A joint venture has been formed between Malta Enterprise and the Singapore company International Energy Group (IEG) with the aim of developing Malta into a trading hub for energy products between Europe and Asia.
Malta Enterprise will have a minority shareholding in the company in Malta.
Earlier this year, Malta Enterprise signed a Memorandum of Understanding with the consortium of private Singapore entrepreneurs that now own IEG.
IEG has been set up recently for the purpose of acquiring business from other companies on the Singapore Stock Exchange. The owners of IEG have 20 years of experience in the energy trade with worldwide partnerships. IEG’s headquarters are in Singapore. Its principal activities comprise trade of Fuel Oil, Gas Oil, Crude Oil and Liquified Natural Gas (LNG).
The Maltese operation is expected to carry out its first transactions next year, enabling Malta to profile itself as a centre of financial services in this field. Initially the company will be using Malta as an oil trading hub and plans to increase eventually its activities into oil blending and bunkering. The company intends to trade energy products between Europe and Asia.
Singapore is Asia’s main hub for oil trade and related financial services. The energy industry generates 5% of Singapore’s GDP. Global operators such as Exxon Mobil and Lanxess operate in Singapore.
This joint venture has been facilitated by the Maltese company Attard & Co. and is a clear example of how local private entrepreneurs collaborate with government to attract business to Malta.