Prime Minister Joseph Muscat.

High-level meetings in Azerbaijan would explore the possibility of linking Malta to a gas pipeline in a bid to secure a long-term supply for the new power station, Prime Minister Joseph Muscat said yesterday.

A delegation headed by Dr Muscat and including Energy Minister Konrad Mizzi left Malta yesterday afternoon for the capital city, Baku, where it is expected to meet, among others, the President and the Prime Minister.

In view of the problems in Ukraine and Russia, the European Union is looking at gas-rich Azerbaijan as an ideal candidate to secure a gas supply to EU countries. Brussels is considering a gas pipeline linking Azerbaijan to European countries and Malta is seeking to tap into this possibility by attempting to propose lengthening the pipeline to Italy.

Announcing the visit to Baku yesterday, Dr Muscat said that after signing the deal with Shanghai Electric Power on a 33 per cent stake in Enemalta for €320 million, the government was now turning its attention to gas supply.

The first €250 million is expected to be deposited by the end of the year.

Without this, Enemalta would have faced same fate as the shipyards

The Prime Minister said the government retained majority control in the energy generation company.

He insisted that without this agreement, Enemalta would have faced the same fate as the shipyards.

Dr Muscat described the China deal as the biggest foreign investment the country had ever seen. It also allowed the company to write off half of its debt.

The government was now turning its focus to the provision of gas to the island.

Dr Muscat said there were plans for pipelines linking Azerbaijani gas fields to Italy. A link to Malta could help ensure local electricity rates remain low well into the future, he pointed out.