iGAS and CMG acquire 30% of the Rompco Pipeline from Sasol
Johannesburg – iGAS, a subsidiary of the Central Energy Fund (CEF), and Companhia Mocambiçana de Gasoduto (CMG), a subsidiary of the Empresa Nacional de Hidrocarbonetos (ENH), today announced the conclusion of Sasol´s 30% equity stake, in the Republic of Mozambique Pipeline Company (ROMPCO), pursuant to the exercise of their respective pre-emptive rights. The successful conclusion of the 30% equity stake means that iGAS and CMG are now the majority shareholders, as their equity shares will increase from 25% each to 40%, respectively, with Sasol holding a 20% minority shareholding.
Prior to the conclusion of this transaction, ROMPCO, which owns the 865-kilometre gas transmission pipeline from Mozambique to South Africa, was a joint venture between Sasol South Africa (50%), Companhia Mocambiçana de Gasoduto (CMG) (25%) and South African Gas Development Company (SOC) Limited (iGAS) (25%). Commenting on the successful completion of this transaction, the CEF Group CEO, Dr. Ishmael Poolo said: “We are delighted to have reached a financial close in acquiring these shares.” “Our relentless and robust approach in acquiring these shares is in line with our newly adopted strategy of being a strategic investor in the energy value chain that is geared 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”, added Poolo. ENH Chairman, Mr. Estevão Pale, said: “The financial close symbolizes the commitment the Government of Mozambique places in long-term natural gas trade between South Africa and Mozambique and the role natural gas plays in the energy transition in the country and the region.” Adding further that: “This achievement is a result of long-term public-private involvement and cooperation”. The chairperson of the Central Energy Fund, Ms. Ayanda Noah added: “The acquisition of these shares also heralds a new era in fostering partnerships geared to promote regional integrated energy development critical for socio-economic development in both countries”.
CEF SOC Ltd is a private company incorporated in terms of the Companies Act. It controls entities in the energy sector with commercial, strategic, regulatory and developmental roles, housed in four operating subsidiaries. These are the Petroleum Oil and Gas Corporation of South Africa (PetroSA), the South African Gas Development Company (iGAS), Petroleum Agency SA (PASA), the Strategic Fuel Fund Association (SFF) and the African Exploration Mining and Finance Corporation (AEMFC). Among other corporate functions, CEF manages the Equalisation and the Mines Health and Safety Funds on behalf of the Government.
