Energy Minister Miriam Dalli has refused to put a figure to the multi-million euro compensation payment to the Electrogas consortium that will be triggered by the gas pipeline project she is spearheading.

Fielding questions from journalists, Dalli said the figure of €100 million being mentioned by slain journalist Daphne Caruana Galizia's family is “factually incorrect”.

Dalli said Electrogas will receive a “fair value” payment for their assets once the pipeline is completed.

“Our plan is for the pipeline to be commissioned in 2028. It will have a 35-year lifespan.

“The lifespan of the current power plans is 18 years. An eventual hydrogen ready pipeline will allow the country to be independent from the existing gas facilities, and move away from fossil fuels,” Dalli said.

A €64 million pay-out?

According to a payment schedule found in the Electrogas contracts, terminating the consortium's gas supply contract in 2028 will trigger a payment of around €64 million by taxpayers to the consortium by way of compensation.

Dalli refused to confirm the €64 million figure when questioned on Thursday.

“The reality is without this pipeline we will keep on paying out a lot more money every year.

“I prefer investing in a hydrogen-ready pipeline that will extract the country from the existing infrastructure and move Malta away from fossil fuels,” Dalli said.

The project has met stiff resistance from assassinated journalist Daphne Caruana Galizia’s family as well as MEPs involved in negotiations on whether the project should qualify for EU funding.

Addressing a press on Wednesday, the journalist’s son Matthew said the pipeline will financially reward the person prosecuted for his mother’s assassination.

Electrogas shareholder Yorgen Fenech is indicted for his alleged complicity in the October 2017 assassination. 

Caruana Galizia said EU funding for the project goes against the principles of morality and justice.

“It is unacceptable for this pipeline project to go ahead, it will reward people accused of murder and carrying out high-level corruption,” Caruana Galizia said.

High-level EU talks about whether the pipeline will qualify for European funding are set to continue next week.

Hydrogen ready?

One MEP opposing the project said labelling the project as “hydrogen ready” meant nothing in reality and was just a “really lame excuse” to justify the project.

MEP Claudia Gamon said the gas pipeline locks in Malta's dependence on fossil fuels.

The minister refused to commit to a date when hydrogen will actually start flowing through the pipeline.

Questioned by Times of Malta what “hydrogen ready” means in practical terms, Dalli said a hydrogen pipeline offers the flexibility of transporting a mix of gas, hydrogen and renewable gases.

“I believe Malta should have a pipeline that will eventually be able to deliver hydrogen.”