Government considers gas storage terminal

Resources Minister George Pullicino has revealed in parliament that the government is seeking to incorporate an LNG terminal with the planned gas pipeline linking Malta and Sicily.

An LNG terminal is a facility in which gas can be stored in a liquefied state to be used by domestic consumers or subsequently exported to other countries through a gas pipeline. 

Pullicino referred to "relatively recent developments" in the gas sector to justify a delay in the publication of a "strategic environmental assessment" on Malta's national energy policy after being reminded by Labour MP Leo Brincat that this document had to be finalised in June.

The minister's declaration comes in the wake of reports published in MaltaToday that Qatargas was seeking a strategic partnership with Enemalta, by investing in setting up a Mediterranean distribution hub for natural gas.

According to the minister, the document, which assesses the environmental impact of Malta's energy choices, was delayed to assess the implications of the proposed LNG terminal. The assessment is now "heading towards a conclusion," the minister added.

MaltaToday is informed that a large scale LNG terminal would have a considerable impact on land use especially if this is used to export large quantities of gas from Malta.

In fact, during the past months, areas in the Delimara coast were being earmarked to host the docking and bunkering facilities for the storage and distribution of natural gas.

Change in policy

A study commissioned by the Malta Resources Authority mentioned in the draft energy policy issued in 2009 had already established that an LNG terminal with a 60,000-cubic-metre storage facility would be the "most feasible option" for Malta. 

But at that time, the project was envisaged as an alternative to a gas pipeline and gas was to be transported by sea vessels rather than complimenting the gas pipeline as the government is now proposing. 

Natural gas can be transferred by pipeline at high pressures in a gaseous state or by ship in a liquefied state. But it can also be liquefied (LNG) at around -170ºC and transported in specially insulated ships. Before it is pumped through a pipeline system to customers, a re-gasification plant would be needed in Malta.

Effectively, Malta is still without a finalised energy policy more than three years after the first draft was issued. The policy launched as a draft in April 2009 had to be reviewed in a strategic environmental impact assessment (SEA). Originally, the government was committed to finalise its energy policy by the end of 2010 but this deadline was never met.