Gas operation to be run by two joint-venture companies

Enemalta will be transferring the management and operation of its LPG (liquefied petroleum gas) activities to Gasco Energy Ltd and Liquigas Malta Ltd, two joint-venture companies between Multigas Ltd and Liquigas SpA of Italy, the government announced yesterday.

Representatives of the three companies have initialled the transaction documents which shall be the basis for the final agreement if Parliament approves the proposed sub-emphyteutical deed.

Following a competitive tender, issued by the Privatisation Unit within the Ministry of Finance, the Economy and Investment, the Gasco Consortium was chosen as the preferred bidder and a number of agreements were negotiated with Enemalta Corporation.

In fulfilment of the obligations set out in the terms and conditions of these agreements, 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's stringent criteria as established in the Seveso II Directives, recently adopted by Malta.

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

The final agreements will be signed once the draft sub-emphyteutical deed is approved by the House of Representatives in the coming months.