SERVICES - NATURAL GAS TRANSPORTATION

Activities

TGS transports 60% of the gas consumed in Argentina. This service has been under the regulations of Law Nª 24,076 since the privatization of Gas del Estado, the state-owned gas company, in December 1992.

Transportation services

Firm transportation: service rendered without interruptions or reductions. The customer pays a fixed rate for the reserved capacity. Minimum volume: 5000 m3 @ 9300 kcal/day

Interruptible transportation: the service is subject to interruptions, depending on the transportation system available capacity. The rate is variable, conditional on the transported volume. Minimum volume: 1,5 MMm3/year.

Exchange and displacement: it is a transportation service rendered by backhaul of exchange so that the transportation moves in a direction opposite to the flow of the gas. It is interruptible, conditional on the kind of service.

The transportation system connects the Neuquén, San Jorge and Austral basins, located in the south and west of our country, to the greater Buenos Aires and the major consumption centers of southern Argentina. Our 8627 km long pipeline system makes us the major gas transporter in Latin America.

Since the beginning of our operations, we have increased our transportation capacity by 32 MMm3/d.

Transportation System Expansion

Transportation System Expansions are conducted by means of Open Seasons, through which we invite interested parties to submit their firm transportation capacity requirements.

Since the beginnings of our operations in 1992, we have expanded our transportation system from 43 MMm3/d to 76.04 MMm3/d to meet the gradual demand increase, by means of the installation of pipeline loops and additional power at the compressor plants along the transportation system.

In the year 2005, a Gas Trust Fund Program was established through Resolution N 185/2004 of the Argentine Ministry of Federal Planning, Public Investment and Services (MPFIPyS). Within this scheme, TGS conducted a 2.9 MMm3/d expansion, increasing the volume of the gas arriving to the Autonomous City of Buenos Aires and the Buenos Aires province, points where the greatest increase of transportation is recorded during winter. The technical aspects of the pipeline expansion were managed by TGS, which ensured the success of the works.

We are currently conducting expansions to meet a 9.4 MMm3/d capacity increase allocated within the framework of Open Season 02/05, once again in line with the scheme used to conduct expansions in the year 2005.

On the other hand, faithful to our active role in the undertaking of new industrial projects, we have developed further financial structures to support expansions and meet the specific firm transportation requirements.

Res. ENARGAS n°I-1492/10