Pampa Energía S.A. operates as an integrated power company in Argentina, which participates in the electric energy, oil and gas value chains.
The company, its joint businesses and its affiliates engages in the generation and transmission of electricity, oil and gas exploration and production, petrochemicals, hydrocarbon commercialization and transportation, and oil distribution activities.
Segments
The company operates through Electricity Generation, Oil and Gas, Petrochemicals, and Holding a...
Pampa Energía S.A. operates as an integrated power company in Argentina, which participates in the electric energy, oil and gas value chains.
The company, its joint businesses and its affiliates engages in the generation and transmission of electricity, oil and gas exploration and production, petrochemicals, hydrocarbon commercialization and transportation, and oil distribution activities.
Segments
The company operates through Electricity Generation, Oil and Gas, Petrochemicals, and Holding and Other Business segments.
Generation
This segments power generation assets include: CTG, CTP, CTPP, CTLL, CTIW, CPB, CTGEBA, HPPL, EcoEnergía, PEPE II, PEPE III and PEA and interests in HINISA, HIDISA, and CT Barragán S.A. (CTB).
The company’s Electricity Generation segment is Argentina’s independent operator in power generation, with an installed capacity of 5,332 MW, representing 12% of Argentina’s installed capacity. Considering the upcoming 140 MW expansions at Parque Eólico Pampa Energía VI (PEPE VI), the company’s total installed capacity is expected to be 5,471 Megawatt (MW).
As of December 31, 2023, the company engages in the generation business through:
Central Termica Genelba (CTGEBA), a thermal generation plant located at the central node of the Argentine electricity grid, in Marcos Paz, in the western part of the Greater Buenos Aires area, is composed of two CC gas-fired generating units, one with a 684 MW power capacity which consists of two gas turbines of 223 MW each and a 238 MW steam turbine, repowered in October 2020. The second CC consists of a gas turbine with a 182 MW power capacity, known as Genelba Plus, installed in 2009 and repowered in June 2019, another gas turbine of 188 MW installed in 2019, and the 199 MW steam turbine incorporated on July 2, 2020, completing Genelba Plus’s expansion project started in 2017. CTGEBA is one of the largest thermal generation plants in Argentina, with an installed capacity of 1,253 MW, which represents 2.9% of Argentina’s installed capacity;
Central Termica Ensenada de Barragán (CTEB), a thermal gas-fired generation plant located in the petrochemical complex of the City of Ensenada, Greater La Plata, Province of Buenos Aires, is owned by CTB, an affiliate that the company co-control with YPF. The plant began its operations in 2012 and comprises two open cycle gas turbines with an installed capacity of 567 MW; and a steam turbine that completed the combined cycle with up to a 260 MW capacity, which entered into commercial operations on February 22, 2023. Furthermore, CTEB may consume natural gas or GO and has two tanks for the storage of fuel oil with a combined capacity of 45,000 m3. It has a total capacity of 847 MW, which represents 1.9% of Argentina’s installed capacity;
Central Termica Loma La Lata S.A.(CTLL), a thermal gas-fired thermal generation plant located in the Province of Neuquen (close to one of Argentina’s largest gas fields bearing the same name as the plant) which consists of three gas turbines with an installed capacity of 375 MW, a 180 MW Siemens steam turbine installed in 2011 for its closing to CC, a 105 MW GE aero-derivative gas turbine installed in May 2016, a 105 MW GE gas turbine installed in August 2017 and 15 MW MAN gas engines installed in August 2021. CTLL has an installed capacity of 780 MW, which represents 1.8% of Argentina’s installed capacity;
Hidroelectrica Los Nihuiles and Hidroelectrica Diamante, two hydroelectric power generation systems located in the Province of Mendoza, through Hidroelectrica Los Nihuiles S.A. (HINISA) and Hidroelectrica Diamante S.A. (HIDISA). HIDISA engages in sale and bulk trading of electricity from Diamante’s hydroelectric system (the ‘Diamante System’). The Diamante System consists of three dams and three hydroelectric power generation plants (Agua del Toro, Los Reyunos and El Tigre). The Diamante System covers a total distance of approximately 55 km with a height differential between 873 m and 1,338 m. HIDISA has an installed capacity of 388 MW, which represents 0.9% of the installed capacity in Argentina.
