Gas pipeline retains EU status for future funding

Malta's proposed gas pipeline to Gela in Sicily has been placed the EU's list of key energy infrastructure projects to integrate Europe’s energy markets and diversify sources.

Energy minister Konrad Mizzi announced that the pipline had retained its PCI status - projects of common interest - among 195 projects for Europe’s energy and climate objectives as part of its EU’s Energy Union.

The energy mix of Malta differs totally from the one of the EU 28 due to a quasi-exclusive use of petroleum products. Therefore, Malta has focused its efforts on reforming the energy sector to diversify the energy mix. These measures are expected to bring an end to the oil dependency of the electricity sector, although import dependency will remain high for gas and electricity.

#Malta gas pipeline retained its PCI status as part of #Europe #EnergyUnion deliverables @MarosSefcovic

— Dr Konrad Mizzi (@KonradMizzi) November 18, 2015

A budget of €5.35 billion has been allocated to trans-European energy infrastructure under the Connecting Europe Facility from 2014-20, helping projects of common interest to get implemented faster and making them more attractive to investors.

Malta intends to implement a connection to the trans-European Natural Gas Network to end Malta’s isolation by connecting Malta via an approximately 155km pipeline to Sicily primarily for importation of gas from the Italian gas network.

The project was identified as a PCI under priority corridor ‘North-South gas interconnections in Western Europe’ in 2013.

The government says the project will end Malta's isolation from the European gas network and contribute to market integration and improved security of energy supply and diversification of fuels for the island.

A comprehensive pre-feasibility study and cost-benefit analysis, 50% co-financed by the European Union in the field of trans-European Energy networks (TEN-E), was completed in April 2015. The possibility of exporting gas to Italy sourced from a floating storage and regasification unit (FRSU) located approximately 12km offshore from Malta could potentially be considered as a second phase of the project.

In July 2015, the proposal was favourable selected by the European Commission and was awarded a maximum grant of €400,000 with a 50% co-financing rate under the first CEF Energy programme call of 2015, for a route identification study including conceptual design and preparatory activities for the permitting process.