[WATCH] Dalli confirms gas exit payout to Electrogas ‘costed at asset fair value’

Energy Minister Miriam Dalli defends plan to tap into EU funds for hydrogen-ready gas pipeline but acknowledges Electrogas will receive payout in 2028 for assets that will pass on to the government • Minister does not disclose size of payout

Miriam Dalli insists public would benefit from cleaner energy and possibly cheaper utility bills with a hydrogen-ready gas pipeline
Miriam Dalli insists public would benefit from cleaner energy and possibly cheaper utility bills with a hydrogen-ready gas pipeline

Energy Minister Miriam Dalli has confirmed that by 2028, the Maltese government would be liable to paying Electrogas the ‘fair value’ market price for infrastructure the government takes over, once a gas pipeline is ready.

She did not disclose the amount to be paid out but insisted that an alleged €100 million payment was incorrect. She said the payment will be “the fair value of the assets” at Delimara plant on the day.

The government is seeking EU funding for a hydrogen-ready gas pipeline that will connect Malta to the European grid via Sicily.

Dalli said the pipeline is necessary to decarbonise the economy by 2050 and said it would be unfair to deny Malta the possibility to be linked to the European grid.

In a press conference on Wednesday, Matthew Caruana Galizia, son of slain journalist Daphne Caruana Galizia, insisted Electrogas would benefit from an EU-funded pipeline as owners of Delimara plant, regardless of whether the Maltese government would be liable or not to a gas exit payout to the company.

Along with two MEPs, Caruana Galizia said European funds should not be used to fund a company part-owned by business magnate Yorgen Fenech, who is charged with his mother’s murder.

Dalli said the public will benefit from cleaner energy and possibly cheaper utility bills with the pipeline. “If it does not materialise, we will remain powered by fossil fuels. We want to move to alternative and cleaner sources, with a mix of hydrogen and renewable gases,” Dalli said.

She stressed the plan does not simply talk of a gas pipeline but a hydrogen-ready one. “Hydrogen is a source being pushed at a European level as a means to decarbonise the economy. Work is already being carried out to analyse the availability of hydrogen.”