HINISA engages in sale and bulk trading of electricity from the Los Nihuiles’ hydroelectric system (the ‘Nihuiles System’). The Nihuiles System consists of three dams and three hydroelectric power generation plants (Nihuil I, Nihuil II and Nihuil III), as well as a compensator dam, which is used to manage the system’s water flow for irrigation purposes. The Nihuiles System covers a total distance of approximately 40 km with the grid’s height ranging from 440 m to 480 m. HINISA has an installed capacity of 265 MW, which represents 0.6% of the installed capacity in Argentina. The company holds 61% and 52% interests in HIDISA and HINISA, respectively. Hidroelectrica Los Nihuiles and Hidroelectrica Diamante have an aggregate installed capacity of 653 MW, which represents 1.5% of Argentina’s installed capacity;
Central Piedra Buena S.A (CPB), a thermal generation plant located in Ingeniero White, Bahía Blanca, in the Province of Buenos Aires approximately 600 kilometers away from the City of Buenos Aires. CPB is an open-cycle thermal generation plant that consists of two identical conventional units (Unit 29 and Unit 30) with an installed capacity of 310 MW each. The boilers of CPB can be fed either by fuel oil or natural gas. Natural gas is supplied through a 22 km gas pipeline operated and maintained by CPB, connected to TGS’ main gas pipeline system. Furthermore, CPB has two tanks for the storage of fuel oil with a combined capacity of 60,000 m3. CPB has an installed capacity of 620 MW, which represents 1.4% of Argentina’s installed capacity;
Central Termica Güemes S.A. (CTG), a thermal gas-fired generation plant located in General Güemes, in the Province of Salta, comprises a 261 MW open cycle thermal power generation plant which, with the addition in September 2008 of a natural gas-fired turbo generator unit of 100 MW, has an installed capacity of 361 MW, that represents 0.8% of Argentina’s installed capacity;
Pichi Picún Leufú Hydroelectric Complex (HPPL), a hydroelectric power generation located in the Comahue region, in the Province of Neuquen, which has three electricity generating units. It has a total length of 1,045 m, a total height of 54 m at the deepest point of the foundation, and a crest at 480.2 m above sea level. HPPL has an installed capacity of 285 MW, which represents 0.7% of Argentina’s installed capacity;
Central Termica Ingeniero White (CTIW), a thermal generation plant consisting of 6 dual-fuel (natural gas or fuel oil) Wärtsilä engines located in Ingeniero White, Bahía Blanca, in the Province of Buenos Aires. The engines are highly efficient, with a 46% performance rate. The plant is interconnected to the 132 kV grid through Transba substation. Liquid fuel is supplied using CPB’s unloading and storage facilities, and natural gas is also provided through CPB’s internal facilities. On December 22, 2017, CAMMESA granted the commercial operation of CTIW, pursuant to a PPA executed between CAMMESA and the company, as awardee pursuant to the call for new generation capacity under Resolution No. 21/2016 of the SEE. CTIW has an installed capacity of 100 MW, that represents 0.2% of Argentina’s installed capacity;
Central Termica Parque Pilar (CTPP), a thermal power generation plant at Pilar Industrial Complex, located in Pilar in the northern greater Buenos Aires area, which comprises six Wärtsilä motor generators (Wärtsilä W18V50DF), and which may consume either fuel oil stored in own tanks or natural gas supplied through a dedicated gas pipeline which is connected with Transportadora de Gas del Norte S.A.’s main gas pipeline, whereas the energy is evacuated through a 132 kV line connected to the Pilar substation owned by Edenor. CTPP has an installed capacity of 100 MW, which represents 0.2% of Argentina’s installed capacity;
Parque Eólico Arauco II (PEA) is a wind farm located in the Province of La Rioja, which was commissioned in March 2020. The wind farm comprises 38 Siemens Gamesa G-114 wind turbines, each with a 2.625 MW power capacity and an 80-meter hub height. It has an installed capacity of 99.75 MW, which represents 0.2% of Argentina’s installed capacity;
Parque Eólico Pampa Energía IV (PEPE IV), originally an expansion of PEPE III, is located in Coronel Rosales, on national route No. 3, 45 km from the City of Bahía Blanca, Province of Buenos Aires. Comprises 18 Vestas V-150 wind turbines of 105-meter hub height and a 63% load factor of P50 each, PEPE IV was commissioned in June 2023. It has an installed capacity of 81 MW, which represents 0.2% of Argentina’s installed capacity;
Parque Eólico Pampa Energía II (PEPE II), the company’s second wind farm, is located in the City of Bahía Blanca, Province of Buenos Aires, which was commissioned on May 10, 2019. It consists of 14 V-136 Vestas wind turbines, each with a 3.8 MW power capacity and a 120-meter hub height. PEPE II has an installed capacity of 53 MW of renewable energy, which represents 0.1% of Argentina’s installed capacity;
Parque Eólico Pampa Energía III (PEPE III) is located in Coronel Rosales, on national route No. 3, 45 km from the City of Bahía Blanca, Province of Buenos Aires. PEPE III is a wind farm with a 63% load factor of P50. PEPE III was commissioned on May 10, 2019, and has an installed capacity of 53 MW of renewable energy, which represents 0.1% of Argentina’s installed capacity;
Central Termica Piquirenda(CTP), a thermal gas-fired generation plant located at Piquirenda, General San Martin, in the Province of Salta, with an installed capacity of 30 MW, which represents 0.1% of Argentina’s installed capacity; and
EcoEnergía, a co-generation thermal power plant located in Bahía Blanca, in the Province of Buenos Aire. The plant was commissioned in 2011 and consists of a steam turbine and sells electricity in the Energía Plus market. EcoEnergia has a power capacity of 14 MW, which accounts for 0.03% of Argentina’s installed capacity.
