This news should have raised the alarm, too – it’s a massive red light
Times of Malta just two weeks ago (21 September) carried the news that European power giants Edison (Italy) and Soffimat (France) had, together with Daewoo, pulled out of their bid to build the government’s proposed new gas plant and sell electricity to Enemalta.
The news was considered noteworthy in itself – ‘those big ones pulled out’ – when the real news is definitely the story behind the story: WHY they pulled out.
We’re talking about two of Europe’s power giants here: they would have had good reason to pull out. They would have taken a decision that they stood to lose more overall rather than gain by getting involved.
Finding out why that was is going to be difficult, because corporations don’t talk. It’s not in their commercial interest to do so, and negotiations are confidential as a matter of course.
These corporations did not announce that they have pulled out. Times of Malta logged their absence from the bid when the final deadline expired at noon on 20th September. They were among the 19 names that expressed interest when the government made its call last April.
One key factor that changed since then was the news that 35% of Enemalta was to be sold to the Chinese government in return for an injection of cash.
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http://www.timesofmalta.com/articles/view/20130921/local/Big-names-pull-out-of-gas-plant.487033
Read up on the background:
http://www.timesofmalta.com/articles/view/20130511/local/Big-names-put-in-gas-plant-bids.469190
http://www.timesofmalta.com/articles/view/20130604/local/mizzi-announces-gas-power-station-providers-short-list.472531
http://www.timesofmalta.com/articles/view/20130811/local/Shortlist-of-energy-bids-is-revealed.481574
http://admin.timesofmalta.com/articles/view/20130920/local/enemalta.486973
I can guarantee that we will still be using HFO by the time of the next election.
Don’t you think that statement is ‘very ambitious’?
Regarding Edison, it was definitely the one which had the technology envisaged for an offshore terminal and the strategic network to place it.
Edison are in the process of linking the Med via Italy, Spain, Tunisia, Algeria and so on.
They produced the first terminal a couple of years back, volumes in line with predicted capacities and calibrated to the ships in use.
China’s only trying to impose herself on North African countries by ‘selling’ obsolete infrastructure, mass housing and, sadly, weapons, throwing a spanner in the works at the same time.
It seems Muscat thinks his guru can actually divert some of that gas to Malta. The price for that is dead silence on behalf of Labour.
The fact this Shiv Nair strikes deals with countries like Somalia, Grenada and Sudan, the list of conflict worn places is endless, fits the Chinese to a tee.
This strategy is in direct contrast to the EU’s, where giants like ExxonMobil, Qatar Holdings and Edison Italia have created a consortium bridging North Africa, the Gulf and Europe.
It’s also evident why Shiv Nair’s Labour have undertaken Marsaxlokk, a flawed concept under all circumstances, be it capacity, supply, demand and what have you. It simply doesn’t make sense.
It’s what made Konrad sound like a real moron as he expanded on the phantasmagorical solutions and technical sci-fi. The man from Lloyds couldn’t put it better before the election, ‘rather adventurous’.
The PN was on its way to strike a deal with Italy to host the next offshore terminal, reducing distances traversed by ships, thus cutting the real costs in LNG production; shipping it in the volumes which make sense.
Labour want to ship the quantities we require, directly to our location, will someone please explain what that implies to the price?
I seriously doubt whether Muscat has any idea what Konrad’s up to, who in turn doesn’t have a clue what Nair’s doing, who doesn’t actually give a toss what China’s up to.
http://www.edison.it/en/media/press-releases/2008-09-01-edison-the-rovigo-regasification-terminal-begins-its-journey-to-italy.shtml
Just to put things in perspective, The people of the Marche region are up in arms against a proposed regasifying facility 34 kilometers off the coast.
They’re particularly concerned to any leak, the proponents insist any gas would be dispersed within a 5 kilometer radius.
The computer animation illustrates clearly how the set up should work. A ship moored off the coast serves to regasify the liquid pumped from another one docked alongside.
Labour have proposed the same concept, after they managed to understand the folly of the previous proposal, only this time, the ship sits outside the power plant only as a storage facility, before transfer onshore to be regasified. All this within a few hundred meters of Marsaxlokk.
I doubt the spokesman interviewed would be as confident in Labour’s case.
You’re right about civil society, make that lack of, in Malta’s case. Labour can get away with anything when all we do is expect the worst.
http://www.youtube.com/watch?v=zD50ytvNIqk
There are now only 2 bidders in the run, Yildrim (the ones who own shares in the freeport) have been rejected http://www.enemalta.com.mt/index.aspx?cat=3&art=218&art1=228
Yes, the 35% sale of Enemalta to the Chinese must have been one of the main reasons. It was the significant factor that changed between their being short-listed and their decision to put in a final bid.
Other possibilities include:
they did not like the terms and conditions;
they did not like who in particular brokered the deal;
the impossible ‘date of completion’ of the plant (remember the 23 month target or Joseph Muscat resigns?);
the lack of gas storage facilities;
the government’s preference for dealing with a non-EU entity;
the general perception that this government is corrupt, a perception heightened by its choice of consultants.
All of the above and the following.
As if Qatar’s going to play second fiddle to Chinese interests.
As if Italy or France are going to co-operate with their direct competitor known to play dirty in every sector
The envisaged pipleines running from Tunisia to Sardinia, no doubt a spin-off into Corsica ergo France and onto Tuscany’s Livorno.
We’re being by-passed, Muscat’s cunning plan lacks one crucial ingredient, clout. With this strategy we’ve been reduced to a dead end, worst position possible. North African producers won’t look twice, Spain, France, Italy, Greece and even Turkey are joining forces to network.
The fact Muscat cut off talks previously held by the PN, that means, pipelines, offshore infrastructure, cables et al, denotes either total lack of foresight or worse, a sovereignity in decision making gone missing.
We’ll soon be targeted as a rogue state, complicit in conflicts, the stuff of hard reportage.
Is this the same Prime Minister we had last July
http://www.timesofmalta.com/articles/view/20131003/local/pm.488833#.Uk2IBVJzYwQ
Doublespeak.
The scenario changed drastically since they first submitted their bid. This allowed the Labour administration to boast of how transparent and democratic they are.
By selling a percentage of Enemalta to the Chinese midway through the process, they subtly kicked out the real worthwhile players in the field.