MOZAMBIQUE: Sasol to sell 30% stake in gas pipeline for $364m

By Jorge Joaquim

The South Africa's petrochemical Sasol agreed to sell 30% of its stake in the Republic of Mozambique Pipeline Investments Company (ROMPCO) for up to 5.145 billion Rand to Reatile Consortium, comprising Reatile Group and the IDEAS Fund managed by African Infrastructure Investment Managers Proprietary Limited.

According to a statement seen by Pan African Visions Sasol will retain a 20% shareholding in ROMPCO and will continue to operate and maintain the pipeline in terms of the commercial agreement between Sasol and ROMPCO, which is independent of the proposed transaction.

Sasol’s agreements with ROMPCO to transport gas from Mozambique to Secunda in South Africa are unaffected by the transaction, the company said, adding that the tariffs remain as per the said agreements, which were approved by the National Energy Regulator of South Africa.

The stake will be sold for a consideration comprising an initial amount of 4.145 billion rand and a deferred payment of up to 1 billion rand payable if certain agreed milestones are achieved by 30 June 2024, the company said.

It is expected that the proposed transaction, which it is part of Sasol’s strategy-led divestment programme, will become effective during the second half of calendar year 2021, Sasol said, adding that it remains fully committed to its operations in Mozambique, which continue to be integral to Sasol’s gas strategy.