Sasol to Sell Mozambique Gas Power/Pipeline Operations?

  • Reuters has reported that struggling petrochemicals producer Sasol has appointed advisers to sell its stakes in a power plant in Mozambique and a gas pipeline running from the country into South Africa. 
  • Sasol, the world’s top producer of motor fuel from coal, is trying to shed assets to pay off its debt pile and avoid a rights issue of up to USD 2 billion, but has not previously flagged the Mozambique assets as up for sale.

It has appointed South Africa’s Nedbank to manage the sale of its 50% stake in the Republic of Mozambique Pipeline Company (ROMPCO), the joint venture operating the pipeline that runs 865 kilometres from Mozambique into South Africa, the sources said.

“We do not comment on ongoing commercially sensitive and/or M&A processes and we do not react to market speculation,” a Sasol spokesman wrote in an email.

The sources said the company had also appointed Deloitte to sell its 49% stake in Central Termica de Ressano Garcia (CTRG), Mozambique’s first permanent large-scale gas power plant which, at a capacity of 175 MW, meets almost a quarter of the country’s energy demand, according to Sasol’s website.

Mozambique’s state-run National Hydrocarbon Company (ENH) and South Africa’s government-owned Central Energy Fund (CEF) each hold 25% stakes in ROMPCO.

ENH, CEF, and Deloitte did not immediately respond to requests for comment. Nedbank declined to comment.

The other 51% of CTRG is held by Mozambique’s state power utility EDM. EDM could not immediately be reached for comment.

As part of a business revamp, Sasol said last week it would cut jobs and exit West African oil operations.

Author: Bryan Groenendaal

Source: Reuters

Leave A Reply

About Author

Green Building Africa promotes the need for net carbon zero buildings and cities in Africa. We are fiercely independent and encourage outlying thinkers to contribute to the #netcarbonzero movement. Climate change is upon us and now is the time to react in a more diverse and broader approach to sustainability in the built environment. We challenge architects, property developers, urban planners, renewable energy professionals and green building specialists. We also challenge the funding houses and regulators and the role they play in facilitating investment into green projects. Lastly, we explore and investigate new technology and real-time data to speed up the journey in realising a net carbon zero environment for our children.

Receive the week’s most popular stories in your inbox every Saturday morning