The Central Energy Fund has welcomed the Competition Court’s approval of the acquisition by the Strategic Fuel Fund (SFF) of a 60% stake in Avedia Energy, which includes the gas terminal liquefied petroleum gas (LPG) in Saldanha, Cape Town.
SFF CEO Godfrey Moagi said in a statement that the acquisition of the stake, particularly in the LPG terminal infrastructure, will pave the way for SFF to diversify its revenue stream in line with its objectives strategic
“Through this asset, SFF will also be willing to promote competitiveness in the downstream LPG market, allowing the importation of cheaper liquefied petroleum gas and storing it for the country’s energy needs, as well as mitigating the risks associated with product shortages as a result of local refining capacity . . . being shut down,” he said.
Avedia Energy was established in 2007 as an LPG company and currently operates an import and bulk handling facility at Saldanha Bay, as well as a bottling plant at Airport Industria, Cape Town, according to information on their website. The expected growth of the LPG market in SA over the next five years is in the region of 50%, he says, with Saldanha Bay expected to account for 16% of the LPG market in the Western Cape.
CEF Group Managing Director Dr Ishmael Poolo said the acquisition of this infrastructure is part of the group’s fulfillment of its security of supply mandate to facilitate access to critical infrastructure and the affordability of products at an affordable price.
“The acquisition of this key infrastructure is in line with the group’s recently adopted strategy of being a strategic investor, aimed at positioning the group as a credible energy investment company that will continue to invest in profitable growth opportunities across the energy value chain in South. .Africa to fulfill its mandate,” said Poolo.
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