Turkish bidders dropped from race for gas power plant

MaltaToday has discovered that Yildirim Consortium has been dropped from the shortlist for the Long Term Power Purchase Agreement and a Gas Supply Agreement for the new power plant in Delimara.

The Turkish consortium was one of three companies who made it to Enemalta's final shortlist, however, following their elimination, only two consortia remain in the running for a contract to supply Enemalta with gas for 18 years through the development of Malta's first privately owned power station.

The excluded Yildirim Consortium includes Turkish owned Yildirim Holding AS and the Spanish Tecnicas. The Turkish company already owns 50% of Malta Freeport.

One of the two remaining bidders has a direct Maltese connection, while the other includes US interests that could balance the growing Chinese influence through the acquisition of part of Enemalta by a State-owned Chinese company.

ElectroGas includes the participation of the Malta-based Tumas and Gasan groups together with the State energy company of Azerbaijan.

The other bidder is a consortium made up of two Texan based companies namely Endevour Energy and Exodus Crossing and the oil trading company; BB Energy.

The winner of the tender will provide natural gas at a fixed price for the first five years of an 18-year agreement. Enemalta, which will be partly Chinese-owned, will be committed to buy fuelfrom the company to fuel its own power station, while the new operator willalso sell energy directly produced in its own power station.

The new operator will own the LNG terminal providing gas for both power stations. This will practically put the fuel procurement process to an end, as the energy supply will be devolved to one company.