SEC Form 6-K filed by Transportadora de Gas del Sur SA TGS

It should be considered that in October 2024 we finalized the major maintenance of our cryogenic plant located at the Cerri Complex, which was translated into lower production in tons. This task, which is conducted every 5 years to keep performing with the highest quality and operative standards was successfully completed thanks to teamwork and the coordination of our maintenance and commercial departments. For further information on this topic, see “Conduction of our Operations and Safety – Works at Liquids Facilities”.

Foreign Market

Volumes sold overseas in 2024 amounted to 411,439 tons, thus 51,058 tons more than the 360,381 tons sold in 2023.

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In 2024, Liquids Production and Commercialization exports revenues were Ps. 284,586 million and accounted for 24% of total revenues and 51% of total Liquids Production and Commercialization revenues.

We continued rendering logistic services at Puerto Galvan facilities in a successful manner. It is important to highlight that thanks to the high level of commitment of our people and the operative efficiency of our facilities, we could beat the daily record of the number of trucks dispatched from the Galván Plant in the month of July 2024.

This year, propane and butane deliveries overseas were conducted in a spot modality, seizing opportunities related to different markets’ niches, which allowed us to increase considerably the fixed premiums of each transaction.

We also keep strengthening our positioning in the Brazilian market, which will delineate a 2025 goal, maintaining our sea exports in a direct modality (with no go-betweens) to Brazilian LPG distributors.

Natural gasoline exports throughout the year 2024 were conducted within the framework of an agreement entered with Trafigura Pte Ltd at an international price, less a discount, for a term of 2 years (February 2024-February 2026).

As mentioned above, generally speaking, international prices presented a stable trend in 2024, rising in the first quarter with some slight month-over-month contractions and then returning to a rising trend in the last quarter. In the short term, international prices are expected to show a rising trend.

Domestic Market

In 2024, tgs continued participating in the several supply programs dictated by the National Government. Such is the case of the program for LPG Supply at subsidized prices (“Household Program”)— which had been created by National Executive Decree N° 470/2015. The Household Program establishes a maximum reference price to the different links of the Liquefied Petroleum Gas (“LPG”) commercialization chain to ensure its supply to low-income residential users, forcing producers to provide LPG to fractionating companies at a determined price and with a defined quota for each of them.

It is worth pointing out that on January 24, 2025, the Secretariat of Energy issued Resolution N° 15/2025, which outlines that as from such date the top sale price for the products supplied under the Household Program is to be eliminated (the top sale price was the export parity issued monthly by the Secretariat of Energy under the framework of the Law N° 26,020). Although said resolution maintains the obligation of LPG producers to supply the domestic market, it eliminates the product supply contributions formerly effective.

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The table below presents an evolution of the prices per ton (at the values of each resolution) for butane commercialized under this program:

Regarding the Propane for Networks Agreement, on November 6, 2024 we entered a New Agreement for the Supply of Propane Gas to Undiluted Propane Gas Distribution Networks, in effect as from January 1, 2024 until December 31, 2024.

The terms of this agreement outlined compensations to be paid by the Argentine Government to the participants, calculated as the difference between the price at which propane is commercialized under this agreement and the export parity issued monthly by the Secretariat of Energy. However, there have been significant delays in the collection of the mentioned compensation. Its overdue balance as of December 31, 2024 was of Ps. 10,882 million. The agreement stipulates those payments shall be conducted through fiscal credit certificates to be used by the producers for the payment of hydrocarbon export rights. As of this date, the certificates corresponding to the deliveries conducted in the year 2024 have not been issued yet.

Outside the supply programs mentioned above, we sold 160,697 tons of propane and 2,828 tons of butane mainly to the fractionating market and to a lesser extent to the industrial, propellant and automobile segments.

We continued commercializing ethane, under a long-term agreement entered with PBB. This agreement contemplates similar terms to the ones outlined in the previous one but involves improvements in the take or pay clause of annual compliance, which ensured us an increase in our sales volume to be implemented gradually over the first five years of the agreement. In the year 2024, ethane tons sold to PBB slightly went down to 309,894 tons, from the 394,370 tons recorded in 2023, mainly due to PBB operative difficulties throughout the year and the major maintenance we carried out at the Cerri Complex.

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Natural gas processing

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In 2024, Liquids Production reached 1,051,654 tons (82,643 lower than in 2023).

Gas arriving to the Cerri Complex for processing slightly decreased compared to the volume recorded in 2023, mainly as a consequence of lower gas volumes arriving from the Austral basin, although by the end of the year this was reduced due to the startup of the Fénix offshore reserve. Gas arriving from the Neuquén basin presented stable volumes throughout the year but was richer, which partially offset the decrease of the Austral basin mentioned above.

Specifically, regarding product dispatches, in 2024 the number of dispatched trucks was of 29,133 (including both our own and third parties’ products).

With respect to natural gas prices denominated in dollars, which is purchased for plant PTR for Cerri Complex processing, they were lower than in 2023, measured in dollars, mainly due to the effect of the increase in natural gas supply from the Neuquén basin.

(1)Information corresponding to consolidated financial statements 

Midstream

Midstream Revenues accounted for 18% of tgs total revenues in 2024. This segment includes the rendering of Midstream, INTEGRA and Telecommunications services (the latter rendered by the controlled company Telcosur).

Services comprised by Midstream mainly consist in gas gathering, treatment and compression services, particularly those rendered through the Vaca Muerta system and the INTEGRA services, including the operation and maintenance of third parties’ facilities (pipelines and plants).

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Our leadership in the natural gas industry allows us to integrate all the links of the value chain, from the wellhead to the transportation and distribution systems. We create synergies and offer differential value to our producers and clients, providing integral solutions that comprise, among others:

The chart below presents a breakdown of our Midstream segment revenues:

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Midstream revenues breakdown by service (Year 2024)

Source: Our own elaboration with in-company data.

Since 2018 when we set foot on Vaca Muerta, tgs strategy has been to be a leader in the rendering of integrated services, seeking to play a major role in the energy development of Argentina and the region. Our conditioning plant in Tratayén is a breakthrough project that contributes to energy growth.

We have already invested over US$ 700 million in midstream facilities to support the development carried out by natural gas producers in Vaca Muerta. With a unique project and future vision, we built a gathering pipeline network of 182 km that goes through the multiple hydrocarbon areas (Bajada de Añelo, La Calera, Bandurria Sur, Fortín de Piedra, El Mangrullo, Aguada Pichana Este, Rincón la Ceniza, Los Toldos I Sur, Pampa de las Yeguas I and II and Loma Campana) and a conditioning plant in

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Tratayén to allow access to the regulated transportation system. This conditioning plant initially had a capacity of around 5.4 MMm3/d but owing to the expansion works conducted in 2024 and the first months of 2025 will reach a total natural gas conditioning capacity of 28 MMm3/d.

The works mentioned above consisted in the installation of two Propak technology natural gas conditioning plants with a 6.6 MMm3/d capacity and involved an estimated total investment of US$ 350 million. The first plant came into service in October 2024 whereas the second plant started operations by the end of February 2025. It is noteworthy to highlight that these modular plants are adaptable to processing via a low additional investment, a first step towards the development of natural gas processing at the heart of the Neuquén basin.

These projects expanded Vaca Muerta System’s service rendering capacity, improving the profitability of the investment conducted by tgs and ensuring the availability of the infrastructure required for the production of growing natural gas volumes in Vaca Muerta, required for the exploitation of the GPM.

Source: data generated in-company

Needless to say, that these investments consolidate our commitment to the development of energy in Argentina and materialize our strategy to increase the profitability of our investments in the Vaca Muerta pipeline system. For that reason, we keep in talks with different basins producers, seeking to seize business opportunities that may allow us to improve our service and enlarge our clients’ portfolio.

During 2024 we launched a conceptual engineering study for the development of a project involving: (i) the expansion of the Tratayén plant that allows natural gas processing (extraction of propane, butane and natural gasoline), (ii) the building of a polyduct that facilitates the transportation of the liquids, and (iii) new fractionating, storage and dispatch facilities in Bahía Blanca. This project would address growing upstream needs as rich gases production increases.

The economic impact of this business on the region is outstanding, as it favors the development of communities and contributes to the development of the Vaca Muerta area. All the accomplishments

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mentioned above, added to other minor services we render, emphasize, and tighten our bonds to our country’s natural gas producers and give us the chance to keep showing our talent for rendering innovating solutions.

We have made further progress in the consolidation of tgs INTEGRA, our business line that has the aim of integrating the different businesses and services of the energy sector. On this matter, we created a specific department to boost its growth and strengthen tgs as a brand within the Oil & Gas segment.  

This brand comprises all the services that tgs offers to the market relying on the human resources and tools that support the management of our own assets: from the operation and maintenance of third parties’ ducts and plants, the execution of minor works and duct repairs, assistance in scrapper running, laboratory tasks such as caliber gauging and hydrocarbon samples analysis, turbine and compressors overhaul, project management, blanketing facilities services, duct integrity surveys, etc.

In 2024 we achieved growth in this segment, being contracted for several services such as hot tap, integrity, engineering and services related to the operation and maintenance of GPM, among others. We were also hired by Golar for providing counseling services in the LNG pipeline project announced by said company in December 2024.

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Now, turning to the telecommunications services rendered by Telcosur, in 2024 our controlled company closed agreements that expanded its sold capacity and consolidated its operations.

Aligned to the strategy of business consolidation both in the mid and long term, Telcosur closed agreements with new clients and extended or renewed current agreements. Among the most relevant agreements, we can mention:

Agreements with corporations

Telcosur renewed the agreement with Oldelval for the additional term of twelve months, expanding the link and co-locations park along the route of their oil-duct.

The controlled company additionally renewed the agreement with Vista O&G for the additional term of twenty- four months with park expansion in Neuquén.

Furthermore, new clients have been added: connectivity agreements with Chevron, Pluspetrol and Tecpetrol were signed in 2024.

Agreements with Carriers

Telcosur renewed co-locations agreement with Telecom Argentina S.A (Río Gallegos, Malaspina and Alta Barda) for the additional term of seven years. The controlled company also renewed the frame

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and co-locations agreement in the south with AMX Argentina S.A. and the capacities agreement with Pampa del Castillo-Comodoro Rivadavia, with the addition of dark optical fiber to link the Telcosur Comodoro node.

Similarly, Telcosur expanded the AMX Argentina S.A. LTE networks transportation capacities agreement with producers in the Neuquén basin fields.

Installation of an optical fiber network in Vaca Muerta

In 2024, Telcosur completed the works related to the linking of the high-capacity optical fiber network from Northern Vaca Muerta up to Sierra Chata (Pampa Energía), Bajada de Añelo (Shell), El Trapial (Chevron), Los Toldos (Pluspetrol), Tratayen - Sierras Blancas (Shell) to provide telecommunication services to oil and gas producers in Vaca Muerta, who require large-volume data transmission for their operations and communications.

In 2024, two new fiber optic links were made to Tratayén Plant:

1) From our node located in the city of Neuquén to the node located in Tratayén.

2) From the Tratayén Plant owned by Transportadora de Gas del Sur S.A. to the Plant of Compañía MEGA S.A. located in Neuquén.

This allowed Telcosur to provide redundancy and high-capacity availability over the optical fiber in Vaca Muerta, providing point-to-point or multipoint solutions at constant speed, high capacity and Carrier-Class quality which, for its voice, data, internet and video integration features, leads to an optimization of costs.

New technologies

Telcosur is not detached from the digital transformation process we are going through. Performing in a sector where technological advance and innovation prevail, our controlled company has been applying new technologies that introduce artificial intelligence and remote operation of facilities. This has led to the installation of predictive remote monitoring systems that implemented mechanisms of early detection of events in networks and generated proactive action in benefit of customer service.

Furthermore, Telcosur implemented a development of digital twins and 3D model for aerial support masts. With the application of an innovating technology, a system was implemented for monitoring the verticalization of aerial support structures as preventive support to the maintenance of these critical mission systems.

Telcosur worked on the definition of a new VMS Milestone technology to manage cameras systems at the tele- commanded plants, optimizing bandwidth for them and offering scheduled and AI alerts that are managed from the control center.

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(1)Information corresponding to consolidated financial statements 

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5. Conduction of Operations and Safety

Pipeline system operated by tgs in Argentina

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Pipeline and Compressor Plants Investment Works

The gas pipeline system operated by tgs adequately met both the natural gas transportation demand and the regulatory entity’s requirements. An efficient management of the pipeline system entails the performance of assessment, maintenance, inspection, mitigation and prevention tasks to avoid failures that may have a negative impact, guaranteeing service continuity without future interruptions.

Throughout the 2024, we conducted integrity assessment tasks, such as in-line inspections along 907 km of pipelines and pipelines evaluations through direct assessment techniques, namely CIS and DCVG surveys over 192 km (on sections with no Scraper Traps). The purpose of these tasks was to identify, assess and control threats to pipelines integrity, such as external corrosion, geometrical defects, manufacture and/or construction anomalies, recoating failures, among others.

Regarding our recoating program, in 2024 we executed recoating replacements over 6 km of the pipeline system. We are also carrying out recoating works at three valve facilities along the San Martin Pipeline in the province of Buenos Aires.

In these works we have introduced non–destructive tests by means of the use of magnetic particles, ultrasound and hardness measurements for the identification of anomalies in longitudinal weld seams, stress corrosion cracking (“SCC”), by means of which we were able to detect anomalies that could be mitigated through pipe replacements. These recoating works aim at mitigating the risk of external corrosion and/or SCC as well as at surveying and correcting any pipe anomaly that in the future may deteriorate the ducts and interrupt the service. This is how we extend the useful life of our facilities.

Along these lines, in order to mitigate corrosive activity, we carried out reinforcement sleeves filling works to ensure integrity in high population density areas.

As part of the SCC assessment and mitigation plan, we implemented an inline inspection plan with “EMAT” technology to detect cracking, having completed the inspection of 155 km in 2024.

Based on an analysis and planning carried out by the pipeline integrity team, we conducted an assessment campaign of 186 external corrosion and geometrical defects, anomalies in longitudinal and circumferential seams, which required immediate repairs that were executed by means of the installation of 3 pipe replacements and 5 welding reinforcements.

Furthermore, we assessed the integrity of 20 derivations located in pipeline sections in the Province of Buenos Aires.

Concerning cathodic protection, to mitigate the advance of corrosion and improve reliability, we kept strengthening the system with the installation of 5 new units and 16 current reinforcement lenses as well as the renewal of 12 facilities that were obsolete. We also installed batteries anodes at two high-voltage lines crossings.

Besides, in 2024 we conducted adaptations of the cathodic protection systems at compressor plants, installing 2 lens reinforcements and conducted special protection level surveys at 4 compressor plants.

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We also surveyed potentials and conducted bathymetric studies in two sections of offshore pipelines owned by tgs. This survey is carried out every three years and the resulting information is key to monitor cathodic protection levels and find out whether the positioning of the ducts has been affected by sea currents movements. This survey was also conducted in 4 segments of pipelines crossing several rivers.

All the works mentioned above— which enable us to verify the overall condition of the facility and conduct the required adjustments for their service continuity— underline our commitment to safety and to the care of our people and the environment, all main cornerstones in our pledge to render a reliable natural gas transportation service.

Being the Buenos Aires ring a high population density area and driven by our goal to minimize inherent risks in such pipeline segment, we continued with the implementation of works that mitigate third parties’ damage. Thus, we went ahead with the expansion of the optical fiber intruder detection system in further 24.5 km of pipeline, in the area of Las Heras and Cañuelas.

Similarly, in order to raise awareness among the community, we increased our facilities’ signaling and —in the areas neighboring the most sensitive sections of the system— we conducted virtual and remote damage prevention activities, such as communications via radio, media and networks for the public in general, as well as meetings with municipalities and ground-breaking & services companies in Buenos Aires, Neuquén and Rio Negro.

One of the key landmarks to be highlighted regarding the operation of the transportation system is the startup of the Tratayén and Salliqueló compressor plants, corresponding to the GPM, which reorganized operative planning due to the possible access of up to 21 MMm3/d into the final sections of the tgs transportation system. Besides, the Mercedes compressor plant —head plant of the Mercedes–Cardales Pipeline—came into service, enabling an increase of deliveries to TGN.

Regarding technological changes, we concluded the integration of the Saturno and Olavarria compressor plants with the CABA Operative center, thus taking the first steps in the development of our new philosophy related to the remote operation of our transportation system.

At the Belisle compressor plant, we completed the Detailed Engineering and Factory Acceptance Test (FAT) of the dashboard corresponding to the Plant Control System, the installation of which will be carried out in the year 2025. This development will allow us to integrate such facility to the CABA Operative Center.

At the Gaviotas Compressor Plant, we developed the Extended Detailed Engineering for the updating of the plant control system and the electricity generation system, works that will be carried out over the years 2025 and 2026.

With respect to turbine control systems, we conducted the updating work of the turbine compressor N°2 Solar Mars of the Cervantes Compressor Plant and moved forward with the updating works of the turbine compressor N°2 Hispano Suiza 1203 of the Bosque Petrificado Compressor Plant, foreseen to be concluded in the first quarter of 2025.

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Additionally, we purchased and supplied the control dashboards of the three turbine compressor units of the Gaviotas Compressor Plant, which are to be installed during the years 2025 and 2026, for their integration with the technological update of the plant control system and electricity generation mentioned above.

Regarding the systems that monitor the vibration of turbine compressor units, we have updated and integrated them with the centralized monitoring system of Bentley Nevada at the Belisle, Indio Rico, Saturno, Manantiales Behr and Ordoqui Compressor Plants.

