As energy costs continue to rise in the UK and across Europe, island Malta's prices have remained stable under a 2014 agreement with the State Oil Company of Azerbaijan (SOCAR).
The 18-year-old liquefied natural gas (LNG) supply agreement has been accelerated by former Prime Minister Joseph Muscat, Report informs, citing foreign media.
The 7-year fixed price LNG purchase agreement, signed by the Muscat government, has protected against rising fuel prices, which has contributed to Malta's stable energy costs over the past 12 months.
Along with the rising energy cost in the UK, its gas imports are projected to rise sharply over the next 30 years, which could result in higher costs.
According to Dorian Ducan, Albania’s former deputy minister of energy and industry, Malta is in a better position than other EU islands that have not yet transited to gas.
Malta's price freeze, which expires in March under an LNG agreement with SOCAR, has reduced three-year high payments for six months.
As Malta's fixed-price agreement nears its end and there are no plans to reduce its impact, Prime Minister Robert Abela has begun freezing prices with government funds worth £200 million.
The deal prompted ElectroGas to re-supply an oil power plant in the south of the island. CO2 emissions from the LNG-powered plant have been reduced by more than 50% from 2017 to 2020.
"The ElectroGas project has significantly reduced environmental impact and moved Malta to a more sustainable and reliable energy supply. This is good news for the people of Malta and better news for the planet,” the company said.
As Russian-Ukrainian tensions rise, the European Union's (EU) dependence on Russian natural gas is expected to result in a sharp rise in energy costs. Japan and the United States have already announced plans to transport LNG to Europe to increase the EU's existing gas reserves. The UK is currently less than 5% dependent on Russian natural gas supplies, which could help minimize increases in energy prices.