Argentine gas distributors present US$85mn investment plan

Members of Argentine piped gas distributor association Adigas presented to sector regulator Enargas a 74.1bn-peso (US$84.9mn) investment plan for May-December.

The outlay is possible because of rate hikes, a statement said, adding that investment was muted during years of price freezes. 

President Javier Milei’s government has been trimming gas subsidies, resulting in higher end-user rates, particularly for high-income residential clients and commercial and industrial users.

Principal planned work includes pipeline renewal and overhauling, as well as investment in customer service technology. 

Investment will vary depending on company size, asset base and client number, Adigas said.

The sector has 169,274km of ducts and around 9mn users

Argentina's two gas transport companies, TGS and TGN, also recently announced investment plans.

PLANNED DISTRIBUTOR INVESTMENT BY COMPANY

- Metrogas: 19.6bn pesos

- Grupo Naturgy (BAN y Gasnor): 19.0bn pesos

- Grupo Camuzzi (Gas Pampeana y Gas del Sur): 17.9bn pesos

- Grupo Ecogas (Distribuidoras del Centro y Cuyana): 11.5bn pesos

- Litoral Gas: 4.93bn pesos

- Gasnea: 1.17bn pesos