On the other hand, in connection with the operative safety of the compressor facilities, we purchased all the required material and made progress with the works related to the updating of the detection of Fire&Gas at the Belisle, Bajo el Gualicho and Dolavon Compressor Plants, the startup of which is scheduled for the first quarter of 2025. Along the same lines, we are developing the extended basic engineering for the updating of the Saturno, Chelforó and La Adela Compressor Plants, due to the technological obsolescence of the current systems and the need to ensure their reliability, in view of the transportation system remote operation philosophy.

Within our environmental care activities, we assembled the biodigester systems at the Belisle, Cervantes and Chelforó plants to improve their current sewage effluent systems. We further acquired the materials required to develop similar works at the remaining compressor plants in  2025 and 2026.

Under tgs Emissions Reduction Plan, in 2024 we developed a campaign to detect and quantify natural gas leakage emissions at 20 compressor plants, with the objective to prioritize needs and devise an adequate plan to address, repair and eliminate said leakages.

Works at Liquids Facilities

We conducted works related to the major maintenance plan and extension of the useful life of pressure containers and ducts at the Cerri Complex, to boost their reliability, reduce risks at facilities and meet government requirements. These tasks included several unit inspections, the execution of corrective and preventive maintenance at our facilities, along with the tuning of the Cryogenic Plant control room and other adjustments required to eliminate bottleneck at the fractionating trains. We also included the inspection and maintenance of the venting system and related equipment.

On the other hand, we conducted the Puerto Galván cooling plant maintenance, conducting both preventive and corrective maintenance tasks both in equipment and ducts.

Focused on ensuring the continuous and safe management of our facilities, we certified spheres 8 and 10 at the Galván Plant, the separators of the steam compression system and the settlement tank. We adjusted the V1 tank and assembled the new pumps for the cooling of the compressors’ oil, increasing the reliability of the Cooling Plant refrigeration system.

On the other hand, we started investments to mitigate technological obsolescence risks and increase our processes’ operative safety. We can highlight the following developments: installation of a new electricity distribution transformer at the Galván Plant, a new Safety Instrumented System at boilers

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and cryogenic systems, new medium-voltage cells at the Cryogenic Plant and revamping of the excitation generators control system.

Works at Vaca Muerta Facilities

The Tratayén plant expansion is developed through the projects required to increase the supply of Midstream services. This year, we reached a major landmark in terms of the expansion capacity of the Tratayén conditioning plant, starting up the first gas conditioning “Propak” module in October 2024. This module, which may be adapted in the future to the processing of gathered natural gas, allow us to increase capacity by 6.6 MMm3/d. The second Propak module came on operations at the end of February 2025, increasing total plant capacity to 28 MMm3/d.

Focused on the growth of the Vaca Muerta system, in 2024 we pursued the works required to launch other auxiliary services such as a new gasoline stabilization plant (the third for this facility), the expansion of the systems for natural gas inflows and outflows, new offices and dormies and the construction of a new gasoline-duct that will enable the dispatch of the produced gasoline, to address daily production increases and minimize truck transit.

Specifically, on the Vaca Muerta pipeline, we made progress in the hydric risk mitigation works. Works were carried out from the progressive PK 0, located at the Tratayén conditioning plant up to the PK 115, in the area of Los Toldos I Sur. Besides, in the VMS, we conducted works from the PK 0, in the area Aguada Pichana Este, up to the PK 32, in Bandurria Sur.

Throughout the year 2024, we worked on the development of applications for the software of Vaca Muerta System- Tratayén Dispatch System. We completed the development of the modules of maintenance and programming, performing user tests and taking functionalities to production mode. We will continue working on the modules of allocation, invoicing, report generator and auditor, with the aim of unifying all the processes in this platform. Additionally, given the growth in operations, we conducted investment to address emergencies. 

Lastly, tgs participated in several works for third parties, putting into service facilities such as the links of Pampa Energía, Pluspetrol and Vista to the Vaca Muerta System.

6. Environment, Social and Governance Matters

At tgs we pledge to run our businesses and operate our facilities in compliance with the requirements of applicable legislation and the obligations to which we willingly adhere. We strive to meet our customers’ expectations, prioritizing our service quality, pollution prevention and our staff and contractors’ safety and health through the continuous improvement of our management system’s efficiency.

In view of that, in 2024 we kept working on our Environmental, Social, Governance Plan (the “ESG Plan”), prioritizing these three main topics and action lines that will drive our purpose on this matter. Having completed the overall diagnosis of our ESG management in 2023, in the reported year we consolidated our commitment by means of a double materiality analysis, aligning our ESG strategy

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and our corporate vision. This process allowed us to detect impacts, risks and opportunities (“IROs”) relevant to sustainability and financial performance, bearing in mind both the market trends and the demands of our stakeholder groups. 

6-a) ENVIRONMENT

The year 2024 found us half way in our path to implement our environmental strategic plan (2022-2026), which integrates environment with all phases of business processes, from strategic decision-making to risk and opportunities management, planning, design and execution of activities. The plan comprises the following strategic axes, plans and action programs:

1.Mitigation and adaptation to climate change 

Our strategic environmental plan outlines a 50% reduction goal for our methane emissions by the year 2030 (departing from emissions recorded in the year 2021).

Driven towards such goal, we launched a comprehensive emissions action plan, which comprises investments, improvements and good practices required to fulfil it. The plan included the following actions:

ØEnhance our emissions inventory: the gap analysis we conducted in 2023 versus ISO 14064-1: 2018 Standard (Carbon Footprint Management System) led us to devise a plan to implement the arising recommendations, for which purpose in 2024 we issued an internal procedure to manage and control our inventory of greenhouse effect gases emission to the atmosphere (GHG), either directly or indirectly generated by tgs activities. Besides, we conducted a review of our emissions inventory, including non-relevant emissions as well, adjusting chromatography and the global warming potential factors, based on the latest report of the Government Group of Experts on Weather Change (“IPCC”, for its acronym in Spanish). 

We kept moving forward in our plan to record Scope 3 emissions in our emissions inventory (emissions derived from our supply chain and that are not under our control), based on our ranking of potential sources of indirect emissions that we studied in 2023.

ØPreparation of the Overall Investments Plan: within the framework of the Five-Year Tariff Review 2025-2029, we developed a five-year overall investments plan in which one of the main cornerstones is the reduction of emissions, through the technological updating of facilities and the permanent search for new technologies. The plan is focused on the purchase of devices and systems that allow us to efficiently detect, reduce and  measure the gas emission sources at our facilities in the natural gas transportation segment.  

Besides, we conducted a review of our internal procedures in emissions management, focused on one of our facilities (the Garayalde Compressor Plant) which seeks to standardize the facility venting estimation and measurement and extrapolate it to the other compressor plants through internal trainings.

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ØClimate Risk assessment: In 2024 we conducted a survey to identify tgs climate risks, thus beginning to address this issue of global relevance. In this first stage, we assessed the climate risks that our company faces, and in the 2025 we will continue with the devising of the strategy to manage said risks, through adaptation and business continuity. 

As part of said process, we have consolidated a document with the historical record of extreme climate changes that impacted on our facilities. This tool allows us to minimize uncertainties related to the likelihood of occurrence of extreme weather events.

For the assessment of climate risks, we used weather projection models (Climate Change Risk Maps System 3 (SIMARCC) – RCP 4.5 Near Future Scenario 2015-2039), following the recommendations of the Argentina Climate Change department. We identified climate threats for future scenarios and through a scientific based methodology, we conducted a qualitative appraisal of the climate risk of our facilities. With the results of the climate threat matrix per facility, we will consolidate our climate resilience strengthening plan, including preventive measures as well as response and recovery plans in the face of extreme weather events.  This will reduce our vulnerability to the identified risks, protecting both our people and our infrastructure and ensuring business continuity.

ØEnergy Management: We are energy that moves forward, so at tgs we are genuinely interested in the efficient use of energy. Part of the natural gas we transport is used as energy for our compressors and combustion processes in the transportation business.  Thus, we must be efficient in the use of this non-renewable natural resource. Moreover, we use it as fuel for generators of electric engines that produce electricity. At some facilities, we complete self-generation with electricity from external sources. We have meters and are aware of our consumption. In our energy matrix we can visualize our consumption and understand trends to identify opportunities for improvement. 

In the reported year, we conducted a gap analysis of this matter against the requirements of Standard ISO 50001:2018 (Energy Management System) in order to implement an energy management system for tgs. With this report we can define the initial status with reference to above-mentioned standard, to then devise the action plan and work on the measures required for its implementation in the oncoming years. We held company meetings to determine the processes required to comply with each of the provisions of the standard. We have thus taken the first steps in this direction, convinced of the importance of having an energy management system and improving our energy performance.

Fully aware of the relevance of generating cooperative opportunities among companies and universities that contribute with knowledge and innovating ideas, which opens the door to new solutions, in  2024 we worked with the National University of the Center of the Province of Buenos Aires (UNICEN, for its acronym in Spanish) to conduct a thorough energy review, following the guidelines and requirements provided by Standard ISO 50001, for the Olavarría Compressor Plant, located in the province of Buenos Aires. With this report we gathered

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accurate data related to consumption and could identify required improvement and actions on which we must focus in this process.

ØBiodiversity and Foresting Management: in 2023 we implemented our Policy of Foresting and Biodiversity, thus showing our commitment to these issues of such relevance in environmental care. By 2024, 100% of our facilities had completed their foresting baseline studies, so that they can now go ahead with the outlining of their foresting plan. The purpose of this plan, besides the generation of benefits such as carbon sequestration, is to improve the biodiversity of the site, the nutrients cycle, soil, the hydric dynamics of the premises, climate protection and landscaping. Besides, in 2024 we issued an internal procedure to manage biodiversity and forestation, outlining the basic concepts to approach this matter. 

As a management tool, at tgs we identified the existing protected areas in the provinces where we operate, in order to monitor them and promote the conservation of natural ecosystems. For such purposes, we moved forward with the creation of an app within tgs geographical information system, called “Protected areas environmental map”, where we can visualize protected areas (both public and private), areas protected through ordinances of native forest and biosphere reserves over which our facilities (ducts, valves, cathodic protection units, measurement points, scraper traps, compressor plants and operative bases) have or might have influence due to overlapping or closeness. Thus, this information is available for the whole company.  

We also added the areas inhabited by the species that are part of the UICN Red List and national lists of preservation for risk of extinction and that match our operation areas.  

This information will help us identify where our activities pose a threat for plants and animals at risk of extinction. The identification of such threats will allow us to take the required steps to avoid damage and prevent species extinction. 

2.Proactive environmental leadership 

We have followed up facilities leaders’ performance on these matters so that they continue deepening the roles they play in environmental management. Besides, we conducted training activities related to the environmental strategic plan, to communicate it and drive action.

In the reported year, we launched the Sustainable Mindset Program targeted at the high and middle management of our company, in charge of professionals from the Di Tella University. Its aim was to strengthen the skills of our leaders so that they can make the best decisions while protecting our planet. We plan to further pursue this program in 2025, as the experience was very positive and generated valuable contributions for our organization.

As every year, we conducted environmental awareness programs that relate to special environmental celebrations or events, which included talks on topics of interest, trivia and information on several undertaken initiatives.

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3.Circular processes and consumption 

Water resources management

In our Environmental Strategic Plan (2022-2026), we outlined the goal to recover 80% of sewage effluents for irrigation by the year 2025. In 2024 we completed the purchase of biodigesters for the treatment of sanitary effluents. Currently, at 10 of our plants biodigesters are operative whereas we have already bought the ones required for the remaining 22, which are planned to be installed between 2025 and 2026. 

Besides, in 2023 we obtained the quantification of our direct water footprint to achieve a more efficient management of this limited natural resource. This indicator is a first step in the achievement of efficient improvements in water management and awareness of our water consumption and use. In 2024 we continued improving the indicator through a more specific approach at each facility. 

In February 2024, we decided to annul the connection that enabled the dumping of our treated sewage effluents into the Bahía Blanca estuary. Since then, the Galván storage plant is a zero-effluents facility, landmark that shows the commitment of the people who daily conduct the treatment and our corporate commitment to a matter of such a relevance as the management of water resources.

This action is even more relevant given where the Galván Plant is located, being an area of a significant water deficit, and where water supply is conducted via an aqueduct from Bahia Blanca, a city almost 60 kilometers away.

Waste Management

Driven by the goal outlined in our ESG Strategic plan to achieve a recycling rate over 50% by 2026, we carried out several actions to minimize generated waste.  We conducted several awareness campaigns and training activities that encouraged steps towards a paperless office, reduction of plastic items of only one use, hiring of new waste operators, disposal of electric devices in disuse, among others.

Additionally, in the reported year, we conducted waste workshops per provinces, addressing existing waste management issues in accordance with regulations in force, summoning stakeholders to the facilities. We analyzed the most relevant issues addressed by regulations and dealt with doubts and enquiries. We also proposed improvements, based on the needs identified at each facility.

Furthermore, in April 2024 we held an awareness talk led by the cooperative Bera Recicla, of the city of Berazategui, where the Gutiérrez complex is located. As a further key benefit derived from this initiative, we could get the mentioned organization to manage all inert waste (recyclable) at present, thus promoting a responsible management of waste and contributing to a circular economy.

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6-b) SOCIAL

HUMAN CAPITAL

We closed a year of growth that witnessed great achievements and challenges.

In the field of talent attraction, we developed an employer brand survey that allowed us to design specific actions for in-company and external positioning. We were present at several institutional events, such as the Oil & Gas Exhibition in Neuquén and in the segment Oil & Gas Youth, with great success and attendance.

We also participated at employment fairs of universities such as UBA, UTN, UNS, among others, with the aim of sharing with them our brand and value proposal.

Pursuing our goal of developing a sustainable business, we place a strong focus on our neighboring communities, generating local employment. To that end, we participated in supervised professional practices for high schools, aiming at strengthening the bond between companies and educational institutions. We also conduct employability workshops that target the students of the last years of technical schools in the provinces of Buenos Aires and Neuquén, to provide them with tools to get higher quality jobs.

We play a leading role in our country economic growth and we know our people are key to our success.

We build a healthy and challenging work environment and we watch over the integral wellbeing of our people. For over ten years, we have been one of the greatest places to work in Argentina, as certified by the global firm Great Place to Work. We accordingly support all our areas with integration and work climate activities that favor bonds and closeness among the members of the several departments.

In the reported year’s fast-paced and challenging rhythm, we were able to close 103 selection processes, including (84) new employees’ recruitment as well as (19) internal promotions opportunities.

We kept promoting our Ambassadors Program, the aim of which is to build a network of transforming agents who can communicate the desired culture to fulfil our dream. This group of people undertakes initiatives that make them leaders in tgs culture and communication, representing our values and the cornerstones of an open, dynamic and cooperative management.

Learning at tgs

We take pride in our accomplishments. Learning empowers our strategy and is a key factor to build knowledge and organizational capacities. For this reason, we decided to go far beyond designing a simple online courses platform and thus gave birth to tgs Campus, our learning ecosystem. Tgs Campus has 1,147 active students and currently it hosts 254 available contents that address different topics: management, leadership, businesses, human competences, techniques, etc. Moreover, we have 123 of our own contents prepared by our workers, included in our academies.

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Within the framework of our open, dynamic and cooperative learning strategy, this year we developed the technical schools, with specializations in Anticorrosive Protection, Gas Turbines, Compressors, Gas Quality, Earth Connection Values Measurement. PLC Level 1

As a result of this project, we have consolidated a team of in-company instructors deeply engaged and committed to the development of knowledge at tgs.

Growing and leading at tgs

At tgs we promote the culture of empowerment, in which every person plays the leading role in his/her own performance.  Through a cycle of planning, follow-up and assessment, each worker proposes objectives aligned to the business management, plans his/her own continuous improvement, assesses his/her own results and conduct and thinks along with his/her supervisors about his/her learning. Thus, performance processes provide information for decision-making with respect to learning, development and compensation.

Similarly, we set up Talent Committees to survey our workers’ current and projected capacity and assess their potential to take on positions of greater complexity in the future. Thanks to this process and through a detailed analysis of competences, we identify the potential future leaders of the organization, manage talent and conduct a strategic planning regarding the needs of work teams and our business. This facilitates decision-making on the topic of promotions, transfers, turnovers, project team and replacement charts.

The result of this work provides us with talent matrixes for all the departments and complete sustainability maps for leadership positions in our company.

With our eyes set on future development, we have conducted development talks with leaders and talent, process that guarantees talent and business sustainability at tgs, to be able to have human capital who is prepared and available for the future of the business and the organization.

We also continued working with our leaders, through the “On-Mode leadership” in its edition “rock your leadership at tgs”. We held presence-based workshops, three training days with outsourced speakers, and an immersive week of online learning.

Focused on learning from others and adopting best practices, in cooperation with Voces Vitales Cono Sur and the Argentinian Institute of Oil & Gas, we renewed our participation in the Mentoring Program, an initiative designed to empower the role of women in leadership positions within the industry. This program contemplates three training days in soft skills, complemented by two days of direct learning along the CEO or an officer from another company appointed as mentor. 

Culture and transformation at tgs

We keep evolving and getting close to our target culture. This year we redesigned our organizational behaviors to give them more visibility, closeness and impact and be able to align them to the new business challenges. I innovate cooperatively, I place the client at the core, I

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am part and I go for more, are our cornerstones and focus when pursuing our objectives and business challenges.

We also take pride in having set up the change management team this year, which is integrated by employees from many departments, in charge of carrying out actions related to digital transformation and business strategies.

Number of workers as of December 31, 2024

            Workers breakdown by gender                         Workers breakdown by participation in unions

Diversity and inclusion

Social changes gave rise to the need of addressing diversity, inclusion and spaces free from violence. This year our purpose was to focus on the training and sensitization of our whole staff.

After setting up the Committee of Diversity and Inclusion, we developed and communicated our principles on diversity, equity and inclusion, to act as guidelines and delineate our purpose and scope.

We carried out several workshops: the ABC of diversity, biases, age diversity, disability and respect at the workplace.

