Transportadora de Gas del Sur S.A. operates as a transporter of natural gas in Argentina.
The company operates the most extensive pipeline system in Latin America in terms of length, delivering approximately, as of December 31, 2023, more than 60% of the total natural gas transported in Argentina, through 5,746 miles of pipeline, of which the company operates 4,768 miles on an exclusive basis pursuant to the License (the ‘Natural Gas Transportation’). The company’s transportation system connect...
Transportadora de Gas del Sur S.A. operates as a transporter of natural gas in Argentina.
The company operates the most extensive pipeline system in Latin America in terms of length, delivering approximately, as of December 31, 2023, more than 60% of the total natural gas transported in Argentina, through 5,746 miles of pipeline, of which the company operates 4,768 miles on an exclusive basis pursuant to the License (the ‘Natural Gas Transportation’). The company’s transportation system connects the Neuquen, San Jorge and Austral basins, the major natural gas fields located in the south and west of Argentina, to the greater Buenos Aires area and the major consumption centers of southern Argentina.
During 2023, approximately 82% of the company’s revenues of this business segment corresponds to firm natural gas transportation services under firm long-term natural gas transportation contracts. Natural gas transportation customers with firm contracts pay for the contracted pipeline capacity regardless of actual usage. The company’s Natural Gas Transportation business is regulated by ENARGAS.
The company conducts its Natural Gas Transportation business pursuant to the License, which is scheduled to expire in 2027 and which is extendable for an additional ten-year period at the company’s option if certain technical conditions described in the License are met. In September 2023, the company submitted a request to ENARGAS (Ente Nacional Regulador del Gas) for a 10-year extension of the natural gas transportation License, which is set to expire in December 2027.
The License gives the company the exclusive right to operate the existing southern Argentine natural gas transportation pipeline system. The company’s natural gas transportation system connects major natural gas fields in southern and western Argentina with both distributors and large consumers of natural gas in those regions, as well as in the greater Buenos Aires area, the principal population center of Argentina.
The company is also one of the largest processors of natural gas and one of the largest marketers of Liquids in Argentina. The company operates the Cerri Complex and the associated logistics and storage facilities of Puerto Galván located in Bahía Blanca in the Province of Buenos Aires where Liquids are separated from the natural gas transported through the company’s pipeline system and stored for delivery. Due to its strategic location within the Argentine natural gas transportation system, the company’s Cerri Complex can process gas proceeding from the Neuquen, San Jorge and Austral basins. This provides the plant with great versatility in terms of natural gas availability, and the possibility to select the gas that is processed according to its quality (liquid contents).
The company also provides midstream integral solutions related to natural gas production, from the wellhead up to the transportation systems. In addition, through the company’s subsidiary Telcosur, the company provides telecommunications services.
Within the framework of the agreements signed with the former Ministry of Energy, Mining and Hydrocarbons of the Province of Neuquen and Gas y Petróleo de Neuquen S.A. in April and November 2018, the company timely completed the construction of a catchment and gathering pipeline and a natural gas conditioning plant in the Vaca Muerta field that will allow the gathering of non-conventional gas from the Neuquina basin and its subsequent injection into the main gas pipeline systems, ensuring its supply to all of Argentina’s regions.
The Vaca Muerta system has two gathering pipes: the first has a length of 71 miles, a 36’ diameter and a 35 MMm3/d transportation capacity (the ‘Northern Section’) and the second has a 22 miles extension, a 30’ diameter and 25 MMm3/d transportation capacity (the ‘Southern Section’). The natural gas transported through this pipeline system is treated at a new conditioning plant that the company built at Tratayen, Province of Neuquen with an initial capacity of 7.8 MMm3/d. This project consolidates the company’s position as the first midstream services provider in the Vaca Muerta field and required an investment of approximately U.S.$260 million in the aggregate. On April 29, 2019, the assembly and pressurization work on the connection of the Vaca Muerta pipeline to Neuba II Gas Pipeline were completed, which led to revenues from the month of May 2019. On August 22, 2019, the SHR issued Resolution No. 491/2019, which declared this project as ‘critical’ pursuant to Law No. 26,360. This allows the company to obtain certain tax benefits from the investments in this project.
