TGS Raises Contracted Capacity for Gas Liquids Project to 96% After RIGI Approval

Key Facts

In a filing issued on October 29, TGS said new agreements with gas producers raised the firm contracted capacity for its natural gas liquids project to 96% of planned capacity. It added that approval to include the project in Argentina's Large Investment Incentive Regime was publicly announced on October 19. Publication of the corresponding administrative decision remained pending at the time of the filing. Contracting progress comes as the company advances a project to process, transport, fractionate and export gas liquids in the Vaca Muerta basin. TGS estimated total investment at about 3 billion dollars and said the project would enable annual exports of nearly 1.2 billion dollars once operations begin.

The proposed infrastructure includes the PGS facility, a line to separate gas streams about 100 kilometers long, and a processing plant in Tratayén with estimated capacity of 43 million cubic meters per day. The MGS facility comprises a liquids transportation pipeline about 577 kilometers long, as well as a fractionation plant, storage facilities and a marine terminal in Puerto Galván. TGS said the infrastructure would enable exports of about 1.2 billion dollars a year once operational. The project aims to complete the liquids-processing chain linked to hydrocarbon production, from processing and transport to fractionation and export. The company described it as potentially helping ease one of the bottlenecks to developing Vaca Muerta.

TGS signed the project's commercial agreements with YPF, Pluspetrol and Chevron Argentina, and is developing it through its subsidiaries PGS and MGS. Agreements approved by the board with YPF, Pluspetrol and Chevron covered more than 80% of capacity, according to the company's announcement in June. TGS said at the time that it was in advanced negotiations with other producers. Raising firm contracting to 96% increased the share of capacity covered by existing agreements compared with that stage. The new filing places this commercial progress alongside the announcement of RIGI approval, while publication of the related administrative decision remained pending.

TGS approved moving ahead with the project in June and set 2030 as the planned start of operations. The company expects construction to take four years and generate about 4,000 direct jobs and 15,000 indirect jobs during that period. The chairman of Pampa Energía, which shares control of TGS, previously said Argentina had not undertaken a gas liquids processing project in more than 25 years. The project is part of an investment that the company put at 3 billion dollars, with expected annual exports of about 1.2 billion dollars once operational. These figures provide context for the company's execution plans, while the stated start-up date remains 2030.

Financial results in the October 29 filing showed TGS revenue of 532,466 million pesos in the third quarter of 2026, compared with 569,205 million pesos in the same period of 2025, a decline of 36,739 million pesos. Liquids segment production was 293,929 tonnes, down 20,934 tonnes from the third quarter of the previous year. Gross operating profit fell by 25,272 million pesos year on year. The company attributed this mainly to a 36,739 million peso decline in revenue and a 6,004 million peso increase in administrative and selling expenses. By contrast, it reported net cash of 310,054 million pesos on September 30, 2026, compared with 126,900 million pesos on December 31, 2025.