State-owned oil and gas company YPF sold its stake in Metrogas, Argentina’s largest natural gas distribution company, to electricity distributor Edenor, which is controlled by businessmen José Luis Manzano, Daniel Vila and Mauricio Filiberti.
The move means YPF will exit Metrogas as it shifts its focus toward oil and gas production in the Vaca Muerta shale formation in Neuquén province.
Metrogas was created in 1992 following the privatization of essential public services in Argentina. It distributes natural gas to more than 2 million households across Buenos Aires City and 11 districts in the outskirts of the national capital, representing around 19% of Argentina’s natural gas market.
Edenor, Argentina’s largest electricity distribution company, will also acquire YPF’s stake in large-scale natural gas supplier Metroenergía, in a transaction valued at US$780 million.
YPF owned 70% of Metrogas’ share capital and 5% of Metroenergía’s.
According to Herald sister publication Ambito’s Energy Report, the transaction was approved by YPF’s board of directors on Monday after it considered several offers.
The transfer will not take effect immediately. Edenor must first meet a series of requirements, including obtaining regulatory approvals and complying with performance guarantees.
Manzano — a former minister and lawmaker — Vila and Filiberti have owned Edenor since 2020. They also own several companies involved in the provision of essential services, including Mendoza province’s electricity distributor Edemsa and Transclor, which supplies chlorine to state-run water company AySA.
They also control oil companies Raízen, which operates Shell gas stations in Argentina, and Andina PLC, as well as media company Grupo América.
A change in focus
According to Energy Report, the transaction is part of YPF’s strategy to optimize its asset portfolio as the company focuses its investments on developing Vaca Muerta.
YPF aims to establish itself as a world-class shale producer. The sale is another step toward its goal of becoming a global energy company.
As part of this strategy, YPF is selling assets it does not consider core to its business and reallocating capital toward projects with greater strategic importance.
“The decision follows other recent moves by YPF to streamline its asset portfolio and strengthen its focus on unconventional oil and gas,” Energy Report wrote. “The company’s primary goals are to increase oil and gas production in Vaca Muerta, improve profitability and expand its export platform.”
