The company that will build and run the new gas power station was officially born by its name Electrogas Malta last week, Times of Malta has learnt.

The company was originally a subsidiary of Enemalta known by the name Malta Power and Gas.

A share transfer agreement signed in May but officially registered with the Registry of Companies in June saw UK-based Gasol, the German company Siemens, the Azerbaijan State-owned Socar Trading and Maltese firm Gem Holdings acquire a stake in Malta Power and Gas.

The four companies formed part of the Electrogas consortium that submitted a bid to build a gas-fired power plant, a liquefied natural gas terminal and storage.

The Enemalta subsidiary was set up last year to initiate the planning studies for the gas project pending the choice of the winning bidder.

Company documents show that, in June, Enemalta transferred all its shareholding in the subsidiary to the four companies.

Gasol LNG Import and Gem Holdings – that includes Gasan and Tumas – each acquired 3,000 shares for a nominal value of €1. Siemens Projects Ventures and Socar Trading each acquired 2,000 shares.

The company later saw a change in directors after the previous Enemalta representatives resigned and the new shareholders appointed their directors.

Documents show that, on July 9, the company’s name was officially changed to Electrogas Malta Ltd.

Enemalta and Electrogas will enter into a power purchase and gas supply agreement by which the State company will have to buy all electricity produced by the new plant.

The power purchase agreement is for 18 years and the price at which Enemalta will buy electricity will be fixed for the first five.

The project was an electoral pledge by the Labour Party to deliver cheaper utility rates and cleaner air – natural gas is a much cleaner alternative to heavy fuel oil.

A building permit for the project was approved in March after a marathon planning authority meeting. The plant has to be ready by March next year and can only operate after the Malta Environment and Planning Authority issues an environmental permit.