Enemalta clarifies position on the ENI gas pipeline proposal
Enemalta said this afternoon that there was never any formal offer by Italian company ENI to invest in a gas pipeline to Malta 10 years ago.
In a statement reacting to comments made last week by former engineer John Pace, Enemalta said it never had any offer by anyone to invest in any pipeline in a way which would have been free of charge for the corporation.
The ENI report, it said, was a study which it had commissioned in January 2001 about a possible pipeline between Sicily and Malta. The study was completed in 2003.
Malta had requested consideration of the possibility of linking up with the Green Steam pipeline between Sicily and Libya, but the proposal was dropped by ENI itself for technical reasons.
The so-called financial proposal for a pipeline between Gela in Sicily and Delimara was just a reference in the annex of the report which did not lay down the price of gas and only gave an indicative formula, linked to oil prices. Important details, such as the workings of the index, were missing.
A critical aspect was the obligation which Enemalta would have had to 'take and pay', meaning that it would have had to pay for gas even if it did not use it.
The document laid down clearly that this was meant for discussion only and there was no formal proposal.
The report also included a note which said that the use of gas would not have led to reduced costs and hence, lower bills. In fact, the report said that: “The Market Value of Natural Gas in Malta … generates the same total expenditure that would be incurred by using fuel oil and gasoil for power generation”.
The report excluded a gas sales agreement and said this had to be negotiated separately. The annex to the report spoke of two rates, a commodity charge (the price of gas) and a capacity charge, which was the charge for the return on investment over 25 years.
Enemalta noted that at the time it also had to take into consideration the costs of a new power station for the use of gas.
The ENI report was studied by the government as well as Enemalta and it was evident that the the costs meant that the project was not viable at that time, the corporation said.
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Anthony A. Mifsud
Jan 22nd, 09:47
Why this offer was turned down, beats me
Last Sundays article was the answer ...
Ninu
Lawrence Fenech
Jan 22nd, 09:46
Enemalta will have to do much more than this about the gas pipe line, the 800,000,000 debt it is in and the now revealed commission with receipts. Enemalta has become Malta's financial tragedy, only one person is happy about this debt, i.e. our financial wizard Minister of Finance.
Edward Mallia
Jan 22nd, 07:50
@ John Pace
-emalta commissioned the Gault report - proof enough that the ENI offer was nothing like as frivolous and sketchy as Enemalta is NOW trying to make out. The fog of words and sneers used to mask standard features of this type of contract - unfavourable to us though it may have been - points in the same direction. One question: what conditions are we likely to get for the FUTURE line?
pat muscat
Jan 22nd, 09:06
@Edward Mallia. That's a good point. No strings attached with gas pipeline that ', if we are lucky'-might be ready in 10 to 15 years time?
r micallef
Jan 22nd, 07:13
After reading all the bellow comments i can see that ppl are still blind folded on PN or PL. Ppl you know that every beginning has an end and now in my opinion it’s time to change the game players. Will it be for the good. As history showed us, change is needed. New ideas and enough bulls..t. PN cannot be trusted. Last 5 years promises where delivered before the election. Call that a GIMMICK
G Tonna
Jan 22nd, 06:43
Tal Labour hasbu li l-ENI xi ghaqda religjuza. Taghtik xi haga b'xejn.
Morru orqdu.
David Bezzina
Jan 22nd, 01:04
Enemalta has a debt of 850 million Euro and under whose administration has this debt accumulated ?
On energy,PN is not credible.
George Cassar
Jan 21st, 21:34
@ Joe Borg
In 1996 EFA, called an early election because he had a cash problem. Alfred Sant was faced with paying off the Church which the PN did not do. He was also faced with trying to make Enemalta viable. The PN made such a fuss and NEVER reverted the bills BACK prior to Alfred Sants tenure!!!!
Aaron Vella
Jan 21st, 20:37
U min ghandu mohhu f'postu qatt xi darba jista jemmen li tigi Eni u tghid lil Malta ha naghmlilkom pipeline b'xejn u ghalxejn? Ara vera beccun trid tkun biex tiblaghha statement bhal dan! Komplu uruna x'nistennew li se taghmlu la tkunu fil-gvern, il-verita qieghdha tohrog bil-mod.
j brincat
Jan 21st, 20:31
@Joe M Borg
"Ghandek ZBALL, Sur Massa, bhas-soltu! PN ilu zmien jinnegozja mal-EU ghall-pipeline, halli l-power station tibda tithaddem bil-gas.."
