Enemalta Chooses ElectroGas for 18-Year LNG Project

Enemalta chose the multinational consortium ElectroGas Malta to build a new LNG-to-power project.  ElectroGas is a consortium made up by Germany’s Siemens, Azerbaijan’s SOCAR, UK-based Gasol and local investor group GEM Holdings.

Malta’s Energy Minister Konrad Mizzi announced the winning bidder on Sunday, after a two-phase bidding process. The Mediterranean country aims to lower its energy costs.

The project involves the provision of a floating storage unit (FSU), which will be docked in Delimara and the regasification of an initial 55-60 mmscf/d of gas from LNG deliveries to Malta.

According to a note released on Monday, the consortium expects to enter into various agreements with Enemalta including an acquisition agreement ‘under which Electrogas will acquire a special purpose vehicle with all the necessary permits to undertake the Project for a consideration of €30 million in cash.”

The total cost to ElectroGas to develop the project in the coming 24 months is expected to be around €470 million.

The parts expect the project to have a 18-year gas sales period and a 18-year power purchase agreement. The floating storage unit will be provided by SOCAR, which will also have the exclusive right to supply LNG for the project. 

“I am delighted that out of the final three bidders, our consortium has been announced as preferred bidder and we look forward to finalising the project agreements with Enemalta and subsequently concluding the financing agreements with ElectroGas’s mandated bank consortium of local and international banks,” commented COO Alan Buxton. 

The project will be financed 80:20 in debt and equity.