We developed 3 e-learning capsules on the ABC of diversity, biases, workspace free from violence and discrimination.

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We implemented a calendar of special occasions or commemoration days that reminded us of different events and invited us to think.

We developed a manual on inclusive recruitment, a communication channel with neutral gender language and a protocol on how to act in case of reports on work violence and/or harassment

We participated in the IAPG Diversity, Equity and Inclusion Commission with concrete action: development of the recommended practices in terms of DEI, which seek to align all the industry companies; and on the other hand we participated in the Voces Vitales Program on mentoring for industry leading women.

All these actions drive us forward towards organizational changes that generate actual inclusion.

This approach to the topic of diversity and inclusion started with an overall diagnosis conducted in the year 2022 along with an action plan focused on the development of a workspace that is respectful, inclusive and free from violence.

As we included in our ESG Plan, we are conducting actions that turn us into a more diverse company, for instance: promotion of women to positions usually filled by men such as heads of shift, gas dispatch operators, plant leaders and truck loading operators.

Relations with Unions

Our 2024 calendar comprised many meetings with union representatives. The agenda of such talks and the reached agreements contemplated inflation rates variations observed in the country. Monthly collective bargaining migrated to less regular increases as inflation indexes started to go down. The good work climate created by both parties promoted a sincere dialogue and materialized into collective bargaining agreements that are essential to ensure the continuity and safety of operations.

We have consolidated the work of the Mixed Commission of Safety, Environment and Occupational Health, integrated by the representatives of all the unions that represent tgs employees, whose purpose is to strengthen a risk prevention behavior so that safe working conditions are ensured, specifically focusing on the care of the psycho- physical health and optimizing risk prevention for health, hygiene and safety at work. This commission holds regular meetings in which matters within their areas of responsibility are addressed. As part of their work, this year the commission visited the facilities of Dolavon Compressor Plant and Operative Base, both located in the province of Chubut. During said visit, the members of the commission could learn about and oversee all the operations conducted by tgs at such operative facilities and talk with the workforce of these sectors regarding the scope of their tasks and issues related to safety and health.

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Occupational Health

Taking care of the safety and health of our people is one of the cornerstones of our performance.  Bearing in mind that accidents related to upper limbs accounted for 38% of recorded labor accidents over the last 20 years, in 2024 we conducted several activities to raise awareness and prevent them.

Another 2024 outstanding initiative was the recording of health checkups and controls for our own employees or contractors’ staff. To such purposes we have upgraded the functions of the in-company tool used for health self-management. This year we added the function “medical fitness for the role”, which allows to update the staff information as health checkups are performed at the different facilities. Besides helping us to manage the health of each worker, this tool generates personalized recommendations and allows us to assess if our workers are fit to perform tasks such as: driving heavy or light vehicles, height jobs, confined spaces or perform as brigade volunteers. 

We inaugurated a new space at the Galván and Tratayén Plants to perform preventive health checkups to hazardous loads drivers, targeting all the drivers who daily load products at such facility. This measure allows us to make progress in accidents prevention and in the detection of any anomaly that may impact on their health. 

The reported year we obtained the recertification in the program directed by SEDRONAR —the Secretariat of Comprehensive Policies on Drugs— as preventive work environments. This certification audits the companies that have an addiction prevention policy.

Lastly, we were awarded the first prize to the best scientific poster “DETECTION, ANALYISS AND APPROACH TO THE IMPACT OF PSYCHOSOCIAL IMPACT ON TGS PERSONNEL DURING AND POST PANDEMIC”, presented before the 26^th Labor Medicine Congress of the Province of Buenos Aires, SMTBA for its acronym in Spanish.

“+Energy Program”

In the year 2019 we created the acknowledgement program known as “+Energy”, which underlines and acknowledges the achievements of our workers who transmit tgs culture through their individual, team work and/or their commitment with the organization. Throughout the reported year, we acknowledged:  

1,016

workers for their outstanding actions

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outstanding of the year

193

workers for their participation in teams

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acknowledgements to track record in the Company

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Benefits Program

tgs offers an outstanding and very competitive benefits package: “Plus!”, designed to address the needs of all our staff. Organized by segments, the program offers creative and specific options that consider family, health promotion and care, recreation, loans and insurance. These benefits ensure a flexible and comfortable work environment and have been devised to support all our employees and their families in every life stage.

SAFETY AND HYGIENE

Safety is one of the values that stands out in our performance. Focused on prevention and risk minimization, we strive to generate commitment to a self-care culture in safety. We understand Occupational Safety and Health as a consequence of the engagement of all the persons who are part of our company and interact with us, so its scope reaches our own staff, third parties’ personnel, suppliers and the community on the whole.

Our 2022-2026 Safety and Hygiene Strategic Plan approved by the Management Committee. It revolves around three strategic axes:

2.Risk-based industrial processes for high reliability facilities. This involves an efficient management of resources based on facilities risks (reliability in the life cycle) 

3.An organization prepared for contingencies, focused on loss minimization and mitigation towards business continuity in the face of contingencies (preparation, response and rehabilitation).  

This plan reaches and engages all organization levels: processes, stakeholders and workers. We thus ensure safe and healthy work conditions throughout the whole production chain. Year after year, we prepare a matrix with critical tasks that involve the continuity of some initiatives and the addition of others with the objective to keep consolidating a sustainable safety culture.

In 2024 we designed a program known as CICLO SOL+ in all company areas. The purpose of this program is to maintain organization, order and cleaning conditions at the work space, enhance the comfort, safety and ergonomics of work spaces and improve work environment on the whole.

We implemented the Bowtie risk management methodology, which visually shows the relations among risks, threats and controls by means of a graph to avoid the deterioration of the preventive and mitigation measures.

In 2024 we relaunched a campaign on safety, in order to consolidate and keep deepening leadership in the safety culture. To that aim, we conducted several activities such as: safety spots with different topics, activities in the week dedicated to Safety within the frame of the National Day of Hygiene and

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Safety, meeting spaces at the facilities to discuss Safety, Environment, and Quality, multiple communications by mail, among others.

Regarding our involvement with stakeholders and interested parties, we have participated in the Energy Sector Innovation Table, summoned by the Labor Risk Superintendency, seeking to develop joint action to monitor and strengthen risk prevention at the company with 4.0 technology. Furthermore, in 2024 we participated again of the recertification to Preventive Labor Environments, along with SEDRONAR.

In the reported year, we also consolidated continuity in brigade training, which we will keep working and deepening in the upcoming years.

SEQ Culture program as value 

The program Safety, Environment and Quality Culture (SEQ or “SAC”, for its acronym in Spanish) as Value is a key cornerstone within our Labor Risk Prevention Programs. This initiative is part of the axis “Preventive Leadership Culture for an Interdependent Organization” within tgs’ Safety and Hygiene Strategic Plan.  This program seeks to consolidate good practices in terms of safety and health that can improve our performance. In this line, we have a platform on health and safety at work for our employees, raising awareness in the area and boosting commitment to it. Among these training programs, we may mention Safe and Sustainable Vehicles Driving Program and Brigade Volunteers Training Program.

The scope of our commitment to safety and hygiene reaches our contractors. Therefore, we implemented initiatives such as the standardization of health and safety requirements, an interactive training system and the creation of an Assessment Matrix. We have also strengthened communication through regular meetings and we have introduced updates, such as a work permits system. Our strategy aims at compliance with safety standards, continuous improvement and adaptation to current technologies, showing our commitment to safety, quality and sustainability in projects, with the engagement of third parties.

The communication of relevant information related to hygiene and safety at work is regularly conducted through several channels: 

·By means of a performance report that informs safety, vehicle and environmental incidents, accumulated rates, indexes.  

·We have set up a Hygiene and Safety Joint Committee in which both company and workers representatives participate to promote risk prevention and keep safe working conditions. It also seeks to protect workers’ life and health and improve labor conditions. The Committee members have different roles, such as chairman, secretary, company and workers representatives, among others. The ethics of an interdependent care to promote our corporate safety culture is underscored. The social representation of the workers is in line with the current legislations and the participation of all persons involved in safety and hygiene issues  

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is encouraged by way of varied communication strategies. In 2024, we consolidated the relationship channels in the Safety and Health Joint Committee, conducting presentations and communicating important matters in the consolidation of our desired culture. 

Quality Management System

Our Safety, Health, Environment and Quality Policy outlines the commitment of the Management on these matters. It is the reference on which the Integrated Management System is based (SGI) in accordance with ISO 45001:2018, ISO 14001:2015 and ISO 9001:2015 and is aligned to the organizational dream or challenge and the desired culture.

The Policy is posted at the company website: https://www.tgs.com.ar/our-company/environment. tgs has Environment, Safety and Quality Strategic Plans to ensure the fulfilment of commitments undertaken in the Safety, Health, Environment and Quality Policy.

At tgs, we carry out our processes in accordance with the following principles:

·Management of the context and stakeholders’ due diligence to determine and address emerging risks and opportunities. 

·Identification of hazards and risk control to prevent injuries and provide safe and healthy work conditions. 

·Environmental protection, including pollution prevention and minimization of environmental impacts derived from our activities. 

·Fulfilment of our clients’ needs and expectations, prioritizing the quality of our products and services, competitiveness and profitability. 

·Compliance with legal and other requirements. 

·Clear and transparent communication that facilitates channels for queries and the participation of every worker at all company levels. 

·Culture of achievement, through the management of goals and indicators. 

·Development and growth of our employees, promoting improvement in their competences and raising of their awareness. 

In 2024, we successfully passed the Recertification Audit of ISO 14001:2015 / ISO 9001:2015 and ISO 45001:2018.

SUSTAINABILITY MANAGEMENT

We believe sustainability is not only a commitment, but a key engine to drive growth and transformation. Our ESG strategy positions sustainability as a business challenge that drives our development and strengthens our management capacity. Based on the environmental, social and governance pillars (ESG) identified as key drivers, we move forward to a comprehensive and resilient management model.

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That is why our social investment programs strategy and development follow the guidelines of the United Nations 2030 Agenda. Through a thorough work we selected 9 of the 17 Sustainable Development Goals (SDG) considered priority for our company, to be able to focus and strengthen our efforts to contribute to specific goals.

The programs detailed below were promoted in line with SDG N° 4 related to Quality Education:

“Learn a Trade Program in Bahía Blanca and Neuquén”. This program has been carried out since 2007 in cooperation with La Piedad Technical Institute (“ITLP”, according to its acronym in Spanish). Its aim is to impart training in trades to unemployed young people, empowering them through the acquisition of skills. It was expanded to Neuquén with the cooperation of the San José Obrero School. It offers courses of carpentry, 3D printing, metal mechanic and basic welding. Since the launching of the program, we have trained over 1,500 persons.

Since its beginnings, this program has adopted new modalities and we encourage the training in trades at other organizations. One of these related lines, related to the SDG N° 8 “Decent work and economic growth”, is “Women in Circle”. This action seeks to generate an active commitment to gender equity in the community development. To such purpose, we sealed an Alliance with the Fundación Estudios Patagónicos and conducted two trainings in trades where the participation of women is sought.

Another initiative is “More work, less recidivism”, through which people deprived from their freedom can get access to training in trades, seeking to reduce their levels of recidivism through work opportunities. Thus, employment and decent work are promoted and training opportunities are offered through projects aiming at the responsible use of natural resources, boosting innovation and entrepreneur spirit, solidarity actions and social responsibility.

Schools Infrastructure Improvement Program Started in 2018, this program aims at improving public educational institutions to increase graduation rates, reduce grade repetition and school drop-out and strengthen socio-emotional skills. We cooperate with government authorities and— after works are conducted— we impart awareness workshops to generate a sense of belonging among students. The program aims at strengthening educational quality and the local community. Over the last years, we have repaired over 20 educational facilities.

Scholarship program – (“Haceme el Aguante”: support me): This scholarship program, driven by tgs, is operated at the San José Obrero school in Neuquén. Its objective is to increase opportunities for young people in vulnerability contexts. Scholarships comprise specialized areas such as Industrial Mechanics, Electricity, Carpentry and more. The equitable distribution of scholarships between genders shows our commitment to give a significant boost to education and the development of talented young people.  We have increased scholarships by 20%, which in this year went up to 25.  

The Social Investment Programs we carry out reflect our commitment with the community where we are present, our objective to generate a positive impact on the people who live in the vicinities. In

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light of that, we have broadened our look to integrate new approaches, such as development in culture, sports and personal and socio-economic aspects. 

-The” Getting close to Basket” program, is focused on teenagers and the practice of sports as the means to socialize, gather and nurture good values. We offer basket classes to promote healthy habits and the overall development of teenagers. This action is carried out jointly with DUBA (Bahía United Disabled) an institution that works for the inclusion of disabled people in the practice of the different sports adapted to their abilities, helping them to better themselves, improve their self-esteem and integrate to society.  

Committed to safety in the community, we executed several communication actions within the framework of Damage Prevention Programs, with the aim of preventing incidents at natural gas facilities and pipelines. Actions included informative visits along with local firemen , trainings and talks with officers in charge of public works.

In June we presented the 13° edition of the ESG Report, presenting GRI and SASB indicators, thus renewing once again our commitment to the Global Compact Principles. The 2023 ESG Report was acknowledged and prized at the Eikon Prizes and at the Social Ecumenic Forum. 

With reference to said ESG Report, this year we conducted a double materiality analysis, which led to the definition of the IROs that propose new material issues to be addressed in our oncoming ESG report. This year we also conducted a verification process to work on certain indicators.

To conclude, we would like to highlight that through our Foundation, in 2024 we supported different non-profit organization projects, Fire Brigades, Hospitals, Indigenous Communities, etc.

6-c) GOVERNANCE

Corporate Governance

One of our main cornerstones is our ethical and transparent performance, so we strive to implement the best Corporate Governance practices, in line with market international trends and local and foreign regulations in force, with the aim of protecting and maintaining our investors and the community on the whole and fostering transparency in our actions. Over the last years, the legal framework protecting minority investors has considerably widened, particularly in the United States and several European countries. Since then, Corporate Governance has become a matter of more and more relevance to ensure the transparency of the actions of any company listed in the Stock Exchange before the eyes of their investors and the community on the whole.

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TGS Governance and Auditing Structure

Board of Directors

Our Board of Directors runs the operations of our Company. tgs Bylaws stipulate that our Board of Directors shall be constituted by a minimum of nine regular directors and nine alternate directors and a maximum of eleven regular directors and eleven alternate directors. By virtue of the Corporate Bylaws and the Argentine Corporate Law, the Board of Directors shall meet at least once every three months.

On December 18, 2019, tgs’ Board of Directors approved its Internal Rules of Operations, which include guidelines for the diligent fulfillment of its duties.

The Board of Directors currently in office was appointed by the Ordinary, Extraordinary and Special Shareholders Meetings dated April 17, 2024 (“Shareholders Meeting 2024") and its distribution of roles and responsibilities was also decided on the meeting held on the same date. It shall be in office until the Shareholders Meeting analyzes the financial statements as of December 31, 2024.

Members of the Management

The members of tgs Management as of the date of the issuance of the present Annual Report are:

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Statutory Audit Committee

The Statutory Audit Committee is our controlling body, set up in accordance with the provisions of Section 284 of Argentine Corporate Law. The Corporate Bylaws dictate the creation of an Audit Committee made up of three regular and three alternate members. In line with the Corporate Bylaws, two of the regular Statutory Auditors and their replacements must be appointed by Class “A” shares holders. The remaining Statutory Auditors and his/her replacements shall be appointed by the remaining holders of ordinary shares. The members of the Statutory Audit Committee are appointed at the Annual Ordinary Shareholders’ Meeting and perform their roles for the period of one fiscal year, renewable for the same term.

Executive Committee

Its role is to ensure an optimal corporate management under the terms of Section 269 of the Argentine Corporate Law. In accordance with the Corporate Bylaws’ provisions, it is made up of by 4 members, who were appointed by the Board of Directors held on April 17, 2024 for the term of one year until the Shareholders Meeting considers the financial statements as of December 31, 2024. The current members are: Horacio Jorge Tomás Turri, Luis Alberto Fallo, María Carolina Sigwald and Pablo Viñals Blake.

Audit Committee

In accordance with the Argentine Public Offering Law, companies that offer their shares to the public must constitute an Audit Committee, a body of at least three regular directors and same number of alternate directors, most of which shall act independently. The present Audit Committee is as follows:

Corporate Governance Policies

We permanently seek to develop and improve our internal Policies and Procedures, adhering to the best international practices, with the main objective of protecting and enhancing our Company’s value for all our shareholders.

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tgs Corporate Governance practices are regulated by applicable Argentine law (particularly, the Argentine Corporate Law Nº 19,550 and its amendments), the standards issued by the CNV and other entitled entities, our bylaws, as well as other documents approved by the tgs Board of Directors. Besides, as TGS is listed in the Securities and Exchange Commission (“SEC”) and its shares are listed in the New York Stock Exchange (“NYSE”), we are also subject to the standards and regulations of both the NYSE and the SEC.

Our Corporate Governance goals are to ensure:

·Greater transparency in our performance, through the outlining of a culture of integrity and clarity in our business management. 

·Adequate supervision through the continuous improvement of our internal control structure, leadership in compliance with regulations and adoption of policies addressed to achieve effective risk management. 

·Proper allocations of accountability. Clear delineation of the scope of responsibility undertaken by the Board members and Managers of our Company, related to compliance with internal policies and regulations. 

