The increase is effective from April and is adjustable based on Enargas criteria.

The National Gas Regulatory Entity (Enargas), the government agency that regulates the transportation and distribution of natural gas in Argentina, approved a tariff increase that will force companies in the sector to increase prices as much as seven times (675% more, actually).

The increase is effective from April, as published this Wednesday in the Official Gazette of the Republic of Argentina, and is adjustable according to Enargas criteria.

Thus, companies such as Transportadora Gas del Norte (TGN), responsible for the transportation of 40% of the gas injected into Argentine trunk gas pipelines (20% of the energy matrix of the entire country), have already notified the market about the increase.

For TGN, the rise entails the obligation to execute a mandatory investment plan during 2024 in the amount of 19,150 million Argentine pesos (US$ 22.3 million), giving priority to the reliability, safety and quality works of its gas pipeline system.

Depending on the distance between the reserves location and the consumption area, transportation cost average an estimated 12% of a household gas bill.