Government Defends New LNG Deal Following PN Criticism

The Government has defended its new liquefied natural gas (LNG) supply agreement with BP, saying the deal is based on a transparent and internationally recognised pricing mechanism following criticism from the Nationalist Party.

In a statement, the Government said the agreement is linked to the Title Transfer Facility (TTF), Europe's main benchmark for natural gas prices, meaning LNG procurement will reflect current market conditions.

It added that the contract, concluded by Enemalta with BP after a competitive process involving seven international companies, secures Malta's LNG supply until the end of May 2027.

According to the Government, the selected offer provided the best value and security of supply at a time when international energy markets continue to face geopolitical uncertainty.

It also said Enemalta is already working on arrangements beyond the current contract as part of its long-term energy planning, while highlighting ongoing investment in Malta's electricity distribution network.

The Government's statement came in response to calls by the Nationalist Party for greater transparency over the agreement.

The Opposition urged the Government to publish the contract's price, conditions and guarantees, arguing that the public has a right to know how much Malta will be paying for its gas supply.

PN also accused the Government of relying on short-term solutions and questioned why negotiations were left until shortly before the existing agreement expires.

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