- The Central Energy Fund announced that its subsidiary iGAS and Companhia Mocambicana de Gasoduto acquired a majority stake Republic of Mozambique Pipeline Company.
- iGAS and CMG increased their equity shares to 40% each, while Sasol will still have a 20% shareholding.
- CEF Group CEO Ishmael Poolo said the acquisition was in line with the fund's strategy of penetrating the energy value chain to support the region's energy needs.
The Central Energy Fund (CEF) announced that it concluded its acquisition of 30% of Sasol's stake in the Republic of Mozambique Pipeline Company (Rompco) along with Companhia Mocambicana de Gasoduto (CMG).
The acquisition makes South Africa's iGAS and CMG the majority shareholders, increasing their equity shares from 25% each to 40% each, while Sasol will still have a 20% minority shareholding.
This concludes a bid by the South African entities to secure the 30% share in Rompco, valued at R4.1 billion a year ago. In May last year, Sasol agreed to sell the stake to iGAS and CMG to bolster capacity for low-carbon energy in South Africa and the southern African region.
A statement released by the CEF on Wednesday said Rompco owns the 865km gas transmission pipeline from Mozambique to South Africa in a joint venture between Sasol, CMG and the South African Gas Development Company.
CEF Group CEO Ishmael Poolo said acquiring these shares was in line with the fund's strategy of penetrating the energy value chain to support the region's energy needs.
"This transaction will also pave a way for the group to lead the energy security and a just transition programme for South Africa," said Poolo.
Estevão Pale, chairperson of CMG parent company Empresa Nacional de Hidrocarbonetos, said the conclusion of the transaction symbolised the Mozambican government's long-term commitment to long-term natural gas trade between the country and South Africa.
"This achievement is a result of long-term public-private involvement and co-operation," said Pale.
CEF chair Ayanda Noah said the acquisition "heralds a new era in fostering partnerships geared to promote regional integrated energy development critical for socio-economic development in both countries".
Get the biggest business stories emailed to you every weekday.
Go to the Fin24 front page.