Commission Recommends Approval of SFF's Buyout of 50% Stake in Cape Town Terminal

Source Press
Company Central Energy Fund SOC LtdBP Plc. 
Tags Asset Deals, Deals, LNG & Gas Storage/Processing
Date July 22, 2022

(engineeringnews.co.za) The Competition Commission has recommended to the Competition Tribunal that it approve, without conditions, the State-owned Strategic Fuel Fund’s (SFF’s) acquisition of a 50% interest in the Cape Town Terminal from oil and gas multinational BP Southern Africa.

The Cape Town Terminal, located in Montague Gardens, is built on land owned by BP Southern Africa, which operated the terminal for a number of years. The Cape Town Terminal is used for off-loading petrol, diesel, jet fuel and paraffin, or kerosene, from vessels and via cross pumps from the neighbouring Astron refinery.

BP Southern Africa produces a range of petroleum products including diesel, petrol, illuminating paraffin, liquefied petroleum gas, bitumen, fuel oil and jet fuel which are sold to retail, commercial and industrial customers in South Africa. The company also services a retail network of branded BP retail service stations.

The SFF is responsible for the storage and management of government and privately-owned stocks of crude oil. The SFF operates various facilities for the storage of crude oil.

It also leases uncommitted crude oil storage capacity not required for strategic stock purposes to local and international trading companies on a commercial basis.

Additionally, the SFF also ensures environmental protection against oil pollution, the commission says.

The mandate of the Central Energy Fund, which owns the SFF, is to contribute to South Africa’s security of energy supply, and this is achieved through the acquisition, exploitation and manufacture of appropriate energy solutions, such as from coal, oil, gas and renewable energy resources, to meet the future energy needs of South Africa, the Southern African Development Community and sub-Saharan Africa.

"The commission found that the proposed transaction is unlikely to result in a substantial prevention or lessening of competition in any relevant markets. The commission further found that the proposed transaction does not raise any public interest concerns."

Source: EvaluateEnergy® ©2022 EvaluateEnergy Ltd