Gas pipeline would provide country with cheapest electricity possible - ministry

The required investment for a 150-kilometre gas pipeline that is 25” in diameter is €290 million, the Finance Ministry said in a statement this afternoon.

It said this could be seen from the technical proposal issued as a brief for the feasibility study tender which has to be submitted to the EU.

Another published report, drawn up by consultants IPA, concluded that the pipeline for the importation of gas from Sicily would have to be of an 18” diameter and would cost €230 million. This meant that the EU would provide 30 per cent of the cost.

The ministry noted said that €64 million of the funds Malta would be getting from the EU budget for 2014 to 2020, would be allocated to the pipeline.

This project would give the country the cheapest energy possible while the projects proposed by Dr Muscat would increase the bills by five per cent.

The PL’s proposal also left out a number of capital costs to the tune of €250 million.

Labour had also not found a power purchase agreement which would provide a fixed price for 10 years.

No explanation had as yet been given as to why the timeframes for Labour’s proposals were not feasible.