ENH Equity Finance in Mozambique-South Africa Natural Gas Project

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The project consist of the:- development of the Temane and Pande gas fields and a central processing facility (field development); and - construction of a 890 km gas pipeline to Secunda in South Africa (pipeline). The shareholding in the field development is 30% for Rmpresa Nacional de Hidrocarbonetos (ENH) and the balance with Sasol Limited (Sasol). In the Pipeline, ENH and a South African government company, the Central Energy Fund (CEF) would own 25% each, the balance 50% being held by Sasol. IFC has been requested to play the role of the neutral investors by taking up to a third of ENH’s thirty percent equity entitlement in field development thus reducing ENH’s equity contributions to manageable levels. IFC investment would be in the range of $18.5 million to $37 million, depending on IFC’s equity stake (5% or 10%) and the entry price.