BALANCES AND TRANSACTIONS WITH RELATED COMPANIES

12 Months Ended

Dec. 31, 2023

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.

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, 2023, 2022 and 2021 were Ps. 1,575,206, Ps. 1,329,757 and Ps. 1,267,099, 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, 2023 and 2022 is as follows:

	2023				2022
Company	Accounts receivable		Accounts payable		Accounts receivable		Accounts payable
Controlling shareholder:
CIESA		-		-		115		-
Company which exercises joint control on the controlling shareholder:
Pampa Energía ⁽¹⁾		6,601,689		16,932,954		4,046,758		15,226,146
Associates with significative influence:
Link		17,459		-		14,583		-
TGU		-		128,683		-		87,814
Other related companies:
Comercializadora e Inversora S.A. (previously Pampa Comercializadora S.A.)		38,298		55,682		61,332		54,553
CT Barragán S.A.		15,558		-		13,372		-
Oleoductos del Valle S.A.		6,146		-		-		-
SACDE Sociedad Argentina de Construcción y Desarrollo Estratégico S.A.		11,044		4,040,743		6,935		-
Transener S.A.		61		-		94		-
Total		6,690,255		21,158,062		4,143,189		15,368,513

⁽¹⁾	Accounts payable includes Ps. 14,747,577 and Ps. 13,272,864 corresponding to the financial leasing recorded as “Loans” as of December 31, 2023 and 2022, respectively.

As of December 31, 2023 and 2022, tgs has a balance of Ps. 9,982,891 and Ps. 8,005,655 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 entire capital in June 2023, November 2024 and May 2025. The book value of the notes is disclosed within the caption “Financial assets at fair value through profit or loss”.

The detail of significant transactions with related parties for the years ended December 31, 2023, 2022 and 2021 is as follows:

Year ended December 31, 2023:

			Revenues				Costs						Financial results
Company	Natural Gas Transportation		Production and commercialization of liquids		Midstream		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		-		-		-		-		-		219		-	-		-
Company which exercises joint control on the controlling shareholder:
Pampa Energía		3,460,789		8,605,778		17,632,528		16,522,448		6,078,353		-		917,514	-		-
Associates with significant influence:
Link		-		-		141,201		-		-		-		-	-		-
Other related companies:
SACDE Sociedad Argentina de Construcción y Desarrollo Estratégico S.A.		-		-		53,269		-		-		-		-	-		-
Transener S.A.		-		-		593		-		-		-		-	-		-
Oleoductos del Valle S.A.		89,665		-		-		-		-		-		-	-		-
CT Barragán S.A.		-		-		59,891		-		-		-		-	6,810,283		-
Comercializadora e Inversora S.A. (previously Pampa Comercializadora S.A.)		700,506		-		-		-		-		-		-	-		-
Fundación TGS		-		-		-		-		-		-		-	-		141,456
Total		4,250,960		8,605,778		17,887,482		16,522,448		6,078,353		219		917,514	6,810,283		141,456

⁽¹⁾ Corresponds to donations expenses.

Additionally, during the year ended December 31, 2023, the Company received from SACDE Sociedad Argentina de Construcción y Desarrollo Estratégico S.A., construction engineering services for Ps. 41,077,629 which are activated within the balance of advances to suppliers.

Year ended December 31, 2022:

			Revenues				Costs						Financial results
Company	Natural Gas Transportation		Production and commercialization of liquids		Midstream		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		-		-		-		-		-		504		-		-		-
Company which exercises joint control on the controlling shareholder:
Pampa Energía		4,582,093		11,158,452		12,371,693		18,143,329		9,551,489		-		1,191,598		-		-
Associates with significant influence:
Link		-		-		145,583		-		-		-		-		-		-
Other related companies:
SACDE Sociedad Argentina de Construcción y Desarrollo Estratégico S.A.		-		-		22,431		-		-		-		-		-		-
Transener S.A.		-		-		1,299		-		-		-		-		-		-
CT Barragán S.A.		-		-		54,369		-		-		-		-		300,222		-
Comercializadora e Inversora S.A. (previously Pampa Comercializadora S.A.)		929,764		-		-		-		-		-		-		-		-
Fundación TGS		-		-		-		-		-		-		-		-		96,720
Total		5,511,857		11,158,452		12,595,375		18,143,329		9,551,489		504		1,191,598		300,222		96,720

⁽¹⁾ Corresponds to donations expenses.

Additionally, during the year ended December 31, 2022, the Company received from SACDE Sociedad Argentina de Construcción y Desarrollo Estratégico S.A., construction engineering services for Ps. 10,335,414 which are activated within the balance of advances to suppliers.

Year ended December 31, 2021:

	Revenues						Costs						Financial results
Company	Natural Gas Transportation		Production and commercialization of liquids		Midstream		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		-		-		-		-		-		863			-		-		-
Company which exercises joint control on the controlling shareholder:
Pampa Energía		5,189,780		15,558,595		7,366,239		17,526,586		13,235,940		-			1,769,776		-		-
Associates with significant influence:
Link		-		-		-		-		-		-			-		-		-
Other related companies:
Oleoductos del Valle S.A.		160,506		-		168,478		-		-		-			-		-		-
Transener S.A.		-		-		2,183		-		-		-			-		-		-
CT Barragán S.A.		-		-		83,018		-		-		-			-		1,507,468		-
Comercializadora e Inversora S.A. (previously Pampa Comercializadora S.A.)		902,338		-		-		-		-		-			-		-		-
Fundación TGS		-		-		-		-		-		-			-		-		7,091
Total		6,252,624		15,558,595		7,619,918		17,526,586		13,235,940		863			1,769,776		1,507,468		7,091

⁽¹⁾ Corresponds to donations expenses.