A contract for the supply of the six large LPG storage tanks has been signed by Liquigas and further contracts for the construction work and pipework will be placed shortly, the company said.

It said work on the site was expected to start in September .

The company said that this investment would not have been possible without the removal of subsidies as the company would not have won bank finance or private funding.

It said that the main reason for the latest increase in the price of gas was the removal of subsidies.

The announced rates were now market prices and would move in line with international market prices like other energy prices in Malta.

Liquigas said that the resulting regulation of market prices would allow Gasco Energy to move forward and start its €20 million investment.

The company said that the iberalisation of the market would allow for the new uses of LPG such as autogas, air conditioning and the facilitation of bulk storage for network piping.

Despite the substantial increase in the price of LPG over the past year, LPG prices in Malta still compared favourably with EU prices, it said.

Price of LPG in various EU countries (including VAT)

*These prices do not include delivery to door