As the deadline stipulated by the government to build a gas-fired power station in Delimara draws closer, sources working on the project have revealed to this newspaper that Electrogas - the consortium that won the most lucrative bid in Maltese history - has encountered a serious hitch in their plans to rush through the new gas terminal, following pressure by the eneregy ministry to deliver as per the timeframes promised to the electorate.

Electrogas, who practically managed to buy overnight a giant floating facility able to store gas, are currently struggling with problems posed by weather conditions and the lack of political and financial will to ease them.

Way back in its initial presentation to the public, the Labour Party had favoured a storing capacity on land but pressure from several quarters, including Labour led local councils, led to a change of plans with Electrogas offering a semi-offshore solution. The Nationalist Party on the other hand, had always insisted that LNG should be delivered via a pipeline and that if an FSU was chosen instead, it should be anchored off the coast. 

The Floating Storage Unit will be moored alongside a jetty that will be installed adjacent to the power station. Gas storage will be replenished by ‘feeders’ that will moor alongside the FSU. This delicate operation requires calm seas. But such conditions cannot be guaranteed given that Delimara is exposed to rough seas and high waves.

FSU captain asked for breakwater

The sources that spoke to The Malta Independent confirmed Electrogas’ plight to the government to ease the timeframes and give it time to carry out further studies.

This paper has learnt that, in a bid to convince the government to back down on its set timeframes, the captain of the floating facility was summoned and given the liberty to assess the situation before taking the plans any further.

The captain of the ship was supplied with ‘wave-patterns’ and other studies to reassure him of the conditions of the area where the vessel will be moored. “But these failed to impress the captain so much so that he was internally reported as asking for an L-shaped breakwater to be built to offer some protection to the ship which will be moored to the coast unprotected from weather conditions.”

It was also pointed out that unless a breakwater is built it will be very difficult for smaller feeders to dispense gas in severe weather conditions. “These feeders cannot just wait for the rough seas to die down,” said the sources, “and they will eventually leave to make it to the next port-of-call.” Back in October, Energy Minister Konrad Mizzi had said that the gas-fired power plant would need between 10 and 12 fuel shipments a year.

In the meantime, until publication of this story, this paper was told that the construction of an L-shaped breakwater was turned down because of the costs involved and due to the time it would take to construct. If the government was to build a breakwater the construction works would jeopardize its timeframe of having a gas-fired power station by 2015. In turn this could affect the government’s plan to reduce electricity bills by 25% before the EP elections.

Having said that, the government intends to fund the tariff reductions for 2014 by selling an Enemalta holding company for €30 million. But building a breakwater would still not be completed by 2015 and the government would, in the meantime, have to make good for the loss of income incurred by the reductions through taxpayer money.

When asked on the subject on Wednesday, Prime Minister Joseph Muscat said that the government will push forward with the current plans, despite the fact that over 90% of Marsaxlokk residents want an offshore FSU.

Malta Freeport concerned on FSU risks

The sources who spoke to this newspaper claim that while Electrogas may have ironed out some of the concerns raised by the captain of the floating facility, levels of concern on the security of the operation are being sounded by different entities in the area. Among these is the Malta Freeport that has assets, investments and business concerns in the Marsaxlokk port. The sources who are very active in the maritime sector claim that Malta Freeport is considering the matter legally and will be demanding guarantees from the government and Electrogas on the security of the operation.