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CEF WELCOMES COMPETITION TRIBUNAL DECISION ON SFF 60% ACQUISITION OF AVEDIA Energy’s LPG BUSINESS

Johannesburg– The Central Energy Fund welcomes the Tribunal’s approval whereby its subsidiary, Strategic Fuel Fund (SFF) was given a go-ahead to acquire 60% equity stake in the assets of Avedia Energy which includes the Liquefied Petroleum Gas (LPG) terminal in Saldanha, Cape Town.

Commenting on the approval, SFF CEO, Godfrey Moagi said the acquisition of the Avedia Energy business particularly 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.

In our quest to transform the sector, SFF will also allow the previously disadvantaged South Africans (HDSAs) who want to participate in the petro-chemical business access to use the infrastructure,” Moagi added.

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 SouthernAfrica to fulfill its mandate,” added Dr Poolo.

For more information, contact:
Jacky Mashapu
Corporate Affairs Manager
Cell: 081 011 7528
Email: jackym@cefgroup.co.za