Malta has secured the prices of a significant amount of Liquid Natural Gas (LNG), through the signing of new agreements by Enemalta.

As stipulated within the new deal, Malta’s energy provider will be setting different prices and rates according to the amount of gas that it is purchased, Times of Malta reported.

In previous legislatures, Malta had managed to lock in the prices of gas, but this time the approach came more as a form of hedging.

Hedging is an investment position which is intended to offset potential losses or gains that may be incurred by a companion investment. 

The government has expressed its hope that such a development will aid in keeping utility prices at a normal level, avoiding a substantial increase in expenses, along with avoiding fluctuations.

It appears that the agreement was signed together with Italy-based energy dealer Enel Trade S.p.A.

Not many details have been given in terms of the rates or amount of the LNG that Malta is set to be purchasing.

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