Among the measures implemented by tgs to ensure transparency in our actions, we can point out at — among others— the following components articulated into an Integrity Program, in accordance with the provisions of Law on Corporate Criminal Liability N° 27,401:

Code of Conduct

Our Code of Conduct governs the behavior of our Directors, Statutory Auditors, members of the Management and employees of both TGS and its controlled company. Furthermore, we seek to ensure acceptance of the Code by our suppliers, independent contractors, consultants and clients. The Code of Conduct outlines the indispensable ethics, transparency and honesty of people who work at the Company. It outlines several obligations and among other things, it declares the prohibition to forge or tamper with any information or documentation, behave in a manner that may generate damage to our Company or obtain any personal benefit that goes against the interests of the Company. It also stipulates that those who release information to the market must have full knowledge of and abide by CNV and SEC regulations and are under the obligation to report without misrepresentations.

Antifraud Policy

The Board of Directors of tgs has issued an Antifraud Policy, the aim of which is to outline roles and responsibilities and detect irregularities that may arise in connection with the activities performed by our Company. Said Policy establishes the mechanisms devised for the reception of infringements reports, such as the Ethics Line through which employees, clients, suppliers and other stakeholders may anonymously inform about any violation to the Code of Conduct.

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Dividends Distribution Policy

Through the Dividends Distribution Policy, the Board of Directors has set out guidelines that aim at maintaining an adequate balance between the amounts to be distributed as dividends and tgs’ investment plans. Decisions shall be made seeking to ensure a reasonable management of business and balance in tgs financial condition.

Sustainability Policy

It provides the overall guidelines for conveying our sustainability vision into the development of our strategies and action programs, consistent with business continuity and promoting bonds with our stakeholders.

Best Stock Market Practices Policy

It has been adopted to ensure greater transparency in purchase or sale transactions or any kind of operations on negotiable securities listed in stock markets, preventing any person in our Company from obtaining any kind of advantage or economic benefit from the use of privileged information.

Policy of Related Parties’ Approval and Disclosure

By means of this Policy, we have devised mechanisms to detect and disclose transactions with related parties, under the terms of Argentine Public Offering Law N° 26,831.

Anti-Money Laundering Policy

This policy aims at preventing and detecting unusual or suspicious transactions, in accordance with the definitions of applicable law, accounting standards and international standards on this issue. It is applicable to all tgs’ directors, statutory auditors and employees.

Policy of Recovery of Compensations Erroneously Awarded to Executive Officers in Financial Information

In 2023, we outlined this policy to meet the standards approved by the USA SEC for companies listed in NYSE and the National Association of Securities Dealers Automated Quotation (“NASDAQ”). The mentioned standards aimed at regulating an eventual recovery of compensations (bonds) erroneously awarded (“claw back”) to members of the Management Committee. Our policy was approved by the Board of Directors of tgs on November 6, 2023

Cybersecurity Policy

After the SEC issued new requirements that seek to regulate the information that companies disclose regarding material cybersecurity incidents as from December 18, 2023, at the Board of Directors Meeting held on November 6, 2023 we approved amendments to the Cybersecurity Policy, the Cybersecurity Incidents Management and the Systems Emergency Plan.

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The policies seek not only to comply with the current regulations on the topic but also to provide transparency in the disclosure and manage cybersecurity incidents more efficiently.

The Board of Directors expressly delegates in the Executive Committee the assessment of the incident materiality and if applicable the reporting of the incident. In order to determine cybersecurity incidents materiality, the following impacts shall be assessed: economic-financial or business, legal or regulatory, company reputation, people safety, quality and rendering of services, environment and /or stakeholders. We also conducted the annual revision of the cybersecurity risks matrix.

tgs Risk Management

One of the pillars of tgs strategic planning is the permanent assessment of the environment, to guarantee the adaptation of the Company to an uncertain context in continuous transformation. Risk management is, in particular, one of the essential tools to fulfil the need to adapt to the environment.

tgs has a Global Risk Management Policy approved by the Board of Directors of the Company. Said Policy establishes a continuous and systematic risk management that ensures treatment of them with effectiveness and efficiency, so as to guarantee an adequate follow-up of all those events that may negatively affect the objectives of the Company. Thus, this Policy develops a framework and a procedure for risk management in the different processes and activities of the Company, outlining criteria for identification, analysis, risk assessment as well as treatment and follow-up of same.

The Policy establishes that the ultimate responsibility falls upon the members of the Management, whereas the responsibility for the implementation, maintenance and improvements corresponds to the Planning and Risk Department.

The Company Management, based on its sustained commitment with risk management, seeks to include it in the organizational culture, integrating it to the usual management of each process.

The Audit Committee performs a regular monitoring of the company risk management, following up the results of the different performed assessments, the issuance of internal regulations, the advance status of undertaken plans and the several new developments on the matter.

Among the risks managed by the Company, we can identify facilities’ risks, projects’ risks, environmental hazards and aspects, fraud risk, risk of corruption with the public sector, cyber security risks and strategic risks. The latter include all those risks whose occurrence may prevent the fulfillment of the Company strategic objectives and are monitored in a direct and permanent manner by the Management, to guarantee an adequate response through timely decision-making.

Thus, the usual process of strategic risk management contemplates that once certain risk has been identified, the existent controls and mitigating factors must be surveyed, weighed and mapped based on impact and likelihood factors. We also determine the “risk appetite” or acceptable level so that —according to the gap between such risk level and the performed assessment—, we can establish the

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need to implement specific action plans, which are then followed-up to determine their advance status and effectiveness in light of the pursued objectives.

tgs investments plan is based on risk prioritization, contemplating among others risks of different natures: operative, environmental, safety, impact on community, non-compliance with requirements, cybersecurity.

In 2024, we kept consolidating processes related to our corporate risk management, seeking to engage all the required areas in order to build a true risk management culture.

On the topic of ESG (environment, social and governance), we conducted a double materiality analysis that led to the identification of several impacts, risks and opportunities related to sustainability. Within this framework, we created a new category labelled as “ESG Risks” in the Strategic Risk Matrix, which integrates risks previously identified and managed with new risks identified in the double materiality process. Thus, all the ESG risks will be followed up within the standard Strategic Risks process. On the other hand, in the year 2024 we assessed the physical risks derived from climate change, with the purpose of starting to delineate a climate resilience strategy.

7. Financial Assets

Shareholding Structure as of December 31, 2024

tgs shares are listed in the Argentine Stock Exchanges and Markets (“BYMA”, according to its initials in Spanish) in the domestic market and in the form of American Depositary Receipts (“ADR”) —representing 5 shares each— in the NYSE, which are registered in the SEC.

In 2024, tgs celebrated 30 years of being listed in the NYSE, clearly a landmark that proves our transparent performance, financial soundness and sustained growth, which consolidates the Company as a key player in the regional energy industry. Being listed at the New York Exchange has been a main cornerstone to get access to international capital markets, which enabled us to expand our infrastructure, update our operations and be part of the growth of Vaca Muerta.

tgs has 794,495,283 issued shares, out of which 752,761,058 shares are in circulation. As of December 31, 2024, our treasury stock amounts to 41,734,225 of our own shares, representing 5.25% of our common stock. Our main shareholders are:

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The graph below shows the evolution of tgs price per share in BYMA (Argentine Stock Exchanges and Markets), the ADR price evolution and their comparison against other market variables:

Source: our own preparation based on market information (BNA, NYSE, BYMA).

On February 5, 2025, as a consequence of S&P Global Ratings upgrading of our Argentina’s country Transfer and Convertibility (T&C) rating, tgs debt rating was also upgraded from "CCC" to "B-" both in domestic and overseas markets.

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Financing sources

Class 3 Notes (“2031 Notes”)

On July 24, 2024, tgs issued Class 3 Notes, denominated in United States dollars, for a face value of US$ 490,000,000, regulated under the Law of New York, accruing interest at a fixed nominal rate of 8.5% and due on July 24, 2031 (hereinafter, the “2031 Notes”). Such 2031 Notes were issued under the framework of a short-term and medium-term non-convertible bonds issuance program, with a maximum outstanding amount of up to US$ 2,000,000.000 (or its equivalent in other currencies), approved by the CNV. This notes placement was one of the first Argentine international transactions after many years with no Argentine issuances in the international capital market.

The terms of the 2031 Notes are:

The proceeds derived from this issuance were allocated to cancel the outstanding amount of the 2025 Class 2 Notes maturing in May 2025, conducted through a purchase bid launched simultaneously with the bond issuance and the anticipated redemption of the outstanding 2025 Bonds.

Financial leases

On August 11, 2016 we entered an agreement with Petrobras (presently, Pampa Energía) to finance the acquisition of assets belonging to the treatment and compression plant located in the area of Río Neuquén. It consists in the payment of 119 consecutive monthly installments of US$ 623,457, not including taxes, and a purchase option for same amount payable upon the finalization of the 120^th  month of the term of the agreement.

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In January 2023, we entered into a new financial lease. It is denominated in United States dollars and payable in fixed monthly installments until December 2027.

Bank loans

The table below presents a breakdown of bank loans as of December 31, 2024:

On the other hand, the financial indebtedness of the controlled company Telcosur as of December 31, 2024 is as follows:

(1)Included as “Non-current financial assets at amortized cost.” 

On January 23, 2025, Telcosur extended the maturity of the above-mentioned loan until July 28, 2025. 

tgs indebtedness’ maturities profile is as follows:

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Financial Overview

Throughout the year 2024, tgs maintained its sound financial condition. Our main sources of liquidity were the cash flows of our operations, our return to international capital markets with the issuance of the 2031 Bond mentioned above and access to first-rate entities credit lines, in view of the existing limitations and the macroeconomic conditions that marked the 2024. For further information, see, “Financing Sources”.

During the reported year, the BCRA continued limiting, though to a lesser extent than in 2023, the purchase of foreign currency for the payment of goods and services imports. However, tgs managed to obtain the currency required to conduct such payments, without significantly impacting business operations. For further information, see, “2. Macroeconomic Context - 2.1.  Argentine scenario”.

Given the situation described in the preceding paragraphs, we had to obtain further financing for the amounts of US$ 54 million and EUR 1.2 million (after having cancelled US$ 88.1 million and all the balance of the debt denominated in EUR in the same year). As of December 31, 2024, our short-term indebtedness with renowned financial entities amounts to US$ 25.2 million.

In 2024, the United States dollar exchange rate went up by 27.7%, from $ 808.45 as of December 31, 2023 to $ 1,032 as of December 31, 2024. On the other hand, prices evolution measured by the CPI rose by 117.8% in year-over-year analysis.

Net cash flows applied to investment activities amounted to Ps. 384,898 million, mainly attributable to higher payments related to the acquisition of PPE given our commitment to the development of Vaca Muerta and financial collocations not considered as funds in accordance with the IFRS.

In order to preserve the value of dollars in cash, funds are invested in low risk and high liquidity financial assets and in private bonds of first-class Argentine companies. In 2024 we prioritized dollar-linked funds collocations to mitigate the exchange rate risk in our net liabilities in dollars.

To minimize the negative impact of the exchange rate on our financial indebtedness, tgs adopted a conservative approach. Hence, as of December 31, 2024 we have approximately 81% of funds collocations overseas denominated in United States dollars or adjusted by said variable.

The table below presents our fund applications as of December 31, 2024:

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Throughout the years, our operation cash flows have been affected by the insufficient updating of natural gas transportation tariffs in spite of soaring inflation levels. The 675% tariff increase obtained as from April 2024 added to subsequent monthly increases will finally restore the financial situation of the Natural Gas Transportation Segment, provided the five-year tariff review is finalized.

It is worth highlighting the solid financial position we have been able to develop, based on a strong cash generation, a relatively low level of indebtedness and revenues mainly denominated in United States dollars in the Liquids Production and Commercialization and Midstream segments. However, the situations described in the present Annual Report, and the impact of the main national and international macroeconomic variables on international financial markets may negatively affect our financial condition and our clients’ as well, which might derive into the deterioration of our capacity to generate cash to meet our financial obligations and capital expenditures.

In the short term, the most significant factors that impact on cash flows generation are: (i) international Liquid prices fluctuations, (ii) Liquids production levels, (iii) fluctuations in the price of natural gas used as PTR, (iv) natural gas production in Vaca Muerta, v) dollar exchange rate variations and vi) regulated Natural Gas Transportation segment tariffs.

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8. ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2024

The following discussion of the financial condition and results of operations of the Company should be read in conjunction with the Company's consolidated financial statements as of December 31, 2024 and 2023, and for the years ended December 31, 2024 and 2023. These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”), issued by the International Accounting Standards Board (“IASB”) adopted by the Comisión Nacional de Valores ("CNV") through the provisions of Title IV, Chapter I, Section I, Article 1 – B.1 of the Rules of the CNV ("New Text 2013" or "NT 2013") and considering Resolutions No. 1,660 and No. 1,903 issued by the ENARGAS.

These consolidated financial statements were jointly audited by Price Waterhouse & Co. S.R.L., and Pistrelli, Henry Martin y Asociados S.A.

Effects of inflation

On December 3, 2018, Law No. 27,468 was enacted, sanctioned on November 15, 2018 by the National Argentine Congress. Among other measures, this law abolishes Presidential Decree No. 1,269/02 —amended by Presidential Decree No. 664/2003 — through which the controlling entities (among them the CNV) had been instructed not to accept inflation adjusted financial statements. On December 26, 2018, the CNV issued Resolution No. 777/2018, by virtue of which it instructs companies that offer their shares to the public to apply the financial statements restatement method to a stable currency in line with the provisions of IAS 29 “Financial Reporting in Hyperinflationary Economies”.

In accordance with such standards, the restatement of financial statements was restarted as from July 1, 2018. In line with the restatement method, non-currency assets and liabilities are restated by an overall price index issued by the Argentine Federation of Professional Councils in Economic Sciences (“Argentine Federation”) since their acquisition date or last inflation adjustment (March 1, 2003).

Likewise, comparative information included in the financial statements has also been restated, but this fact has not modified the decisions based on the financial information corresponding to those fiscal years.

For further information, see “Note 4. Significant Accounting Policies – d) Restatement to constant currency – Comparative Information” to the consolidated financial statements as of December 31, 2024.

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8.a. Results of operations

The following table presents a summary of the consolidated results of operations for the years ended December 31, 2024 (“FY2024”) and December 31, 2023 (“FY2023”):

Activities of the Company in FY2024 and FY2023

Revenues

Total revenues for FY2024 increased by Ps. 233,714 million compared to FY2023, mainly as a result of the increase in revenues from the Natural Gas Transportation and Midstream business segment.

Natural Gas Transportation

During FY2024 revenues from the Natural Gas Transportation business segment accounted for 36% of tgs total revenues (22% for FY2023). Of the total revenues in this business segment, 84% and 82% corresponded to firm contracted capacity services for the years 2024 and 2023, respectively.

Revenues from the Natural Gas Transportation segment during FY2024 reached Ps. 441,126 million (Ps. 215,700 million in FY2023). The increase of Ps. 225,426 million is due to the positive impact of transitional tariff increases received during 2024, as explained below. This effect was partially offset by the negative impact of inflation adjustment.

On March 26, 2024, tgs and ENARGAS entered into a Tariff Transitory Adjustment Agreement (the “Tariff Agreement”), which provides for a 675% transitional adjustment in natural gas transportation

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tariffs effective as of April 3, 2024, pursuant to Resolution No. 112/2024 issued by ENARGAS (“Resolution 112”). Resolution 112 provides that, as from May 2024 and until the RQT process is completed, the tariffs will be adjusted monthly based on a composite index (the “Transitional Adjustment Index”) by the wage index, the wholesale price index and the construction cost index.

During the following months, ENARGAS notified the licensee companies of the postponement of previously scheduled monthly adjustment. Additionally, it announced that the Transitional Adjustment Index would be replaced by an adjustment index based on expected inflation to be communicated by the Ministry of Economy.

On August 1, September 2, October 1, November 4, December 4, 2024 and January 1 and February 1, 2025, ENARGAS issued new transition tariff charts contemplating increases of 4%, 1%, 2.7%, 3.5%, 3%, 2.5% and 1.5%, respectively.

For more information regarding the Company's tariff situation, see "4. Businesses in 2024. Natural Gas Transportation", of this Annual Report.

Liquids Production and Commercialization

Revenues from the Liquids Production and Commercialization segment amounted to Ps. 556,662 million in 2024 (Ps. 21,311 million lower than in 2023). This negative effect was mainly due to the fall in prices and volumes of ethane sold and the lower volume of natural gasoline dispatched. These effects were partially offset by the higher volumes of propane and butane sold and the increase in international reference prices.

Total volumes dispatched decrease by 51,836 tons or (5%). The table below shows the breakdown of the variation by product type and market:

For more information regarding the evolution of the businesses in this business segment during 2024, see “4. Businesses in 2024. Liquids Production and Commercialization”, of this Annual Report.

Midstream and Telecommunications

Midstream and telecommunications revenues increased by Ps. 29,598 million in 2024 compared to 2023. This increase is due to higher revenues corresponding to natural gas transportation and conditioning services in Vaca Muerta. These effects were partially offset by the negative variation in the real foreign exchange rate.

In October, the first module was put into operation, allowing for an increase of 6.6 MMm³/d in the conditioning capacity of the Tratayén plant, reaching a total capacity of 21.4 MMm³/d. It is worth noting that the entire project, which will require an investment of approximately US$ 350 million, will

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enable tgs to have a total conditioning capacity of 28 MMm³/d by the first quarter of 2025, when the final module, currently in the installation process, becomes operational.

For more information regarding the evolution of the businesses in this business segment during 2024, see “4. Businesses in 2024. Midstream and Telecommunications”, of this Annual Report.

Cost of sales and administrative and selling expenses

Cost of sales, administrative and selling expenses corresponding to FY2024 decreased by Ps. 30,936 million, 4.2% compared to the same period of the previous year. This variation is mainly due to the decrease in the cost of natural gas processed at the Cerri Complex (mainly due to a decrease in the price, measured in constant Argentine pesos). These effects were partially offset by higher: (i) fees and third-party services, (ii) repair and maintenance expenses, and (iii) taxes, rates, and contributions (mainly due to an increase in gross income tax and export duties resulting from higher revenues).

