Subsidiary CEF’s acquisition of gas group Moz hailed as a win for low-carbon energy

The acquisition makes iGAS and CMG de SA the majority shareholders, increasing their equity stakes from 25% each to 40% each, while Sasol will still hold a 20% minority stake.

  • The Central Energy Fund has announced that its subsidiary iGAS and Companhia Mocambicana de Gasoduto have acquired a majority stake in the Republic of Mozambique Pipeline Company.
  • iGAS and CMG have increased their stake to 40% each, while Sasol will still hold a 20% stake.
  • CEF Group CEO Ishmael Poolo said the acquisition is in line with the fund’s strategy of penetrating the energy value chain to meet the region’s energy needs.

The Central Energy Fund (CEF) has announced that it has completed the acquisition of Sasol’s 30% stake in the Republic of Mozambique Pipeline Company (Rompco) with Companhia Mocambicana de Gasoduto (CMG).

The acquisition makes South Africans iGAS and CMG the majority shareholders, increasing their equity stakes from 25% each to 40% each, while Sasol will still hold a 20% minority stake.

This concludes an offer by 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 build low carbon energy capacity in South Africa and the Southern Africa region.

A statement released by CEF on Wednesday said Rompco owns the 865 km gas pipeline from Mozambique to South Africa under a joint venture between Sasol, CMG and the South African Gas Development Company.

CEF Group CEO Ishmael Poolo said the acquisition of the shares was in line with the fund’s strategy of penetrating the energy value chain to meet the region’s energy needs.

“This transaction will also pave the way for the group to lead energy security and a just transition agenda for South Africa,” Poolo said.

READ | Sasol abandons its plan to invest in a gas pipeline from Moz to SA

Estevão Pale, chairman of CMG’s parent company, Empresa Nacional de Hidrocarbonetos, said the completion of the transaction symbolizes the Mozambican government’s long-term commitment to the country’s long-term natural gas trade with Africa. from South.

“This achievement is the result of long-term involvement and cooperation between the public and private sectors,” Pale said.

CEF Chairperson Ayanda Noah said the acquisition “heralds a new era in fostering partnerships to promote integrated regional energy development, which is critical to the socio-economic development of both countries.”

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