Malta energy ministry joint venture completes first cargo trade

New Silkroutes Group Limited (NSG) has said its joint venture with Malta’s energy ministry had completed its first cargo trade.

NSG said the trade had brought the group “another step closer to its goal of becoming a leading international oil and gas trader.”

The trade was carried out by IEG Malta Limited, which is 90% held by NSG’s wholly owned subsidiary International Energy Group Pte. Ltd. (IEG) and 10% by Malta’s energy ministry.

The joint venture was formed in 2015 with a mandate to develop Malta into an energy trading hub between Asia and Europe. NSG is a Singapore-incorporated company established in 1994 with subsidiaries in energy, healthcare, and ITC with a focus on security and governance.

IEG Malta expects its physical trading volumes to increase in the coming months as it gains access to markets west of the Suez Canal. IEG’s own average monthly trading volume has quadrupled over the past two quarters.

NSG’s management passed a resolution in early March to increase IEG’s paid-up capital from SGD10 million to SGD34.69 million.

Beyond energy trading, through IEG Malta  the group wants to manage and own oil storage facilities and terminals.

Artun Gursel, book leader for IEG, said: “We see oil and gas markets continuing to grow in size and complexity. Just as China’s ‘One Belt, One Road’ initiative is designed to boost connectivity and cooperation between Europe and Asia, we believe we can play a key role in bringing both continents closer together as we develop Malta into the Mediterranean’s preferred energy trading hub between these two continents.

“Our goal is to bring mission-critical supply to Europe and the Mediterranean. Being able to do this successfully will mean increased market liquidity and reliable supplies for the region.”

Oil and gas trading and investments are part of a strategic shift for NSG following its exit from the SGX Watchlist in November 2014.