Transportadora Gas del Sur: FID confirms transformational NGL project; reiterating Buy

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Transportadora Gas del Sur: FID confirms transformational NGL project; reiterating Buy

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Transportadora Gas del Sur

FID confirms transformational NGL

project; reiterating Buy

Reiterate Rating: BUY | PO: 48.00 USD | Price: 30.72 USD

FID de-risks TGS’s most transformational project 11 June 2026

Yesterday (Jun-10th) TGS announced the FID of its NGL project in Vaca Muerta after Equity

signing commercial agreements with clients, marking a relevant de-risking milestone for

what we see as the company’s most transformational near-term growth project

Key Changes(+$8.1/sh NPV). While we had already incorporated the project’s NPV in our base case —

and acknowledge that part of the value was likely expected by the market — the FID (US$) Previous Current

materially improves visibility on execution and timing. We reiterate our Buy rating and Price Obj. 46.00 48.00

raise our PO to US$48/sh (from US$46/sh), as we now incorporate accelerated

depreciation benefits under RIGI, the incentive program for large investments. See Gustavo Faria >>

Research Analyst

report for more details: TGS - Stronger NGL project economics post clarifications Merrill Lynch (Brazil)

+55 11 2188 4295

NGL project already in our base case (+US$8.1/sh) gustavo.faria@bofa.com

We estimate the NGL project adds US$8.1/sh to TGS’s equity value versus a no-project AndreResearchSilveiraAnalyst>>

scenario, equivalent to +20% NPV upside. The project should allow TGS to process Merrill Lynch (Brazil)

incremental rich gas from Vaca Muerta and extract higher-value liquids, increasing +55andre.silveira@bofa.com11 2188 4476

exposure to USD-linked revenues and higher-margin infrastructure cash flows. In our

model, we assume US$3bn of capex and US$630mn of incremental EBITDA at full ramp-