World Bank takes 5 percent stake in natural gas project in Mozambique

29 March 2006

Maputo, Mozambique, 29 March – The International Finance Corporation (IFC), a subsidiary of the World Bank, has a 5 percent stake in the Pande/ Temane natural gas project, previously owned by Mozambican state oil and gas company Companhia de Hidrocarbonetos de Moçambique (CHM), the Mozmabican company said in Maputo Monday.

CHM passed over the stake to IFC in exchange for loans that the institution had granted for CHM to guarantee the 30 percent stake in the consortium exploring the main gas fields of Mozambique, in Inhambane province, in the south of the country.

By giving IFC 5 percent, CHM has reduced its own stake in the project to 25 percent, while South Africa’s SASOL holds the remaining 70 percent.

CHM, which was set up in 2000 specifically to be Mozambique’s vehicle for taking part in the gas project, is 80 percent owned by the Mozambican state and the remainder is held by state company Empresa Nacional de Hidrocarbonetos (ENH).

Most of the gas from Pande and Temane is transported to the SASOL industrial complex in the Secunda region of South Africa via an 850 kilometer gas pipeline, which went into operation in 2004.(macauhub)