Enemed has announced that residents living within 500 metres of its fuel storage facility at Malta International Airport are eligible for €500 in annual compensation, citing the "visual impact" of its recent expansion.

Enemed is a Government-owned company that serves as the country’s premier fuel importer and distributer.

In a letter from the Executive Chairman Kevin Chircop to residents of Ħal Farruġ, he says that although the facility has the necessary licences, authorisations, permits and approvals, Enemed recognises that the expansion of the facility visually impacted the surrounding area.

This contrasts with the reason for the payout cited by Nationalist Party MEP candidate Peter Agius, who is claiming credit for the move.

He says that the compensation is given for residents' exposure to the fuel tanks' risks. However, Enemed notably makes no mention of any health risks, only citing "visual impacts".

Mr Agius says the payout is a result of his efforts in calling out Government ministers and particularly Luqa Mayor John Schembri for not keeping promises they had made to residents.

In a statement, he points out that even former Prime Minister Joseph Muscat admitted earlier this year that Government had "let down" residents of Ħal Farruġ.

The MEP candidate notes that the fuel tanks at Ħal Farruġ are just 110 meters away from residences: “This contravenes the EU Seveso Directive, which mandates that facilities with the potential for serious incidents maintain a safe distance of at least 500 meters from residential areas.

"It is for this reason that I wrote to the European Commission to safeguard the safety of residents,” he says.

Mr Agius adds that residents have complained about the problems they face in insuring their properties, while raising concerns on their safety.

He added that ensuring implementation of EU laws will be one of his priorities if elected to the European Parliament.