Maritime lawyer Ann Fenech believes Malta has both the legal basis and strategic geographic position to successfully develop the Nationalist Party’s proposed “Mediterranean Maritime Fuel Hub” at Hurd’s Bank, dismissing concerns that the project could create diplomatic or national security risks.

The comments come after Alex Borg announced the proposal during a press conference earlier in May, saying the project could generate €450 million within its first three years of operation and would allow the LNG tanker currently stationed at Delimara to be relocated to Hurd’s Bank.

Speaking about the proposal to WhosWho.mt, Dr Fenech said she could not see why developing a fuel hub within Malta’s Exclusive Economic Zone (EEZ) would create diplomatic tensions or issues with neighbouring states or EU institutions.

“Malta is a tiny island in the middle of the Mediterranean with no natural resources whatsoever unlike all our neighbouring countries,” she said, noting that Malta’s right to declare an EEZ is protected under the United Nations Convention on the Law of the Sea.

She pointed out that Malta legislated for the establishment of an EEZ in 2021, granting sovereign rights for the exploration, exploitation, conservation and management of resources and economic activity in the area, although no minister has yet officially designated the zone.

Addressing concerns raised by Foreign Affairs Minister Ian Borg, who warned Malta could become “a target” through the proposal on a recent WhosWho.mt podcast, Dr Fenech argued that formally designating an EEZ could actually improve oversight and reduce illegal activity.

“In my opinion it should be the complete opposite,” she said, referring to reports of fuel smuggling and criminal activity linked to Libyan and Russian interests in the area.

“If any illegal activity is going on at the moment in this area which is outside our territorial sea, then the actual designation of an Exclusive Economic Zone would in fact regulate activity in that zone and will bring a sense of order.”

She added that Malta would gain jurisdiction over the area under the EEZ Act and would be able to monitor activities more closely, while “serious players in the bunkering sector would welcome it”.

Dr Fenech also expressed confidence that Malta has the legal and regulatory capability to manage a large-scale offshore fuel hub responsibly.

“I have absolutely no doubt that Malta will rise to the occasion,” she said, arguing that Malta already has a strong maritime legal framework and a respected international reputation in vessel registration and maritime regulation.

She recalled how critics had once warned that EU membership would damage Malta’s shipping registry, but said the country instead “excelled and attracted top world tonnage”, making the Maltese flag the largest in the EU.

“Maritime Malta has become a very strong brand which is highly respected in all the right international maritime fora,” she said, describing the proposed fuel hub as potentially “another feather in the cap of Maritime Malta”.

On environmental concerns, Dr Fenech noted that liability for pollution is already regulated through international conventions and highlighted that the proposed terminal would supply LNG, which she described as the “least polluting fossil fuel”.

She explained that unlike traditional oil cargo, LNG quickly turns into gas if released from its tanks, avoiding the type of oil slick pollution associated with conventional fuel spills.

Dr Fenech also stressed Malta’s strategic location as one of the proposal’s biggest advantages.

“Malta’s position could not be better for it to be considered as the Mediterranean’s premier bunkering location,” she said.

She explained that Malta lies directly on the route between Suez and Gibraltar, meaning vessels do not need to deviate from their journeys to refuel.

“In shipping deviation for any reason is to be avoided because deviating from the route costs money,” she said.

Dr Fenech added that Hurd’s Bank offers another natural advantage because of its shallower seabed, allowing ships to anchor offshore more easily despite the deep waters surrounding Malta.