Mizzi unwilling to answer questions on ElectroGas deal

In parliament, energy minister fends off questions from Opposition MPs on ElectroGas deal for LNG power plant

14 May 2014, 7:00pm
by Staff Reporter

2 min read

Energy Minister Konrad Mizzi has claimed in Parliament that he would only answer questions on the Delimara gas plant contract, a first tranche of which was signed on Friday last week, if they are submitting in writing.

After turning down a PQ by Jason Azzopardi, Mizzi refused to answer supplementary PQs by Nationalist MPs Marthese Portelli, George Pullicino, Ryan Callus, David Agius and Mario de Marco – even asking for the protection of the Speaker in a bid to fend off the insistent questioning

The consortium ElectroGas has so far entered into a share purchase agreement to acquire a 30% stake in Enemalta’s special purpose vehicle Malta Power & Gas Ltd (MPGL).

Gasol, the West African power company that forms part of the ElectroGas consortium, announced that it had purchased the 30% stake in MPGL, to own and operate the LNG-to-power project.

The remainder of MPGL’s shares will be acquired by the other members of the ElectroGas consortium as follows: SOCAR Trading SA (20%), local entrepreneurs GEM Holdings Ltd (30%) and Siemens Projects Ventures, the equity financing arm of Siemens Financial Services (20%).

So far, the government has been cagey about whether it had secured the contract with ElectroGas: Prime Minister Joseph Muscat on Reporter said the contract had been signed, but the Opposition is raising questions about the veracity of his statement.

MPGL is the subsidiary that was formed by the Maltese government in 2013 to kick-start the planning process for the new gas-fired power station at Delimara, and the entity with which Enemalta will enter into the power purchase, gas supply and related agreements with ElectroGas.

The Enemalta subsidiary was responsible for the filing of development applications with the planning authority, to obtain the necessary permits for a new 200MW gas plant. The company was set up in July 2013 with Enemalta Corporation being the principle shareholder and Aviation Fuelling Services Ltd (an Enemalta subsidiary) holding a nominal one share.