Agenda

Natural Gas in Argentina – History ( 1800 – 2001 )

Natural Gas in Argentina – Today Production Transportation Demand TGS role en the Industry

Natural Gas in Argentina

Argentina – Some References

2.767 MM Km2

0.547 MM Km2 = France x 5

0.245 MM Km2

= UK x 11

0.301 MM Km2 = Italy x 9

= Germany x 8 0.357MM Km2

=

Natural Gas in Argentina - History ( 1800 – 2001 )

History 1800 - 1900

1870 - Buenos Aires adopted Paris public ilumination model.

1891 - Gas consumption reaches 75.000 stm3/d in Buenos Aires. There are 540 Km of pipes already in service.

1823 - Buenos Aires is the first Latin American City with gas public ilumination.

1856 - Residencial coal gas supply starts in Buenos Aires. Clay pipes are used in the distribution system.

History 1900 - 1992

1907 – The first Oil and Gas Field is discovered – Comodoro Rivadavia Area Gas kitchens are introduced in big cities.

1928 – The “ Primitive gas Company “ gives the first cooking course using gas kitchens in Buenos Aires.

1945, January 1° Gas del Estado Company is created.

1949 – Start up of Comodoro Rivadavia-Buenos Aires Pipeline . The longest pipeline in the world - 1.605 km. and 30”. Capacity : 1.000.000 stm3/d.

History 1900 – 1992

1949 - Gto Gral San Martín–1800 Km – 30”

1970 - Gto Neuba I – 1200 Km – 24”.

1960 - Gto Norte – 1800 Km – 24” / 30”.

1982 - Gto Centro Oeste – 1500 Km – 30”

1988 - Gto Neuba II – 1250 Km – 30” / 36”

Total length: 10600 Km – Total Capacity 65 MM stm3d

1973 – Gto Gral San Martín ( southern piece ) 1000 Km

1976 - Loma de La Lata Field Discovery.

1979 – Magellan Strait Crossing – 37 Km

Minor pipelines – 2000 Km

History 1992 - 2001

New Companies expand Transportation Capacity of the System

1992 Gas del Estado is privaticed in 10 different Companies. Two Transportation Companies TGS y TGN – and eight Distribution Companies.

Argentina expansion over the region: Chile, Uruguay y Brasil

Transportation CAPACITY increased by 75 % (from 65 to 114 MM’m3/d)

with an associated investment higher than USD 2.000 MM

43

61

37

23

16

0

20

40

60

80

100

120

140

1993 1994 1995 1996 1997 1998 1999 2000 2001

Ca

pa

cid

ad

[M

M'm

3/d

ía]

0

500

1000

1500

2000

Inve

rsio

ne

s [M

M'U

SD

]

Accrued Investments

TGN Exportation

TGN Domestic Market

TGS Domestic Market

Total length 14.000 Km - Total Capacity 114 MM stm3d

Reserves

Norte

Neuquina

San Jorge

Austral

Natural Gas in Argentina

Reserves, Production, Demand

0.00

0.50

1.00

1.50

2.00

2.50

3.00

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

tcf

( 106 M

Mcf

)

8.00

10.00

12.00

14.00

16.00

18.00

20.00

22.00

24.00

26.00

28.00

years

Reserves ( tcf ) Production ( tcf ) Demand ( tcf ) Time span ( years )

Natural Gas in Argentina - Today

Main Indicators

Natural Gas in Argentina Today

Generación Electrica

27%

GNC 7%

Export. 8 %

Residencial + Comercial

31 %

Industrial 27%

48 %

42 %

4 % 3 %

3 %

Industry Vertical Segmentation

Transportation

Liquids Processing &

Commercialization

Natural Gas in Argentina Today

Production Demand

THE GAS OFFER SHOWS DIFFERENT EVOLUTIONS DEPENDING ON THE BASIN

60.0

65.0

70.0

75.0

80.0

85.0

90.0

95.0

100.0

1 2 3 4 5 6 7 8 9 10 11 12

2003 2006

Developments do not offset declines

NEUQUINA BASIN

20.0

25.0

30.0

35.0

40.0

45.0

1 2 3 4 5 6 7 8 9 10 11 12

2003 2006

Strong Production Increase

Potential to support Expansions

AUSTRAL + SAN JORGE BASIN

MM

m3/d

(m

onth

avera

ge)

