MetroGAS sale delayed by license renewal wait

MetroGAS S.A. is awaiting an official government decree extending its distribution license before a planned change in control can close. Majority owner YPF accepted a $780 million offer from electricity distributor Edenor for its 70% stake in the gas company, but final completion depends on regulatory clearance. Executives from YPF and Edenor recently met with Energy Secretariat officials, and sources close to the talks expect the decree to be made official within three weeks.

The company's current 35-year concession expires in December 2027. Regulators at Enrge sent a favorable recommendation to the executive branch during the southern-hemisphere summer to extend the license for 20 years under the Ley Bases framework. If approved, MetroGAS would retain service rights until 2047. Without an extension, the natural gas regulatory framework requires a competitive tender within 90 days, with the existing operator obligated to continue service for up to 12 months.

MetroGAS delivers natural gas to 2.5 million customers in Buenos Aires and southern suburban areas, representing roughly 28% of Argentina's gas distribution market. YPF faces an internal regulatory horizon of December 2028 to divest the unit, coinciding with the expiration of Plan Gas price-fixing contracts ahead of liberalized gas trading in 2029.

Operationally, MetroGAS doubled its gross profit, quadrupled operating income, and lowered debt to one third of previous levels between 2023 and 2025, enabling its first dividend payment since 2001. In its latest five-year tariff review, the company pledged 210,000 million Argentine pesos in investments over five years. Once this acquisition closes, Edenor will be required to launch a mandatory public takeover offer for the remaining shares, including the 9.23% stake already held by José Luis Manzano via Integra Gas Distribution.