The following table shows the main components of operating costs, administrative and selling expenses and their main variations for FY2024 and FY2023:

Reversal of impairment of property, plant, and equipment

The reversal of impairment of property, plant, and equipment corresponds to the assets in the Natural Gas Transportation segment, in accordance with the projections and recoverability analyses conducted under International Accounting Standard 36 (IAS 36).

Other operating results

Other operating results experienced a positive variation of Ps. 2,468 million, mainly due to the recovery of provisions carried out in 2024 amounting to Ps. 3,843 million and the collection of insurance claims totaling Ps. 1,105 million. These effects were partially offset by the write-down of property, plant, and equipment assets amounting to Ps. 1,850 million.

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Financial results

This positive variation is mainly due to the lower negative net foreign exchange difference after the variation in the exchange rate registered in mid-December 2023. The selling peso/US dollar ended exchange rate closed at a value of Ps. 1,032.00 per US dollar as of December 31, 2024, representing an increase of approximately 28% (or Ps. 223.55 per US dollar) compared to the exchange rate observed at the closing of FY2023. As of December 31, 2023, said rate had increased by 356% (or $631.29 for each US dollar) regarding its quote at the closing of the FY2022. Meanwhile, tgs's net liability position in US dollars was reversed in 2024, becoming an asset by the end of that year.

Likewise, as a result of the deceleration of inflation and the net active monetary position, the net monetary position recorded a loss in FY2024 that was Ps. 73,674 million lower than the loss recorded in Fiscal Year 2023.

The effects mentioned above were partially offset by the negative variation in results generated by financial assets.

8.b. Liquidity

The Company’s primary sources and application of funds during FY2024 and FY2023 were the following:

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Cash Flows provided by operating activities increased by Ps. 71,349 million, mainly due to lower income tax payments and a higher variation in working capital.

Cash flows used in investing activities decreased by Ps. 64,628 million mainly driven by lower payments for the acquisition of investments not considered funds, according to Accounting Standards IFRS.

Regarding the cash flow used in investing activities, it amounted to Ps. 31,348 million compared to Ps. 53,685 million for FY2023. This effect was mainly due to the net repayment of financial debts in Fiscal Year 2024, whereas in Fiscal Year 2023, a net borrowing was recorded.

8.c. Fourth quarter 2024 (“4Q2024”) vs Fourth quarter 2023 (“4Q2023”)

The following table presents a summary of the consolidated results of operations for 4Q2024 and 4Q2023:

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During 4Q2024, the Company obtained comprehensive income of Ps. 129,619 million, compared to comprehensive loss of Ps. 51,090 million obtained in the same period of 2023.

Total revenues for 4Q2024 increased by Ps. 125,308 million compared to the same period of the previous year.

Revenues from the Natural Gas Transportation segment in 4Q2024 increased by Ps. 89,710 million, compared to 4Q2023. This positive variation was due to the tariff increases effective from April 1, 2024, of 675% nominal and the successive monthly tariff updates mandated by ENARGAS.

For the Liquids Production and Commercialization segment, revenues increased by Ps. 38,434 million in 4Q2024, mainly as a result of higher volumes of propane and butane dispatched and the increase in international reference prices and butane sold in the local market. These effects were partially offset by the decrease in the exchange rate measured in homogeneous currency and the drop in the price of ethane.

Regarding the total volumes dispatched from the Cerri Complex, they increased by 25% or 67,732 tons, highlighting the increase in exported propane and butane.

The breakdown of volumes dispatched by market and product and revenues by market is included below:

The Midstream business segment reported a slight decrease of Ps. 2,835 million, mainly explained by the negative impact of the exchange rate measured in homogeneous currency, an effect that was partially offset by higher natural gas transportation and conditioning services in Vaca Muerta, as well as operation and maintenance services.

Cost of sales and administrative and commercialization expenses for 4Q2024 amounted to Ps. 192,078 million (compared to Ps. 173,237 million in 4Q2023), which represented an increase of Ps. 18,841 million. This variation is mainly due to higher: (i) expenses for asset repair and maintenance, (ii) cost of natural gas processed at the Cerri Complex (higher consumption, partially offset by the lower price measured in homogeneous currency), and (iii) taxes, fees, and contributions (increase in gross income and withholdings due to higher sales revenue) and third-party fees and services.

The following table shows the main components of operating costs, administrative and commercialization expenses and their main variations for 4Q2024 and 4Q2023:

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In 4Q2024, financial results suffered a positive variation of Ps. 154,002 million, compared to those registered in the 2023 period. This variation is mainly due to the lower negative exchange difference and the loss on monetary position, effect of the net active monetary position. These effects were partially offset by the lower results obtained from the change in the fair value of financial assets.

8.d. Consolidated Financial Position Summary

Summary of the consolidated financial position information as of December 31, 2024, 2023, 2022, 2021 and 2020:

8.e. Consolidated Comprehensive Income Summary

Summary of the consolidated comprehensive income information for the years ended December 31, 2024, 2023, 2022, 2021 and 2020:

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8.f. Consolidated Cash Flow Summary

Summary of the consolidated cash flow information for the years ended December 31, 2024, 2023, 2022, 2021 and 2020:

8.g. Statistical Data (Physical units)

8.h. Comparative Ratios

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8.i. tgs share market value in Buenos Aires Stock Exchange at closing of last business day (in Argentine Pesos per share)

9. Board of Directors’ Proposal regarding the application of Results

The chart below provides a breakdown of our retained earnings as of December 31, 2024 and our proposal for its distribution. Our proposal includes, after the reversal of the Balance of the former “Reserve for Future Investments, Buyback of our Own Shares and/or Payment of Dividends” constituted by tgs Ordinary Shareholders Meeting dated April 17, 2024, the creation of a further “Reserve for Future Investments, Buyback of our Own Shares and/or Payment of Dividends”. In light of our new businesses outlook and the challenges we are facing in this oncoming fiscal year, it might be destined to: (i) future investmens related to the projects and businesses outlined in the Company’s business plan and and/or (ii) the payment of future dividends subject to the financial condition of the Company and the macroenconomic variables and/or (iii) the buyback of shares within the plan approved by the Board of Directors of the Company.  The mentioned reserve might be fully or partially distributed by the Board of Directors —as long as its use is not required in accordance with the provisions of subsections c) and e) of item 11, section 3, Chapter III Title IV of the CNV Standards (N.T. 2013), which with reference to treasury stock, based on the destination, opportunity and amount determined by the Board and approved by the Shareholders Meeting , in line with a reasonable management  criteria as outlined by applicable regulations and considering for such purposes, the economic  financial condition of the Company and its future outlook.  

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Autonomous City of Buenos Aires, February 27, 2025.

          Luis Fallo

Vice-Chairman acting as Chairman  

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English translation of the original prepared in Spanish for publication in Argentina

TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

The following is the composition of the resulting net value of Property, plant and equipment as of December 31, 2024 and 2023:

As of December 31, 2024 and 2023, Property, plant and equipment contains the following assets for right of use:

The depreciations recorded in the years 2024, 2023 and 2022 of the right-of-use assets correspond to the following:

The right to use these assets expires in September 2026 and December 2027.

13.LOANS 

Short-term and long-term loans as of December 31, 2024 and 2023 comprise the following:

Loans are totally denominated in US dollars.

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English translation of the original prepared in Spanish for publication in Argentina

TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

The activity of the loans as of December 31, 2024, 2023, and 2022 is the following:

During the year ended December 31, 2024, the Company incurred new bank loans of Ps. 65,800,369. Additionally, bank loans repayments were made for Ps. 106,597,626.

The maturities of current and non-current financial debt, net of issuance expenses, as of December 31, 2024 are as follows:

   Description of the Company's indebtedness as of December 31, 2024

Class 3 Notes (“2031 Notes”)

General description

On October 11, 2023, CNV approved the extension of the maximum amount of the Global Notes Program from US$ 1,200 million to US$ 2,000 million and the extension of the validity period of the Program for an additional 5 years from the expiration of the term, with the new expiration of the Program being January 3, 2029.

On July 24, 2024, within the framework of the 2024 Program, the Company issued the 2031 Notes in accordance with the following characteristics:

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English translation of the original prepared in Spanish for publication in Argentina

TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

The net proceeds from the 2031 Notes were US$ 483,688,800. The Company used the net

proceeds received to make a purchase and redemption of the 2018 Notes.

Covenants

As of December 31, 2024, the Company has complied with a series of restrictions derived from its current financial agreements, which include, among others, those related to obtaining new loans, payment of dividends, granting of guarantees, disposal of certain assets and transactions with related parties.

The Company may contract new debts under the following conditions, among others:

a.To the extent that after contracting the new debt (i) the consolidated coverage ratio (ratio between consolidated EBITDA (consolidated income before financial results, income tax, depreciation and amortization) and consolidated interest) is equal to or greater than 2.0:1; and (ii) the consolidated debt ratio (ratio between consolidated debts and consolidated EBITDA) is equal to or less than 3.50:1. 

b.For the refinancing of outstanding financial debt. 

c.Originated by customer advances.  

The Company may pay dividends under the following conditions: (i) the Company is not in default under 2031 Notes, and (ii) immediately after any dividend payment, the Company may incur new debts according to the provisions in point a. of the preceding paragraph.

As of the date of issuance of these Consolidated Financial Statements, the Company and its subsidiaries are in compliance with the covenants established in all of their financial debt.

Bank loans

The following table shows the details of other financial indebtedness as of December 31, 2024:

All of these loans are guaranteed by time deposits included as “Financial Assets at Current and Non-Current Amortized Cost.”

In March 2022, the subsidiary Telcosur received a loan of US$ 24 million. During the first quarter of 2023, Telcosur managed the extension of the loan's maturity date. As of December 31, 2024, the main terms of this loan were:

(1)Included as “Non-current financial assets measured at amortized cost”. 

Additionally, on January 23, 2025, Telcosur extended the loan's maturity date to July 28, 2025.

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English translation of the original prepared in Spanish for publication in Argentina

TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

Lease liability

It corresponds to the financing obtained for the acquisition of the assets corresponding to the treatment and compression plant located in the Río Neuquén area. Said agreement was entered into on August 11, 2016, with Petrobras (currently Pampa Energía) and consists of the payment of 119 consecutive monthly installments of US$ 623,457 without taxes and a purchase option for the same amount payable at the end of the 120th month of validity of the agreement. contract.

In January 2023, the Company entered into a new lease liability for Ps. 3,918,826. It is denominated in US dollars, payable in fixed monthly installments until December 2027.

The following table sets reconciliation between the total of future minimum lease payments as of December 31, 2024, and their present book value:

14.INCOME TAX AND DEFERRED TAX 

Tax adjustment for inflation

Law No. 27,468 establishes that in the net taxable income of the periods beginning on or after January 1, 2018, the adjustment for inflation obtained by the application of the income tax law may be deducted or incorporated into the tax result for the fiscal year. This adjustment will proceed only if the percentage variation in the IPC, will accumulate (a) a percentage higher than 100% in the 36 months prior to the end of the year, or (b) regarding the first, second and third fiscal year that starts from its effective date, an accumulated variation of the IPC that exceeds 55%, 30% or 15% of said 100%, respectively.

For the fiscal years ended December 31, 2024, 2023 and 2022, the CPI has exceeded the 100% threshold mentioned above, so the Company has measured the tax charge to earnings for the years ended December 31, 2024, 2023 and 2022 considering the application of the adjustment for fiscal inflation.

According to the Solidarity Law, the positive or negative result generated by the application of the inflation adjustment corresponding to the first and second fiscal year beginning on January 1, 2019 will be charged in a sixth in that fiscal period and the five sixths remaining in equal parts in the following 5 fiscal periods. As of January 1, 2021, 100% of the adjustment may be deducted/taxed in the year in which the effect is determined.

On November 16, 2022, the Senate of the Nation approved the 2023 budget bill under Law No. 27,701, which already had half a sanction from the Chamber of Deputies.

The 2023 budget law incorporates article 195 to the income tax law establishing that in the event that the adjustment for tax inflation is applicable and a positive adjustment (profits) arises from it, the first and second fiscal years starting on 1 January 2022 inclusive, they may allocate 1/3 in that fiscal period and the remaining 2/3, in equal parts, in the 2 immediately following fiscal periods. For the deferral to be appropriate, it will be necessary for companies to make an investment in the purchase, construction, manufacture, processing or definitive import of fixed assets (except automobiles), during each of the 2 fiscal periods immediately following that of

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English translation of the original prepared in Spanish for publication in Argentina

TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

the calculation of the first third of the period in question, for an amount equal to or greater than $30,000,000,000.

As of December 31, 2023, the Company projected investments in PPE in accordance with the requirements mentioned above, determining that the amounts exceed what is established by law.

Adjustment of acquisitions and investments made in fiscal years beginning on or after January 1, 2018

A cost adjustment mechanism is established for assets acquired or investments made in fiscal years beginning on or after January 1, 2018. The adjustment will be made based on the percentage variations of the IPIM.

Extraordinary tax RG N° 5268/2022

On August 16, 2022, RG No. 5268/2022 was published through which the AFIP ordered an extraordinary advance of income tax. The extraordinary advance payment constitutes an additional payment on account to that provided for in the general advance payment regime that can be added to the latter. For fiscal year 2022, the Company paid the AFIP Ps. 22,837,153 for this concept.

Deferred tax

The reconciliation between the charge computed for tax purposes and the income tax expense charged to the Statement of Comprehensive Income in the years ended December 31, 2024, 2023 and 2022 is as follows:

The analysis of the net deferred tax assets and liabilities is as follows:

The components of the net deferred tax assets and liabilities as of December 31, 2024, 2023 and 2022 is as follows:

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English translation of the original prepared in Spanish for publication in Argentina

TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

As of December 31, 2021, the Company had a specific tax carryforward derived from negative exchange differences for the years 2021 and 2020 generated by financial instruments traded abroad for Ps. 7,974,955. The realization of such tax loss depended on the future generation of taxable financial gains taxed during the statute of limitations period. To determine its recoverability, the Company took into consideration the reversal of the deferred items, its tax planning and projections of future specific taxable income based on its best estimate. Based on these projections and because it was not possible to estimate as probable the generation of future specific financial gains to absorb such tax loss, no deferred tax asset of Ps. 794,334 was recognized as of December 31, 2021. During the year ended on December 31, 2022, the tax loss carryforward was totally recovered.

Below is a reconciliation between the income tax charged to results for the years ended December 31, 2024, 2023 and 2022 and that which would result from applying the current tax rate on net income before income tax for the exercise:

15.EVOLUTION OF PROVISIONS 

Provisions are included in current liabilities.

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English translation of the original prepared in Spanish for publication in Argentina

TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

16.FINANCIAL RISK MANAGEMENT 

16.1 Financial risk factors

The Company’s activities and the market in which it operates expose it to a series of financial risks: market risk (including foreign exchange risk, interest rate risk, and commodity price risk), credit risk and liquidity risk.

The Company's risk management framework establishes that a risk map is determined that measures the potential impact of each of them on the financial situation and results of operations. Based on this, the Executive Officers are responsible for defining the policies, procedures, limits and measures aimed at mitigating the impact of said risks.

The sensitivity analyzes included below are based on the change in one of the factors while all others remain constant. In practice, this is unlikely to happen, and changes in several factors can be correlated, for example, in variations in the interest rate and variations in the foreign currency exchange rate.

Sensitivity analysis only provides limited vision, at one point in time. The actual impact on the Company's financial instruments could vary significantly with respect to the impact shown in the sensitivity analysis.

16.1.1 Risk associated with exchange rates

Exchange rate risk management

In view of the main impacts of the aforementioned situation and those detailed in Note 1 to these Consolidated Financial Statements, the Company has implemented a series of measures to mitigate their impact. In this sense, the Company's Management permanently monitors the evolution of the situations that affect its business, in order to determine the possible actions to be taken and identify the eventual impacts on its equity and financial situation. The Company considers that its current financial position will allow it to comply, in the short term, with its foreign currency commitments. The Company's financial statements should be read in light of these circumstances.

The Company is primarily exposed to the fluctuation of the exchange rate of the U.S. dollar against the Argentine Peso due to the fact that almost its entire financial indebtedness is denominated in U.S. dollars. The exposure to other currencies is not significant.

As regards to the revenue derived from the Natural Gas Transportation segment, the tariffs charged by the Company are currently denominated in Argentine pesos. On the other hand, revenues in US dollars derived from the Liquids Production and Commercialization segment accounted for approximately 87% of the segment’s total revenues for the years ended December 31, 2024, 2023 and 2022. Total operating cost denominated in Argentine Pesos accounted for 74%, 81% and 83% for the years ended December 31, 2024, 2023 and 2022, respectively.

As of December 31, 2024, 2023 and 2022, 44%, 35% and 35% of total revenues are denominated in Argentine, respectively.

tgs' financial risk management policies are defined with the objective of mitigating the impact of exchange rate fluctuations on the Company's foreign currency position. To this end, alternative investment evaluations are regularly carried out to diversify tgs'

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English translation of the original prepared in Spanish for publication in Argentina

TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

investment portfolio among instruments denominated in U.S. dollars or, although denominated in Argentine pesos, to obtain positive returns in real terms.

Additionally, if deemed appropriate, the Company enters into derivative financial instruments that allow hedging the fluctuation of the U.S. dollar on the positions in such currency in the long term.

However, the Company, in order to mitigate the impact on the future variation of the exchange rate, has placed funds in assets denominated in U.S. dollars. As of December 31, 2024, 81% of the Company's fund placements are denominated in U.S. dollars.

For further information regarding the Company's foreign currency position see "Note 18. Foreign currency assets and liabilities".

