Five Groups Fight for Argentina’s Biggest Gas Distributor

Business

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.

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 José 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.

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.

From State Monopoly to Private Hands

Metrogas was born from Argentina’s sweeping 1992 privatisation of the gas sector.

It later fell under YPF control during the 2012–2013 renationalisation period.

Now the wheel turns again, as the state retreats to focus on production rather than distribution.

This shift mirrors a wider regional push to unlock capital from utilities.

Governments across Latin America are drawing private money back into ageing energy networks.

What Happens Next

The five groups have already completed due diligence and inspected company facilities.

Binding offers will land once the government clarifies the licence extension.

A fresh 20-year term would cement revenue visibility and lift final bids.

YPF holds a long runway, with no pressure to close before December 2028.

That deadline aligns with the expiry of crucial Plan Gas contracts.

The winning bidder will gain a regulated giant serving over 2.4 million customers.

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, José 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

Sources: Citibank.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error

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