AND if the PN keeps negotiating as long as it took Mater Dei to build then the negotiation could successfully be concluded by the Y 2099 with some cost overruns here and there, of course!
jb
N Chetcuti
Jan 21st, 20:21
Hawn xihadd li jista' jaccessa din il-website http://finance.gov.mt,? Nixtieq intella ir-rapport imma milli jidher inghalqet minn dakinhar li deher ir-rapport ta' John Pace.
Alex Falzon
Jan 21st, 20:10
Jekk xi hadd hemm barra qed jahseb illi l-kontijiet tad-dawl u l-ilma se jorhsu taht gvern Laburista fil-hames snin li gejjin sejrin smerc. L-ebda power station mhi se tinbena f'qasir zmien ta sentejn... anke meta wiehed jikkunsidra l-istudji, l-binja nnifsa kif ukoll l-implimentazzjoni tal-progett kollu kif inhu propost mill-PL.
Charles Massa
Jan 21st, 19:50
@Joe Vella
Il PN ilu zmien jinnegozja mal EU ghal pipeline tal gas. Ilu zmien ktibt u jidher li ma wasalx u jekk isir il pipeline ghandna xi 10 snin ohra nistennew. Sa dan it tant inkomplu inhalsu kontijiet gholjin ta dawl/ilma u inhalsu ghal comm\issions lil xi hadd. U mil anqas 10 snin ghax sptar dam jinbena 17 il sena u biccerija Ghawdex 8 snin
Daniel Vella
Jan 21st, 21:04
Inti qed tghid li ghandna xi 10 snin ohra habba l-pipeline - u inti tahseb li progett bhal ta Muscat ha jsir f'2yrs?? ejja nghidu li dan il-progett jista jsir - ghid il-verita tahseb hu possibli li jsir f'qasir zmien? apparti li waqt li taghmel progett bhal dan jistghu jinqalawlek kumplikazzjonijiet ukoll.. u apparti minn hekk hadd ma jaf jekk il-kontijiet hux vera ha jorhsu.....
Max Portelli
Jan 21st, 19:37
MLP not credible - kamikaze mission to take power of the country not caring who they take down. DANGEROUS FOR COUNTRY. PN saying that MLP ARE GOING TO BOMB THE COUNTRY with the GAS PROPOSAL - SCAREMONGERING - SAME AS MLP and the CANCER COMMENTS. VOTE AD!! THE ONLY PARTY THAT ISN'T PLAYING DIRTY!
Reuben D. Spiteri
Jan 21st, 21:41
From what I've heard from the AD so far is that they only know how to react to the other parties' statements with "Agree" or "Disagree".
Also they never fail to tell everyone how they were always ahead of the times and how important they are for the country to have a healthy democracy.
They are only better than PL because they're not making stuff up and don't spew nonsense like them.
Max Portelli
Jan 22nd, 16:20
Perhaps if they were given the space to campaign as much as the other two parties they'd be able to step things up a notch.
twanny borg
Jan 21st, 19:26
Buzzieqa ohra ta' muscat u l-pl mifqugha. Gej li kelna min ried jaghtina pipeline tal-gas b'xejn! Mela l-privat mhux ghal qliegh jaghmel? Umbaghad it-taljani!!!
D. Muscat
Jan 21st, 20:29
Ezatt. Ilqatt il-musmar fuq rasu. Il-privat jithallas biz-zalza ta kull riskju li jiehu. Barraminnhekk dan minn meta l-Labour sar daqshekk favorevoli tal-privatizzazjoni?!?! Issa jriduha meta fi zmienhom kienu jinnazzjonalizzaw kollox?
Johan Mula
Jan 21st, 23:34
Ghall-Informazzjoni tieghek Sur Borg it-Taljani ghamlu snin ituna flus ghal protocol li kien iffirmat bis-sahha ta' Gvern Laburista. Rigward il-privat hija ovvja li ghal qliegh jaghmel pero' meta wiehed ikun qed jinvesti fi progett kbir ma jfissirx li jibda jaghmel il-qligh mil-lum ghal ghada pero' jkun qed ihares li jifdi l-investiment u jaghmel qligh fuq medda ta' snin.
twanny borg
Jan 22nd, 07:35
@johan mula habib ghax hrigt mis-suggett ma qrajtx sew......... gidba tal-pl li qatt kien hemm xi offerta ghal pipeline b'xejn. "Enemalta said it never had any offer by anyone to invest in any pipeline in a way which would have been free of charge for the corporation".
Johan Mula
Jan 22nd, 09:26
Bir-Rispett kollu nahseb li inti ma qrajtx sewwa Sur Borg. "In a statement reacting to comments made last week by former engineer John Pace" Ma kienx il-PL li semma dwar din l-offerta pero' s-Sur John Pace li kien jahdem hemm u llum jista' jitkellem bla biza' ta' xejn. Issa ovvjament kulhadd jaghzel lil min irid jemmen. Wara tahwida tal-BWSC ma nistax nemmen lil min qed imexxi l-Enemalta bhalissa!