Management of the Company estimates that, based on the net asset / liability position as of December 31, 2024 and 2023, a 10% appreciation in the exchange rate of the U.S. dollar against the Argentine peso, with all other economic-financial variables stable, could have resulted in a pre-tax income / (loss) of Ps. 10,758,875 and (Ps. 13,625,470), respectively. A 10% depreciation of the U.S. dollar against the Argentine peso would have an equal and opposite effect on the Statement of Comprehensive Income. This sensitivity analysis is theoretical as the actual impacts could differ significantly and vary over time.

In order to mitigate the exchange rate risk, during fiscal year 2024, tgs entered into both forward purchase operations of US dollars, as well as investments in mutual funds linked to the US dollar in order to hedge exposure to the risk associated with the exchange rate that derives from its financial debt.

16.1.2 Interest rate risk

Interest rate risk management seeks to reduce financial costs and limit the Company's exposure to increases in interest rates. tgs' exposure to risks associated with interest rate variations is limited given that all of its financial debt is subject to fixed interest rates. Information regarding the Company's financing is disclosed in Note 13.

In addition, the main objective of the Company's financial investment activities is to obtain the highest return by investing in low-risk and highly liquid instruments. The Company maintains a portfolio of cash equivalents and short-term investments comprised of investments in mutual funds and deposits in interest-bearing bank accounts, public and private securities. The risk of these instruments is low since they are mostly short-term and highly liquid in recognized financial institutions.

As a consequence of the application of IAS 29, maintaining monetary assets generates loss of purchasing power, provided that such items are not subject to an adjustment mechanism that compensates to some extent the loss of purchasing power. This loss of purchasing power is included in the result of the period under gain on the net monetary position. On the contrary, maintaining monetary liabilities generates a gain in purchasing power, which are also included in such line item.

The Company's risk management policies are defined with the objective of reducing the impact of the loss of purchasing power. During the 2024 and 2023 fiscal years the Company has maintained an asset net monetary position. As a consequence, tgs has recorded a net gain from exposure to inflation in the monetary items. In the fiscal year 2022, the Company maintained a liability net monetary position, resulting a net gain from exposure to inflation in the monetary items.

The following table shows a breakdown of the Company’s fixed-rate and floating-rate financial assets and liabilities as of December 31, 2024 and 2023:

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TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

In view of the nature of the Company’s financial assets which bear variable interest, an immediate 100 basis points decrease in the interest rate would not have a significant impact on the total value of the financial assets.

16.1.3 Commodity price risk

Commercial operations performed by the Company in its Liquids Production and Commercialization business segment are affected by a number of factors beyond its control, including changes in the international prices of the products sold, and government regulations on prices, taxes and other charges, among others.

The sales prices of exported propane, butane and natural gasoline are determined according to international reference prices (Mont Belvieu for propane and butane and NWE ARA for natural gasoline). Additionally, most of the total sales of propane and butane that are made in the domestic market are made at prices set by the Secretary of Energy for the different market segments.

These prices have historically fluctuated in response to macroeconomic conditions and changes in supply and demand, which could affect tgs' profitability.

Based on volume of sales for the years ended December 31, 2024, 2023 and 2022, tgs estimated that, other factors being constant, a decrease of US$ 50 per ton in the international price of LPG and natural gasoline, respectively, would have decrease the Company’s net comprehensive income in its Liquids Production and Commercialization segment in Ps. 19,611,268, Ps. 29,490,323 and Ps. 21,749,155, respectively. On the other hand, an increase of US$ 50 per ton in the international price would have had the opposite effect.

16.1.4 Credit risk

The Company’s exposures to credit risk takes the form of a loss that would be recognized if counterparties failed to, or were unable to, meet their payment obligations. These risks may arise in certain agreements in relation to amounts owed for physical product sales, the use of derivative instruments, and the investment of surplus cash balances. This risk mainly results from economic and financial factors or from a possible default of counterparty.

The Company is subject to credit risk arising from outstanding receivables, cash and cash equivalents and deposits with banks and financial institutions, and from the use of derivative financial instruments. The Company’s policy is to manage credit exposure to trading counterparties within defined trading limits.

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TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

Trade and other receivables

If any of the Company’s customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, the Company assesses the credit quality of the customer taking into account its financial position, past experience and other factors. The Company may seek cash collateral, letter of credit or parent company guarantees, as considered appropriate.

As of December 31, 2024 and 2023, current and non-current sales receivables, net of allowance for doubtful accounts, amounted to:

Likewise, as of December 31, 2024 and 2023, the Company has credits for government grants for Ps. 10,881,706 and Ps. 10,182,355, respectively.

In the ordinary course of business, the Company provides natural gas transportation services mainly to natural gas distribution companies, CAMMESA and Pampa Energía. The amounts of revenues made to the principal customers to which Natural Gas Transportation services were provided in the years ended December 31, 2024, 2023 and 2022 and the revenues receivable balances (net of allowances) as of December 31, 2024 and 2023 are set forth below:

The amounts of Liquids Production and Commercialization revenues made to major customers during the years ended December 31, 2024, 2023 and 2022 and revenues receivable balances (net of allowances) as of December 31, 2024 and 2023 are set forth below:

The amounts of Midstream revenues made to major customers during the years ended December 31, 2024, 2023 and 2022 and revenues receivable balances (net of allowances) as of December 31, 2024 and 2023 are set forth below:

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TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

Cash and financial placements

The credit risk on cash and cash equivalents and other financial placements is limited since tgs has short-term fund placement policies whose main objective is to obtain an adequate return based on market characteristics and minimizing risk exposure. These placements are diversified in different financial institutions with adequate credit ratings in order to limit exposure to a few financial institutions. The Company's maximum exposure to credit risk will be given by the carrying value of assets included in cash and cash equivalents and other financial assets measured at amortized cost.

Below is a detail of the maturities of the financial assets included in (i) cash and cash equivalents, (ii) other financial assets, (iii) trade receivables, and (iv) other receivables as of December 31, 2024 and 2023:

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TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

16.1.5 Liquidity risk

This risk involves the difficulties that tgs may have in meeting its commercial and financial obligations. To this end, the expected cash flow is regularly monitored.

tgs has policies for borrowing funds whose main objective is to cover financing needs at the lowest cost according to market conditions. One of the Company's main objectives is to have financial solvency. Given the current conditions of the financial market, the Company believes that the availability of resources and the positive cash flow from operations are sufficient to meet its current obligations, despite having credit lines for borrowing funds.

Additionally, a methodology is used for the analysis and assignment of credit limits to the different financial entities in order to minimize the associated liquidity risk. In line with this, the Company invests its liquid funds in financial entities with an adequate credit rating.

Below is a detail of the maturities of the Company's financial liabilities corresponding to: commercial debts, remunerations, other debts and financial debts as of December 31, 2024 and 2023. The amounts presented in the tables represent contractual undiscounted cash flows and, therefore, do not correspond to the amounts presented in the statement of financial position. These estimates are made on the basis of information available at the end of each year and may not reflect actual amounts in the future. Therefore, the amounts shown are provided for illustrative purposes only:

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TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

16.1.6 Capital management risk

The Company's objectives in managing capital are to safeguard the Company's ability to continue as a going concern, to achieve an optimal cost of capital structure and to support the investment process in order to provide returns to shareholders and benefits to other stakeholders.

tgs seeks to maintain a level of cash generation from its operating activities that will enable it to meet all of its commitments.

The Company monitors capital on the basis of the leverage ratio. This ratio is calculated as total financial debt (including "current financial debt" and "non-current financial debt" as shown in the Statement of Financial Position) divided by total capital. Total

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TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

capital is calculated as "Shareholders' Equity", as shown in the Statement of Changes in Shareholders' Equity, plus total financial debt.

During the years ended December 31, 2024 and 2023, the gearing ratio was as follows:

16.2 Financial instruments by category and level of hierarchy

16.2.1 Categorization of financial instruments

Accounting policies for the categorization of financial instruments were explained in Note 4.e. In accordance with IFRS Accounting Standards 7, IAS 32 and IFRS Accounting Standards 9, non-financial assets and liabilities, such as contract and supplier liabilities, tax and social charges, income tax and deferred income tax are not included.

The categorization of financial assets and liabilities as of December 31, 2024 and 2023 is included below:

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TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

16.2.2 Fair value measurement hierarchy and estimates

According to IFRS Accounting Standard 13, the fair value hierarchy introduces three levels of inputs based on the lowest level of input significant to the overall fair value. These levels are:

·Level 1: includes financial assets and liabilities whose fair values are estimated using quoted prices (unadjusted) in active markets for identical assets and liabilities. The instruments included in this level primarily include balances in mutual funds and public or private bonds listed on the Bolsas y Mercados Argentinos S.A. (“BYMA”). Mutual funds mainly invest in highly liquid instruments with low price risk. 

·Level 2: includes financial assets and liabilities whose fair value is estimated using different assumptions quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (for example, derived from prices). Within this level, the Company includes those derivate financial instruments for which it was not able to find an active market. 

·Level 3: includes financial instruments for which the assumptions used in estimating fair value are not based on observable market information. 

During 2024 and 2023, there were no transfers between the different hierarchies used to determine the fair value of the Company's financial instruments or reclassifications between categories of financial instruments.

The tables below show different assets at their fair value classified by hierarchy as of December 31, 2024 and 2023:

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TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

The fair value amount of the financial assets is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

As of December 31, 2024, the carrying amount of certain financial instruments used by the Company, in cash, cash equivalents, other investments, accounts receivable and payable and short-term obligations is representative of fair value due to the short-term nature of these instruments.

The estimated fair value of Non-current loans is estimated based on quoted market prices. The following table reflects the carrying amount and estimated fair value of the 2031 Notes at December 31, 2024, based on their quoted market price:

17. REGULATORY FRAMEWORK

a.Regulatory framework of the Natural Gas Transportation Segment 

General Aspects

Regarding tgs’ Natural Gas Transportation business, it is regulated by Law No. 24,076 (“the Natural Gas Act”), its regulatory Decree No. 1,738/92 and the Regulatory framework for the transportation and distribution of natural gas in Argentina. The Natural Gas Act created ENARGAS, which is entitled, among other things, to set the basis for the calculation, monitoring, approval of tariffs and the power to verify compliance with the Natural Gas Law and its regulations. On January 28, 2016, Resolution No. 7 of the Ministry of Energy and Mining (“MINEM”) of Argentina repealed the Resolution 2000/2005 of the former Ministry of Federal Planning, Public Investment and Services (“ex MPFIPyS”) which provided that all tariff increases should have the prior intervention of the Undersecretary of Coordination and Management Control.

tgs´ License has been granted for an original period of 35 years beginning on December 28, 1992. However, the Natural Gas Act provides that tgs may apply to ENARGAS for a renewal of its license for an additional period of ten years. ENARGAS should evaluate at that time the performance of tgs and raise a recommendation to the Executive Branch. At the end of the period of validity of the license, 35 or 45, as appropriate, the Natural Gas Act requires a call for a new tender for the granting of a new license, in which tgs, provided the Company fulfilled substantially with the obligations resulting from the license, would have the option of matching the best offer that the Government received in this bidding process.

Although the License expires in December 2027, it can be extended by the Executive Branch for an additional period of 10 years, provided that certain technical conditions established in it are met. Furthermore, in accordance with the regulations of the Ley Bases, the mentioned 10-year period is extended to 20 years.

On September 8, 2023, the Company submitted to ENARGAS the request to initiate the procedure contemplated in Article 6 of the Natural Gas Law No. 24,076 for the renewal of the License. On June 13, 2024, ENARGAS issued a technical and legal report indicating that

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TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

the Company has fully complied with its obligations regarding the License. The aforementioned report allows the ENARGAS controller, after the non-binding public hearing held on October 21, 2024, to issue its recommendation report to be submitted to the PEN, which could ultimately issue the decree granting the required extension of the License. Following this submission of the ENARGAS recommendation, the PEN may issue the decree granting the extension of the License within 120 business days.

As of the date of issuance of these Financial Statements, the PEN decree is still pending issuance, which is estimated to be issued during the first half of 2025 after the various public bodies have been involved.

Tariff situation

Prior the enactment of the Public Emergency Law, and according to the Regulatory Framework, transportation tariffs were to be calculated in US dollars and converted into Argentine pesos at the time the customer was billed using the exchange rate prevailing at the date of the billing. The basic natural gas transportation tariffs charged by tgs had been established at the time of the privatization of GdE and were to be adjusted, subject to prior authorization, in the following cases: (i) semi-annually to reflect changes in the US producer price index (“PPI”) and (ii) every five years according to efficiency and investment factors determined by ENARGAS. The “efficiency factor” was a reduction to the base tariff resulting from future efficiency programs while the “investment factor” increased the tariffs to compensate the licensees for future investments which were not repaid through tariffs. Also, subject to ENARGAS approval, tariffs were to be adjusted to reflect non-recurrent circumstances or tax changes, other than income tax.

Following the enactment of the Public Emergency Law, the adjustment clauses for tariffs based on the value of the US dollar and those based on foreign price indexes, as well as any other indexing mechanism, were eliminated. Additionally, the law established an exchange rate of one Argentine peso equal to one US dollar for tariffs and granted the Executive Branch power to renegotiate public service contracts with the licensee companies according to certain criteria established therein. The law, after successive extensions, expired on December 31, 2017.

Between July 2003 and March 2018, the Company received a series of temporary tariff increases under the framework of the Integral Tariff Review (“RTI” for its acronym in Spanish) process initiated after the Public Emergency Law was passed.

After being approved by the various intervening government agencies and the National Congress, the 2017 Integral Agreement signed on March 30, 2017 was ratified on March 27, 2018, through Decree No. 250/2018 (the “Decree 250”) of the Executive Branch. This decree represents the conclusion of the RTI process and the completion of the 2017 Transitional Agreement, and thus, the final renegotiation of the license after seventeen years of negotiations.

The 2017 Integral Agreement sets the guidelines for the provision of the natural gas transportation service until the end of the License. Among these guidelines:

·The RTI Process, which will culminate in the signing of the integral agreement, was approved. As a result of this RTI, a new tariff schedule was also approved. This new tariff schedule applicable to the Company determined a total tariff increase of 214.2% and 37%, in the event that it had been granted in a single installment as of April 1, 2017, on the tariff of the natural gas transportation service and the CAU, respectively. 

·A Five-Year Investment Plan is approved. Resolution 4362 obliged tgs for the execution of the Five-Year Plan, which requires a high level of essential investments for the operation and maintenance of the pipeline system, to provide quality, safe and reliable service. The Five-Year Plan shall be for the period from April 1, 2017 to  

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TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

March 31, 2022 and will amount to Ps. 6,786,543, expressed in December 31, 2016 currency terms.

·A non-automatic six-month adjustment mechanism for the natural gas transportation tariff and the investment commitments were approved. This adjustment must be approved by ENARGAS and for its calculation, the evolution of the WPI published by INDEC will be considered.  

·tgs and its shareholders must withdraw any claim against the Government related to the natural gas transportation business, including the arbitration proceedings before the ICSID. The Company desisted from it on June 26, 2018. 

Semi-annual tariff increase

As mentioned above, following the completion of the RTI process, the Company is granted the right to receive a semi-annual tariff adjustment, which is subject to the authorization of ENARGAS.

In the public hearing held on September 4, 2018, in which the Company requested, based on the variation of the WPI recorded for the period February - August 2018, a tariff increase of approximately 30%. Considering the hearing, on September 27, 2018, ENARGAS issued Resolution No. 265/2018 which determined a 19.7% tariff increase effective as of October 1, 2018.

This increase was determined by ENARGAS based on the simple average of the WPI, the Construction Cost Index for the period February and August 2018 and the Salary Variation Index between December 2017 and June 2018.

On March 29, 2019, ENARGAS issued Resolution No. 192/2019 ("Resolution 192") that approved, effective as of April 1, 2019, a 26% increase in the tariff chart applicable to the public service of natural gas transportation by tgs in force as of March 31, 2019.

In accordance with current regulations, ENARGAS has considered the evolution of the wholesale price index update index ("WPI") between the months of August 2018 and February 2019, in order to define the semi-annual adjustments applicable to tgs tariffs.

Regarding the semi-annual tariff adjustment that was to be enforced as from October 1, 2019, on September 3, 2019, the SE issued Resolution No. 521/2019 (“Resolution 521”) postponing it to February 1, 2020, subsequently modified by Resolution No. 751/2019 by which it was postponed until February 1, 2020. This deferral also meant that the Company has adapted, in equal proportion to the income that is not received, the execution of the Five-Year Investment Plan.

Following the enactment of the Solidarity Law, the national government announced its intention to suspend tariff adjustments for public services for the transportation and distribution of natural gas and electricity under federal jurisdiction for 180 days, in order to initiate a process of renegotiation of the RTI, or to initiate an extraordinary tariff review. On June 18, 2020, the PEN promulgated Decree of Necessity and Urgency No. 543/20, through which the tariff freeze established by the Solidarity Law was extended for another 180 calendar days.

On December 16, 2020, Decree of Necessity and Urgency No. 1,020/2020 (“Decree 1,020”) was issued, through which the start of the renegotiation of the RTI concluded in 2018 within the framework of the Solidarity Law was determined.

According to that decree, the renegotiation period could not exceed 2 years from the date of entry into force. Until then, the current renegotiation agreements were suspended. Said renegotiation remained in the power of ENARGAS ad-referendum of the PEN. The

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TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

renegotiation process was extended on successive occasions, the last of which was until July 9, 2025.

Additionally, the Solidarity Law provides for the administrative intervention of ENARGAS, recently extended through Decree 1,023/2024 (“Decree 1,023”).

On March 16, 2021, the public hearing convened by ENARGAS was held for the purposes of considering the Transitional Tariff Regime (“RTT”) in accordance with the provisions of Decree 1,020. In this regard, tgs, without renouncing the full percentage of tariff recomposition that corresponds to it, alternatively presented at this hearing a proposal for a tariff increase calculated by 58.6%, as of April 1, 2021. It was calculated based on the financial needs to meet the operating and financial costs, capital investments and taxes, which were calculated considering the evolution of the inflation rate for a period of 12 months from its inception. Such requested increase contemplated only the necessary funds to meet the obligations as a licensee.