On March 2022, the company executed an agreed minute with the Undersecretary of Energy, Mining and Hydrocarbons of the Province of Neuquen (Subsecretaría de Energía, Minería e Hidrocarburos de la Provincia del Neuquen) (the ‘Complementary Agreed Minute’) whereby the parties commit to granting the company an extension of the transportation concession to build and operate the pipeline expanded North Tranche II, which will gather the off-spec natural gas production from several hydrocarbons fields located mainly in the Vaca Muerta formation (the ‘Expanded North Tranche II’). In August 2022, the company began this work with an investment of approximately U.S.$ 48 million, this 20 miles long work will extend from the Los Toldos I Sur area to El Trapial (Vaca Muerta Norte). The pipeline has been operational since the end of July 2023.
The company is executing additional investments that will allow the company to expand its natural gas conditioning capacity and increase the company’s role in the Vaca Muerta development.
Natural Gas Transportation
As a transporter of natural gas, the company receives natural gas owned by a shipper, usually a natural gas distributor, at one or more intake points on the company’s pipeline system for transportation and delivery to the shipper at specified delivery points along the pipeline system. Under applicable law and the company’s License, the company is not permitted to buy or sell natural gas except for the company’s own consumption and to operate the pipeline system.
The company’s pipeline system connects major natural gas fields in southern and western Argentina with distributors and other users of gas in those areas and the greater Buenos Aires area. TGN, the only other natural gas transportation operating company that supplies the Argentine market, holds a similar license with respect to the northern pipeline system, which also provides natural gas transportation services to the greater Buenos Aires area.
Natural gas transportation services accounted for 22% of the company’s total revenues in the year ended December 31, 2023. In 2023, 74% of the company’s average daily natural gas deliveries were made under long-term firm transportation contracts. Natural gas firm transportation contracts are those under which capacity is reserved and paid for regardless of actual usage by the customer. Almost all of the company’s natural gas firm contracted capacity is subscribed for at the maximum tariffs allowed by ENARGAS. Substantially all of the company’s remaining natural gas deliveries were made under natural gas interruptible transportation contracts entered into predominantly with four natural gas distribution companies, power plants and industrial customers.
Expansions of the system. In February 2017, the Ministry of Mines and Energy called for a national public tender for the purchase of pipelines to extend the natural gas network in some areas of the province of Santa Fe, the Patagonian Andes and the coast of the Province of Buenos Aires.
Within this framework, the company entered into a Transitional Union Agreement (‘UT’) with SACDE Sociedad Argentina de Construcción y Desarrollo Estrategico S.A. (‘SACDE’), a related company, for the purpose of participating jointly in the National Public Bid No. 452-0004-LPU17: Assembly of Pipes for the Construction of the Project ‘Expansion of the Natural Gas Transportation and Distribution System.’ In this regard, the Ministry of Mines and Energy awarded to the aforementioned UT the construction of the Regional II-Recreo/Rafaela/Sunchales Regional Gas Pipeline.
The company is the technical operator of the first stage of the NK Pipeline, including its two compressor plants, after ENARSA awarded the company the operation and maintenance through a private tender on June 5, 2023, for a period of 5 years, extendable for up to an additional 12 months. The company also serves as the technical operator of the Gasoducto Mercedes Cardales tranche, based on an agreement with a term of 5 years.
The second stage of the NK Pipeline will connect the San Jerónimo area in the province of Buenos Aires and the south of the province of Santa Fe. The total capacity will be 39 MMm3/d with a length of 746 miles. The bidding process is still pending.
Customers and Marketing
The company’s principal service area is the greater Buenos Aires region in central-eastern Argentina. The company also serves the more rural provinces of western and southern Argentina. As of December 31, 2023, the company’s service area contains 6.3 million end users, including 4.1 million customers in the greater Buenos Aires area. Direct service to residential, commercial, industrial and electric power generation end users is mostly provided by four gas distribution companies in the area, all of which are connected to the company’s pipeline system: Metrogas S.A., Naturgy Argentina S.A., Camuzzi Gas Pampeana S.A. and Camuzzi Gas del Sur S.A. These natural gas distribution companies serve, in the aggregate, 67% of the natural gas distribution market in Argentina. The other five Argentine distribution companies are located in and serve northern Argentina and are not connected directly to the company’s pipeline system.
