The strategic importance at EU level of MTGP has been recognized by the European Commission that selected the project 2013 for the inclusion in the first list of European Project of Common Interest (PCI 5.19), in accordance with the European Union Regulation No. 347/2013 on the guidelines for trans-European energy infrastructure (TEN-E regulation), under priority corridor “North-South gas interconnections in Western Europe”. Subsequently the project has been reconfirmed in the second, third, fourth and fifth PCI list.
Following a positive assessment by the Commission pursuant to Article 24 (1) and (2) of the TEN-E Regulation (EU) 2022/869, the Project has retained its PCI status in the list of 2023.
Being a PCI, the Project may benefit from accelerated planning and permit granting, a single national authority for obtaining permits, improved regulatory conditions, lower administrative costs due to streamlined environmental assessment processes, increased public participation via consultations, and increased visibility to investors.
PCIs are also eligible for EU co-financing under the Connecting Europe Facility (CEF). In fact, the project has already benefited from such grants and more than 4.5 million Euros have already been co-financed for all the preparatory studies.
Market integration:
The PCI will end Malta’s physical isolation from the European gas network and allow access to renewable gases from Italy. The Project can be considered an essential part of the future hydrogen cross-border network as it will give access to Malta to import/export pure hydrogen from the future EU hydrogen grid and potentially provide a future connection bridge to importation of hydrogen from North Africa to the EU.
Security of supply:
The Project will enable a more reliable, secure and energy efficient form of gas/hydrogen transport than the current LNG supply through maritime transport, and will allow Malta to tap into the emerging European hydrogen backbone, thereby contributing to the decarbonization of the power generation sector. It will also serve to diversify the energy supplies and routes for the island. The pipeline is designed for bidirectional flow and hence has the potential to send gas to Italy/EU in a gas shortage situation.
Sustainability:
The PCI’s hydrogen ready design shall enhance the deployment of renewable gases and allow for the decarbonisation of local power generation, necessary to ensure security of electricity supply to the island and support RES intermittency and growth. The pipeline’s capacity shall allow the use of the renewable gases not solely for energy generation purposes but for other potential inland uses including hard-to-abate sector.
Competition:
The Project will contribute to the diversification of import sources/routes hence increasing competitiveness. It shall accelerate the repurposing of the Italian gas network to transmit hydrogen and incentivize neighbouring states including North African countries to invest in low-cost green hydrogen production.
MTGP project has been supported by EU institutions also by means of approximately 4.5 million euro as grants awarded to co-finance the project development activities:
- (TEN-E funded – Decision Nr C(2013) 8516): “Feasibility Study and cost-benefit analysis of a gas pipeline between Malta and Sicily”, completed in 2015
- (CEF-Energy funded, Action No. 5.19-0011-MTIT-S-M-15): “Route identification study including conceptual design and preparatory activities for the permitting process for a gas pipeline connection between Malta and Sicily”, completed in 2017
- (CEF-Synergy funded, Action No: 2016-MT-SA-0005): “Study on the development of LNG as a marine fuel for Malta”, completed in December 2018
- (CEF-Energy funded – Action No: 5.19-0006-ITMT-S-M-17): “Studies for Malta-Italy Gas Interconnection: ESIA, marine survey, FEED, EPC tender preparation & financial engineering”, ongoing and expected to be completed in 2021
