Eleven companies short-listed for Delimara gas purchase agreement

Eleven companies have been shortlisted for a competitive tender for a power-purchase and supply agreement of natural gas for a new 200MW LNG power station.

19 proposals were submitted by various companies for the purchase and supply of gas for the new Delimara plant in an expression of interest issued back in April.

The shortlisted companies are Abener Energy, CPECC, DSME, ElectroGas, Edison SPA, Endeavour Energy, GMR Energy, Shell Gas and Power, Soffimat Gestamp, Vitol, and Yildirim.

Companies were invited to register their interest and submit outline proposals for the supply of natural gas and electricity to Enemalta under a long-term gas supply and power purchase agreement.

The companies that were not short-listed will be able to appeal the decision, but the government has yet to issue a legal notice to establish the arbitration that will take place.

The energy ministry has submitted a project description statement for the 200MW gas power station to the Malta Environment and Planning Authority. Energy minister Konrad Mizzi said a full environmental impact assessment will take place.

Mizzi, who was recently on a visit to Qatar to speak to his counterpart, said he discussed plans for offshore oil bunkering with the Gulf State.

The gas supply agreement will be required to operate current Enemalta plant which will be converted to run on natural gas.

Pre-qualified candidates will be invited to bid for the power purchase and gas supply agreement and commence supply by 2015.

Labour was elected to government with a pledge to lower energy bills by 2015 using the supply of natural gas to a new 200MW power station built at Delimara. The successful tenderer will have to build the power station, and sell the electricity generated to Enemalta using a 10-year power purchase agreement for gas that will be supplied to a new terminal.