The company plays a leading role in the natural gas industry in Argentina and satisfies 70 direct customers and 6.3 million indirect customers for the year ended December 31, 2023.
Pipeline Operations
The company operates its pipeline system and the pipeline constructed pursuant to the Gas Trust in accordance with Argentine natural gas transmission safety regulations, which are substantially similar to the U.S. federal regulations.
The ‘greater’ Buenos Aires area comprises the City of Buenos Aires and its surrounding area. One end of the company’s natural gas transportation system (the ‘Buenos Aires Ring’) is located in the greater Buenos Aires area, where the company transfers natural gas for further delivery to major natural gas distribution companies.
System Improvements. In 2023, the company’s pipeline system satisfactorily met the demands generated by the winter season and the requirements of ENARGAS. To that effect, the company carried out several maintenances, prevention and inspection works.
Gas Supply: In 2023, 69% of the natural gas transported by the company’s system originated in the Neuquina basin with the remainder coming primarily from the Austral basin and the re-gasifying LGN tanker located in Bahía Blanca.
The company’s pipeline system is connected to the Neuquina, Austral and San Jorge Gulf basin. The company is not connected to the Cuyo or Northwest basin.
The Vaca Muerta formation, located in the Neuquina Basin, is considered one of the most prominent shale plays globally, and has already become the largest commercial shale development outside of North America.
Neuquina Basin. The largest natural gas basin and the major source of natural gas supply for the company’s system is the Neuquina basin, located in west central Argentina.
Austral and San Jorge Basins. Natural gas provided by these basins, located in the southern region of Argentina, was transported mainly by the company (Camuzzi Gas del Sur S.A. also transports natural gas through regional pipelines). In the Austral basin, exploration has centered in and around the basin’s existing natural gas fields and on other fields located offshore. The San Jorge basin is primarily an oil-producing basin.
Regulatory Framework
The Natural Gas Law prohibits natural gas transportation companies (TGN and the company) from also being merchants in natural gas.
License. The company’s License authorizes the company to provide the public service of natural gas transportation through the exclusive utilization of the southern natural gas transportation system.
In September 2023, the company submitted a request to ENARGAS for a 10-year extension of the natural gas transportation License, which is set to expire in December 2027. This request will need to be reviewed and addressed by the government authorities.
Competition
To a limited extent, the company competes with TGN on a day-to-day basis for natural gas interruptible transportation services, and from time to time for new natural gas firm transportation services made available as a result of expansion projects to the natural gas distribution companies to whom both the company and TGN are either directly or indirectly connected (Camuzzi Gas Pampeana S.A., Metrogas S.A. and Naturgy Argentina S.A.). The company competes directly with TGN for the transportation of natural gas from the Neuquina basin to the greater Buenos Aires area.
Liquids Production and Commercialization
The company’s Liquids production and commercialization activities are conducted at the company’s Cerri Complex, which is located near the city of Bahía Blanca in the Province of Buenos Aires. In the Cerri Complex, ethane, LPG and natural gasoline are extracted from natural gas, which arrives through the company’s three main pipelines from the Neuquina, San Jorge Gulf and Austral natural gas basins.
The company owns the Liquids obtained at its Cerri Complex. The company purchases natural gas in order to replace thermal units consumed in the Liquids production process. These natural gas purchases are negotiated with certain natural gas distributors, traders and producers.
During 2023, propane and butane deliveries to the export market were operated on a spot basis, capturing opportunities associated with different market niches, which allowed for a considerable increase in the individual fixed premiums of each operation. The company also continues to advance its positioning in the Brazilian market by maintaining direct maritime exports (without intermediaries) to Brazilian LPG distributors, which began in 2021.
