Maltese Gas Transmission System Reference Price Methodology in accordance with Commission Regulation (EU) 2017/460 of 16 March 2017

One of the major national strategic projects being developed by the Government is the implementation of the natural gas pipeline (referred to as the Melita TransGas Pipeline “MTGP”) for connecting Malta to the European Gas Network through an underwater pipeline of approximately 159km in length from Malta to Sicily. This project is designated by the European Union as a ‘Project of Common Interest’.

Melita TransGas Company Limited (“MTG”) was established as a public undertaking to succeed the obligations of the “Ministry for the Energy & Water Management” as the previous Project Promoter, and to implement, construct, commission and operate the MTGP infrastructure.

In August 2019, the Maltese National Regulatory Authority (“REWS”) delegated the task of preparing the reference gas tariff methodology to MTG as the prospective Maltese Gas Transmission System Operator (“MT TSO”) pursuant to Article 6(1), Article 26(1) and Article 27(1) of the Commission Regulation EU 2017/460 establishing a network code on harmonized transmission tariff structures for gas (“TAR NC”).

The reference price methodology is being established in close cooperation with the REWS and will enable the charging of future users of the MTGP infrastructure fair and transparent fees for gas transmission to recover the outlays invested in the MTGP project.

The establishment of the gas tariff methodology is also required for the determination of the reference price in preparation for the binding phase of Incremental Capacity Procedure in accordance with EU Regulation 2017/459 establishing a network code on capacity allocation mechanisms in gas transmission systems.

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2.        Consultation Questions

All interested subjects and the general public are invited to send their comments (in written form) to the consultation document provided in link below by the 16 August 2020.