BALANCES AND TRANSACTIONS WITH RELATED COMPANIES

12 Months Ended

Dec. 31, 2021

BALANCES AND TRANSACTIONS WITH RELATED COMPANIES [Abstract]

BALANCES AND TRANSACTIONS WITH RELATED COMPANIES

21.	BALANCES AND TRANSACTIONS WITH RELATED COMPANIES

Technical, Financial and Operational Assistance Agreement

Pampa Energía is tgs’s technical operator, according to the approval of ENARGAS in June 2004, and subject to the terms and conditions of the Technical Assistance Agreement which provides that Pampa Energía is in charge of providing services related to the operation and maintenance of the natural gas transportation system and related facilities and equipment, to ensure that the performance of the system is in conformity with international standards and in compliance with certain environmental standards. For these services, the Company pays a monthly fee based on a percentage of the operating income of the Company.

The Ordinary and Extraordinary General Shareholders´ Meeting held on October 17, 2019 ratified the proposal approved by the Board of Directors at its meeting on September 17, 2019 made to Pampa Energía that implies an extension in the contract and a modification in the determination of the remuneration received by Pampa Energía.

Such modifications, without implying a modification in the scope of the tasks performed, will mean a progressive reduction over the years in the remuneration that Pampa Energía will receive in its role of Technical Operator.

According to the modifications made, tgs will pay Pampa Energía the greater of: (i) an annual fixed sum of US$ 0.5 million or (ii) the variable compensation that arises from applying to comprehensive income before results and income taxes for the year but after deducting also the above fixed amount) the following scheme:

•	From 12/28/2019 to 12/27/2020: 6.5%

•	From 12/28/2020 to 12/27/2021: 6%

•	From 12/28/2021 to 12/27/2022: 5.5%

•	From 12/28/2022 to 12/27/2023: 5%

•	From 12/28/2023 to 12/27/2024 and onwards: 4.5%

Commercial transactions

In the normal course of its activity, tgs celebrated with Pampa Energía and other companies related to it, agreements to transfer natural gas and its richness. The price, which is denominated in US dollars, is determined according to common market practices.

In addition, in the normal course of business, tgs carries out liquid sales, natural gas transportation services and other services with its associated companies, Pampa Energía and related companies.

Financial lease agreement with Pampa Energía

As mentioned in Note 13 to these Consolidated Financial Statements, on August 11, 2016, the Company entered into a finance lease agreement with Pampa Energía (formerly Petrobras Argentina).

Key management compensation

The accrued amounts corresponding to the compensation of the members of the Board of Directors, the Statutory Committee and the Executive Committee for the years ended December 31, 2021, 2020 and 2019 were Ps. 205,773, Ps. 208,885 and Ps. 292,039, respectively.

Balances and transactions with related parties

The detail of significant outstanding balances for transactions entered into by tgs and its related parties as of December 31, 2021 and 2020 is as follows:

	2021				2020
Company	Accounts receivable		Accounts payable		Accounts receivable		Accounts payable
Company which exercises joint control on the controlling shareholder:
Pampa Energía ⁽¹⁾		338,331		3,506,383		606,905		4,411,938
tgs’s Associates with significant influence:
Link		2,612		-		6,220		-
TGU		-		16,350		-		20,217
Other related companies:
Pampa Comercializadora S.A.		12,406		18,446		10,492		-
CT Barragán S.A.		3,791		-		2,706		-
Transener S.A.		-		32		45		50
Total		357,140		3,541,211		626,368		4,432,205

⁽¹⁾	Accounts receivables includes Ps. 127,147 recorded as “Other receivables” as of December 31, 2020. Accounts payable includes Ps. 3,022,513 and Ps. 4,366,261 corresponding to the financial leasing recorded as “Loans” as of December 31, 2021 and 2020, respectively.

As of December 31, 2021, tgs has a balance of Ps. 712,837 corresponding to dollar linked notes issued by CT Barragán S.A. that accrue an annual rate of 4% over the exchange rate established in BCRA Communication “A” 3500 and that amortize the total principal on June 4, 2023. These corporate bonds are disclosed under the line “Other financial assets at fair value”.

The detail of significant transactions with related parties for the years ended December 31, 2021, 2020 and 2019 is as follows:

Year ended December 31, 2021:

			Revenues				Costs						Financial results
Company	Natural Gas Transportation		Production and commercialization of liquids		Other services		Gas purchase and others		Compensation for technical assistance		Revenues for administrative services		Interest expense		Interest gain / Gain / (loss) on fair value	Selling expenses ⁽¹⁾
Controlling shareholder:
CIESA		-		-		-		-		-		142		-	-		-
Company which exercises joint control on the controlling shareholder:
Pampa Energía		855,551		2,564,882		1,214,347		2,889,311		2,181,985		-		291,753	-		-
tgs’s Associates with significant influence:
Link		-		-		27,744		-		-		-		-	-		-
Other related companies:
Oleoductos del Valle S.A.		26,460		-		-		-		-		-		-	-		-
Transener S.A.		-		-		360		-		-		-		-	-		-
CT Barragán S.A.		-		-		13,686		-		-		-		-	248,511		-
Comercializadora S.A.		148,753		-		-		-		-		-		-	-		-
Fundación TGS		-		-		-		-		-		-		-	-		1,169
Total		1,030,764		2,564,882		1,256,137		2,889,311		2,181,985		142		291,753	248,511		1,169

⁽¹⁾ Corresponds to donations expenses.

Year ended December 31, 2020:

			Revenues				Costs						Financial results
Company	Natural Gas Transportation		Production and commercialization of liquids		Other services		Gas purchase and others		Compensation for technical assistance		Revenues for administrative services		Interest expense
Controlling shareholder:
CIESA		-		-		-		-		-		211		-
Company which exercises joint control on the controlling shareholder:
Pampa Energía		1,269,833		1,584,836		927,754		241,608		2,159,162		-		365,787
tgs’s Associates with significant influence:
Link		-		-		29,527		-		-		-		-
Other related companies:
Oleoductos del Valle S.A.		38,895		-		-		-		-		-		-
Transener S.A.		-		-		531		-		-		-		-
Petrolera Entre Lomas S.A.		3,736		-		13,485		-		-		-		-
Pampa Comercializadora S.A.		170,223		-		-		-		-		-		-
Central Térmica Piedrabuena S.A.		2,634		-		-		-		-		-		-
Total		1,485,321		1,584,836		971,297		241,608		2,159,162		211		365,787

Year ended December 31, 2019:

	Revenues						Costs						Financial results
Company	Natural Gas Transportation		Production and commercialization of liquids		Other services		Gas purchase and others		Compensation for technical assistance		Revenues for administrative services		Interest expense
Controlling shareholder:
CIESA		-		-		-		-		-		300		-
Company which exercises joint control on the controlling shareholder:
Pampa Energía		1,651,360		553,826		552,757		1,183,345		2,352,434		-		400,596
tgs’s Associates with significant influence:
Link		-		-		28,919		-		-		-		-
Other related companies:
Oleoductos del Valle S.A.		11,239		-		-		-		-		-		-
Pampa Comercializadora S.A.		106,962		-		-		-		-		-		-
Central Térmica Piedrabuena S.A.		249,401		-		-		-		-		-		-
Experta ART		-		-		-		41,263		-		-		-
Total		2,018,962		553,826		581,676		1,224,607		2,352,434		300		400,596