Proposals for co-operation between Oil Tanking and Enemalta Corporation

A meeting took place today under the auspices of the Minister for Economic Affairs and Industry, Dr John Attard Montalto, between high officials of Enemalta Corporation and Oiltanking (Malta) Ltd. The venue was Oiltanking (Malta) Ltd's offices in the Freeport zone of Benghajsa. The purpose of the meeting was the presentation by Oiltanking of proposals for an efficient co-operation between Enemalta and Oiltanking for a possible restructure of the energy logistics of Malta.

Oiltanking (Malta) Ltd forms part of the Marquard & Bahls Group based in Hamburg Germany. The Group is independent and privately owned and operates 32 companies in 12 countries. The Group's turnover in 1996 amounted to USD 2.6 billion.

Oiltanking Gmbh is a 100% subsidiary of Marquard & Bahls AG and the world's third largest oil storage company. It operates 19 terminals in 9 countries including Malta. Its total storage capacity is 6.4 million cubic metres and has handled 41 million metric tons in 1996. It has operated in the field of liquids handling for 25 years.

Oiltanking (Malta) Ltd commenced operations in March 1992, and is a 70 / 30 joint venture with Malta Freeport Corporation Ltd. It has gradually built up its storage capacity to 359,000 cubic metres and has handled circa 2.5 million metric tons in 1997. The Company has been performing efficiently and has registered a profit for the fourth consecutive year in 1997. The profit amounted to Lm603,000.

The proposal by Oiltanking addresses the possibility of merging all Enemalta's facilities at the Port of Marsaxlokk which, with the levelling of an excavated area at Benghajsa, contiguous with Oiltanking, created a scope for economies of scale and environmental enhancement. Oiltanking (Malta) Ltd is offering Enemalta Corporation its expertise in the field and has put forward three proposals:

• New 50,000 cubic metres storage terminal next to Oiltanking facilities with an investment of USD 8.7 million;
• Truck-loading facility with day-tanks next to Oiltanking facilities with an investment of USD 3.7 million;
• Storage and truck loading done at the Oiltanking facilities involving a volume and term contract with negotiated favourable rates.

The above options entail the relocation of the liquid gas depot and Birzebbuga oil storage; the construction of truck loading facilities with day tanks; pipeline connection of Delimara power plant, Has-Saptan underground storage and the airport with Oiltanking; possible participation of Enemalta in Oiltanking (Malta) Ltd.

Enemalta Corporation is to study the proposals in detail and their feasibility, after which further discussions will be resumed. Minister Attard Montalto described the proposals as very interesting and commented that all possibilities should be explored.