TGS

Business Context and Reporting Period

Company: Transportadora de Gas del Sur S.A. (TGS)
Filing Type: Form 6-K (Report of Foreign Issuer)
Date: June 7, 2018
Subject: Material Fact regarding additional midstream infrastructure investments in the Vaca Muerta formation.

Key Financial Metrics

The filing does not provide specific financial statements, revenue, profit, cash flow, margins, debt, or liquidity metrics. The document focuses exclusively on a specific capital investment project.

• Project Investment: US$ 41 million
• Asset Type: South Tranche pipeline (Vaca Muerta midstream project)
• Capacity: 883 million cubic feet per day
• Length: 21 miles
• Diameter: 30 inches
• Operating Pressure: 97 Kg/cm² Higher Maximum Operating Pressure

Material Changes and Project Details

TGS executed a Complementary Agreed Minute with the Undersecretary of Energy, Mining and Hydrocarbons of the Province of Neuquén. This agreement is complementary to a prior minute dated April 3, 2018.

• Concession Extension: The agreement commits to granting TGS an extension of the transportation concession to build and operate the Project pipeline South Tranche.
• Function: The pipeline will gather off-spec natural gas production from hydrocarbon fields in the Vaca Muerta formation.
• Route: Extends from 32.5 km progressive of the North Tranche to 41 km progressive of the El Mangrullo-Aguada La Arena pipeline.
• Producer Agreements: TGS has entered into agreements with certain natural gas producers to ensure project feasibility.

Outlook, Risks, and Contingencies

Timeline: The pipeline is expected to be in operations in April 2019.

Regulatory Contingency: The execution of the Complementary Agreed Minute is subject to approval by the Provincial Executive Branch. It will only come into effect upon the issuance of the corresponding Provincial Decree in the Official Gazette of the Province of Neuquén.

Strategic Outlook: Management states these investments will magnify TGS's midstream businesses and consolidate its commitment to Argentina's energy supply.

Investor Verification Checklist

• Verify the issuance of the Provincial Decree in the Official Gazette of the Province of Neuquén to confirm the concession extension is effective.
• Confirm the status of agreements with natural gas producers required for project feasibility.
• Monitor the project timeline to ensure the April 2019 operational target is met.
• Review future filings for updates on the US$ 41 million capital expenditure deployment.