International Natural Gas Tariff Comparison for Residential and Industrial Customers December 2011

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1 International Natural Gas Tariff Comparison for Residential and Industrial Customers December 2011

2 Index International Comparison December 2011 Graph 1: Residential Tariff Graph 2: Industrial Tariff (SMEs Commercial) Graph 3: Industrial Tariff (SMEs Industrial) Graph 4: Industrial Tariff (Big Customers) Mercosur Comparison December 2011 Graph 5: Residential Tariff Graph 6: Industrial Tariff (SMEs Commercial) Graph 7: Industrial Tariff (SMEs Industrial) Graph 8: Industrial Tariff (Big Customers)

3 Graph 1 Natural Gas Residential Tariff: International Comparison December 2011 (1) - (US$/MMBTU) 8.82 x 2.77 Argentina 3.8 Average: Bolivia Mexico United States Canada Uruguay Chile Brazil Turkey United Kingdom Luxembourg Ireland References: (1) Annual Consumption: standard consumer in each country. (2) The Tariffs include gross income taxes and VAT. Includes Excludes other taxes. Includes Charge 2067 for natural gas import. Exchange Rate: $4,28 US$. Source: Own Elaboration based on diverse National sources. December 2011 Sales Tax Price Before Taxes The average tariff of the countries in the sample is 8.82 times the Argentinean value. This does not reflect the real economic costs. putting the Gas industry in jeopardy Spain France Portugal Belgium Germany Greece Italy Netherlands Austria Sweden Australia America Europe Others 59.4 Japan

4 Graph 2 Natural Gas Industrial Tariff (SMEs - Commercial): International Comparison December 2011 (1) US$/MMBTU) Average: x 2.3 Argentina 4.3 Bolivia 6.0 Mexico 8.5 United States 9.4 Canada 10.8 References: (1) Annual consumption: standard consumer in each country. (2)Tariff without taxes. Includes average gas price corresponding to the producers agreement fourth tier for P3 full service clients. Also includes Gas fund 1 and 2 for expansion of transport capacity and Charge 2067 for Natural gas import. Load Factor: 50%. Exchange Rate: $4.28 /US$ Source: Own Elaboration based on diverse National sources. December Uruguay Chile Brazil 9.0 Turkey United Kingdom Irland Spain Italy Portugal Luxembourg Belgium The average tariff of the countries in the sample is 6.76 times the Argentinean value. This does not reflect the real economic costs. putting the Gas industry in jeopardy. France Netherlands Greece Germany Sweden America Europe Others Australia

5 Graph 3 Natural Gas Industrial Tariff (SMEs- Industrial): International Comparison December 2011 (1) (US$/MMBTU) 3.08 x 4.5 Argentina Average: Bolivia Mexico United States Canada Uruguay Chile Brazil Turkey United Kingdom Spain References: (1) Annual consumption: standard consumer in each country. (2) Tariff without taxes. Includes average gas price for brokers clients (December). The Tariff corresponds to a P3 unbundled customer in Capital Federal. Includes Fiduciary Gas fund 1 and 2 for expansion of transport capacity and Charge 2067 for Natural gas import. Load Factor: 50%. Exchange Rate: $4.28 /US$ Source: Own Elaboration based on diverse National sources. December Italy Portugal Belgium Netherlands The average tariff of the countries in the sample is 3.08 times the Argentinean value. this does not reflect the real economic costs. putting the Gas industry in jeopardy Ireland France Luxembourg Germany 25.0 Greece Sweden Australia America Europe Others

