EU’s Russian Gas Imports Spike: Malta’s Energy Dilemma

Standing at the bustling Strada Reale in Valletta, the scent of roasted coffee beans wafts from the historic Caffe Cordina. Yet, the aroma of geopolitics hangs heavier in the air today. Despite the ongoing conflict in Ukraine, Europe’s reliance on Russian gas has surged to its highest level since the invasion began, according to a new report.

The European Union, including Malta, has been grappling with an energy conundrum. While condemning Russia’s actions and imposing sanctions, the bloc has found itself increasingly dependent on Russian gas. The report, published by the independent think tank Bruegel, reveals that EU imports of Russian gas reached a record high in May, accounting for 45% of the bloc’s total gas imports.

This paradox isn’t lost on Maltese energy experts. “It’s like trying to quit smoking while still keeping a pack in your pocket,” says Dr. Joseph Giglio, an energy economist at the University of Malta. “The EU, and Malta by extension, needs to wean itself off Russian gas, but the alternatives aren’t readily available.”

Malta, an archipelago with no indigenous energy resources, is particularly vulnerable to global energy price fluctuations. The country imports all its energy needs, with natural gas powering most of its electricity generation. Until recently, a significant portion of this gas came from Russia.

In response to the crisis, Malta has been exploring alternative energy sources. The government has accelerated plans for a floating LNG terminal off Delimara Point, aiming to diversify gas supplies. However, this project, along with others like the Malta-Sicily electricity interconnector, won’t come online until 2023 at the earliest.

Meanwhile, Maltese consumers are feeling the pinch. “My electricity bill has doubled since last year,” says Maria, a mother of two from Msida. “I understand the situation, but it’s getting harder to make ends meet.”

The EU has set a target to reduce its reliance on Russian gas by two-thirds before the end of the year. However, achieving this goal will require significant investment in renewable energy and energy efficiency. It will also necessitate political will and cooperation among EU member states.

Dr. Giglio remains optimistic. “Malta and the EU can use this crisis as an opportunity to accelerate the transition to a gasless future. We have the technology, we have the know-how, and we have the necessity.”

As for Maria, she hopes that the transition will bring down energy prices. “I just want to see some relief for ordinary people. We’re not asking for much, just a fair shot at a sustainable future.”