The government has plans and aims it is working on Malta’s gas-energy situation but it has so far refused to disclose its plans and aims publicly. Natural gas makes up most of the electricity-generation in Malta with up to 60% of the electricity generated in Malta last year coming from the gas-fired power-stations in Delimara in 2024.
Most of the gas imported in Malta is used by Electrogas at its power plant, which it imports from SOCAR. Electrogas has a gas purchasing agreement with Socar which expires next year. Malta’s contractual agreement with Electrogas, whereby Electrogas provides electricity to Enemalta expires in 2035.
On the other hand, the government also conducts its own gas-purchases for its power plant which it runs with Shanghai Electric (Delimara 3).
There is an issue with the current arrangements which the government is refusing to discuss publicly because it is highly sensitive and can make many people lose their political careers over it – not to mention the history of corruption behind Electrogas which has yet gone unchecked by the authorities and the Courts.
Electrogas is making a profit over its electricity sales to Enemalta while the government has spent more than €1 billion in subsidies to tamp down the rise of electricity prices which have also come from the electricity price of the interconnector. The issue is why the government has spent and is still spending so much on electricity and fuel subsidies when supposedly, the gas-fired power stations should be the primary driver for tamping down electricity prices.
The Maltese government is currently in discussion with the US government over potential gas purchases and also other energy matters but details are still being sought from the relevant authorities.
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