South African gas development company, iGas and Mozambique’s Companhia Mocambiçana de Gasoduto (CMG) have exercised their pre-emptive right to acquire a 30% equity stake in the 865km Republic of Mozambique Pipeline Company (ROMPCO) pipeline.
Sold for R4.1 billion – plus a deferred payment of R1 billion pending specified conditions are met by June 30, 2024 – the shares bring iGas and CMG’s total interest in the pipeline to 40%, with Sasol subsidiary, SSA, holding the remaining 20%.
According to Central Energy Fund Group CEO, Ishmael Poolo, “The transaction will pave the way for the group to lead energy security and a just transition program for South Africa.”
The acquisition comes at a time when South Africa’s power utility, Eskom, has introduced stage six load shedding, driven by coal-fired power plant disruptions. Through the pipeline, South Africa will be able to continue importing much-needed gas, strengthening capacity and stabilizing the grid.
The transaction marks the completion of Sasol’s divestment program, first announced in March 2020, with the company remaining the operator of the pipeline.
