Maltese Energy provider Enemalta has signed new agreements to seal prices for a substantial volume of the country’s supply of Liquified Natural Gas.
The state energy supplier will set the price of varying volumes of gas at different rates. The government stated that this is intended to keep utility bills stable and absorb the impact of price hikes.
Times of Malta was informed by Energy Miriam Dalli that the financial agreements were reached with a third party in recent days. The newsroom reported that it is understood that the contracts were signed with Italy-based energy trader Enel Trade S.p.A in what is effectively a form of price hedging by another name.
Malta will be indexing the price against another commodity, Brent crude oil, instead of locking in the price of gas as it had donee in the previous legislature. The agreement for a locked price is intended to minimise Malta’s exposure to Brent price fluctuations.
Dalli said that these are challenging times and that the government’s policy direction is that of stability. She highlighted how the priority is to minimise changes in utility prices for consumers.
The price and volume of the commodity Malta has committed to secure was not divulged by the government. Despite this, Enemalta said that the so-called contract for difference provides a safety net for changes in the LNG market price.
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