Enemalta negotiated new agreements to Liquified Natural Gas supply.

Malta’s energy provider, Enemalta, has negotiated new agreements to lock in pricing for “a significant amount” of the country’s Liquified Natural Gas supply.
The state energy provider will determine the price of different amounts of gas at different rates under the agreements, which the government claims would keep utility bills steady and absorb the effect of any price spikes.
The contracts were reportedly negotiated with Enel Trade S.p.A, an Italian energy trader, in what is a form of price hedging by another name.
Malta is now pegging, or ‘indexing,’ the price of gas to another commodity – Brent crude oil, rather than locking in the price as it did in the previous legislature.
According to Enemalta sources, the so-called “contract for difference” offers protection for price swings in the LNG market, similar to a hedging deal.
Enemalta will not make actual LNG purchases on the international market; it has solely determined the price at which it must be purchased.
Electrogas, the firm behind Malta’s controversial gas-fired power plant, will instead purchase the gas it requires to generate energy.

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