project ncategoryid 20


Technical and Economic Evaluation of Natural Gas Distribution Companies

Project Location :Eight distribution companies covering the entire Argentina

Client : Consortium of Argentine Construction Companies and Ente Nacional Regulador del Gas

Project Description:

A group of Argentine companies formed a consortium to participate in the Gas del Estado privatization process.  The project consisted of  technical, business and financial know-how to evaluate the physical and financial state of the distribution system and areas for which the bids were submitted, to develop the technical and business framework for new utilities based on the required North American standards, and to establish the financial value of each of the new distribution companies.

Actual Services Provided:
Technical analysis, consisting of:

  • A survey of Gas del Estado systems in operation: quality of design, condition of repair, renewal requirements, and system efficiency for distribution, transmission, compression and communications facilities
  • A survey of materials and equipment available, and assessment of future needs as a result of privatization
  • An assessment of the regulatory framework and Gas del Estado personnel, engineering and operations capabilities.
  • Market analysis of supply and demand: reserves, production, transportation capacity requirements, gas requirements by customer categories and pricing of gas throughout the network.
  • Preparation of business plans to include:
  • Supply, demand, pricing, tariffs, load and revenue forecasts for each supply area and customer category
  • Cost of service development and projections including; operating and maintenance, gas supply, tax and return requirements.