The company is developing PEPE VI, its new wind farm project located in the City of Bahía Blanca, Province of Buenos Aires. The project will be built in three stages. The company is developing the first two stages, which will add 94.5 MW of power capacity in the first stage and 45 MW in the second, with commissioning estimated for the second half of 2024.
Oil and Gas
This segment engages in the oil and gas business through direct interests in oil and gas blocks in Argentina:
As of December 31, 2023, the company’s combined oil and gas production in Argentina averaged 65.4 thousand boe per day, with operations in 12 production blocks, 5 exploratory blocks, and 813 productive wells. Crude oil accounted for approximately 4.8 thousand boe per day, while natural gas accounted for approximately 364 million standard cubic feet per day, or 60.6 thousand boe per day based on a measure of conversion of 6,000 cubic feet of gas per barrel of oil equivalent, consolidating the company as the country’s fifth largest gas producer; and
In addition, the company has a direct 2.1% interest in Oldelval, which operates main oil pipelines providing access to Allen, in the Comahue area and the Allen – Puerto Rosales oil pipeline which allows for the transportation of the oil produced in the Neuquina Basin to Puerto Rosales (a port in the City of Bahía Blanca) and the supply of the Plaza Huincul and Luján de Cuyo distilleries, all located in the pipeline’s area of influence.
Petrochemicals
This segment engages in the petrochemicals business through two high-complexity plants that are entirely based in Argentina and produce styrene, SBR and polystyrene, with a domestic market share ranging between 94% and 100% (per company estimates) as of December 31, 2023. The company produces a wide array of products, including among others, octane bases for gasoline, benzene, aromatic solvents, hexane and other hydrogenated paraffinic solvents, propellants for the cosmetic industry, monomer styrene, rubber, and polystyrene for domestic and foreign markets. The petrochemicals division has the following assets:
An integrated petrochemicals complex at Puerto General San Martin (PGSM), located in the Province of Santa Fe, with an annual production capacity of 50,000 tons of gases (LPG, which is used as raw material, and propellants), 155,000 tons of aromatics, 290,000 tons of gasoline and refines, 160,000 tons of styrene, 55,000 tons of SBR, 180,000 tons of ethyl benzene and 31,000 tons of ethylene; and
A polystyrene plant located in the City of Zárate, in the Province of Buenos Aires, with a production capacity of 65,000 tons of polystyrene.
Holding and Other Business
This segment also holds other interests, including:
As of December 31, 2023, the company held a 26.5% direct and indirect interest in Transportadora de Gas del Sur S.A. (TGS), the country’s largest gas transportation company, owns 9,248 km of gas pipelines and a natural gas liquids plant, General Cerri, with a production capacity of 1 million tons/year;
The company holds a 26.33% indirect interest in Transener. Additionally, Transener holds a 100% interest in Transba. As of December 31, 2023, the company’s electricity transmission operations covered 22.4 kilometers of high voltage transmission lines, representing approximately 86% of the high voltage system in Argentina;
The company holds a 63.74% indirect interest in Oleoducto de Crudos Pesados Ltd. (OCP), licensee company of an oil pipeline in Ecuador that has a transportation capacity of 450,000 barrels/day; and
The company holds a 70% interest in Enecor, an independent electricity transmission company which provides operation and maintenance services, by subcontracting Transener, for 21 km of 132 kV double-triad electricity lines, from the Paso de la Patria transforming station, in the Province of Corrientes. Such services are provided under a 95-year concession, which is due to expire in 2088.
