PN questions where Malta will get its LNG after contract expires in August
Opposition says new contract should have been negotiated years ago
Malta’s electricity supply beyond August remains uncertain as the government has yet to confirm a new gas supply agreement to replace the current 10-year deal, the Nationalist Party has warned.
Malta currently gets its liquified natural gas (LNG) through a 10-year agreement with SOCAR Trading, a deal linked with the Electrogas project.
In a press conference Thursday, Mark Anthony Sammut, Rebekah Borg, and Ivan Castillo — shadow ministers for energy, environment and employment, respectively — said the agreement will expire on August 13, raising concerns over how energy generation will be sustained after that date.
They argued that, with less than four months remaining, the government has not clarified what arrangements are in place to ensure continued supply for households and businesses across the country.
Castillo said Prime Minister Robert Abela had convened an urgent meeting of the Malta Council for Economic and Social Development (MCESD) on Friday.
The PN said these developments were a last-minute reaction, insisting that the government had long been aware of the contract’s expiry and should have initiated negotiations well in advance.
According to the Opposition, discussions on a new agreement should have begun in 2024 or earlier to avoid uncertainty over the country’s energy security.
The party also questioned statements it said had been made by Energy Minister Miriam Dalli earlier this year that negotiations were underway.
The PN called on Dalli to clarify whether the government now intends to issue a public tender for gas supply.
“If a tender is issued, it would raise serious questions about whether negotiations had, in fact, been taking place,” the PN said, adding that either scenario would point to delays in securing a new agreement.
The Opposition warned that any last-minute arrangements could result in higher gas prices, particularly against the backdrop of ongoing geopolitical instability, including the conflict in the Middle East.
It said the lack of clarity risked exposing Malta to an avoidable energy crisis and placed unnecessary pressure on the country’s economic stability.
The PN also called for transparency, urging the government to clearly state what supply arrangements will be in place once the current agreement expires, and to reassure the public that electricity provision will remain stable.
“Families and businesses have a right to know whether the country is prepared or whether it will once again face uncertainty in energy supply,” the party said.
Earlier this week, Finance Minister Clyde Caruana told Times of Malta the government was expecting to pay out between €80 million and €100 million to cushion the blow from the energy price hikes brought about by the war in the Middle East.
The additional bill will cover the rising costs of fuel and electricity coming from the interconnector and LNG supplies.
In a later statement, the governing Labour Party accused the Opposition of trying to scare voters, accusing the party of "choosing partisanship over responsibility".