The State-owned Central Energy Fund (CEF) has welcomed the Competition Tribunal’s unconditional approval whereby its subsidiary the Strategic Fuel Fund (SFF) was given the go-ahead to acquire a 50% interest in the assets of bp Southern Africa’s (bpSA’s) Cape Town Terminal.
The terminal has a storage capacity of about 86-million litres of diesel, petrol, jet fuel and illuminating kerosene.
This capacity translates to 1.6-billion litres a year and represents about 30% of the available terminal infrastructure capacity for the high-growth Cape Town’s fuels market, the CEF points out.
Commenting on the approval, SFF CEO Godfrey Moagi says the acquisition of the bp Cape Town terminal will pave the way for SFF to diversify its revenue stream in line with its strategic objectives.
“Through this asset, SFF will also be able to import finished products to mitigate 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 who want to participate in the petrochemical business access to use the infrastructure,” Moagi comments.
CEF group CEO Dr Ishmael Poolo adds that the acquisition of this infrastructure forms part of the group’s fulfilment of its security of supply mandate to facilitate access to critical infrastructure and product accessibility at an affordable price.