Midstream Business

CGC is a co-controlling partner in TGN & GasAndes, the second largest gas transport infrastructure asset in Argentina, connecting with Chile, Bolivia, Uruguay and Brazil and a LNG regasification plant in Argentina.

We indirectly hold a 28.23% interest in TGN, a 39.99% interest in each of GasAndes Argentina and GasAndes Chile, the operators of the GasAndes pipeline in Argentina and Chile, respectively, and a 15.77% interest in TGM. Although our intention is to focus on upstream activities, we intend to maintain our existing equity interests in our midstream business, as we believe that these are stable and predictable investments that balance our inherently more volatile upstream business.

Transportadora de Gas del Norte S.A. (TGN)

TGN is one of the two principal natural gas transportation companies operating in Argentina, supplying natural gas to the north and central regions of Argentina. The TGN pipeline network is comprised of the Northern and Mid-West pipelines and has a total length of approximately 6,800 km and a delivery capacity of approximately 60 MMm3/d. The total length of the Northern pipeline is 4,550 km, including trunk pipelines and loops, with 12 compressor stations having an aggregate of 204,620 hp of installed compression capacity. The total transportation capacity of the Northern pipeline is 22.57 MMm3/d.  The total length of the Mid-West pipeline is 2,256 km, including branch lines and loops, with eight compressor stations having an aggregate of 171,000 hp of installed compression capacity. The Mid-West pipeline’s transportation capacity is 32 MMm3/d. TGN’s operating license expires in 2027 and is extendable for an additional 10-year period, subject to review and approval by the Argentine government.

Gasoducto GasAndes (Argentina) S.A. & Gasoducto GasAndes Chile S.A.

GasAndes Argentina operates the Argentine section of the GasAndes pipeline, while Gasoducto GasAndes Chile operates the Chilean section of the GasAndes pipeline. GasAndes Argentina and GasAndes Chile’s principal shareholder is Aprovisionadora Global de Energía S.A., which holds a 47.10% interest in each entity. We directly hold a 39.99% interest in in each of GasAndes Argentina and GasAndes Chile. The remaining 13.0% in each of GasAndes Argentina and GasAndes Chile is held by AES Gener S.A.

The pipeline unites the block of La Mora, in the province of Mendoza, Argentina, with the city of Santiago, in Chile and has a length of approximately 533 km and a transport capacity of 10.8 MMm3/d. GasAndes Argentina’s operating license expires in 2027 and is extendable for an additional 10-year period, subject to review and approval by the Argentine government. GasAndes Chile’s operating license was granted for an indefinite term.

Pursuant to technical assistance agreements entered into between GasAndes Argentina and us in September 2014, and between GasAndes Chile and Andes Operaciones y Servicios S.A. in August 2014, we operate the Argentine section of the GasAndes pipeline, while the Chilean sector is operated by Andes Operaciones y Servicios S.A.

Transportadora de Gas del Mercosur S.A. (TGM)

TGM operates the pipeline transporting natural gas from Aldea Brasileira, in the province of Entre Ríos in Argentina to Uruguaiana in the state of Río Grande do Sul in Brazil. The pipeline has a length of approximately 437 km, and a transport capacity of 15.0 MMm3/d. TGM’s operating license expires in 2027 and is extendable for an additional 10-year period, subject to review and approval by the Argentine government. We directly hold a 15.8% interest in TGM. TGM’s other shareholders are Tecpetrol S.A., Central Puerto S. A. and Total Gas and Electricidad Argentina S.A. which hold 31.5%, 20.0% and 32.7% of TGM’s capital stock, respectively.