The government was exploring the possibility of latching on to an Algerian gas pipeline to Sicily, government sources told the Times of Malta.
The Algerian government has a pipeline supplying natural gas to Europe which is situated just a few kilometres from where Malta wants to build its own gas link in Gela, Sicily.
Prime Minister Joseph Muscat and Energy Minister Konrad Mizzi discussed the possibility of using the supply line with their Algerian counterparts in Algiers yesterday.
The sources said the government wanted to diversify its supply of gas and saw Algeria, Europe’s second largest gas supplier after Russia, as “a very promising option”.
Dr Mizzi said that although a supply agreement had already been signed with Electrogas, the consortium building the new gas power station, the government had included exit clauses to allow for other sources of gas to be used.
A working group made up of Maltese and Algerian energy experts will be set up next week to work out the details of this and other possible energy partnerships.
The Algerian government could also partner with Malta to provide refining and bunkering services.
Dr Muscat said on Wednesday that the Algerian government was interested in using Malta as an entry point to Europe’s energy market.
The sources said the discussions revolved around Malta acting as a sort of “front office” for Algerian refining and bunkering services on offer to Europe, with Malta then benefiting from such services.
The sources added that Malta had already been approached by a number of businesses interested in offering bunkering and refining services but the government had turned these down because of their environmental impact.
A similar partnership could happen in the pharmaceutical industry. Dr Muscat said Algeria produced a lot of medication for the African market, particularly insulin, which it could not supply to Europe unless it had a foothold in the EU.
Dr Muscat said the Algerian government was also looking into the possibility of attracting Maltese hoteliers to operate State-run hotels in Algiers. Nearly all the hotels in the Algerian capital are at least partially State-owned.
“The expertise we have in this industry in Malta is very attractive to them, and it is clear who we could partner the Algerians with. On the whole, the type of relationship Algeria wants to have with us has gone way beyond our expectations. I am very satisfied,” Dr Muscat said
The trade delegation included about 30 Maltese businesses discussing partnerships and investment opportunities. Many of the companies were seeking alternatives to Libya.
Military action for France
The call by France for EU help in its fight against Islamic State would be discussed in talks with the Maltese government next week, the Prime Minister said.
Describing the French call for defence assistance as “uncharted territory”, Joseph Muscat said the move was “largely symbolic”.
France invoked a never-before-used EU “mutual-defence clause” to demand that its partners provide support for its operations against IS terrorists in Syria, Iraq and elsewhere.
The government said it would cooperate but only in line with the Constitution, which defines Malta as neutral. “This is tricky because we can’t base ourselves on some precedent,” Dr Muscat said. Pressed on what action Malta would take, Dr Muscat insisted the government would respect the Constitution.