SA and Moz state companies to shell out R4.1bn for part of Sasol’s stake in gas pipeline
JOHANNESBURG - The gas subsidiaries of South Africa and Mozambique’s state energy companies, which together with Sasol own a 865km gas pipeline running between the countries, are exercising their right to buy 30 percent of the petrochemical company’s stake in the project.
The move will leave the South African Gas Development Company (iGas), a subsidiary of the Central Energy Fund (CEF), and the Companhia Mocambiçana de Gasoduto (CMG), a subsidiary of the Empresa Nacional de Hidrocarbonetos (ENH), with a majority stake in the Republic of Mozambique Pipeline Company (Rompco). The 30 percent stake was valued at R4.1 billion.
This means that iGas and CMG will both own 40 percent each, with Sasol holding a 20 percent minority. Sasol announced that it was selling the 30 percent stake in May
this year.
"There was a concerted effort to fast track the acquisition of these shares, which is a hallmark of the group’s investment strategy in the energy value chain geared to reignite the South African economy and create much needed jobs," CEF group CEO Ishmael Poolo said about the companies exercising their
pre-emptive rights for part of Sasol's before it became available publicly.
"The acquisition of these shares also heralds a new era in fostering partnerships as well as laying a solid foundation to address the challenges that lie ahead in the security of South Africa’s energy future," he added.
ENH chair and CEO Es
tevão Pale, said that this "represents a new chapter for Rompco."
"Having both governments as majority shareholders of the cross-border pipeline is strategic, since the pipeline is the single source of gas to the South African market, and gas is the immediate alternative supplier of cleaner energy.”