Background information

Malta remains profoundly reliant on liquefied natural gas (LNG), which serves as the primary component of its domestic electricity generation mix. This dependence is currently underpinned by a 10-year fixed-price supply agreement with SOCAR Trading and the Electrogas project, which is officially set to expire in August 2026.

As this deadline approaches, the Maltese government and state energy provider Enemalta have actively engaged in negotiations to secure the country’s energy future.

Content of measure

Malta has a history of signing hedging agreements to protect itself from varying market conditions. Rather than binding the nation to another costly, long-term hedging mechanism during a period of high global energy market volatility, authorities are strategically pivoting toward a temporary, short-term gas agreement. This stop-gap arrangement is intended to shield the country from supply gaps until late 2027, when international LNG market prices and infrastructural conditions are projected to stabilise. As of the beginning of May 2026, a new agreement has not been announced.

To mitigate any immediate risks to the national grid during these transitional negotiations, Malta maintains a comprehensive National Gas Emergency Plan. This framework outlines strict protocols, such as prioritising essential services and vulnerable household consumers, to safeguard electricity supply in the event of an unforeseen gas disruption.

Concurrently, Malta is advancing a long-term energy strategy to diversify its power mix away from fossil fuel imports. Malta currently also derives a lot its electricity from an interconnector with Sicily. A cornerstone of this plan is the construction of a €300 million second subsea electricity interconnector (IC2) with Sicily, which will effectively double Malta's interconnection capacity with the European mainland grid, with an added transmission capacity of 225 MW. It was announced in April 2026 that Malta will receive €100 million in financing for this project via the European Investment Bank (EIB).

Use of measure

Not applicable.

Target groups

Workers	Businesses	Citizens
Applies to all workers	Applies to all businesses	Applies to all citizens

Actors and funding

Actors	Funding
National government EU (Council, EC, EP)	European Funds National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Informed	Informed
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: Peak or cross-sectoral level

Involvement

Malta’s action plan to tackle the impact of the ongoing international turbulence in the energy sector was discussed within the Malta Council for Economic and Social Development (MCESD). The MCESD is a national tripartite council that brings representatives of the government, employers associations and trade unions together. NGOs are also represented via the Civil Society Committee.

Views and reactions

The views expressed by the social partners within the MCESD are not within the public domain, as the meeting is a private one.

The Malta Chamber, a leading employer's association, have in the past highlighted the importance that Malta considers investing in an underwater gas pipeline. The Malta Chamber has also acknowledged that the planned second interconnector can strengthen security of supply, but argued that it should not be presented as an emissions solution on its own. The Malta Employers', a leading employers association, has spoken about the urgency for the second interconnector and questioned the slow progress made with its implementation.

Sectors and occupations

This case is not occupation-specific.

Sources

• 01 June 2022: Gas Emergency Plan Malta (sostenibilita.gov.mt)
• 14 April 2026: MCESD to convene over international energy shocks (www.maltatoday.com.mt)
• 23 April 2026: Malta: EIB backs with €100 million energy transition through second electricity interconnector with Italy (www.eib.org)
• 30 April 2026: Newsbook - New gas agreement: Malta failed to adopt long-term strategy, says ADPD (newsbook.com.mt)