CEF welcomes approval of bid to acquire 50% of bpSA Cape Town terminal

The state-owned Central Energy Fund (CEF) has welcomed the Competition Tribunal’s unconditional approval of the proposed transaction by subsidiary the Strategic Fuel Fund (SFF) to acquire a 50% interest in the assets of bp Southern Africa’s Cape Town terminal.

The transaction will see joint ownership and control of the terminal, and was given the green light on 3 August.

Read: CEF completes due diligence on R1bn Renergen Virginia Gas Project investment

CEF Group CEO Ishmael Poolo said in a statement issued on Sunday (14 August) that the acquisition forms part of the group’s security of supply mandate, which intends to enable access to critical infrastructure and products at an affordable price.

Godfrey Moagi, CEO of the SFF, said the merger will pave the way for the fuel fund to diversify its revenue stream in line with its strategic goals.

“Through this asset, SFF will also be able to import finished products to mitigate risks associated with product shortage as a result of local refining capacity being closed,” he added.

Moagi said that SFF will give previously disadvantaged South Africans who want to participate in the petro-chemical business access to use the infrastructure.

Read:
Oil refinery closures, cleaner fuels and security of supply in SA
Women-owned petrochemicals group acquires bpSA’s East London terminal
Investments worth more than R26bn in SA’s ocean economy unveiled

The CEF noted that bpSA’s Cape Town terminal has a storage capacity of approximately 86 million litres which includes diesel, petrol, jet fuel and illuminating kerosene.

It said the capacity translates to 1.6 billion litres per annum and represents about 30% of the available terminal infrastructure capacity for the growth of Cape Town’s fuels market.

Nondumiso Lehutso is a Moneyweb intern.