With respect to the export of natural gasoline, during 2023 and until February 2024, such gasoline was commercialized through a contract entered with Trafigura Pte Ltd. at the international price less a discount. As of December 31, 2023, a new contract with Trafigura Pte Ltd. was entered into for a term until February 2026. This contract improves the conditions of the contract in force during 2023.
During 2023, the company continued to market LPG through the land mode, dispatching approximately 15,518 trucks (379,544 tons) of own product.
The company’s entire ethane production is sold to PBB through a long-term agreement signed on September 6, 2018. This agreement will expire on December 27, 2027, and includes, among other conditions, TOP and DOP commitments for minimum annual per year, which is lower than the TOP quantities included in the 2015 ethane agreement with PBB.
The company’s Liquids Production and Commercialization segment also comprises storage and dispatch by truck and subsequent shipment of the liquids extracted at the Cerri Complex to facilities located in Puerto Galván. LPG and natural gasoline are transported via two eight-inch pipelines to the loading terminal at Puerto Galván. Ethane is piped via an eight-inch pipeline to the PBB olefins plant, which is the sole outlet for ethane from the Cerri Complex. Any ethane extracted at the Cerri Complex that cannot be sold to PBB is reinjected into the pipeline.
International Market
In the international market, the company commercializes propane, butane and natural gasoline to international traders and other clients.
Environment
The company’s production and liquid storage facilities are subject to Law No. 11,459 of industrial establishment of Buenos Aires. Additionally, the company must comply with all environmental legislation issued by the province, which includes laws and regulations of gas emissions, waste emissions, use of public waters and return of effluents, among others. Both facilities in the Cerri Complex and Puerto Galván have valid environmental certificates.
Midstream
Midstream Services
Through midstream services, the company provides integral solutions related to natural gas from the wellhead up to the transportation systems. The services comprise gas gathering, compression and treatment, as well as construction, operation and maintenance of plants and pipelines, which are generally rendered to natural gas and oil producers at the wellhead. The company’s portfolio of midstream customers also includes distribution companies, big industrial users, power plants and refineries. The company’s midstream activities also include the separation and removal of impurities such as water, carbon dioxide and sulfur from the natural gas stream, and steam generation for electricity production. Small diameter pipes from the wellheads form a network, or gathering system, carrying the gas stream to larger pipelines where field compression is sometimes needed to inject the gas into the company’s large diameter gas pipelines. The services are tailored to fit the particular needs of each customer in technical, economic and financial matters.
This business segment includes the transportation and all related services provided in Vaca Muerta after the important gas pipe project carried out during 2019 which allow the company to comply with the agreements signed with the main natural gas producers in the area.
In addition, the company provides operation and maintenance of pipelines services to its affiliate, Gas Link S.A. (‘Link’).
The company has entered into an UT with SACDE for the purpose of participating jointly in the National Public Bid No. 452-0004-LPU17: Assembly of Pipes for the Construction of the Project ‘Expansion of the Natural Gas Transportation and Distribution System.’ As a result of this bid, the Ministry of Mines and Energy awarded to the aforementioned UT the contract for the construction of the Regional II-Recreo/Rafaela/Sunchales Regional Gas Pipeline. As of the date of issuance of this Annual Report, construction works are in progress.
Furthermore, the company aims to have a leading role in the development of Argentina’s energy sector. For this reason, the company developed a gas gathering network in the Southern Section and Northern Section in the Vaca Muerta fields.
Telcosur (Telecommunications System)
The company owns 99.98% of Telcosur, a telecommunications company created in September 1998 to provide value-added and data transportation services using the company’s modern digital land radio telecommunications system with Synchronous Digital Hierarchy (‘SDH’) technology (which was installed for purposes relating to the company’s gas transportation system).
With respect to the telecommunications services provided by Telcosur, during the year 2023, agreements were reached that allowed increasing the capacity sold and consolidating the company’s operations.
In line with the strategy of consolidating the business in the medium and long-term, Telcosur reached agreements with new customers and was able to expand or renew existing agreements. Telcosur’s strategy is focused on being a service provider in Vaca Muerta, taking advantage of its infrastructure and know-how in the industry. It is in this sense that among its main clients are the main oil and gas producers in the area, as well as other telecommunications companies that provide services to them.
