Malta Chamber warns gas pipeline pushback is dangerous, can jeopardise EU funds

The Malta Chamber of Commerce has taken umbrage at the pushback for an EU-funded gas pipeline and appealed for everyone to keep the national interest in mind.

The statement on Friday comes on the back of a campaign waged by Matthew Caruana Galizia, son of slain journalist Daphne Caruana Galizia, pressuring the European Commission to deny Malta funding for a gas pipeline project.

Caruana Galizia is arguing the EU will end up funding a project that will benefit Electrogas, a company tainted by corruption allegations and that counts as one of its shareholders Yorgen Fenech, the man charged with masterminding the murder of Daphne Caruana Galizia.

The Nationalist Party warned on Thursday that the Electrogas contract jeopardises EU gas pipeline funds,and called on the government to cancel the gas power station deal.

However, the Chamber of Commerce called for caution, insisting "it is imperative for Malta to have a gas pipeline in place by 2028 when the current 10-year agreement for the supply of gas expires".

Energy Minister Miriam Dalli has confirmed that a gas exit payout to Electrogas would be triggered once the pipeline is ready but has refrained from disclosing the amount. She said the payout concerns assets that would pass on to the government at "fair value".

The Chamber said concerns related to the existing gas power station agreements should be dealt with "independently" of proposed projects that could provide the country with more options for energy generation in future.

"For the benefit of our country and the business community, no one should try to jeopardize EU funding for Malta’s energy transition," the Chamber said.

It added that the green transition, which Malta is committed to, requires countries to be very careful with managing their energy supply options to minimise the risk of spikes in energy prices.

"If this is not maintained, it will hurt the competitiveness of European businesses and provoke social unrest. The decarbonisation of transport, which is a priority for Malta, requires an accelerated process of electrification of vehicles that will increase energy demands by 30-50%," it noted.

The Chamber argued that the renewable sources Malta can tap into, like solar, wave and wind are "inconsistent" and therefore need to be complemented by on-demand sources. It explained that the pace at which viable alternative technologies will develop, remains a key challenge for the green transition.

"In view of this, it is imperative for Malta to have a gas pipeline in place by 2028 when the current 10-year agreement for the supply of gas expires. Irrespective of the requirements of the existing energy and fuel supply agreements, which should of course be questioned on their own merits, we cannot risk putting in danger the country's energy supply for the future," the Chamber said.

It said that the possibility of converting the gas pipeline into a hydrogen once, improves the long-term viability of the project. The Chamber argued that Malta has one main main energy provider and does not have the luxury of making subjective assessments on the shareholders of the energy provider before deciding whether to switch the light on or off.

"At this stage Malta needs to have its second interconnector by 2025 while continuing to invest on renewable energy so as to reach its decarbonisation targets," the Chamber said.