How can a liquefied natural gas (LNG) terminal, with all the capital outlay and environmental hassle involved, be considered a stop-gap measure?

Published: May 22, 2013 at 2:03pm

The prime minister is in Brussels, at a meeting of European leaders. The Times of Malta reports:

Malta, which is represented by Prime Minister Joseph Muscat, is particularly keen on strengthening the EU’s resolve to invest on connectivity and provide funding for projects which link isolated countries to the European network.

Malta has already benefitted from funding for its €200 million electricity interconnector with Sicily. However, feasibility studies have also been launched on the possibility to build a gas pipeline.

If viable, the pipeline would be a long term alternative to the government short term plans to build a Liquefied Natural Gas terminal that would supply the new, privately-financed gas-fired power station is being planned at Delimara.




12 Comments Comment

  1. Sparky says:

    Possible if you live in cloud cuckoo land.

  2. Alexander Ball says:

    I still haven’t had an explanation why a private company would build gas tanks and power plant at their own expense (as per the EOI), and then expect to make a profit by selling Enemalta cheap electricity.

    Could any of your esteemed readers shed light?

    • Harry Purdie says:

      The Chinese have a different method of calculating profitability, it’s called ‘control and conquer’.

  3. Jozef says:

    Temporary in the sense that the offshore terminal would first supply Malta, and when the pipeline’s in place it will split reverse supply to Italy. The difference in costs related to shipping it over longer distances should see to capital offset.

    That was GonziPN’s strategy, to the letter. Basta hafna biza’ fuq 800 miljun Euro li kien se ‘jiswa’.

    Edison, one of the bidders, have already built the first of its type anchored outside Rovigo. Surely lessons learnt will make them preferred bidders. The reds won’t have them in territorial waters, obviously.

    Here it is, notice how contracts for supply are spread among end users. The humongous quantities which we can’t ever consider should settle matters.

    Unless he’s delusional enough to insist on having it in Marsaxlokk. The smaller, the more expensive the gas per unit. The larger becomes something else. What’s certain is that 60,000 cbm is peanuts for the industry.

    http://www.rasgas.com/Operations/AdriaticTerminal.html

    This git’s posturing’s incredible. Not that we haven’t noticed.

    • Antoine Vella says:

      Jozef, a gas terminal to supply southern Italy would obviously have to be much bigger than if it were meant only for Malta and will cost much more.

      That is not what josephmuscat promised.

      • Jozef says:

        Definitely, but Muscat cannot even think he can provide Malta with its trickle of gas required at market prices.

        Which is why they screwed up on the sizing. The tanks are usually built to match the ships and not the other way round. That means a processing plant designed around the same quantities and so on.

        The PN had both options, the offshore terminal being a spinoff resulting from endless talks at EU level.

        Blaming an administration simply because decisions were called off until the planets could align reflects an immature, ‘populist’ mentality.

        Meantime, Konrad carries on with his blatant half truths and absolute disrespect for parliament and the electorate. I sense total panic and sucking up to someone’s very clear conditions on his grand design.

  4. Calculator says:

    “If viable, the pipeline would be a long term alternative to the government short term plans to build a Liquefied Natural Gas terminal”

    So we’re going to unncessarily increase national debt to help create a potential time-bomb (both literally and in environmental impact of construction), inceasing our dependence on foreign energy producers and the private sector, only for the short-term?

    Seriously, what is the point of the project in the first place?

    This is what EU regulations are meant to be for, thinking of the long-term when short-term short-sightedness could lead to disaster. It’s about time someone point out what the Government is about to do here to someone in Brussels. At least someone there could smell a rat and do something about it.

  5. Paddling Duck says:

    Maybe Joseph has discovered inflatable little tykes – ones we don’t know about yet?

  6. Edward says:

    “short term plans to build a Liquefied Natural Gas terminal”

    Mhux xorta, we build it and then we won’t use it hux. Mhux short term you call that?

  7. Catsrbest says:

    Joseph Muscat is surely emulating Mintoff. Mintoff had the Malta Shipbuilding as his dream which eventually became a white elephant, while Joseph Muscat’s dream which I am sure will also eventually end up a white elephant is the LNG Power Station/Gas Terminals.

  8. FSRU Toscana says:

    It took them THREE years to convert and EXISTING liquified natural gas carrier into an FSRU Toscana (floating storage regassification unit)

    http://www.ameinfo.com/217071.html

    They started in June 2009 and finished in June 2013.

    And the FSRU Toscana is 30% smaller than the one being proposed for the Delimara power station.

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