Gasco Energy Ltd has started excavation works in preparation for the construction of a €20 million LPG cylinder filling plant that will increase its storage capacity by 70 per cent.

The plant is located in a disused quarry next to the oil tanking facility on the outskirts of Malta Freeport in Birżebbuġa. It will include a gas terminal connected by means of a pipeline to a jetty, a storage capacity of up to 4,800 metric tonnes, a state-of-the-art cylinder filling station and an administrative block. The plant will be able to fill around 1,200 cylinders an hour.

Gasco has started talks with Enemalta to submit a planning authority application to dismantle its old plant in Qajjenza.

The company said it would like to have the permit in hand so once the new plant is completed in September 2012, dismantling at Qajjenza could start without delay.

The plant will be supplied by a leading Danish company and ensure safe and proper filling of cylinders.

“This is a complex project as well as an important one for Malta, as it will ensure LPG shortages will be avoided when there is heightened demand or when unloading is made difficult by weather conditions,” Gasco CEO Roberto Capelluto said.

The company recently signed a multi-million euro contract with Tanko SpA, an Italian company, for the provision of six storage tanks to be commissioned within 14 months.

Bonnici Brothers have been entrusted with the civil works. Building services and fire-fighting systems will be provided by Mekanika Ltd.