The government seems to be clinging on to power with a dual purpose. To exercise the powers of incumbency, arguably through a nerve centre at Villa Francia, the mid 18th century gem in the northern part of Lija (something which has so far not been denied).
… the most important thing seems to be to be seen to be making it happen- Leo Brincat
And also to frantically give an impression of a newly assumed dynamism and momentum. Of an Administration that, after years of lethargy, miscalculations and strategic errors, has suddenly decided to try and come across as a government that can really make it happen. Or, rather, be seen as making it happen. This is not the first time that I am writing to express my genuine wish that talks with Qatar will translate themselves into concrete energy, trade and investment deals on the ground. This obviously does not exclude the energy sector.
That Qatar is the world’s biggest exporter of LNG is common knowledge.
What was deceitful was that PBS news gave the impression that the government was talking to Qatar about LPG, particularly since the latest cost issue concerned LPG and also because importation of LNG requires considerable infrastructure that we do not have as yet. Arguably due to lack of adequate advance planning.
If the government is talking about eventual LNG importation, this means that, finally, the Gonzi Administration has woken up to the fact that LNG importation may be more feasible than natural gas imports from Europe via a subsea pipeline as the Prime Minister himself had pompously predicted only a few months ago.
While it is conceivable that Qatar could have LPG for sale, logistics present a problem that is not easily surmountable. LPG storage space in Malta is limited and this limits the size of ship that can be used.
It is known that one of the LPG companies is building bigger storage facilities but even this larger volume is unlikely to achieve big ship economies.
There is no doubt that, while trying to clinch a deal with Qatar in the energy sector – which I sincerely hope that it will – the government also has its eyes firmly on the electoral radar. So much so that it is trying to raise false hopes among the public that it has a soon-to-be-applied solution to the soaring gas prices.
As an energy expert told me the other week, this is just a vote-catching gimmick that could easily backfire. Regardless of any positive developments in the energy sector with Qatar and other potential third countries, we are obliged to continue pressing the Malta Resources Authority for a proper justification of the different pricing of the different gas cylinder sizes on the market.
One cannot exclude that Qatar itself could be thinking of using Malta as a storage and re-export centre to Europe.
If this were to happen, the advantages of such a scheme could translate itself in the fact that the cost of infrastructure per cubic metre of gas could/would come down drastically because of economies of scale. This would obviously also impact positively on our operational costs.
A pipeline connection to the European grid would remove the three-month storage requirement imposed by the EU.
Even so, whatever source of gas (pipeline or sea terminal) Malta may be dependent on, we must make allowance for the possibility of interruptions to supply. Which brings to mind the belated pledge by Lawrence Gonzi to convert the BWSC power plant to run on gas.
If this Administration really meant it from the start it should have specified at the outset dual fuel engines that can run on both gas and liquid fuels. The cost might have been marginally higher but the savings are huge.
Let us hope that our reliance on the interconnector (a project that I believe in) will not prove to be over expensive. Particularly, if situations may arise where Sicily might have none to pass on to us at a time when we might need power most.
The question remains as to who is going to finance the capital cost of all this. Both Malta as a country and Enemalta are heavily debt ridden.
The way the government has been operating in a frantic mode in a bid to be seen to make it happen in the energy sector – particularly with Qatar – confirms something that we have long known. That this government does not have a clear energy policy and vision.
Expectations are first raised then lowered. Gargantuan projects are floated then abandoned within hours. Meanwhile, certain decisions are taken on the hoof while, time and time again, we have seen other decisions being delayed to the point that urgency tends to surpass both environmental and economic considerations.
But, then, that is the gist of it all – the most important thing seems to be to be seen to be making it happen!
Brincat.leo@gmail.com
www.leobrincat.com
The author, an MP, is the Labour Party’s spokesman on the environment, sustainable development and climate change.