The Minister of Mineral Resources and Energy said today that the increase of the Mozambican state participation in the gas pipeline to South Africa will be financed by a South African fund and will be reimbursed through dividends.
“It was possible to obtain financing from an investment fund for the energy area of the South African government that does not carry additional responsibilities on ENH [Empresa Nacional de Hidrocarbonetos], a Mozambican state company,” Max Tonela told Lusa.
“On ENH’s part an assessment was made of the financing options presented by the various banking institutions and the most economical and best option” is through that fund, he stressed.
Companhia Moçambicana de Gás, a state company owned by ENH, and South African state company iGas, announced on Monday they were preparing to buy 30 percent of the gas pipeline that carries gas from Mozambique to South Africa, exercising the right of preference in the purchase of acquisitions held by South African company 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 this financing.
“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 governments of the two countries, Max Tonela stressed.
In the press release it issued this week, ENH noted that the acquisition of the share is valued at just over four billion rand.
The pipeline links the Pande and Temane gas fields in the southern province of Inhambane to South Africa.