Charles Massa
Jan 21st, 19:19
@Joe Vella
Taf fejn ma kontx siehbi=fil kuruturi tal PN ghax dawn l affarijiet issa hargu minn meta il PL habbar il pjan tieghu fuq l energija. Sa fejn naf jien il PN dejjem ried power station tahdem fiz zejt - anzi l aktar zejt li iniggez il heavy fuel oil. U mhux ta b xejn rieda tahdem biz zejt. Nahseb qieghed tara l ahbarijeit fuq ix xiri taz zejt allegat commissions
Joe M Borg
Jan 21st, 19:36
Ghandek ZBALL, Sur Massa, bhas-soltu! PN ilu zmien jinnegozja mal-EU ghall-pipeline, halli l-power station tibda tithaddem bil-gas! U Joseph ISSA ghamilha tieghu, bhalma ghamel tieghu l-idea tat-tunnel; u l-idea li jkollu MEP deputy, u tant affarijiet ohrajn. Kollox ordinarju u artificjali tal-PL. Kollox jikkupjaw: Kunsilli lokali; VAT' EU; Euro; budget 2013; kollox copycats!
Joseph Grech Attard
Jan 21st, 22:32
Nisperaw li ma jikkupjawx il-korruzzjoni ukoll, almenu skond l-awditur tal-gvern u l-EU!
John Pace
Jan 21st, 19:05
Enemalta should publish the report by fuel economist John Gault in April 2004. Mr Gault was commissioned by Enemalta to report on the price of gas to be negotiated by Enemalta in discussions with ENI. The report, based on recent contracts, gave a price which was comparable with that of heavy fuel oil. The comparison included the converting the two power stations to gas and the capacity charge.
Charles Massa
Jan 21st, 18:47
Allura dawn l affarijiet ghal fejn sirna nafu bijhom issa wara l kummenti ta sur Pace. Ghal fejn l Enemalta, jew il ministru responabbli jew il prim ministru qatt ma tkelmu xejn fuq dan?
Joe Vella
Jan 21st, 19:08
Charles, the fact that Malta had asked if it was possible and feasible if Malta could had been connected to the Italy-Libya gas pipeline is not news. The question is where have you been sleeping?
Albert Bonello
Jan 21st, 18:44
Messrs Mario Camilleri & Stephen Borg just because this article doesn't sound good to your ears we have to start throwing doubts. Same old tactics
Mario Camilleri
Jan 21st, 19:24
@Albert Bonello,
The whole nation knows about the credibility of the Government and Enemalta. We are all paying dearly for all the bad and irresponsible governance.
So you want to see all the workings of the PL's proposals and yet you don't mind paying blindly for the PN's bad governance with regards to the elec bills and the P Station/BWSC saga. How ironic!!
Schembri Ray
Jan 21st, 18:42
Minn għandu widnejn biex jisma' ħa jisma'
N. Montanaro
Jan 21st, 19:16
That's the problem in Malta, I think. That when people don't like what they're reading, they just press alf F4. That's why we're still lagging politically, thus the extreme power given to politicians (whether in government or opposition).
Mario Camilleri
Jan 21st, 18:27
And this is what Enemalta is saying! Should we take it's word? The question is why "Enemalta" is saying and not the Chairman or the CEO? And why not publish all the reports and studies, after all we're paying for all this.
Ed Camilleri
Jan 21st, 19:20
How right you are about publishing all reports etc!! That is why any other proposed project needs to have all its studies published... In a few months' time WE will be paying for it from our taxes too!!! I really would like to put my mind at rest about this particular project... ( which project I am referring to, is so obvious...)...
Mario Camilleri
Jan 21st, 19:42
@Ed Camilleri,
You seem to mix proposal with statement. And then again did you ask about the BWSC studies and reports, the commission of €4 m given away to the agent? Did you ask to see the studies and the reports on the Piano project? Did you want to know how the government was spending money out of public coffers. It seems not. Since you are a PN apologist you're all on the good side.
Mr Stephen Borg
Jan 21st, 18:27
And do you really expect us to beleive Enemalta.
JOHAN MICALLEF
Jan 21st, 18:22
savior balzan dalodu fuq tvam qal li dak li hareg il bierah fuq maltatoday huwa biss the top of the iceberg!!nahseb ahjar qabel ma naghtu gudizzju nistennew xha johrog fil granet li gejiin avolja dak li rajna fil malta today kienu affarijiet serji hafna
HENRY FENECH AZZOPARDI
Jan 21st, 18:20
Another fully blown B A L O O N burst. I repeat what I said the more PL talks, the more they lose votes keep it up.
