Sasol sells its Mozambique pipeline stake
Sasol’s major subsidiary, Sasol South Africa Ltd (SSA) has agreed to sell a 30% stake in the Republic of Mozambique Pipeline Company (ROMPCO) to a consortium of investors for up to R5.15-billion. The deal will help the energy and chemicals group reduce its debt.
ROMPCO is a joint venture between Sasol South Africa (SSA), Companhia Mocambiçana de Gasoduto and South African Gas Development Company. SSA owns 50% and the two partners hold 25% each.
Following the sale of a 30% equity interest to a consortium comprising Reatile Group and the IDEAS Fund, managed by African Infrastructure Investment Managers, it will retain a 20% interest. SSA will continue to operate the pipeline.
Sasol’s agreements with ROMPCO to transport gas to Secunda would be unaffected and the tariffs remain according to existing agreements, which were approved by the national energy regulator NERSA.
Despite the disposal, Sasol said it remained fully committed to its operations in Mozambique, which continued to be integral to its gas strategy.
The transaction is subject to a number of conditions, including regulatory and competition authority approvals. It expects it to become effective in the second half of the year.