Property, Plant and Equipment
Gas Transportation
The principal components of the pipeline system the company operates are as follows:
Pipelines. The company renders natural gas transportation service through a pipeline system that is 5,746 miles long, of which 4,768 miles operated under the License on an exclusive basis. The company manages the transportation of natural gas over the remainder of the system under management agreements with the Gas Trust, which owns the remaining portions of the pipeline. The system consists primarily of large diameter, high-pressure pipelines intended for the transportation of large volumes of gas at a pressure of approximately 853-996 pound/square inch. Line valves are installed on the pipeline at regular intervals, permitting sections of the pipeline to be isolated for maintenance and repair work. Gas flow regulating and measurement facilities are also located at various points on the system to regulate gas pressures and volumes. In addition, a cathodic protection system has been installed to protect the pipeline from corrosion and significantly reduce metal loss. All of the pipelines are located underground or underwater.
Maintenance bases. Maintenance bases are located adjacent to the natural gas pipeline system in order to maintain the pipeline and related surface facilities and to handle any emergency situations which may arise. Personnel at these bases periodically examine the pipelines to verify their condition and inspect and lubricate pipeline valves. Personnel at the bases also carry out a cathodic protection system to ensure that adequate anti-corrosion systems are in place and functioning properly. Such performance also maintains and verifies the accuracy of the company’s measurement instruments to ensure that these are functioning within appropriate industry standards and in accordance with the specifications contained in the company’s service regulations.
Compressor plants. Compressor plants along the pipelines recompress the natural gas volumes transported in order to restore pressure to optimal operational levels, thereby ensuring maximum use of capacity, as well as efficient and safe delivery. Compressor plants are spaced along the pipelines at various points (between 62 and 124 miles) depending upon certain technical characteristics of the pipelines and the required pressure for transport. Compressor plants include mainly turbine-driven compressors, and to a lesser extent, motor-driven compressors which use natural gas as fuel, together with electric power generators to supply the complementary electrical equipment (control and measurement devices, pumping, lighting, communications equipment, etc.).
The company transports natural gas through four major pipeline segments: General San Martín, Neuba I Gas Pipeline, Neuba II Gas Pipeline and Loop Sur Gas Pipeline, as well as several smaller natural gas pipelines.
General San Martín. This pipeline was built in three stages, completed in 1965, 1973 and 1978, and transports natural gas from the extreme southern portion of Argentina to the greater Buenos Aires area in east-central Argentina. It originates in San Sebastián (Tierra del Fuego), passes through the Strait of Magellan and the Provinces of Santa Cruz, Chubut, Río Negro and Buenos Aires (including the Cerri Complex located near the city of Bahía Blanca in central Argentina), and terminates at the high pressure transmission ring around the City of Buenos Aires. The pipeline receives natural gas from the Austral basin at the extreme south in the Province of Tierra del Fuego, from the same basin further north at El Cóndor and Cerro Redondo, in the Province of Santa Cruz and from the San Jorge basin in the northern Santa Cruz and southern Chubut Provinces. The natural gas pipeline primarily serves the districts and cities of Buenos Aires, La Plata, Mar del Plata, Bahía Blanca, Puerto Madryn and Comodoro Rivadavia. This pipeline was expanded in 2005 by the Gas Trust in order to satisfy the growing natural gas demand in the Argentine economy. This expansion resulted in the construction of 458 miles of pipeline and the installation of new compressor units.
Neuba I Gas Pipeline (Sierra Barrosa-Bahía Blanca). Neuba I Gas Pipeline is one of the company’s two main pipelines serving its principal source of gas supply, the Neuquina basin. The pipeline originates in west-central Argentina at Sierra Barrosa (Province of Neuquen), passes through the Provinces of Río Negro, La Pampa and Buenos Aires, and terminates at the Cerri Complex. This pipeline transports the natural gas received from the Neuquina basin, particularly from the Sierra Barrosa, Charco Bayo, El Medanito, Fernández Oro, Lindero Atravesado, Centenario, Río Neuquen and Loma de la Lata natural gas fields. The gas delivered from Neuba I Gas Pipeline is subsequently compressed and injected into the Loop Sur Gas Pipeline and the General San Martín pipelines for transportation north to the greater Buenos Aires area. As part of the works scheduled to be completed in the Five-Year Plan, the company is executing the construction of a compressor plant in the town of Confluencia, Neuquen Province, which will allow the Neuba I Gas Pipeline to be interconnected with the Neuba II Gas Pipeline and thus grant a greater degree of flexibility to the operation of the natural gas transport system.
