Reatile Group acquires Egoli Gas
South African investment company Reatile Group completed in April a deal to purchase 75% of Egoli Gas Ltd. The deal specifies that Reatile will be paying for the acquisition using its own equity and proceeds of a loan from the Nedbank Group Ltd.
Egoli Gas, which provides Johannesburg residents with fuel, has a pipeline that extends up to 1, 200 kilometers. With its resources, it is able to serve around 7,000 customers.
In a statement published in Business Day, Reatile Group said that it "will continue to search for opportunities and partnerships in liquid natural gas and shale gas."
Just last September, South Africa lifted its suspension on hydraulic fracturing. The technology utilizes huge quantity of water pumped underground to help out extract shale gas. The lifting of suspension was to evaluate Karoo, a dry area in the western part of South Africa, which is believed to hold shale resources equal to at least 485 trillion cubic feet.