Sasol sells off part of ROMPCO stake
Sasol said June 30 it had sold a 30% shareholding in the 220 Pj/yr (6.2bn m3/yr) high-pressure ROMPCO gas pipeline to its two project partners for up to 5.1bn rand ($311.6mn).
The 30% stake in ROMPCO is now owned by iGas, a subsidiary of South African state investment agency Central Energy Fund, and Companhia Mocambiçana de Gasoduto, a subsidiary of Mozambique's national hydrocarbon company Empresa Nacional de Hidrocarbonetos.
iGas and CMG will pay an initial consideration of 4.1bn rand ($290mn) subject to certain adjustments. Sasol will collect a further 1bn rand in deferred payments, so long as certain conditions are met by mid-2024.
iGas and CMG now own a combined 55% interest in the ROMPCO project. Sasol still holds a 20% minority stake. It had agreed in May to sell its stake to financial services firm Old Mutual, but the deal was subject to iGas and CMG's pre-emptive rights.
ROMPCO transports natural gas to South African customers from Sasol's Temane central processing facility in neighbouring Mozambique, serving the producing onshore gas fields Temane and Pande. Customers include Sasol's syngas processing facility Secunda Synfuels.
Under the terms of the commercial agreement, Sasol will still operate and maintain the ROMPCO pipeline. The route is a key part of South Africa's plans to open up trade with other gas markets in southern Africa.
Mozambique's economy is rapidly expanding, which means it requires more domestic gas produce to meet internal demand. ROMPCO currently uses two loop lines to transfer gas within Mozambique, following a $200mn investment by Sasol and its partners. Future expansions could also support efforts to ship African gas to global customers using LNG terminals hosted in Mozambique's ports.