dic. 17, 2020

tgs reaches a Midstream Services Agreement with Oilstone

tgs and Oilstone have entered a seven-year agreement by virtue of which tgs will render natural gas compression and conditioning services from its conditioning plant in Plaza Huincul. This agreement with Oilstone further consolidates tgs’ role as midstreamer in the province of Neuquén.

The agreed terms contemplate services for a volume that could reach up to 300,000 m3/day of natural gas, in addition to the recovery and infrastructure enhancement works required to ensure the arrival, entrance and measurement of gas to tgs’ Plaza Huincul plant.

This deal will add value to hydrocarbon production operations conducted by Oilstone. It comprises the rendering of services to the production of natural gas in the Cerro Bandera license, fully owned by Oilstone -, as well as Puesto Cortadera and Portezuelo Minas,- licenses that are part of the Dorsal Joint Venture, constituted by Gas y Petróleo del Neuquén S.A. and Oilstone.

“This joint work agreement deepens even further tgs’ business vision: to be a strategic partner in the rendering of services throughout the whole natural gas value chain. At this moment of great uncertainty, we generate alliances with leading companies, consolidating ourselves as an integrated services company and being able to promote local labor for the small and medium companies installed in Neuquén” asserted Oscar Sardi, CEO of tgs.

Diego Garzón Duarte, CEO of Oilstone celebrated the agreement reached with tgs, “a company with a great track record and expertise in the natural gas business, which will allow our company to reach even further in the constant production growth that we have been pursuing since our beginnings”.

For the start-up of operations, tgs service area conducted the agreed required infrastructure works and the hydrostatic test of the Oilstone gathering pipeline that links the exploitation areas to the Plaza Huincul plant. Both actions were carried out successfully and finalized sooner than the originally scheduled term, bringing forward the date of the arrival of natural gas.