Mark Borg
Jan 21st, 18:40
What are you so euphoric about Henry Fenech Azzopardi? You must indeed have had a good night! I wonder which B A L O O N S are bursting Henry. Tick tock. Tick tock.
David Magro
Jan 21st, 18:51
Henry, common sense....when Austin Gatt push the button, the spokesman of Enemalta will blurt out....do you think that Enemalta would go against his own master?
HENRY FENECH AZZOPARDI
Jan 21st, 18:17
Joe Grima on TV made a statement that Joesph Muscat never lied. I think he meant he never stopped lying. But what is even worse is that he never accept that he lied so much so that he never apologies.
Joseph Muscat said he would do all possible to clear the Marsaxlokk Cancer Factory. He went on to make news by exposing family hit cancer sufferers, only to be proved wrong by medical specialists
Reuben D. Spiteri
Jan 21st, 18:30
Even if he were right, it is plain wrong to drag people suffering from any illness into the political picture to gain an advantage over your opponent.
And still JM says he will NOT apologize for that!
He should be apologizing REGARDLESS if he was right or wrong, but the fact that he was wrong makes this even more incredible!
Albert Bonello
Jan 21st, 17:53
I hope the energy proposal by the PL to change over to gas is not on the same lines as described above. U vera idahhalna go hajt il PL................!!!!!!
Reuben D. Spiteri
Jan 21st, 18:20
We are lucky enough to have information from independent experts that say that with the PL's plan the tariffs will go UP and not down. This is due to costs which have been omitted from the presentation or maybe the PL is just incompetent and actually forgot to do all the relevant research.
Armed with this information, it would really be our fault if we, as a nation, let it happen.
N. Montanaro
Jan 21st, 19:20
To Reuben, I think that the biggest problem atm is that we, as a nation, all know that the LP will most probably win the next election, Gonzi can't keep his 1% advantage, but the problem is that the LP doesn't really have a good view of things to come and he will probably fail us as a country. We Do need a change but WE NEED A GOOD opposition first.That's all I'm getting till now
Reuben D. Spiteri
Jan 21st, 21:35
@ N. Montanaro.
I agree that we need a WAY better opposition to what we have. Therefore in the meantime I say let's stick to what we have, as the current alternative is nothing short of a disaster.
In my view the whole PL administration has to go and replaced by people with no ties to the current members.
The current PL is just a power-hungry party which doesn't seem to care about us one bit.
Albert Critien
Jan 21st, 17:52
Hey fellows are we forgetting the famous phrase "mhux fl-Interess tal poplu"
Eve Axiaq
Jan 21st, 17:40
Kemm ghola l-kont tad-dawl mis-sena 2003!
Reuben D. Spiteri
Jan 21st, 18:12
Kemm gholew l-istipendji, children allowance, u beneficcji ohra? Mhux qed nghid li l-kontijiet m'gholewx imma mhux sew li tara dawk biss.
Barra minn hekk, is-sena d-diehla jibda jopera l-interconnector u mbaghad ikollna ghazla ta' minn fejn nixtru l-elettriku bl-irhis U arja iktar nadifa peress li jitfu l-PS tal-Marsa U dan ha jkun ta' Malta minn day 1, mhux ta xi investitur privat.
Joe M Borg
Jan 21st, 18:17
Daqs kemm ghola fl-1998, meta z-zejt kien $12 il-barmil. U meta l-GWU kienet ghadha 'tistudja' l-effett meta nstabat Sant minn fuq it-tron. Possibbli diga' nsejt? Kont tgerger fuq it-tariffi dak inhar?
Joe Tabone
Jan 21st, 17:36
If LABOUR are prepared to enter into such agreements we have serious problems!!
Albert Bonello
Jan 21st, 17:33
The truth is slowly coming out. Maybe this whole issue has been blown beyond all proportions. How easy it is to point fingers before hearing all d evidence and shame on Malta Today for not doing their homework right. The article in yesterdays paper was not well researched as can be seen from the various news coming out and as usual the PL jumped on the band wagon to try an gain political mileage.
Jay Oatmon
Jan 21st, 17:26
We should be aware that 'deny-ability' is an important part of politics - when things turn bad the ability to slip free of it is very important.
Albert Bonello
Jan 21st, 17:36
But no one can deny that Mr. Sammut was appointed MD of MOB Ltd. under the MLP administration of Alfred Sant. Lets wait and see what comes out of the police investigations this could be interesting.
