Thank God nothing worse has ever happened to those living near the plant. I chose never to go build my house there near a danger spot. So ...

Charles Micallef (on 5/9/08)

The relocation will be more than welcomed especially for the nearby residents, they can breath a sigh of relieve!

HOWEVER....

Hush hush deal ! Why ?
Can we now wait for a substantial increases in the cost of LPG?
Will the standard of the dreadful service afforded to the consumer improve?
Someone out there please update us?

N Attard (on 5/9/08)

The most important statement was 'Gasco Energy Ltd. will be building and operating a new state of the art and fully certified LPG bottling and storage facility at Bengħajsa "
At least, we qajjenza residents can now finally put our mind at rest that we will never find our house and whole neighbourhood carbonised with only a big black smoking hole remaining instead.
The current plant was surely not suited to be within metres of houses. Only God knows what would have happened if god godforbid a fire/explosion took place.
I now just hope that the petrol storage opposite the bay moves as well. Ass all know, here in Malta authorities would only take action once people die or are seriously injured. Unless no disaster happens no poiltician cares less!!!

Paul Gauci (on 5/9/08)

About time. The relocation should have been carried out over 4 years ago.

S. Agius (on 5/9/08)

No spare change for the many families who have suffered for all these years living in close proximity to the Benghajsa compound, taking in the smell which becomes intolerable at times. As always, no one has an idea of the damage done most probably.

Paul Borg (on 5/9/08)

Now we know who to side with in cycling :-)

ALFRED MIFSUD (on 5/9/08)

Where does the consumer stand in all this? Will we be better or worse? Will there be full price liberalisation or will LPG continue to be subsidised given its social use for basic cooking and heating? How is it that the consumers are kept in the dark when matters that affect them directly are being negotiated? LPG is one of the most economical ( no transmission losses) and environmental friendly energy sources. Full liberalisation will push consumers to use of other more environmentally offensive alternatives.

Phil Press (on 5/9/08)

Can't wait for the price rise.

E. Azzopardi (on 5/9/08)

And where is the promised energy liberazation which had to come into force two years ago?
Is the EU asleep? Never make a promise you cannot keep. Does not count for politicians though!!!

Enemalta gas division privatisation: operator to invest €25m in new plant

Comments

Poll

Fun Stuff

	15 °C
Mostly Cloudy Feels like: 14.5°C UV Index: 3