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