Africa-Press – Mozambique. Mozambique’s minister of mineral resources and energy said on Friday that the planned increase in the stake controlled by the state in the gas pipeline to South Africa will be funded by a South African investment fund and repaid from dividend proceeds.
“It was possible to obtain funding from an investment fund for the energy area of the South African government that does not carry additional responsibilities for ENH,” the minister, Max Tonela told Lusa, referring to Empresa Nacional de Hidrocarbonetos, the state-owned oil and gas company.
“On the part of ENH an assessment was made of the funding options presented by the various banking institutions and the most economic and best option,” is through that fund, he said.
Companhia Moçambicana de Gás (CMG), a subsidiary of ENH and South African state company iGas on Monday announced that they were preparing to buy a 30% stake in the gas pipeline that transports gas from Mozambique to South Africa, exercising their right of preference to take over shares held by South Africa’s Sasol.
According to Tonela, “the dividend flows associated with the additional shares acquired by either CMG or iGas are higher, over time, than the obligations arising from payment of that financing” of the purchase.
“After an assessment of the economic benefits of the transaction, they decided to exercise this right and, given the strategic nature of the infrastructure for the economic development of the two countries, this operation had the joint support” of the two countries’ governments, he stressed.
In a news release issued this week, ENH said that the acquisition of the share is valued at just over 4 billion South African rand (€235 million).
The pipeline links the Pande and Temane gas fields, in Inhambane province, in southern Mozambique, to South Africa.