Additionally, in such public hearing, tgs denied and dismissed the arguments raised in it that considered that the current natural gas transportation tariff is not fair and reasonable given the alleged existence of serious defects in the administrative acts derived from the processing of the last Regime Comprehensive Tariff (“RTI”) made for tgs.

On April 28, 2021, ENARGAS sent to tgs, a Transitory Agreement Project 2021 within the framework of the provisions of Decree 1,020. Said project provided:

• The non-granting of a temporary tariff increase, keeping the tariff schedules approved by ENARGAS in April 2019 unchanged.

• It established that from May 2021 and until the Definitive Renegotiation Agreement is in force, ENARGAS will proceed to re-calculate the transportation tariffs at that time in force with effect from April 1, 2022.

• It did not establish a mandatory investment plan.

• The prohibition of: (i) distribution of dividends, (ii) an early cancellation of financial and commercial debts contracted with shareholders, and (iii) the acquisition of other companies or granting loans.

On April 30, 2021, through a note sent to that body, tgs stated that, given the context in which it develops its activities and the proposed terms and conditions, it was not feasible for the Company to sign the 2021 Temporary Agreement Project.

On June 2, 2021, ENARGAS issued Resolution No. 149/2021 (the “Resolution 149”) approving an RTT for the year 2021 (the “RTT 2021”) for tgs effective as of that date. On the other hand, the Ministry of Economy and ENARGAS issued Joint Resolution No. 1/2021 where they approved the actions taken in the renegotiation process developed by ENARGAS in the terms of Decree No. 1020/2020, indicating that it was not feasible to arrive to an agreement on a transitional tariff adjustment.

In July 2021, tgs filed appeals for reconsideration with the PEN, the Ministry of Economy of the Nation and ENARGAS with an appeal or hierarchical subsidy in accordance with the respective powers of each of these bodies in the dictation of the entire regulatory plexus associated with Resolution 149, (Decree 1020/20, Decree 353/21, and Joint Resolution No. 1/2021), requesting that the RTT be declared null and void and the RTI be restored. We recall that the RTT began with Decree 1020/20, which set the guidelines to carry out the renegotiation of the RTI, later issuing Joint Resolution 1/21, which sets the RTT, and Decree 353/21, which approved Joint Resolution 1 /21, and culminates with Resolution 149, which approved the new tariff charts.

The challenges are based on: i) the illegality of Decree 1020 because it does not follow the lines of the delegation provided for in Law 27,541, and as a Decree of Necessity and Urgency it does not comply with the requirements of the Constitution for the issuance of this regulation; ii) the extension of the emergency beyond that provided by Congress; iii) the

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TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

failure to carry out the tariff renegotiation as provided for in Law 24. 076; iv) the disregard of the principle of fair and reasonable tariffs, and the acquired rights of tgs in the License, the Contractual Adjustment Agreement and the RTI; and v) the suspension of the RTI for reasons of public interest, which merits the recognition of the compensations, provided by both the Administrative Procedures Law and the Basic Rules of the License.

The restrictions imposed on the management and management of the Company, which have no legal justification, are also questioned, given that the emergency declared by Law No. 27,541 only empowered the National Executive Power to renegotiate the RTI and not the License.

The challenges and the request for reinstatement of the RTI have been made without prejudice to the right of tgs to pay the compensation that corresponds to it for not having complied with the RTI since April 2019.

On November 15, 2021, the Company filed a Prior Administrative Claim before ENARGAS and the Ministry of Economy. The purpose of said presentation is to request the compensation that corresponds to tgs for the lack of application of the semi-annual adjustment methodology established in the RTI approved by Resolution 4362 between October 1, 2019 and June 1, 2021.

In addition, payment of compensation for the damages suffered by tgs due to the freezing caused by the failure to apply the six-monthly adjustment methodology established in the RTI in the aforementioned period is requested.

On January 19, 2022, a new public hearing was held, within the framework of ENARGAS Resolution No. 518/2021, whose purpose was to deal with a transitory tariff adjustment within the framework of Decree 1020/2020. In such hearing, with the purpose of reaching a definitive agreement on the renegotiation and recomposing the license economic-financial equation, tgs requested a transitory tariff adjustment applied in two stages for the year 2022 for a total of 106%, due to the evolution of operating costs and the main macroeconomic indicators.

Subsequently, on February 1, 2022, tgs received from ENARGAS a proposal for a Transitional Renegotiation Agreement (the “2022 Transition Agreement”) which was approved by our Board of Directors on February 2, 2022 and by the corresponding government agencies on February 18, 2022. The 2022 Transition Agreement includes, in some aspects, similar terms to the 2021 RTT with the particularity that it grants tgs a 60% tariff increase effective as from March 1, 2022 (the “RTT 2022”).

The 2022 Transition Agreement was ratified by the PEN through Decree No. 91/2022, which entered into force as from February 23, 2022. On February 25, 2022, the ENARGAS issued Resolution No. 60/2022 by which it put into effect the tariff schedules that contemplate the RTT 2022.

It should be noted that, in accordance with the provisions of the 2022 Transition Agreement, tgs committed not to initiate new claims, appeals, actions, lawsuits or demands of any kind; and/or to suspend, keep suspended or extend the suspension of all appeals and claims filed that are related in any way to the Renegotiation of the Comprehensive Tariff Review in force, Law No. 27,541, Decrees No. 278/20 and No. 1020.

Under Decrees 1020 and 815, on December 7, 2022, ENARGAS issued Resolution No. 523/2022 which called for a public hearing on January 4, 2023 to, among other issues, consider the transitory adjustment of tariffs for the public natural gas transportation service.

On March 16, 2023, the TGS Board of Directors approved the proposed addendum to the transitional renegotiation agreement (the "2023 Transition Agreement") sent by ENARGAS. This addendum was subsequently ratified by the PEN through Decree No. 250/2023 of April

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TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

29, 2023. Previously, on April 27, 2023, ENARGAS issued Resolution No. 186/2023 through which the new tables were published. current tariffs.

The 2023 Transition Agreement has similar conditions to the 2022 Transition Agreement and includes:

- As of April 29, 2023, a temporary rate increase of 95% on the natural gas transportation rate and the CAU.

- During its term, tgs could only distribute dividends after requesting authorization from ENARGAS, subject to the approval of the Ministry of Economy.

On December 14, 2023, ENARGAS Resolution No. 704/2023 called for a public hearing to be held on January 8, 2024 in order to consider a temporary tariff adjustment.

On December 16, 2023, decree No. 55/2023 was issued declaring the emergency of the national energy sector until December 31, 2024 which was extended until July 9, 2025 by Decree 1023 of November 19, 2024. Among other issues, this decree: (i) establishes the beginning of the process of Five-year Tariff Review (“RQT”), (ii) the intervention of ENARGAS as of January 1, 2024 and (iii) instructs the Ministry of Energy to issue the necessary standards and procedures for the sanction of market prices for the public transport service of natural gas. Decree 1023 provides that the entry into force of the tariff tables resulting from the tariff review initiated pursuant to the provisions of Decree No. 55/23 may not exceed July 9, 2025.

After the public hearing was held on January 8, 2024 and its validity was declared by ENARGAS, On March 26, 2024, tgs entered the 2024’s Transitional Agreement with the ENARGAS, which provides for a transitional 675% increase in natural gas transportation tariffs. This tariff increase came into effect on April 3, 2024, after Resolution No. 112/2024 (the “Resolution 112”) issued by ENARGAS was published in the Official Gazette. According to Resolution 112, as from May 2024 and until the RTI process is completed, tariffs are adjusted monthly according to the following formula (the "Transitional Adjustment Index"):

- 47.0% adjusted by the Wage Index - Registered Private Sector published by INDEC

- 27.2% adjusted by the Wholesale Price Index (“WPI”)

- 25.8% adjusted by the Construction Cost Index in Greater Buenos Aires - Materials chapter

published by INDEC.

To this end, ENARGAS will issue the corresponding monthly resolution adjusting the tariff tables to be applied. On May 9, 2024, ENARGAS notified the licensee companies of the public natural gas transportation and distribution service of the postponement of the monthly tariff adjustment mentioned above.

During the months of May to July 2024, ENARGAS notified tgs that it will postpone the implementation of the monthly tariff adjustment. Likewise, it notified that it will replace the monthly adjustment methodology mentioned above for the remainder of 2024. According to the ENARGAS notification, the monthly tariff increase will be based on the expected inflation to be estimated by the Ministry of Economy for said period.

On July 1, ENARGAS once again informed the Company of the postponement of the monthly

tariff increase, this time corresponding to the month of July, maintaining the tariff schedules in effect since April 3, 2024.

During the year 2024 and the elapsed period of 2025, the Company received tariff increases of 675%, 4%, 1%, 2.7%, 3.5%, 3%, 2.5%, and 1.5%, effective from April 3, August 1, September 2, October 1, November 4, December 4, January 1, 2025, and February 1, 2025, respectively.

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TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

It is worth noting that the operation of gas pipelines by tgs requires a high level of investment related to the quality, safety and reliability of the service. This is the reason why it is important to determine the tariff for the public service of natural gas transportation based on a prudent and efficient economic operation, which allows obtaining sufficient income for the provision of a sustainable, safe and reliable service.

In this regard, and within the framework of the RQT process, on January 14, 2025, ENARGAS, through Resolution No. 16/2025, published the call for the public hearing held on February 6, 2025, with the purpose of considering, among other issues, the RQT for gas transportation and distribution, and the periodic adjustment methodology for gas transportation and distribution tariffs.

At this hearing, tgs presented, among other aspects, its expenditure and investment plan for the five-year period 2025-2029, the capital base, and the proposed WACC (9.98% real after taxes). Considering the tariff calculation methodology and the mentioned parameters, a tariff increase of 22.7% was requested compared to the tariffs in effect as of January 2025. Additionally, alternatives for the periodic tariff adjustment methodology were presented:

·IPIM, or 

·A polynomial formula composed of information published by INDEC: 

o30% IPIM, 

o40% total registered wage index, and 

o30% construction cost index for materials. 

As of the date of issuance of these Consolidated Financial Statements, ENARGAS has not issued the corresponding resolution concluding the RQT by granting the tariff increase and providing the framework under which the natural gas transportation activity will be developed during the five-year period 2025-2029. However, at the public hearing, ENARGAS proposed the application of a WACC rate of 7.18% real, after taxes, and a periodic tariff adjustment proposal composed of 50% CPI and 50% IPIM.

b)General framework for non-regulated segments 

Domestic market

The Liquids Production and Commercialization and Midstream segments are not subject to regulation by ENARGAS, and as it is provided in the Transfer Agreement, is organized as a separate business unit within tgs, keeping accounting information separately. However, over recent years, the Argentine Government enacted regulations which significantly impacted on it.

In April 2005, the Argentine Government enacted Law No. 26,020 which sets forth the regulatory framework for the industry and commercialization of LPG. Among other things, the Law No. 26,020 creates the framework through which the Secretary of Hydrocarbon Resources (“SHR”) (formerly the Federal Energy Bureau) establishes regulations meant to cause LPG suppliers to guarantee sufficient supply of LPG in the domestic market at low prices. Law No. 26,020 creates a price regime pursuant to which the SRH periodically publish reference prices for LPG sold in the domestic market. It also sets forth LPG volumes to be sold in the domestic market.

Within this framework, tgs sells propane and butane production to fractionators at prices determined every six months. On March 30, 2015, the Executive Branch issued Decree No. 470/2015, regulated by Resolution No. 49/2015 issued by the Federal Energy Bureau, which created the Programa Hogares con Garrafa (the “Households with Bottles Program”) which replaced the programs in force until that time. The Households with Bottles Program was implemented through Resolutions No. 49/2015 and No. 470/2015 issued by the Federal Energy Bureau.

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TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

During 2024, within the framework of the Households with Bottles Program, a maximum reference price was determined for the members of the commercialization chain in order to guarantee the supply to low-income residential users, forcing producers to supply with LPG at a certain price and at a certain quantity defined for each of them. Initially, the payment of compensation to the participating producers of the Households with Bottles Program was established, which was eliminated as of February 2019.

It is noteworthy that on January 24, 2025, the Secretary of Energy issued Resolution No. 15/2025, which, effective from that date, eliminates the maximum sale price set for products provided under the Home Program (with the export parity price published by the SE under Law No. 26,020 being the sale price limit). Additionally, although this resolution maintains the obligation for LPG producers to supply the domestic market, it eliminates the previously existing supply contributions."

Between December 31, 2023 and December 31, 2024, the price increased by 75% due to ENARGAS Resolutions 11 and 216. As of December 31, 2024, the price is $ 420,000/tn.

In this context, the Company has filed several administrative and judicial claims challenging the general regulations of the Home Plan, as well as the administrative acts that determine the volumes of butane to be sold in the local market, in order to safeguard its economic-financial situation and so that such situation does not continue in time.

Additionally, the Company participates in the Propane Gas Supply Agreement for Indiluted Propane Gas Distribution Networks ("Propane for Networks Agreement") entered into with the Argentine Government and propane producing companies whereby it undertakes to supply propane to distributors and sub-distributors of indiluted propane gas through networks at a price lower than the market price, The Company receives an economic compensation for the lower revenues derived from the participation in this program, which is calculated as the difference between the agreed sales price and the reference export parity price determined by the Energy Secretariat.

Regarding the agreement valid until December 31, 2023, said document was signed on August 18, 2023, which was ratified by the Executive Branch by decree 496/2023 on October 2, 2023. During much of 2024, propane deliveries were made under the terms of the 2023 agreement, in accordance with an instruction from the SE. On November 6, 2024, tgs signed a new Propane Gas Supply Agreement for Undiluted Propane Gas Distribution Networks, valid until December 31, 2024.

As of December 31, 2024, the Argentine State owes tgs Ps. 10,881,706 for these concepts.

Foreign market

On September 3, 2018, the Executive Branch issued Decree No. 793/2018, which, between September 4, 2018 and December 31, 2020, sets an export duty of 12% on the exported amount of propane, butane and natural gasoline. This withholding is capped at $4 for each dollar of the tax base or the official FOB price.

Subsequently, on the occasion of the enactment of the Solidarity Law, an 8% cap was established for the rate applicable to hydrocarbons as of December 23, 2019.

Presidential Decree No. 488/2020 regulated the applicable tax rate on exports of certain oil and gas products, including those products that we export, establishing a range between 0% and 8% depending on the "ICE Brent first line" barrel price. If the price is below US$ 45, the tax rate will be zero. On the other hand, if the price is equal to or higher than US$ 60, an 8% tax rate will be paid, being variable if the price is between US$ 45 and US$ 60.

During 2023, the Company participated, within the framework of Resolution No. 808/2023 of the Ministry of Energy, of the Export Increase Program created by Decree 576/22.

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TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

According to said program, the Company must enter 75% of the value of its exports in foreign currency into the country. The remaining 25% may be settled in pesos through the purchase of negotiable securities. To qualify for the scheme, exports must be settled between October 2 and October 20, 2023, and the effective export date must not be later than November 30, 2023.

Subsequently, said program was extended by Decree No. 28/2023, which also modifies the settlement ratio, which is currently 80% through the MULC and the remaining 20% ​​through sales and purchase operations of negotiable securities.

Decree No. 2,067 / 08 (the “Decree”)

Through Presidential Decree No. 2,067/08, the Executive Branch created a tariff charge to be paid by: (i) the users of regulated services of transportation and / or distribution, (ii) natural gas consumers receiving natural gas directly from producers without making use of transportation systems or natural gas distribution, (iii) the natural gas processing companies in order to finance the import of natural gas. The tariff charge sets forth in this decree finance the higher price of the natural gas imports required to compensate the injection of natural gas necessary to meet national requirements (the “Charge”). When the Charge was created, tgs paid it in accordance with the provisions of Resolution I-563/2008, at Ps. 0.0492/m3.

The payment of the natural gas processing tariff charge was selectively subsidized from 2008 according to the destination of the natural gas. In November 2011, however, ENARGAS issued Resolution No. 1,982/11 and 1,991/11 (the “Subsidy Beneficiaries Resolutions”) which modified the list of the subsidy beneficiaries, and thus, involved a cost increase for many of our clients and for us (for certain of our consumption for our own account). The natural gas processing tariff charge increased from Ps. 0.0492 to Ps. 0.405 per cubic meter of natural gas effective from December 1, 2011, representing a significant increase in our variable costs of natural gas processing.

In order to avoid this damage, tgs appealed against the Presidential Decree and the Resolutions including National Government, ENARGAS and ex MPFIPyS as defendants.

For further information regarding the legal action filed the Company, see Note 20.a).

On March 28, 2016, the former MINEM issued Resolution No. 28/16 (“Resolution 28”), which instructs ENARGAS to take all the necessary measures to derogate the tariff charge created by Decree No. 2,067/08 as from April 1, 2016. However, such Resolution does not repeal or declare illegitimate this decree and the Subsidy Beneficiaries Resolutions for which the judicial action is still ongoing.

c)Essential assets 

A substantial portion of the assets transferred by GdE has been defined as essential for the performance of the natural gas transportation service. Therefore, tgs is required to keep separated and maintain these assets, together with any future improvements, in accordance with certain standards defined in the License.

tgs may not, for any reason, dispose of, encumber, lease, sublease or loan essential assets nor use such assets for purposes other than the provision of the licensed service without ENARGAS´s prior authorization. Any expansion or improvements that it makes to the gas pipeline system may only be encumbered to secure loans that have a term of more than one year to finance such extensions or improvements.

