MetroGAS S.A. (MetroGAS), incorporated on November 24, 1992, is a gas distribution company in Argentina. Gas Argentino S.A. (Gas Argentino) holds 70% of the common stock of the Company. Its service area includes the city of Buenos Aires and southern and eastern greater metropolitan Buenos Aires, a densely populated area with dual-fuel electric power plants and industrial and commercial customers of natural gas. The Company's distribution system consists of approximately 15,938 kilometers of mains. It purchases natural gas primarily from producers in southern and western Argentina. Gas purchased by it is transported through Argentina's two trunk pipeline systems, one of which is operated by Transportadora de Gas del Sur S.A. (TGS) and the other by Transportadora de Gas del Norte S.A. (TGN). Residential Customers MetroGAS provides service to more than 1.9 million residential customers within its service area, approximately 65% of whom are located in the city of Buenos Aires. In 2005, sales to residential customers accounted for approximately 22.7% of the volume of natural gas it delivered to its customers and approximately 42.4% of its sales. Residential customers receive residential service and pay the tariff for that class of service. Power Plants During the year ended December 31, 2005, total deliveries to power plants accounted for approximately 47.8% of the volume of natural gas the Company delivered to its customers and approximately 20.8% of the sales. The Company's contracts with electric power plants usually contain provisions pursuant to which the power plant is required to pay for reserved transportation capacity whether or not used known as ship-or-pay provisions. It's generating plant customers have installed combined cycle technology. The combined cycle power plants contract for firm transportation and distribution service with a peaking arrangement allows the Company to interrupt service during periods of high demand and insufficient transportation capacity or gas supply in order to ensure uninterrupted service to its residential customers. Most of MetroGAS' power plants and some of its industrial customers purchase gas directly from gas suppliers. Such gas is delivered using the Company's transportation capacity and its distribution services. Industrial and Commercial Users and Government Entities During 2005, sales to industrial, commercial and governmental customers accounted for approximately 21.2% of its total sales while the volume of natural gas sold and delivered to these customers in 2005 accounted for 18.7%. The Company's customers include industries, such as glass, food, chemical and paper producers. Industrial customers that consume at least 10 thousands of cubic meters (MCM) (353, thousands of cubic feet, MCF) per day are permitted, subject to the availability of firm capacity, to contract for large volume firm service. The tariff for such service consists of a charge per unit consumed, a fixed charge per invoice and a demand charge. Smaller industrial users (SGP), using a minimum of one MCM (35 MCF) per day may contract for large volume general service (SGG). The tariff for such service consists of a demand charge and a charge per unit of consumption from one of two rate blocks, as well as a fixed charge per invoice. Customers with a minimum consumption of three thousands of cubic meters (MMCM)/year (106 thousands of cubic feet, MMCF per year) and whose operating processes are interruptible or can replace natural gas with other sources of energy have the right to contract for large volume interruptible service. MetroGAS operates a program that combines firm and interruptible service for large industrial customers, which includes agreements that allow it to ask for interruptions on firm services during 30 days in winter. The Company also supplies gas to minor commercial and industrial users (such as restaurants, hotels and small industries) that consume less than 0.18 MMCM/year (6 MMCF/year). Such users receive small volume general service, which is available to any non-

• Download SqueezeTrigger (TM) Report
• Download FrictionFactor Report
• Download Daily Short Volume Report
• Download Real-Time Short Volume Tool
• Download Failures to Deliver

• No BuyIns.Net Alerts Available for MGS