Thursday, 27th November 2008 - 12:51CET
Video: Enemalta transfers gas division to Gasco - no decision on gas prices
Enemalta and Gasco Energy Ltd, a joint venture between Multigas Limited and Liquigas S.p.A. of Italy, today signed a concession agreement whereby Enemalta transferred the management and operation of its LPG (liquefied petroleum gas) activities to Gasco.
Gasco is binding itself to invest €25m in a new gas bottling plant at Benghajsa. Until that is completed, within three years, the company will continue to run operations from the gas bottling plant at Qajjenza.
The agreement and provisions for the transfer of land for the new gas plant, were approved by Parliament last month.
Finance Minister Tonio Fenech said no decisions have been taken yet on the price of gas cylinders. He said Gasco would make its submission to the Malta Resources Authority. He pointed out, however, that gas cylinders were currently heavily subsidised - a gas cylinder is sold at €5 when the actual cost to Enemalta is €12.
The government, he said, would be prepared to consider assistance to low income families if that was required.
During this morning's ceremony, Gasco officials handed Alex Tranter, chairman of Enemalta, a cheque for €4.5 million being the first payment for the concession.
NEW PRODUCTS
Gasco Energy officials headed by Liquigas Chairman Paolo Zani, announced that the company would be introducing autogas, a replacement fuel for cars on the Maltese market. Apart from being a safer and more environmentally friendly fuel, autogas is cheaper than other fuels and can be easily distributed, the company said.
Although this is a new type of fuel for Malta, it is widely used in other European countries.
It said it would also introduce LPG for air conditioning. "While this will require only a change in the a/c system and existing piping can be retained, this type of energy is more efficient and assists the equipment in operating more silently."
The company said that consumers in Malta are to expect an improved distribution system which also includes additional sales points, regular and reliable LPG supply even in peak winter season.
Liquigas Malta, which will be responsible for distribution from February 1, will be promoting small bulk installations particularly for larger urban concentrations.
"The idea of substituting fuel oil with LPG for industrial users will also be encouraged. These enhance the safety and living standards given the inherent benefits of ‘metered’ supply of gas to households. In turn, these installations will facilitate the introduction of air-conditioning systems utilizing LPG," Gasco said.
Those present for today's ceremony also included Liquigas S.p.A. Managing Director Paolo Dal Lago, Gasco Energy Ltd Chairman Louis A Farrugia and Gasco Energy Ltd CEO Roberto Capelluto.
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Comments
Couples and families who earn a reasonable wage do work hard for it. They usually work night shifts, Sunday's and Public Holidays. They leave their children with other family members and carers to be able to go out to work . Whilst couples with low income can stay home longer and spend more time with their children.
One should pay for what he consumes. If I'm not able to pay I should consume less.
Why should hard working families pay more taxes to pay for other families's gas supply !!!
A 10k gas cylinder costs €4.80 not €5.00.
So amid this well constructed confusion would that mean that it would cost us an extra €7.20?
Can these big boys speak the truth as there is a strong suspicion that the a bottle of 10K would cost €12?
Why can't they be more specific and why was the tight lipped the Minister shifting the responsibilty to the Malta Resources Authority? So it is not his wafer thin majority of Government fault?
It is putting the impression that it is whiter that white.
Another show with the usual pomp and nothing clear.
So come out with it so we can budget our Christmas present list, if there will be any money left after the fuel, the w & e increases , the car license and the higher cost of daily living items.
I just hope that the three kings will bring all of us something nice this year as all the Santas hanging down the balconies will not work.
I urge all families to put up a star on the roof (solar energy please or 1 of the free eco bulbs) so these bringers of good tidings will not miss our little rock or we will have a bigger 'rock' by the end of the 1st quarter of 09.
Merry Christmas to all the prime ministers, members of the cabinet and house..... oh yes the president. Who knows?................... the SCROOGE fable might turn to reality.
joe the plumber
Why else go through this farce called privatization when already we are being told that low-income families will have to be supported – whilst the company taking over will be wallowing in profits,
This is a clear statement of failure of all the PN Governments we have had to date – shame on EFA and GonziPN for having brought this country to a situation where thousands of families need help to pay their electricity bills, and now hundreds, or thousands more, will need help to pay their gas bill.
It is obviously true that a few have become stinking rich, for being friends of friends, whilst the general population has been left by the wayside.
Was it Connie Frances?....or is age playing tricks. Anyway here it goes: `Who`s Sorry Now...I`ve tried to warn you somehow`.....and life goes on.
Incidently, has anyone noticed the price of Rice? There goes my diet up the paddy fields...up 31cents at one go. The rich get richer and the poor will be out begging soon. No! I`m OK.
I for one, went for alternative energy, to lower my W&E bills. I bought gas heaters, gas water heater and a gas cooker. And the government is now rewarding me. But hey, presto, it is not the govt fault anymore now, if gas prices go up; it's Gasco's. And being the only company distributing gas cylinders, I bet a month's salary that their prices will double that of today (if there will be money left at the end of the month ie).
However, neither the Government nor the new company can prevent anyone importing gas cylinders from other countries.
Mintoffjani
General Workers Union
Tat-Tarzna
Svizzera fil-mediterran
Lira Maltija
and now.....
Subsidies
The approach should have been to improve the plant and the distribution thereby reducing the inefficiencies. Then the true unit cost could have been calculated. In the absence of such an approach the authorities should carry out a production cost exercise to establish a breakdown of today’s bottled gas price. Remove the cost of inefficiencies from this price thus establishing the production cost baseline.
Without this base line how on earth can the controller bench mark the future price of bottled gas!
As regard safety, if bottled gas will substitute fuel oil the safety precautions have to be more stringent, especially if the bulk storage is in build up areas.
The prices going up is a 'minor' downside to you? I do not think that's a minor issue.
Do you really use just 6 cylinders a year? ....gosh!
Sur Ministru, get your votes from the low-income families next time then, because I am fed up of government increasing prices on everything while not taking steps to prevent the massive abuse of the system by a large majority of so-called low-income families.
There may be a minor downside -gas cylinders may become more expensive - we are a family of 4 and use around 6 cylinders a year..but then if we can save by using autogas or change airconditioning systems to use gas and save on electricity.