Upon expiration of the License, tgs will be required to transfer to the Argentine government or its designee, the essential assets listed in an updated inventory as of the expiration date, free of any debt, encumbrances or attachments. If the Company decides not to continue

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TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

with the license, tgs will receive a compensation equal to the lower of the following two amounts:

i)the net book value of the essential assets determined on the basis of the price paid by the acquiring joint arrangements, and the original cost of subsequent investments carried in US dollars and adjusted by the PPI, net of accumulated depreciation according to the calculation rules to be determined by ENARGAS; or 

ii)  the net proceeds of a new competitive bidding (the “New Bidding”). 

Once the period of the extension of the License expires, tgs will be entitled to participate in the New Bidding, and thus, it shall be entitled to:

i)   that its bid in the New Bidding be computed at an equal to the appraisal value to be determined by an investment bank selected by ENARGAS, which represents the value of the business of providing the licensed service as it is driven by the Licensee at the valuation date, as a going concern and without regard to the debts;

ii)   to obtain the new License, without payment, in the event that any bid submitted in the New Bidding exceeds the appraised value;

iii)to match the best bid submitted by third parties in the New Bidding, if it would be higher than its bid mentioned in (i), paying the difference between both values ​​to obtain the new License;  

iv)if the Company is unwilling to match the best bid made by a third party, to receive the appraisal value mentioned in (i) as compensation for the transfer of the Essential Assets to the new licensee.  

Dedicated Branch

On September 5, 2024, General Resolution No. 19/2024 of the General Inspectorate of Justice ("IGJ Resolution 19/2024") was published in the Official Gazette of the Argentine Republic, by means of which the regulation of the so-called Dedicated Branches for the Large Investment Incentive Regime ("RIGI") provided for in Law No. 27,742, under the terms of its article 170, is established. This regime is designed to attract and encourage large-scale investments, both domestic and foreign, with the aim of boosting the country's economic development.

The RIGI offers fiscal and legal incentives. These include:

• Reduction in the income tax rate, from 35% of the current rate to 25% for the Dedicated Branch.

• Accelerated amortization of assigned assets.

• Early refund of VAT.

• Calculation of 100% of the tax on bank debits and credits.

• Customs and exchange benefits.

On December 2, 2024, the Executive Branch issued Decree No. 1060/2024 (the “Decree 1060”) declaring the private initiative presented by tgs to be of national public interest. This project aims to expand the Perito Moreno Gas Pipeline (formerly the Néstor Kirchner Gas Pipeline) through the construction of 3 new compressor plants and the upgrading of the Tratayén and Saliqueló compressor plants.

The aforementioned works to expand the Perito Moreno Gas Pipeline will be incorporated into the concession duly granted to IEASA, currently ENARSA, by Decree No. 76/2022.

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TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

The price of the transport capacity resulting from the expansion, to be paid to the successful bidder, will be the price resulting from the public tender. The law applicable to this work will be governed by the provisions of Law No. 17,319. The resulting incremental capacity may be marketed by the successful bidder to third parties.

Additionally, Decree 1060 includes the express commitment of tgs to carry out the expansion works that are necessary for the final sections of its licensed system, regardless of whether or not it is awarded the public tender to be carried out.

On January 31, 2025, PEN Decree No. 54/2025 established that the Private Initiative presented by tgs will be governed by the contracting system provided in Article 6 of Decree No. 76 of February 11, 2022, which stipulates that ENARSA, with the approval of the Ministry of Economy, may enter into freely negotiated contracts related to transportation capacity with producers and/or shippers for the construction or expansion, in whole or in part, of the Perito Moreno Pipeline. On February 25, 2025, the Ministry of Economy issued Resolution No. 169/2025, delegating to the Secretariat of Energy and ENARSA the responsibility for conducting the bidding process for the Private Initiative. This resolution also establishes a series of guidelines that ENARSA must consider when drafting the tender documents. As of the date of issuance of these Consolidated Financial Statements, the bidding process prompted by the Private Initiative for the award of the new transportation capacity resulting from the expansion project has not yet been launched.

18.ASSETS AND LIABILITIES IN FOREIGN CURRENCY 

Balances in foreign currencies as of December 31, 2024 and 2023 are detailed below:

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TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

19. COMMON STOCK AND DIVIDENDS

a)Common stock structure and shares’ public offer 

As of December 31, 2024, 2023 and 2022, tgs’ common stock was as follows:

tgs's shares are traded on the BYMA and under the form of the American Depositary Receipts (“ADSs”) (registered in the Securities and Exchange Commission (“SEC”) and representing 5 shares each) on the New York Stock Exchange.

b)Acquisition of treasury shares 

On March 6, 2020, the Company's Board of Directors approved the sixth Program for the Acquisition of tgs treasury Shares in the markets where it makes a public offering of its shares (the “Sixth Repurchase Program”) for a maximum amount of Ps. 2,500 million (at the time of its creation).

Subsequently, on August 21, 2020, the Board of Directors approved a new Program for the Acquisition of tgs treasury Shares for a maximum amount to be invested in Ps. 3,000 million (at the time of its creation). This program was extended until March 22, 2021.

The acquisition cost of the treasury shares in portfolio amounted to Ps. 74,082,856, which, together with the trading premium on treasury shares of Ps. 21,490,781, in accordance with the provisions of Title IV, Chapter III, article 3.11.c and e of the Rules, restricts the amount of realized and liquid gains mentioned above that the Company may distribute.

c)Restrictions on distribution of retained earnings 

Pursuant to the General Companies Act and CNV Rules, we are required to allocate a legal reserve (“Legal Reserve”) equal to at least 5% of each year’s net income (as long as there are no losses for prior fiscal years pending to be absorbed) until the aggregate amount of such reserve equals 20% of the sum of (i) “common stock nominal value” plus (ii) “inflation adjustment to common stock,” as shown in our consolidated statement of changes in equity.

Finally, and as mentioned in subsection b of this note, the amounts subject to distribution are restricted up to the acquisition cost of treasury shares and the paid-up capital.

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English translation of the original prepared in Spanish for publication in Argentina

TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

20. LEGAL CLAIMS AND OTHER MATTERS

a)Action for annulment of ENARGAS Resolutions No. I-1,982/11 and No. I-1,991/11 (the “Resolutions”) 

After the issuance of the Resolutions, tgs filed a judicial action before the National Court of First Instance in Federal Administrative Litigation No. 1 (the "Court") in order to obtain the declaration of nullity of the Presidential Decree No. 2067/08 and the Resolutions as well as the unconstitutionality of the administrative acts that created the Charge.

On July 5, 2012, the Court issued in favor of tgs a precautionary measure by which the suspension of the Charge was ordered in the terms set forth in the Resolutions. This decision was appealed in different opportunities by the National Government, by virtue of which the dictating of the precautionary measure was limited to the validity of six months. However, at maturity, the Company was entitled to obtain a new precautionary measure for a similar period.

As a result, on September 19, 2017, a new extension of the injunction was obtained (which prevented the Government to claim tgs of the payment of the amounts resulting from the new value of the Charge for the period between the November 2011 and March 2016), thus extending the validity until March 2018 or until the issuance of the judgment that resolves the substance of the matter, whichever occurs first.  

On the other hand, the National Court of Appeals in Contentious Administrative Dismissal rejected the extraordinary appeal filed by the National Government against the judgment of that court that confirmed the rejection made by the Court at the request of ENARGAS to declare abstract the legal action initiated by tgs in accordance with the precedent "Alliance" issued by the Supreme Court in December 2014.

On March 26, 2019, TGS was notified of the judgment of first instance issued by the Federal Contentious-Administrative Court No. 1 in its claim initiated by which tgs requested the unconstitutionality of Decree No. 2,067/08; Resolutions and of any other rule or act issued or to be issued, that is caused by the mentioned rules (the “Cause”).

The first instance judgment declares the unconstitutionality of both Articles 53 and 54 of Law 26,784, as well as the aforementioned rules and of any other act tending to execute said provision, and consequently, the nullity of said rules (the “sentence").

The Judgment was appealed by the National Government on March 29, 2019, and the appeal was granted on April 3, 2019, which has not been resolved as of the closing date of the year.

On October 29, 2019, the intervening judge decided, considering what was decided in the judgment and attending to the reasons invoked by tgs, to extend the validity of the precautionary measure issued for six more months of processing in said ordinary process and / or until the sentence passed is firm.

Pursuant to the isolation measures adopted by the Argentine Government under the COVID development, the judicial deadlines were suspended from March 20, 2020 until July 21, 2020.

On December 1, 2020, the court granted a new extension of said injunction for a term of 6 months.

On May 14, 2021, tgs was notified of the ruling issued by Chamber I of the Chamber in Contentious-Administrative Matters that (i) has revoked the decision by the Judge of First Instance and (ii) has imposed the costs in both instances in the order caused. tgs considers that it has reasonable arguments to defend its position on the substantive issue raised and, for that reason, it appealed the judgment of the Chamber.

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English translation of the original prepared in Spanish for publication in Argentina

TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

On June 4, 2021, tgs filed an extraordinary federal appeal against the judgment of the Chamber, which was contested by ENARGAS and the National State, and was granted by the Court of Appeals itself on July 14, 2021, on the understanding that “At stake is the interpretation and scope of regulations of an unquestionable federal nature, such as Decree 2067/08 and MINPLAN Resolution No. 1451/2008, ENARGAS Resolutions No. 1982/11 and 1991/11, as well as articles 53 and 54 of Law 26,784”.

By virtue of the precautionary measure issued, and its 12 extensions obtained, as well as the favorable judgment obtained in the first instance, the existence of favorable precedents issued by the Supreme Court of Justice of the Nation (“Supreme Court”) with respect to other processors of natural gas and the granting of the extraordinary appeal that will give rise to the Supreme Court ruling on the case, the management of tgs and its legal advisors consider that they have solid arguments to defend their position and that it is probable that a favorable resolution will be obtained for their interests on the substantive issue raised. Therefore, no provision has been made for the eventual debt due to the increase in the charge to finance the importation of natural gas applicable to natural gas consumption related to the processing activity at the Cerri Complex for the period between the date of obtaining the measure precautionary and on April 1, 2016, date of entry into force of Resolution No. 28/2016.

This resolution has annulled the acts that determined the value of the charge established by Decree 2067, for which as of April 1, 2016, ENARGAS and the agency in charge of its collection have stopped charging the increase established by the Resolutions.

Regarding the last extension of the precautionary measure, expired on July 1, 2021, tgs has not requested a new extension, due to the premature procedural stage in which the appeal filed against the judgment of the Chamber is found. On December 16, 2024, the file was sent to the Attorney General's Office, with no news received as of the date of issuance of these Financial Statements.

Given the complex procedural instance, the nature of charge 2067, the background information presented in this and other legal cases initiated against charge 2067, at the date of the issuance of these Consolidated Financial Statements it is not possible to make a definitive quantification of the amount that should be pay tgs in the event of not obtaining a favorable ruling from the Supreme Court, while an eventual request for payment in the current circumstances may be challenged and questioned by tgs within the framework of the corresponding administrative and judicial instances, where the amount may be debated of the charge that is eventually required to tgs.

b)Environmental matters 

The Company is subject to extensive environmental regulations in Argentina. Management believes that its current operations are in material compliance with applicable environmental requirements, as currently interpreted and enforced. The Company has not incurred in any material environmental liabilities as a result of its operations to date. As of December 31, 2024 and 2023, the total amount of these provisions amounted Ps. 91,087 and Ps. 176,639, respectively.

c)Others 

In addition to the matters discussed above, the Company is a party to certain lawsuits and administrative proceedings which involve taxation, labor claims, social security, administrative and others arising in the ordinary course of business. The Company’s Management and its legal advisors estimate that the outcome of these differences will not have significant adverse effects on the Company’s financial position or results of operations. As of December 31, 2024 and 2023, the total amount of these provisions amounted Ps. 330,008 and Ps. 366,714, respectively.

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TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

21. BALANCES AND TRANSACTIONS WITH RELATED COMPANIES 

Technical, Financial and Operational Assistance Agreement

Pampa Energía is tgs’ 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, 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, 2024, 2023 and 2022 were Ps. 2,672,103, Ps. 3,430,226 and Ps. 2,895,727, respectively.

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TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

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, 2024 and 2023 is as follows:

As of December 31, 2024 and 2023, tgs has a balance of Ps. 20,471,497 and Ps. 21,739,106 corresponding to Dollar linked notes issued by CT Barragán S.A. and Pampa Energía. 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, 2024, 2023 and 2022 is as follows:

Year ended December 31, 2024:

Additionally, during the year ended December 31, 2024, the Company received from SACDE Sociedad Argentina de Construcción y Desarrollo Estratégico S.A., construction engineering services for Ps. 131,330,449 which are activated within the balance of advances to suppliers.

Year ended December 31, 2023:

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English translation of the original prepared in Spanish for publication in Argentina

TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

Year ended December 31, 2022:

22.CONTRACTUAL OBLIGATIONS 

a)Contractual Commitments 

As of December 31, 2024, the Company had the following contractual commitments:

The totality of the financial indebtedness of tgs and the obligations corresponding to gas purchases are denominated in U.S. dollars which have been translated into Argentine pesos at the exchange rate as of December 31, 2024 (US$ 1.00 = Ps. 1,032.00). The amounts to be paid in pesos could vary depending on the actual fluctuations in the exchange rate.

For further information, see Note 17.a).

b)Guarantees granted and goods for restricted availability 

The Company has not granted any additional guarantees or goods of restricted availability other than those set out in the remaining notes.

23.ASSOCIATES AND JOINT AGREEMENT 

Associates with significant influence

Link:

Link was created in February 2001, with the purpose of the operation of a natural gas transportation system, which links TGS’s natural gas transportation system with the Cruz del Sur S.A. pipeline. The connection pipeline extends from Buchanan (Buenos Aires province), located in the high-pressure ring that surrounds the city of Buenos Aires, which is part of TGS’s pipeline system, to Punta Lara. tgs’s ownership interest in such company is 49%, while Pan American Sur S.A. holds a 20.40%, Shell Argentina S.A. a 25.50% and Wintershall Dea Argentina S.A. the remaining 5.10%.

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TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

TGU (liquidated):

TGU was a company incorporated in Uruguay. This company rendered operation and maintenance services to Gasoducto Cruz del Sur S.A. and its contract terminated in 2010. TGS held 49% of its common stock and Pampa Energía the remaining 51%.

On December 26, 2024, the TGU board decided to dissolve and liquidate said company.

EGS (liquidated):

In September 2003, EGS, a company registered in Argentina, was incorporated. The ownership was distributed between tgs (49%) and TGU (51%).

EGS owned a natural gas pipeline, which connects tgs’ main pipeline system in the Province of Santa Cruz with a delivery point on the border with Chile.

Since 2012 EGS discontinued its operations, deciding in January 2016 to begin the necessary steps to dissolve EGS. The Extraordinary Shareholders' Meeting of EGS held on March 10, 2016, appointed the liquidator.

The EGS Liquidator Board held on March 31, 2023, reported the Final Distribution Project of the remainder of the liquidation. On June 26, 2023, the Extraordinary General Assembly of EGS approved the final liquidation balance for the irregular fiscal year closed on March 31, 2023 and approved the cancellation of the social registration of EGS before the General Inspection of Justice. As of the date of issuance of these consolidated financial statements, the distribution project was executed by the liquidator. As of the date of issuance of these Consolidated Financial Statements, the IGJ registered the liquidation and canceled it from the registry.

Joint Agreement

UT:

The Board of Directors of tgs approved the agreement to set up the UT together with SACDE. The objective of the UT is the assembly of pipes for the construction of the project of "Expansion of the System of Transportation and Distribution of Natural Gas" in the Province of Santa Fe, called by National Public Bid No. 452-0004-LPU17 by the MINEM (the "Work").

On October 27, 2017, tgs - SACDE UT signed the corresponding work contract with the MINEM.

The UT will remain in force until its purpose has been fulfilled, i.e., once the works involved in the Project have been completed and until the end of the guarantee period, set at 18 months from the provisional reception.

As a result of the situation of the economic context and the COVID mentioned in Note 1, the UT sent a letter to Integración Energética Argentina S.A. (“IEASA”), currently Energía Argentina S.A. (“ENARSA”), a company currently part of the Ministry of Productive Development, requesting, among other issues, the reestablishment of the economic-financial equation, readjustment of the work schedule, approval of cost redeterminations and price adjustments under the current legal regime.

On July 9, 2021, the UT and IEASA signed a restart order and a restart certificate for the works related to the Work, through which the work schedule was readjusted and IEASA also assumed the commitment to manage and join efforts to guarantee the cash flow in order to avoid new effects on the economic-financial structure of the contract for the Work, which would give rise to new requests -by the UT- for the recomposition of the economic-financial equation of the contract and the schedule of execution of the Work.

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English translation of the original prepared in Spanish for publication in Argentina

TRANSPORTADORA DE GAS DEL SUR S.A.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND COMPARATIVE INFORMATION

(Stated in thousands of pesos as described in Note 3, unless otherwise stated)

24.INFORMATION REQUIRED BY ARTICLE 26 OF SECTION VII CHAPTER IV TITLE II OF CNV RULES 

In order to comply with General Resolution No. 629/2014 tgs informs that, as of February 27, 2025, supporting and management documentation related to open tax periods is safeguarded by BANK S.A. at its facilities are located at Ruta Panamericana Km 37.5, Garín, Buenos Aires Province.

The Company has available in its headquarters to CNV details of the documentation given in safeguard to third parties.

25.SUBSEQUENT EVENTS 

The consolidated financial statements were approved and authorized for issuance by the Company's Board of Directors on February 27, 2025. There were no existing significant subsequent events between the closing date of year ended December 31, 2024, and the date of the approval (issuance) of these consolidated financial statements.

      Luis Fallo

Vice-Chairman acting as Chairman

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