Relevant Events
Generation
Divestment of Greenwind S.A. (Greenwind)
On August 16, 2023, the company executed an assets swap with Total Austral S.A. (Argentine Branch) pursuant to which the company transferred its 100% direct and indirect stake in Greenwind in exchange for a 45% stake in the Rincón de Aranda block, making it the sole owner of this block. The company was sole (directly and indirectly) shareholder of Greenwind, a company owning Parque Eólico Ingeniero Mario Cebreiro (PEMC).
Oil and Gas
Acquisition of participating interest and granting of unconventional hydrocarbon exploitation concession (CENCH) in Rincón de Aranda.
On June 23, 2023, the company acquired an additional 45% of the participating interest in Rincón de Aranda from Total Austral S.A. (Argentine Branch). The company previously held a 55% participating interest in the area, and therefore, upon the closing of the transaction, it reached 100% ownership.
Gas Export
In February and December 2023, the company granted permits to export gas to Chile on a firm basis for a maximum volume of 2.2 million m3/day and 1.22 million m3/day, respectively. These permits were for the May 2023 - June 2023 period. In June 2023, the company granted permits to export gas to Chile on a firm basis for a maximum volume of 0.86 million m3/day from July to September 2023. Subsequently, in August, it granted permits on a firm basis for 1.452 million m3/day for the period from October 2023 to April 2024.
In December 2023, the company granted permits to export gas to Chile on a firm basis for 0.6 million m3/day for the period from May 2024 to September 2024.
In the summer season, the company exports to its clients in Chile on a spot basis. Between September and December 2021 interruptible permits to Chile, Brazil, and Uruguay were granted, with expirations between November 2022 and December 2024. In February 2023, the company granted interruptible exports to Chile with expirations between December 2024 and May 2025.
Changes in Productive Block Concessions
On January 19, 2023, the company accepted an offer from Oilstone Energía S.A. for the termination of its 15% interest in 9 wells in Anticlinal Campamento, which represented less than 1% of its 2022 gas production, effective as of January 1, 2023. The agreement releases the company from any future obligation regarding this block.
On February 3, 2023, the extension of the Aguaragüe block concession (including San Antonio Sur) was agreed upon for a 10-year period (until 2034) and is awaiting the issuance of the Provincial Decree. The company owns 15% of such block, whose surface area is 1,642 km2 and is located in Cuenca Noroeste.
Others
The company develops the following activities in Ecuador.
Oleoducto de Crudos Pesados
In 2001, the Ecuadorian government awarded to Oleoducto de Crudos Pesados Ecuador S.A. (OCP S.A.) the rights to build and operate for a 20-year term a 503 km-long pipeline that runs from the northeastern region of Ecuador to the Balao distribution terminal on the Pacific Ocean coast. The oil pipeline has a transportation capacity of approximately 450,000 barrels per day, of which at least 350,000 barrels per day were committed under transportation agreements that included a ‘Ship or Pay’ clause. Because the oil pipeline runs across ecologically sensitive areas, the pipeline was constructed following stringent environmental and technical standards. The construction of the oil pipeline was completed and began its operations in 2003.
The termination of the pipeline concession contract was scheduled for January 20, 2024, considering the extension of the term due to the suspension of contractual obligations resulting from events of force majeure. In January 2024, a new agreement was executed with the Ecuadorean Ministry of Energy and Mines, extending the operation term until July 31, 2024.
In August 2021, through its subsidiary Pampa Energía Bolivia S.A. (PEB), the company executed an agreement with Occidental International Exploration and Production Company for the acquisition of Occidental del Ecuador Inc. (Pampa Ecuador Inc.), which holds a 14.15% equity interest in OCP.
In November 2023, through its subsidiary PEB, the company executed an agreement with Perenco S.A. and Burlington Resources Oriente Limited for the acquisition of Ecuador Pipeline Holdings, which holds a 4.02% equity interest in OCP.
Finally, in May 2023, through its subsidiary PEB, the company executed an agreement with Repsol OCP de Ecuador S.A. to purchase shares representing 29.66%, adjusted by dividends received for such shares between January 1, 2023, and the closing date of the transaction. After satisfying all conditions precedents, the closing of the transaction occurred in January 2024.
As of December 31, 2023, report, the company’s total interest in OCP stands at 63.74%.
Delivery Commitments
Agreements are executed between producers (as sellers) and Wholesale Electric Market Administration Company (CAMMESA), gas distributors and Energía Argentina S.A. (ENARSA) (as purchasers), with a 100% daily DoP and a 75% monthly ToP for CAMMESA and quarterly ToP for gas distributors and ENARSA.
History
The company was incorporated in 1945 under the laws of Argentina. The company was formerly known as Pampa Holding S.A. and changed its name to Pampa Energía S.A. in 2008.
