S African, Mozambican state firms take Sasol stake in gas pipe
South African and Mozambican state-owned energy companies have exercised their pre-emptive right to acquire a 30% interest in the ROMPCO gas pipeline connecting the two countries from South Africa's Sasol, the companies said on June 27.
Sasol agreed in May to sell its stake in the pipeline that carries gas from Mozambique's onshore fields to South Africa to a consortium of Reatile Group Proprietary Ltd and Ideas Fund, managed by African Infrastructure Investment Managers Proprietary Ltd, for $361mn. However, subsidiaries of South Africa's Central Energy Fund (CEF) and Mozambique's Empresa Nacional de Hidrocarbonetos (ENH), which are already shareholders in the pipeline, have exercised their option to acquire the interest instead.
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CEF and ENH will raise their interests to 40% each, while the remaining 20% will be retained by Sasol.
"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 CEO Ishmael Poolo commented. "It also furthers the mandate held by iGAS for the development of gas and gas infrastructure in Southern Africa."
ENH CEO Estevao Pale added that "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."