Saturday, 6th September 2008

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.

Previous article • Malta heritage conference draws great interest
Next article • 16th-century statue of Our Lady restored

Article © Allied Newspapers Ltd., printed on Sunday, November 8, 2009. This article is for personal use only, and should not be distributed.

Comments

alfred agius (on 6/9/08)

Albert Leone Ganado is fully entitled to his preoccupation that the consumer may stand to lose by Enemalta`s transfer of its management and operation of its LPG activities to the Gasco Consortium. Indeed we consumers should thank and join Mr Leone Ganado in voicing this preoccupation in respect of the protection of free competition and citizen rights.
Farsons, which I believe forms part of the Louis Farrugia investment empire, is notoriously known on how from time to time it makes us pay more for its bottled products. Is bottled gas to undergo the same price periodic price `adjustment` once it passes in the hands of the Consortium ?

albert leone ganado (on 6/9/08)

I hope that this is not a monopoly in the making.

LPG is an essential utility in our country used by most families for cooking and heating.

I trust that the Malta resources authority will be involved as regulator before any agreement is signed to protect the interests of the citizen and to lay down rules which ensure continuous supply and fair prices..

The March 2007 EU summit clearly agreed and determined a liberalisation policy for the whole energy sector across Europe to be applied in both the letter and spirit of what ministers agreed. I would therefore expect that in this spirit of an EU liberalisation policy there will be a clear separation between provision, storage tanking of LPG and distribution to generate proper competition and protect the consumer.

I expect that our MEPs and the local EU representatives will study in detail any proposed contractual agreement to ensure that it protects free competition and ciitzen rights.