WeeklySA_AdminSTREAMLINE: South Africa’s Central Energy Fund affirms its commitment to driving energy security across the SADC region…
By WSAM Correspondent
South Africa’s diversified energy company Central Energy Fund (CEF) will join “the African Energy Week (AEW): Invest in African Energy” conference – scheduled for in Cape Town from November 4 and 8.
The development marks the third consecutive year in which the CEF will be sponsoring the premier energy event. CEF’s participation underscored its commitment to driving energy security and sustainable development across southern Africa, with the merger of its three subsidiaries set to streamline operations and improve efficiency within the sector.
This year marks a pivotal turning point for South Africa’s petroleum industry, as CEF subsidiaries – national oil company PetroSA, iGas and the Strategic Fuel Fund – merge to form the South African National Petroleum Company (SANPC). SANPC will initially be incorporated as a subsidiary of the CEF Group until the National Petroleum Bill is promulgated into law. The national petroleum company will focus on oil and gas exploration, production, midstream and downstream operations and infrastructure development, with a broad mandate to acquire, generate, manufacture, market and distribute various forms of energy, including renewables.
The conference attracts project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy.
To date, CEF has played a key role in addressing South Africa’s energy needs and driving regional energy development. With activities spanning oil, gas, coal, renewables and alternative energies, the company is committed to ensuring South Africa’s energy security and that of the broader Southern African Development Community. Through its proactive engagement and strategic investments across diverse energy sub-sectors, CEF not only serves to bolster the stability of energy South Africa’s supplies, but also pioneer sustainable practices that harmonize economic growth with environmental stewardship.
CEF is currently in the process of acquiring South Africa’s largest oil refinery, the 180 000-barrel per day Sapref plant. The acquisition is seen as a crucial step toward expanding the country’s refining capacity and supporting CEF’s growth strategy.
By acquiring Sapref – a joint venture between Shell and bp – CEF aims to stabilise the country’s fuel supply chain, mitigate risks associated with fuel imports and create job opportunities.
Moreover, with over 50 million barrels of fuel storage capacity, CEF stands poised to address growing domestic and regional demand for refined petroleum products, ensuring sustained energy provision across Mpumalanga and the Western Cape.
In addition to its operations in South Africa, CEF’s influence extends across the continent through strategic partnerships and investments. CEF recently concluded its acquisition of a 30% stake in the Republic of Mozambique Pipeline Company (Rompco), alongside Companhia Moçambicana de Gasoduto.
The move solidifies CEF’s role in the ownership structure of Rompco, a critical infrastructure asset operating the 865-km gas transmission pipeline from Mozambique to South Africa. Additionally, CEF is at the forefront of developing and commercialising alternative energy resources and innovative technologies, with its portfolio including a 15% stake in the 100 MW Redstone Solar Thermal Power Plant and Molten Salt Energy Storage System.
“CEF plays a pivotal role in South Africa’s energy landscape and the SADC region, continuously driving innovation and sustainability. The merger of CEF subsidiaries to form the newly anointed SANPC marks a pivotal step forward in streamlining operations, enhancing efficiency and driving new energy exploration and production,” states NJ Ayuk, Executive Chairman of the African Energy Chamber.“With its Platinum Sponsorship, CEF will play a central role in fostering collaboration and showcasing its capabilities at AEW 2024: Invest in African Energy.”
Meanwhile the African Export-Import Bank (Afreximbank) has signed on as a finance partner to the upcoming London reception organised by the African Energy Chamber (AEC) for July 11. This event is a prelude to the African Energy Week (AEW): Invest in African Energy 2024 conference to be held in South Africa this November.
Afreximbank acts as a strategic partner to Africa’s energy sector growth, financing and developing integrated projects that promote intra- and extra-African trade, as well as raising access to capital for project developers.
Earlier this month, Afreximbank and the African Petroleum Producers Organisation signed into implementation the Africa Energy Bank, designed to facilitate, promote and finance Africa’s oil, gas and energy industries. The agreement marks a historic milestone in efforts to increase energy access and close the funding gap for oil and gas projects across the continent, with R91 billion in initial capital raised from African signatories.