Loop Sur Gas Pipeline. This gas pipeline was built in 1972 as an extension of Neuba I Gas Pipeline and runs parallel to a portion of the General San Martín gas pipeline. Located in the province of Buenos Aires, it transports natural gas from the Neuba I Gas Pipeline at the Cerri Complex in Bahía Blanca and terminates at the high pressure transmission ring around Buenos Aires, which the company also operates. The natural gas delivered by this gas pipeline constitutes a portion of the natural gas supply for the greater Buenos Aires area. Loop Sur Gas Pipeline is also connected to the TGN system and allows the company to deliver natural gas to or receive natural gas from TGN. Such transfers occur occasionally during periods of high demand for natural gas.
Neuba II Gas Pipeline. The company’s newest natural gas pipeline, Neuba II Gas Pipeline, is the company’s second pipeline serving the Neuquina basin. Neuba II Gas Pipeline begins at YPF’s Loma de la Lata gas treatment plant in the western portion of the basin and runs through the provinces of Neuquen, Río Negro, La Pampa and Buenos Aires (through the Cerri Complex), up to its terminal station located at Ezeiza just outside of Buenos Aires. Neuba II Gas Pipeline is a principal source of natural gas for the Federal District and the greater Buenos Aires area. In 2008, this pipeline was expanded as a part of the Second Expansion, resulting in the construction of 153 miles of natural gas pipeline.
Other Pipelines. The company also operates the Cordillerano natural gas pipeline, which receives gas from the Neuquina basin and supplies it mainly to three tourist centers in southern Argentina. In addition, the company operates other minor pipelines, the high pressure transmission ring around Buenos Aires, the Chelforó-Conesa natural gas pipeline and other natural gas pipelines known as natural gas transfer pipelines.
Ancillary Facilities
Cathodic Protection System
The company operates cathodic protection devices, which are located along the company’s main pipelines.
Measurement and Control of the Transport System
To guarantee the reliability of the facilities and optimize the operation of the transport system, it is necessary to have real-time information from the various measurement and control devices installed throughout the company’s more than 5,769 miles of gas pipelines and 33 compressor plants.
To that effect, the company has fiscal measurement stations associated with gas receptions from producer facilities and gas deliveries to the company’s distributors or customers, in addition to the mediation equipment installed in the compressor plants to determine the volumes of pumped gas, fuel and other variables of operational interest.
All the information generated by the field devices is collected by the company’s SCADA/EFM system, transmitted through the company’s communications infrastructure and centralized at the company’s headquarters. The fiscal mediation information contains volumes and quality of gas, which is collected by the SCADA/EFM system and saved in a database for further processing by other corporate systems.
In addition, the information is shared in real time with producers, distributors and ENARGAS in order to ensure the required auditability and transparency.
Natural Gas Control System
Located at the company’s Buenos Aires headquarters, the gas control system controls scheduled gas injections and deliveries and allows the company to follow gas flows in real time. Data is received from compressor stations by phone and automatically from remote terminal units (‘RTUs’) installed in the receipt and delivery points equipped with the Electronic Flow Measurement (EFM) system. The information is normally collected by the supervisory control and data acquisition system (which has an ad hoc database that is updated every 30 seconds on average) and is then consolidated into other databases. In order to control gas injection and deliveries, the company has developed a software system called Solicitud, Programación, Asignación y Control, which, among other things, allows the company to control actual volumes and projected future injections to determine producer deviations. As part of this system, the company operates meteorological equipment and receive daily weather information from various sources, which is used for the purpose of forecasting natural gas demand.
