The Natural Gas Sectors of Argentina and Brazil

Argentina has a gas-intensive economy. Commercial users account for 3.7% of gas supplied and the residential sector for 21.6%. Argentina, with around 2.9 billion barrels of proven oil reserves, is a significant player in the Latin American oil market. TGS is South America’s largest pipeline company. It delivers about 61% of Argentina’s total natural gas consumption, mainly in greater Buenos Aires, providing 4.6 million customers with service.
Brazil is one of the world´s fastest growing economies with enormous energy requirements. The growing consumer base coupled with rapid industrial development has infused the overall energy demand and encouraged natural gas consumption in the country. With surging demand, the gas utilities are increasing their pipelines and this is encouraging the demand for large transport meters. The residential sector has emerged as the most prominent market segment and is currently driving gas meter demand. The government initiatives promoting city gas distribution along with high subsidies on natural gas consumption as a clean fuel will further drive the demand for gas meters.
Brazil’s modest natural gas resources are produced by Petrobras. Transportadora Brasileira Gasoduto Bolivia-Brasil S.A. (TBG) is the company responsible for operating the largest gas pipeline in Latin America on Brazilian soil. It transports natural gas to five Brazilian states. The pipeline operators Transportadora Gas TransBoliviano S.A. and Transportadora Brasileira Gasoduto Bolivia-Brasil S.A. have been supplying gas to the Brazilian states of Mato Grosso do Sul, Sao Paulo, Parana, Santa Catarina and Rio Grande do Sul since March 2000. In addition, the Transportadora Sulbrasileira de Gas S.A. (TSB) has built a gas pipeline between the cities of Uruguiana and Porto Alegre (both in Brazil’s Southernmost state, Rio Grande do Sul). The project supplies Argentine gas to Uruguaiana.