TGS signs 15 year gas transport deals with Pampa Energía

Transportadora de Gas del Sur, Argentina’s largest gas transporter, said its board has approved two tripartite agreements with Pampa Energía, signed together with its controlled company Procesadora de Gas del Sur, for integrated transportation, metering, dispatch and delivery of Pampa’s gas from the Sierra Chata and El Mangrullo areas. Each area carries firm transportation capacity of 8 million cubic metres a day, with El Mangrullo holding an option to rise to 10.5 million, plus a 6 million cubic metre a day connection service to the head of the San Matías pipeline, and TGS will build the infrastructure works connecting its Tratayén plant to that pipeline head.

Both agreements run for 15 years from a commencement expected in April 2028, TGS is jointly and severally liable for its subsidiary’s obligations under them, and the company’s audit committee issued a favourable opinion on October 29 that the terms can reasonably be deemed arm’s length and in line with customary market conditions.