Malta has locked in a new liquefied natural gas (LNG) supply deal with BP, securing energy supplies until May 2027. Prime Minister Robert Abela announced the agreement on Sunday, which will ensure continuity beyond August when Malta's current fuel supply arrangement expires.
The deal was secured after Enemalta evaluated seven international suppliers and selected BP's offer as providing the strongest overall value and security of supply. The contract is linked to the Title Transfer Facility (TTF) index, Europe's main benchmark for natural gas pricing, ensuring costs remain aligned with market conditions.
Abela noted that concerns had been raised during the recent election campaign about Malta's energy security beyond August, particularly as instability in the Middle East fuelled fears of supply disruptions. He credited Energy Minister Miriam Dalli and the government's approach for helping secure the agreement during a volatile period for international markets.
The new deal forms part of Malta's strategy to safeguard electricity generation and energy security. Since converting the Delimara Power Station to natural gas, Malta has phased out heavy fuel oil, reducing emissions and improving efficiency. While the agreement secures LNG supplies until May 2027, Enemalta is already working on future arrangements beyond that date.
The company says the deal complements ongoing investments in Malta's electricity infrastructure, including new substations, underground cable systems and grid reinforcement projects. These efforts aim to improve energy security and reduce reliance on imported fuels. Abela praised Dalli for her role in securing the agreement, which he described as a major achievement in ensuring Malta's energy future.
The deal comes amid ongoing uncertainty in global energy markets, with geopolitical tensions affecting natural gas prices and supply chains. Enemalta is monitoring international markets for favourable opportunities to secure future energy supplies. The company's efforts are part of Malta's broader strategy to reduce its reliance on imported fuels and improve energy efficiency.
