Sasol sells Mozambique gas- to-power plant for $145m

Chemicals group Sasol has sold its Mozambique gas- to-power plant Central Termica De Ressano Garcia S.A. (CTRG) to Azura Power for $145 million (R2.1 billion).

In a statement, Sasol says this transaction is part of its “ongoing, strategy aligned, asset divestment programme.” The disposal of CTRG follows its sale of a 50% stake in its newly-completed Lake Charles Chemicals Project in Louisiana, for $2 billion to LyondellBasell, a global chemicals and plastics producer a few weeks ago.

It has also sold its 50% interest in the Gemini high-density polyethylene joint venture, in Texas, to its partner INEOS for$404 million and interest in the Etame Marin offshore block in Gabon $44 million to VAALCO Gabon S.A. in November.

The group says its CTRG sell off is not a done deal as it needs the nod from Mozambiquean authorities, for the plant based in Ressano Garcia.

“The transaction is subject to a number of conditions precedent, which includes regulatory approval and the waiver of pre-emption rights held by Electricidade de Mocambique, the Mozambican state-owned electricity company.”

The conclusion of the deal will also “be subject to any relevant closing adjustments, including those in relation to working capital.”

Sasol says it remains fully committed to upstream operations in Mozambique, which continue to be integral to Sasol’s strategy.