Mr Andrew Camilleri
Jan 21st, 17:50
Bonello: the commissions were paid while Sammut was on the purchasing Board.
Eddy Privitera
Jan 21st, 18:00
Albert Bonello: The corruption case HAPPENED UNDER A PN GOVERNMENT when oil-procurement procedures were changed !
Albert Bonello
Jan 21st, 18:30
Eddy and Andrew are you incapable of reading. The allegations on which Malta Today based their article were dated 2004 which although was the year that sammut was appointed on the new procurment board of 10 members, it was also the year that sammut was sacked.
Mario Tabone
Jan 21st, 17:23
And once again we confirm that Joseph Muscat is just full of hot air or should I say gas !!!
Lies, lies and more lies from this man who will say anything to try and discredit the government.
I would not trust JM as far as I could throw him. Every single argument he has presented has been proved to be invented to suit him and PL or to be just plain lies.
How many more examples do we need ?
J.C. Borg
Jan 21st, 17:40
Most probably that is why JM wants to go for 'gas'. So many bubbles exploded in his face that he is now in need of more gas.
Reuben D. Spiteri
Jan 21st, 17:57
I was told by a friend that a colleague of theirs would prefer the government to take away her children allowance for three kids as long as the electricity bills are cut by 25%, so I'm afraid that some people when it comes to elections just see with their own colour (in this case, red) than use their brain and common sense.
There are never too many examples Mr Tabone. Some people never learn.
Reuben D. Spiteri
Jan 21st, 17:13
There goes all the fuss the PL has been doing about this. It wasn't even a formal proposal yet! Eni itself dropped the proposal because it was unfeasible.
Not to mention that there was the "take and pay" clause which I applaud the government for not accepting it!
Oh, and the pipeline was never free like the PL are trying to make people believe, but rather we'd have payed for it over 25 years.
Albert Bonello
Jan 21st, 17:39
According to the article above Malta would have had to pay for the gas even if it did not use it. Can you imagine the battering and slander the PN would have to endure from the PL if the Government signed a contract of this sort.
Reuben D. Spiteri
Jan 21st, 17:52
Wouldn't surprised me if the PL were secretly hoping they did sign it (even though nothing formal was ever presented) so that they could make a political issue during the campaign.
Too bad for them the PN is nowhere as naive as they are.
Do the PL >REALLY< think that the private investor won't want to get their money back on their investment?
Get real!
Joe M Borg
Jan 21st, 17:08
Hardly any bubbles left for Joseph to burst.
Nicholas Magro
Jan 21st, 17:06
Why was this report never published? GonziPN is insisting of having PL proposals for a gas power station reports all published, is this not ubsurd? Asking the opposition to publish its reports whilst Government reports (or the peoples paid reports) hidden and unpublished. Unbelievable these people. Shame on you PN Clique.
Albert Bonello
Jan 21st, 18:39
Dear Nicholas what would the PN or for that matter any Government of the day need to publish a report that was not taken up because it was found to be not feasible. u ejja come on and be realistic.
Carmel Grima
Jan 21st, 17:06
Meta s-sur Pace kiteb ma hasibiex; decizjoni tista' tkun economika, politika,jew aspett ta' sigurta.Jien nahseb li ma jaqbilx tintrabat ma sors wiehed bhal l-Italja specjalment meta din ila u trid u harget stqarrijiet li Malta se iggedi l-ispazju ta' l-ajru li ghanda lil Italja imma li dlonk giet michuda minn Dr. Tonio Borg. Decizjoni bhal din hi serja hafna u ahjar ma jitkellimx xejn s-sur Pace.
N Chetcuti
Jan 21st, 17:36
Mela ghalfejn niftahru bl-interconnector?
Reuben D. Spiteri
Jan 21st, 17:49
Mr Chetcuti the interconnector will be indeed connected at Sicily but we will become connected to the whole EU grid, not just Italy's. Then we can go seek out the cheapest electricity rates across any EU country connected to that same grid. The PM said it before; we could go and buy cheap hydro-generated electricity, or perhaps Nuclear from France.
All based on which has the best price.
John Borg
Jan 21st, 17:02
When are we going to learn that no one does anything and that the cost of the pipeline capital outlay would have been factored into the price of gas.
Paul Debono
Jan 21st, 16:47
There goes Joseph Muscat's gas bubble. How can anyone trust this former Super One journalist to run our future....
Alfred Vassallo
Jan 21st, 19:35
Who in his right mind is going to believe what Enemalta says NOW. One thing though is undisputed...the energy corporation is nearly bankrupt
Please choose the reason of your report below: