‘Com­mer­cial dis­pute’ led to Elec­troGas gar­nishee or­der

Malta Independent - - FRONT PAGE - Gabriel Schem­bri

Elec­troGas Malta has re­frained from pay­ing Ocean In­staller, the com­pany that sup­plied the storm moor­ing sys­tem for the new LNG tanker at­tached to the new De­li­mara power station, be­cause of a com­mer­cial dis­pute.

The Malta In­de­pen­dent is in­formed that the Elec­troGas con­sor­tium had with­held pay­ments due to Ocean In­staller, not be­cause the com­pany was in fi­nan­cial dif­fi­culty but, rather, be­cause the two com­pa­nies are still to “set­tle ex­ist­ing dis­putes of a com­mer­cial na­ture,” a com­pany spokesper­son told The Malta In­de­pen­dent.

“The gar­nishee or­der filed by Ocean In­staller refers to amounts which are sub­ject to dis­putes and which are there­fore not due un­til these dis­putes are re­solved. Elec­troGas main­tains its avail­abil­ity, as with any sup­plier where there is a dif­fer­ence of opin­ion, to re­solve these is­sues am­i­ca­bly,” a spokesper­son said.

The dis­pute will not have an im­pact on the day-to-day op­er­a­tions of the Elec­troGas Malta plant or the LNG tanker, known as a Float­ing Stor­age Unit (FSU), the com­pany in­sists.

Sources within Elec­troGas have con­firmed that the lift­ing of the gar­nishee or­der the com­pany had been slapped with, is cur­rently be­ing pro­cessed by the courts. Ear­lier this week, this news­room re­vealed how the gar­nishee or­der had been lifted af­ter Elec­troGas de­posited a €1.5 mil­lion guar­an­tee.

It ap­pears that the case be­tween Ocean In­staller, the com­pany which was awarded the con­tract for the pro­cure­ment of the storm moor­ing sys­tem, and the Elec­troGas con­sor­tium will now con­tinue be­fore a lo­cal tri­bunal.

The re­quired per­mits for the tanker and the power station were ap­proved by the En­vi­ron­men­tal and Re­sources Author­ity in a heated ses­sion last De­cem­ber. The Prime Min­is­ter had promised to have the new LNG power station ready by March of 2015. Later, Min­is­ter Kon­rad Mizzi an­nounced the new dead­line, of June 2016.

The con­tro­ver­sial LNG tanker sailed into Marsaxlokk last Oc­to­ber and the power station is ex­pected to be up and run­ning in the com­ing weeks.

Newspapers in English

Newspapers from Malta

© PressReader. All rights reserved.