Declines offset by Bolivian Gas Importation

NORTE BASIN

-

5.0

10.0

15.0

20.0

25.0

30.0

1 2 3 4 5 6 7 8 9 10 11 12

2003 2006

Natural Gas Production

TOTAL GAS DEMAND HAD AN AVERAGE GROWTH OF

27 MM m3/d DURING THE PERIOD 2002-2007

Natural Gas Demand

Global System Demand - TGS+TGN

60

70

80

90

100

110

120

130

140

ENE FEB MAR ABR MAY JUN JUL AGO SEP OCT NOV DIC

20012003200520062007FIRME 07

MM

m3/d

(m

onth

avera

ge)

JAN FEB MAR APR MAY JUN JUL AGO SEP OCT NOV DEC

Contracted gas

Natural Gas Global System Today

Trunk & Regional Pipelines

TGS

Cerri - LPG

TGS

8,050 Km

579,090 HP ( 30 CCSS )

75,9 MM stm3/d

Methanex

TGM - Brazil

Norandino

Atacama

Pacifico

Gas Andes

Cruz del Sur

Petrouruguay

Regional Pipelines

2,620 Km

30,000 HP ( 2 CCSS )

TGN

5,716 Km

345,780 HP ( 17 CCSS )

54,4 MM stm3/d

TGN

TOTALS

16,386 Km

954,870 HP ( 49 CCSS )

130,3 MM stm3/d

Reserves decline (Neuquén - Norte)

The Austral basin would be the only Argentinean source to support growth.

Need for “Regional Gas”, LNG Projects and Substitute Fuels to complete the Argentinean

energetic balance.

GAS DEMAND INCREASE EXCEEDS THE OFFER AVAILABILITY

EXPORTATION RESTRICTIONS

ACTIONS CARRIED OUT TO ENSURE THE DOMESTIC MARKET SUPPLY

NEW TRANSPORTATION

EXPANSION STRUCTURES

BOLIVIAN GAS IMPORTATION

SUBSIDY FOR THE USE OF SUBSTITUTE FUELS

Natural Gas Current Status

In the National Energetic Plan framework the Argentine Government faces Infrastructure Works together with Private Investments, which will provide

40 MMm3/d

10.4 MM stm3/d

5.6 MM stm3/d

0.8MM stm3/d

7.9 MM stm3/d

EXISTING SYSTEM EXPANSION NEW PIPELINE - GNEA

New Transportation Expansion Structures

TGS + TGN

2,800 Km

212,000 HP

24.6 MM stm3/d

GNEA

1,500 Km

240,000 HP

15.7 MM stm3/d

Thank you, for your attention !!!

Liquids Natural Gas Processing

Commercialization of extracted products Ethane - LPG

Other Services Management, Construction and O&M Pipelines – Compression - Treatment

Services to Domestic and Regional Market

Telecommunications

Broad band Services for Telecommunication Operators and large corporate customers

Transportation Natural Gas Transportation from Fields to

Consumption areas

TGS Business Units

Leading Gas Transportation Company in Argentina

75.9 MM’m3/d

32 Direct Customers

8.050 Km of Pipelines

579.090 installed HP

30 Compressor Plants

San Martin Pipeline

Neuba II Pipeline

Neuba I Pipeline

Cerri Complex

TGS Transportation Business Units

Second Natural Gas Processor in Argentina

Processing Capacity: 47 MM m3/d (max)

Annual Production: 1 MM Tons

Storage: 51.000 tons

Natural Gasoline 100,000 MT /year

Petrobras

20

LPG 550,000 MT /year

Petrobras

Retailers Distributing Networks

7100

80 40%

60%

Products

Ethane 350,000 MT/year

Dow PBB

Dispatch Customers

TGS Liquids Business Units

Construction & Management

Operation & Maintenance

Telecommunications

Financial Structure

Compression

Alternative Energies

Pipelines

Gathering

SERVICES

TGS Gas Industry Expertise

Argentina

Regional Projection

MARKET

POSITIONING

Liquids Extraction

Conditioning

Uruguay Chile

Providing value alternatives with integral services in the Domestic and Regional Market

TGS Other Services Units

CO2 Plant - Pluspetrol -

Compression - Refinor-

Conditioning - Petrobras -

Conditioning – Repsol YPF -

Conditioning - Petrobras -

Pipeline to Chile - EGS -

Compression - BRTF Sipetrol-

Conditioning -Repsol YPF – SIPETROL-

Transportation to Uruguay - Gas Link -

O&M in Uruguay - Cruz del Sur Pipeline -

TGS Other Services Units

Thank you, for your attention !!!