VALLETTA (MALTA) (ITALPRESS/MNA) – Malta will enter into a short-term gas purchasing agreement once its current hedging system expires in August, Energy Minister Miriam Dalli has announced.
The agreement is expected to secure the country’s gas supply until the end of 2027, a period when global LNG market conditions are projected to improve.
Dalli said the move aims to ensure both stability and competitive pricing. “Enemalta is making sure to have a secure supply of LNG at a good price,” she noted.
The decision comes amid growing global energy concerns linked to geopolitical tensions, particularly fears surrounding Iran’s potential disruption of the Strait of Hormuz—a key route for around 20% of the world’s oil and gas supply.
Compounding the uncertainty, several major energy companies have withdrawn from hedging agreements, invoking force majeure after attacks on critical energy infrastructure.
Malta’s current gas purchasing contract is tied to oil prices, with Enemalta applying hedging strategies periodically based on market conditions. Hedging allows the company to lock in fixed prices over time, shielding consumers from volatility.
When asked whether fixed energy pricing would continue beyond October, Dalli said future terms would depend on supplier offerings, adding that Enemalta is exploring multiple options to secure the most favorable deal.
Enemalta currently has a generation capacity of about 960 megawatts, well above Malta’s typical demand of 400 to 550 megawatts, though usage can spike during peak summer periods.
The country relies primarily on the Delimara LNG power plant and the Malta-Sicily interconnector, supplemented by solar energy, diesel-powered turbines, and backup generators for emergencies.
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