[WATCH] Offshore gas terminal could form part of PN energy proposals

The Maltese government held negotiations with "foreign governments" interested in investing in new infrastructure for a gas terminal offshore-Malta, and a gas pipeline, Lawrence Gonzi said today.

He the government's priorities are that of completing the interconnector with Sicily next year and converting the Delimara power plant to gas.

However, asked whether his administration had plans for a Qatari proposal to set up a gas terminal in Malta to sell gas to Europe , Gonzi said: "We did hold exploratory negotiations with the Qatari government, and there are two different projects, which could however coexist."

Speaking in Mosta, Gonzi added that exploratory meetings show the potential of gas-rich countries investing in Malta to sell their gas to Europe, "thanks to Malta's strategic position."

The prime minister was visiting Mosta hawkers today where he hinted that prospects of an offshore terminal for the transportation of gas from the Middle East into Europe, was one of the proposals in energy the Nationalist Party was to present.

"I know what the plans are and I will announce them in days to come." Gonzi said.

Accompanied by deputy leader Simon Busuttil, Gonzi said that Labour's energy plan would derail Malta's momentum to achieve a balanced balance by 2015.

Warning that Malta's future could be put at risk by Labour's plans to reduce energy costs through the construction of a new power plant and new infrastructure to receive gas by sea, Gonzi said "the government had managed to narrow the deficit every year for the past four years, a fact recognised by the EU. However, Labour's amateurish plans which are at least €200 million off the mark, could create a hole in the country's finances."

On Saturday the prime minister said the PN's energy plans included a Qatari proposal to set up a terminal in Malta to sell gas to Europe, while lambasting Labour's "amateurish" proposal to transport LNG into harbour and into gas tanks situated next to a new 200MW power station.

Last March, finance minister Tonio Fenech held meetings in Doha with Qatar's minister for energy and industry Mohamed bin Saleh al-Sada, at the Qatar Petroleum headquarters. Speaking in parliament hours before he departed for Doha on Tuesday, Tonio Fenech said that "government acknowledged the importance of finding an alternative solution to weathering this temporary spike in oil prices."

Gonzi today also said that despite tax cuts for high earners, government revenue had never suffered and said that further tax cuts earmarked in the last budget could be implemented because they are sustainable.