Overview
This Action "Technical Study and Cost-Benefit Analysis for the Development of LNG as a Marine Fuel in Malta" aims at assessing the optimal infrastructure solutions for the development of maritime LNG bunkering in Malta. The proposed Action contributes to the TEN-T and TEN-E priorities and to the objectives of the Synergy Call. In terms of energy priorities, the Action relates to the Project of Common Interest (PCI) 5.19, which includes a LNG FSRU and a pipeline interconnecting Malta and Italy. In terms of transport the Action involves areas that are located on two core network ports of Marsaxlokk and Valletta, which fall under the Scandinavian-Mediterranean corridor.
Historically, Malta has depended heavily on shipping for foreign trade, acting as an ideal connection point stationed in the middle of the Mediterranean Sea. In view of the Island’s present fuel oil bunkering market and the requirements of EU Directive 2014/94/EU for the development of an LNG re-fuelling infrastructure for maritime transport in main European ports; the Government of Malta has decided to investigate the potential of LNG as a marine fuel.
The overall objective of the study is to analyse the feasibility of introducing LNG bunkering infrastructure, taking into account the economical and environmental aspect, market demand, geographical properties, risk and safety features and the overall attractiveness of the project. The study will also look into alternatives, basing results on the socio-economic cost-benefit analysis and risk assessments. Finally the study will also aim at filling legislative gaps within the sector and providing necessary training for the implementation and operation of such infrastructure.
For this purpose, the Energy and Water Agency with the support of Transport Malta, has embarked on a study to identify an optimal infrastructure solutions for LNG bunkering for the Island. The study shall be co-financed by the EU under the Connecting Europe Facility Synergy programme aiming at accelerating investment in the field of trans-European networks in transport and energy and it will also look into possible synergies with Malta’s Gas Connection Project of Common Interest.
The outcome of this study shall facilitate the Government’s task in setting up a national policy in this field, with the ultimate aim being to stimulate LNG uptake as a marine fuel and to attract potential investors in this sector.
The first results from the study are expected to be published by the end of 2018.