Five Groups Fight for Argentina’s Biggest Gas Distributor

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The sale of Argentina’s biggest gas distributor is down to its final bidders. Five groups are vying for control in the Metrogas sale, as state oil company YPF exits to focus on shale.

A natural-gas pipeline. (Photo: Wikimedia Commons)

Metrogas delivers natural gas to homes and businesses across Buenos Aires and beyond, making it the largest distributor in a country where gas heats most households.

Its controlling shareholder, the state oil company YPF, wants out, part of a strategy to concentrate its capital on the Vaca Muerta shale boom.

Inside the Metrogas Sale

YPF is offloading a 70% stake that could fetch around US$560 million, within a total company valuation close to US$800 million.

Nine initial bids were whittled down to five groups that advanced to due diligence and binding offers, coordinated by Citibank.

Who Is Bidding

The finalists are a mix of local and foreign money: power generator Central Puerto alongside Ecogas; Neuss Capital paired with an Abu Dhabi sovereign fund and Spain’s SIA Capital; Andina, controlled by businessman Jose Luis Manzano, who already owns about 9%; the agribusiness group MSU; and Grupo Pierri.

The spread of bidders shows renewed appetite for Argentine infrastructure as the country’s energy sector reopens to investment.

What YPF Sociedad Anonima does. YPF Sociedad Anónima, an energy company, engages in the oil and gas upstream and downstream activities in South America and Argentina. The company operates through the Upstream, Midstream and Downstream, LNG and Integrated Gas, and New Energies segments. It is involved in the exploration and exploitation of hydrocarbon fields and production of…

The License Question

One hurdle remains outside the bidders’ control: the sale depends on a government decision to extend Metrogas’s distribution license, which shapes how much the business is ultimately worth.

YPF has room to complete the sale by December 2028, when key Plan Gas contracts expire, giving it time to wait for the right terms.

Why It Matters

For YPF, the sale frees up cash for Vaca Muerta, the shale play at the center of Argentina’s energy ambitions.

For the winning bidder, it means control of a utility serving millions of customers, a steady, regulated business in a country betting heavily on gas.

Frequently Asked Questions

What is being sold in the Metrogas sale?

YPF is selling a 70% controlling stake in Metrogas, Argentina’s largest natural-gas distributor, in a deal potentially worth about US$560 million within a valuation near US$800 million.

Who are the bidders for Metrogas?

Five groups reached the final stage: Central Puerto with Ecogas, Neuss Capital with an Abu Dhabi fund and Spain’s SIA Capital, Jose Luis Manzano’s Andina, MSU and Grupo Pierri.

Why is YPF selling Metrogas?

YPF wants to concentrate its capital on the Vaca Muerta shale boom, and is exiting the gas-distribution business to do so.

Sources

• La Nacion – La venta de Metrogas entro en su etapa final
• Econojournal – Cinco empresas presentan ofertas economicas por Metrogas

Connected Coverage

• Argentina’s YPF Eyes Power IPO, Stock Split on Shale Surge
• Argentina’s YPF Tenders Pipes for Its Vaca Muerta Gas Line
• Vista Energy Nearly Doubles Its Cash Flow After Vaca Muerta Deal

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