Natural Gas Measurement
Shipped and delivered natural gas is measured through primary field facilities that are connected with RTUs. Such RTUs transmit the data to the Buenos Aires headquarters. This data is utilized to prepare reports for clients, shippers, producers and ENARGAS. Energy balances are also prepared in order to control the company’s system efficiency.
Liquids Production and Commercialization
The company’s Liquids production and commercialization activities are conducted at its Cerri Complex. It is located near the city of Bahía Blanca and is connected to each of the company’s main pipelines. The Cerri Complex consists of an ethane extraction cryogenic plant to recover ethane, LPG and natural gasoline, together with a lean oil absorption plant to recover LPG and natural gasoline (‘Liquids Production and Commercialization’). The facility also includes compression, power generation and storage facilities. The Cerri Complex processing capacity is approximately 47 MMm3/d.
As part of the Cerri Complex, the company also maintains at Puerto Galván a storage and loading facility for the natural gas liquids extracted at the Cerri Complex. The Cerri Complex, including the Puerto Galván facility, is capable of storing 68,882 short tons of liquids.
Midstream
As part of this business segment, the company provides services related to natural gas, including treatment, gathering and gas compression, which are rendered at two treatment plants and three gas compression plants with a total treatment capacity of 10.9 MMm3/d and a total compression capacity of 34,790 HP, respectively.
The Vaca Muerta project was executed in three stages:
Milestone 1: on April 30, 2019, the company finished the construction of the southern section of the Vaca Muerta pipeline, its connection to the northern Vaca Muerta pipeline and the segment that extends from connection to the project’s conditioning plant (the construction of which is still ongoing) located in the city of Tratayen, Province of Neuquen. In addition, both an early conditioning plant (integrated to the definite conditioning plant) and the plant connection to the Neuba I Gas Pipeline began operations.
Milestone 2: on November 3, 2019, the northern section of the Vaca Muerta pipeline began operations, connecting the Rincón la Ceniza field with the southern section of the Vaca Muerta pipeline.
Milestone 3: on December 12, 2019, the northern section of the Vaca Muerta pipeline began operations, extending from the Los Toldos I South field to Rincón la Ceniza, connected with the section previously started. The completion of this section represented the completion of the northern section of the Vaca Muerta pipeline.
This pipeline system goes through several hydrocarbon fields, including Bajada de Añelo, La Calera, Bandurria Sur, Fortín de Piedra, El Mangrullo, Aguada Pichana Este, Rincón la Ceniza, Los Toldos I Sur and Pampa de las Yeguas I and II. The following map shows the location of the Vaca Muerta pipeline.
With the commissioning of the conditioning train installed in the Tratayen Treatment Plant and with the completion of the work to connect said plant to the Central West Gas Pipeline, belonging to the TGN transportation system, the company concluded the works that comprise the Vaca Muerta system. This system, which includes two gas capture pipelines and the aforementioned plant in Tratayen will be of vital importance for the development of the Vaca Muerta natural gas reserves.
Additionally, the connection of the plan located in Tratayen to the Central West Gas Pipeline, belonging to TGN’s regulated transportation system, was completed in 2020. Moreover, in September 2020, the company approved a project to expand the plant located in Tratayen. This project was commissioned in September 2021 allowing the company to increase the natural gas gathering capacity in the Vaca Muerta area, and thus, increase capacity for the company’s midstream services.
Telecommunication
The company owns two interconnected networks beginning in the Buenos Aires Province, which consist of (i) a flexible and modern microwave digital network with SDH technology over more than 2,858 miles, which covers the Buenos Aires–Bahía Blanca–Neuquen routes to the West and the Buenos Aires–Bahía Blanca–Comodoro Rivadavia–Río Grande routes to the South, and (ii) a dark fiber optic network of approximately 1,056 miles, which covers the La Plata–Buenos Aires–Rosario–Córdoba–San Luis–Mendoza routes. There is also a network in the Patagonia region, which consists of a ‘lit’ fiber optic network of approximately 373 miles, which covers the Puerto Madryn–Pico Truncado route.
History
Transportadora de Gas del Sur S.A. was founded in 1992. The company was incorporated under the laws of Argentina in 1992.
