Malta aims to become a Mediterranean energy hub and in July will host a regional ministerial energy conference according to Ronald Mizzi, Permanent Secretary at the Ministry of Energy and Health.

One of the three government speakers at the Malta-Tunisia-Libya B2B Networking   Forum 2014 held at Smart City on 8 May, which launched the Malta-Tunisia-Libya Business Council,  stated that “organised together with the European Commission, (the conference would) discuss the role of energy developments in the Mediterranean region and their role in the wider geopolitical scenario. More specifically the conference is intended to focus on gas as a strategic energy product for the region and beyond.

 “There shall also be four sessions open to both Ministers and key stakeholders (including MEPs and top energy experts) aimed at stimulating debate and facilitating the way forward on how energy developments in the region can foster greater security of supply for both Europe and the Mediterranean area.

 “Malta strongly advocates the creation of the Mediterranean energy ring and looks forward to the establishment of further interconnections linking the different shores of the Mediterranean. Malta is ready to facilitate such interconnections through its territory and/or waters and indeed be connected thereto; Malta can be a node of such interconnections transiting through the central Mediterranean. Malta’s geographical location may equally be strategically used as a logistic base for the servicing of such interconnections.”

Malta was an ideal logistical energy hub for multi-nationals with a competitive cost benefit profile. Its energy energy policy comprised four core focus areas for the nation to become a hub in the Mediterranean for the storage, distribution and bunkering of energy products;  a high value-added centre for the manufacture, repair and servicing of energy products;  a specialised service centre for the oil and gas industry; and a renowned training and educational centre offering numerous courses in the field of oil and gas.

 “Malta is already very active in the transhipment of oil petroleum products,” Mr Mizzi continued, “both by means of onshore oil storage facilities as well as ship-to-ship transfers in offshore waters. A memorandum of understanding with Libya endorsed in September of last year provides access to Libyan crude and refined oil at preferential rates.”

While the 200 MW inteconnector cable with Sicily was expected to become operational by end 2014 Malta was also exploring plans to interconnect to the EU gas network via Italy. Selected by EU as a ‘Project of Common Interest’ required for the completion of the ‘North-South gas interconnections in Western Europe’s infrastructure priority energy corridor, the proposal was currently being assessed under a cost-benefit analysis. Meanwhile the Electrogas Consortium was installing a floating LNG storage unit at Delimara enabling the daily regasification of 55/60 million standard cubic feet to supply Enemalta's existing power plant as well as a new plant to be built and operated by the consortium.

Under the Enemalta-Shanghai Electric power heads of terms agreement signed on 11 March, a five-year business plan would see Enemalta become profitable within three years. The  €320 million injection comprised a €100 million equity stake, a €150 million majority shareholding in Delimara 3 plant and €70 million to convert Delimara 3 from heavy fuel oil to natural gas fired.

Under a separate joint venture for photovoltaics and wind turbines. plants would be developed and built generating at least 100MW and 200MW respectively. Another joint venture would be the energy service centre – to maintain power plants in Europe, Turkey and parts of Africa where SEP is currently investing.

The Minister for Sustainable Development, Environment and Climate Change, Leo Brincat emphasised that “Malta-Tunisia-Libya environmental cooperation could offer many opportunities even from a purely economic perspective.

“The transition to a green economy aims at addressing not only environmental challenges but also any existing or resultant poverty and social inequality. I am confident that the United Nations Environment Programme can (on the basis of past exercises in less developed nations) facilitate such a process in both Libya and Tunisia. Nevertheless sectoral programmes should not be enough. There is an urgent need for an integrated strategy.

 “Even in the present circumstances various members of Malta's commercial community have been getting serious enquiries for air monitoring equipment, water purification/recycling equipment, sewage treatment and pollution abatement plants for refineries and petrochemical plants in the indicated countries. The prime movers of oil corporations in such countries are keen to improve the environmental situation where they operate.

 “As active participants within the UNEP process we consider ourselves well placed to encourage the spread of best practices throughout these countries. Through our network of international contacts we are prepared to host either in Malta or else in these countries green economy workshops at an expert and technical level.”

The Mediterranean accounts for over a third of world tourism revenues, Edward Zammit Lewis, Minister of Tourism told the forum, with visitors to the southern nations increasing from 17 to 72 million between 1990 and 2010.

 “The economic crisis in European source markets and the on-going upheaval in North African and the Middle Eastern countries have, no doubt, had a negative impact on tourism. Nonetheless, tourism remains important in these countries, with a contribution to the GDP averaging 12% in 2012. In Malta, it stands at 29% with tourist arrivals reaching an all time record of 1.58 million last year, expenditure rising to 1.44 billion euros,” Dr Zammit Lewis said.

“The Mediterranean countries need a shared vision for tourism development. We need to work together to establish strategic alliances for cooperative marketing and promotional initiatives to support our brand and to help us maintain a competitive advantage in the globalised tourism market.  The scope for cooperation between our countries includes tourism business development, hotels and the catering sector, infrastructure, tourism studies, regulatory frameworks, English language teaching, tourism product development, cooperation with our national airline,  ICT,  cruising, maritime related activities.

“Another challenge is the product cycle as our destinations have matured over the years. Creativity and investment are needed to mitigate the problems that come with ageing tourism products. The recent economic difficulties, with disposal capital in short supply, made it even more challenging. My country has introduced a number of schemes to assist SMEs to access financing and encourage further investment. Public-private partnerships in tourism are also important. In the past year, my government has launched a number of calls for development, with more planned.

“MEDPRO, a recent European Commission project had identified three main factors strongly influencing future regional tourism development and competitiveness - security, efficient ICT use  and adjustment to climate change. “These are all areas that our countries can cooperate in,” the minister said.“The Malta Hotels and Restaurants Association annual conference this November will aim to foster further cooperation between Mediterranean players.”

Co-organised by the Tunisian Embassy, the Malta-Libya Business Council and Economic Update and with numerous sponsors, the Forum was attended by 30 Tunisian and a dozen Libyan business leaders as well as some 300 Maltese participants.