[WATCH] Miriam Dalli insists Electrogas gas exit payout is unrelated to EU pipeline funds

The Electrogas exit payout triggered by the construction of a hydrogen-ready gas pipeline is unrelated to the EU pipeline funds, Energy Minister Miriam Dalli argued.

Concerns have been raised over the past week that the EU pipeline funds would trigger a payout to Electrogas, and in turn to its shareholder Yorgen Fenech, who has been charged for allegedly masterminding the murder of Daphne Caruana Galizia.

When asked about the potential risks, Dalli said the government is satisfied with having managed to keep a derogation allowing Malta to construct the hydrogen-ready pipeline. 

"We managed to convince them of the need for a pipeline despite the obstacles from the Nationalist Party," she quipped.

On Tuesday, European ministers agreed to allow Malta to apply for crucial European funding that will subsidise at least half of a €400 million gas pipeline investment to Sicily.

They also added an “explicit reference” to article 136 of the EU financial regulation, which lists different situations whereby a person or entity can be excluded from receiving EU financing. Such situations include fraud, corruption or conduct related to criminal organisation.

After first being refused funding when the European Commission advanced Green New Deal objectives to phase out fossil fuels, Malta obtained a derogation that has now resulted in a decision by Council ministers to allow interconnection funding.

Dalli stressed the pipeline will be operated by Interconnect Malta, a company operating separately from any third-party company, including Electrogas. 

She recently 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.

Electrogas will not directly benefit from the EU funds. However, an EU-funded pipeline would trigger a gas exit payout to the company.

"It is an EU regulation, which we agree with, that states EU funds must not go towards any project involved in corruption or fraud. It is not true that Electrogas will benefit from the EU funds," Dalli stated.