Enemalta and Gasco Energy Ltd, a joint venture between Multigas Limited and Liquigas S.p.A. of Italy, today signed a concession agreement whereby Enemalta transferred the management and operation of its LPG (liquefied petroleum gas) activities to Gasco.
Gasco is binding itself to invest €25m in a new gas bottling plant at Benghajsa. Until that is completed, within three years, the company will continue to run operations from the gas bottling plant at Qajjenza.
The agreement and provisions for the transfer of land for the new gas plant, were approved by Parliament last month.
Finance Minister Tonio Fenech said no decisions have been taken yet on the price of gas cylinders. He said Gasco would make its submission to the Malta Resources Authority. He pointed out, however, that gas cylinders were currently heavily subsidised - a gas cylinder is sold at €5 when the actual cost to Enemalta is €12.
The government, he said, would be prepared to consider assistance to low income families if that was required.
During this morning's ceremony, Gasco officials handed Alex Tranter, chairman of Enemalta, a cheque for €4.5 million being the first payment for the concession.
NEW PRODUCTS
Gasco Energy officials headed by Liquigas Chairman Paolo Zani, announced that the company would be introducing autogas, a replacement fuel for cars on the Maltese market. Apart from being a safer and more environmentally friendly fuel, autogas is cheaper than other fuels and can be easily distributed, the company said.
Although this is a new type of fuel for Malta, it is widely used in other European countries.
It said it would also introduce LPG for air conditioning. "While this will require only a change in the a/c system and existing piping can be retained, this type of energy is more efficient and assists the equipment in operating more silently."
The company said that consumers in Malta are to expect an improved distribution system which also includes additional sales points, regular and reliable LPG supply even in peak winter season.
Liquigas Malta, which will be responsible for distribution from February 1, will be promoting small bulk installations particularly for larger urban concentrations.
"The idea of substituting fuel oil with LPG for industrial users will also be encouraged. These enhance the safety and living standards given the inherent benefits of ‘metered’ supply of gas to households. In turn, these installations will facilitate the introduction of air-conditioning systems utilizing LPG," Gasco said.
Those present for today's ceremony also included Liquigas S.p.A. Managing Director Paolo Dal Lago, Gasco Energy Ltd Chairman Louis A Farrugia and Gasco Energy Ltd CEO Roberto Capelluto.