Unlocks YPF divestment
In a strategic move that could reshape the natural gas landscape across the Buenos Aires Metropolitan Area (AMBA), MetroGAS has called an extraordinary shareholders meeting for Dec. 11. The main goal: to approve the framework for signing an agreement to extend its operating license for 20 years, through December 2047.
The step, overseen by the National Gas Regulatory Agency (ENARGAS), not only ensures continued service for 2.5 million users but also clears the way for YPF’s long-awaited divestment. The state-controlled oil and gas company owns 70% of MetroGAS shares.
The meeting comes amid a financial “cleanup” for the distributor. MetroGAS recently refinanced 88.77 billion pesos in outstanding debt through a syndicated loan with Banco Galicia and ICBC at a TAMAR +8.5% rate, with quarterly payments through November 2027. The refinancing allowed the company to fully repay obligations with ICBC and Banco Macro — stemming from a 2018 US$250 million loan later converted to pesos in 2020 — and partially settle commercial debts with YPF and state-owned Energía Argentina (ENARSA). The amount represents less than half of the company’s 2024 EBITDA of US$182 million, aligning peso liabilities with tariff revenues and reducing exposure amid Argentina’s economic volatility.
Extension: A Bridge to Stability and Investment
MetroGAS’s current license, granted in 1992 under the Natural Gas Law 24.076, expires on Dec. 28, 2028. Without an extension, the company would face regulatory uncertainty, potentially leading to a public tender or state intervention. The proposed 20-year renewal — submitted to ENARGAS following a public hearing in May 2025 — includes annual infrastructure investment commitments (network upgrades, loss reduction and environmental standards) and tariff adjustments 15% above inflation through 2027 under the Five-Year Tariff Review (RQT).
The renewal is not merely procedural — it’s a prerequisite for YPF, which is majority-owned by the state, to sell its controlling stake. Current regulations prohibit a gas producer from holding more than 51% of a distribution company once its license expires. YPF President Horacio Marín described the extension as the company’s “final condition” for divestment in June 2025.
Recent precedents support the move: in July, ENARGAS extended Transportadora de Gas del Sur’s (TGS) license by 20 years, to 2047, through Decree 495/2025. Similar extensions are underway for other distributors, including Camuzzi Gas del Sur and Naturgy NOA, following public hearings in October.
At the December meeting, shareholders — including Integra Capital (9%, controlled by José Luis Manzano), the state pension fund ANSES, and market investors — will designate signatories and vote on the extension framework with ENARGAS and the Economy Ministry. The resolution requires 61% quorum and a simple majority. With YPF’s backing, approval appears all but certain.
From Debt to Takeoff
For consumers, the extension secures an uninterrupted gas supply for residential, industrial and transportation uses, with a focus on efficiency, leak reduction and digitalization. Tariffs, though indexed under the RQT, will remain under regulatory oversight to prevent sharp hikes. Financially, the move strengthens the company’s balance sheet: net debt falls and shares (ticker: ME1 on BYMA) could rise 20%–30% after approval, following a 139% surge in 2024 and a correction earlier this year.
The sale — estimated between US$1 billion and US$1.5 billion for YPF’s 70% stake, at an EV/EBITDA multiple of 5–6x — has drawn interest from local players such as Pampa Energía (Marcelo Mindlin) and Camuzzi (Alejandro Macfarlane), as well as potential foreign investors if President Javier Milei’s government maintains macroeconomic stability. Manzano has denied plans to increase his stake.
In October, the government confirmed that such extensions are a “key step” for private-sector divestments in the energy industry. With the meeting approaching, MetroGAS is not only cleaning up its finances but positioning itself as a premium asset in a transforming gas market. If ENARGAS finalizes the extension — expected within 120 days of signing — 2026 could mark the end of YPF’s era in gas distribution and the start of a new chapter for Argentina’s energy sector.
The verdict from shareholders? We’ll know in December.