CMG and iGas become shareholders in Rompco
Maputo, 28 Jun (AIM) – The Mozambican Gas Company (CMG) in partnership with the South African based “iGas”, an affiliate of the Central Energy Fund (CEF), will become shareholders of the Republic of Mozambique Pipeline Company (ROMPCO), with holdings of 25 per cent and 40 per cent respectively.
The move comes after a public announcement recently made by Sasol, whereby the South African petrochemical giant declared the conclusion of the sale and purchase agreement of 30 per cent of its shares in ROMPCO, valued at US$290 million.
A joint press release from CMG and iGas says that Sasol will hold 20 per cent of the shares, thus becoming a minority shareholder in ROMPCO, which operates the 865 kilometre long gas pipeline between Mozambique and South Africa.
Estevao Pale, the chairperson of the board of Mozambique’s National Hydrocarbons Company (ENH), the mother company of CMG, said that besides the social and economic impact for the country, the joint decision to exercise the pre-emptive right on the acquisition of Sasol shares is a new chapter for ROMPCO, as it promotes broader cooperation space for ENH and CEF. “Having the governments of the two countries as majority shareholders of the cross-border pipeline is strategic, taking into account that the ROMPCO pipeline is the only gas source for the South African market, and gas is the alternative supplier of clean energy,” Pale said.
For his part, the Executive Director of CEF Group, Ishmael Poolo, declared that efforts have been put in place to fast-track the shares acquisition, which is a milestone in the group’s investment strategy for the energy value chain, intended to boost South Africa’s economy and answer the demand for job creation. “The acquisition of the shares announces a new era in the promotion of partnerships as well as for the establishment of a solid base to face the challenges ahead of South Africa’s future energy security,” added Poolo.
The chairperson of the CEF Board, Ayanda Noah, added that the International Registration Plan (IRP 2019) identifies a straighter cooperation between regional governments as a fundamental step for gas liberalisation for South Africa’s energy mix. “A greater participation in the asset will be an important step for the fulfilment of this cooperation objective, and to boost regional transition to a low carbon economy.”
The Mozambican Gas Company (CMG), affiliated to ENH, is a Mozambican company founded in 2002, to provide a transmission service for natural gas and other hydrocarbons,