Transportadora de Gas del Sur (TGS) has become one of the largest gas transportation companies in Argentina and operates the longest pipeline in Latin America – the General San Martín Gas Pipeline. The company distributes approximately 62 per cent of the gas consumed in Argentina and transports gas directly to distribution companies, electrical power plants and industries. The pipeline system is 8,611 km long, of which TGS owns 7,572 km, through seven Argentine provinces with 608,900 HP of compression power.

The company produces and sells natural gas liquids (NGL) in both the local and export markets from its Cerri gas plant, located in Bahía Blanca province, Buenos Aires.

TGS is hoping to expand its activities to the regional markets in South America, and is moving into midstream operations and maintenance projects in order to capitalise on its expertise in the different stages of the natural gas chain.

In late 2001, TGS obtained the re-certification of its environmental system under ISO 14001 standards, as well as the certification of its quality management system under ISO 9001 standards. TGS obtained an occupational health and safety OHSAS 18,001 standards certification in 2006.

NGL production and commercialisation

Natural gas is transported via TGS’ main pipelines – General San Martín, Neuba I and Neuba II – for processing and commercialisation. NGLs such as ethane, propane, butane and natural gasoline are separated from gas at the Cerri complex.

TGS has expanded on its expertise through offering a series of midstream services, which include operations and maintenance, treatment, conditioning, and compression of natural gas assets. The company provides natural gas and oil producers with integral solutions from the wellhead to the transportation systems.

TGS performance

TGS has recently made significant achievements in several areas of the gas transportation business.

The company completed the first stage of its 2006–09 pipeline expansion works, which were carried out and financed within the Gas Trust Fund Program. The expansion has allowed the company to increase transportation capacity by 2.2 million cubic metres per day. TGS is now in charge of the operation and maintenance of the new facilities.

The company is working with communities in the vicinity of its operations, assisting them through various programs.

TGS into the future

TGS said it has begun to review its natural gas transportation service tariffs, executing provisional agreements for an increase in tariffs. The company will continue managing its expansion works and will also assess further expansion opportunities agreed directly with customers under prepayment schemes.

During 2009, TGS conducting the expansion of the Strait of Magellan section of its General San Martín Pipeline.

TGS plans to focus on monitoring its NGL processing and commercialisation sales margins.