6 Graph 4 Natural Gas Industrial Tariff (Big Customers): International Comparison December 2011 (1) (US$/MMBTU) Argentina 2.99 x References: (1) Annual consumption: standard consumer in each country. (2) Tariff without taxes. Average gas price for brokers clients (December), Also includes Gas fund 1 and 2 for expansion of transport capacity and Charge 2067 for Natural gas import. Load Factor: 100%. Exchange Rate: $4.28 /US$ Source: Own Elaboration based on diverse National sources. December Bolivia Mexico United States Canada Brazil Uruguay Chile Turkey Average: United Kingdom The average tariff of the countries in the sample is 2.99 times the Argentinean value. this does not reflect the real economic costs. putting the Gas industry in jeopardy Spain Belgium France Holland Italy Ireland Portugal Luxembourg Germany Sweden Greece America Europe Others Australia

7 Graph 5 Natural Gas Residential Tariff: Mercosur Comparison December 2011 (1) Sales Tax Price before taxes (US$/MMBTU) Average: x NO NATURAL GAS 3.83 Argentina Brazil Uruguay Paraguay Bolivia Chile Mercosur Others References: (1) Annual Consumption: standard consumer in each country. (2) The Tariffs include gross income taxes and VAT and Charge 2067 for natural gas import. Excludes other taxes. Exchange Rate: $4.28 US$. Source: Own Elaboration based on diverse National sources. December The average tariff of the countries in the sample is 9.92 times the Argentinean value. this does not reflect the real economic costs. putting the Gas industry in jeopardy.

8 Graph 6 Natural Gas Industrial Tariff (SMEs - Commercial): Mercosur Comparison December 2011 (1) (US$/MMBTU) Average: x 9.95 NO NATURAL GAS 4.31 Argentina Brazil Uruguay Paraguay Bolivia Chile Mercosur References: (1) Annual consumption: standard consumer in each country. (2)Tariff without taxes. Includes average gas price corresponding to the producers agreement fourth tier for P3 full service clients. Also includes Gas fund 1 and 2 for expansion of transport capacity and Charge 2067 for natural gas import. Load Factor: 50%. Exchange Rate: $4.28 /US$ Source: Own Elaboration based on diverse National sources. December Others The average tariff of the countries in the sample is 7.01 times the Argentinean value. this does not reflect the real economic costs. putting the Gas industry in jeopardy.

9 Graph 7 Natural Gas Industrial Tariff (SMEs - Industrial): Mercosur Comparison December 2011 (1) (US$/MMBTU) Average: x NO NATURAL GAS 1.63 Argentina Brazil Uruguay Paraguay Bolivia Chile Mercosur Others References: (1) Annual consumption: standard consumer in each country. (2) Tariff without taxes. Includes average gas price for brokers clients (December). The Tariff corresponds to a P3 unbundled customer in Capital Federal. Includes Fiduciary Gas fund 1 and 2 for expansion of transport capacity and Charge 2067 for Natural Gas import. Load Factor: 50%. Exchange Rate: $4.28/US$ Source: Own Elaboration based on diverse National sources. December The average tariff of the countries in the sample is 3.20 times the Argentinean value. this does not reflect the real economic costs. putting the Gas industry in jeopardy.

10 Graph 8 Natural Gas Industrial Tariff (Big Customers): Mercosur Comparison December 2011 (1) (US$/MMBTU) Average: x NO NATURAL GAS 1.63 Argentina Brazil Uruguay Paraguay Bolivia Chile Mercosur Others References: (1) Annual consumption: standard consumer in each country. (2) Tariff without taxes. Average gas price for brokers clients (December), it also includes Gas fund 1 and 2 and Charge 2067 for Natural Gas import. Load Factor: 100%. Exchange Rate: $4.28/US$ Source: Own Elaboration based on diverse National sources. December The average tariff of the countries in the sample is 3.34 times the Argentinean value. this does not reflect the real economic costs. putting the Gas industry in jeopardy.

11 Methodology Consumption and Calculation by Country for Residential Customers -Argentina: The cost of the m 3, was calculated using the average Residential tariffs of the different distribution companies weighted by the corresponding consumption volume. -Europe (Other Countries): From the 14 countries, the tariff of 12 of them was calculated using the information given by Eurostat (European statistics web site). The average consumer in this case is a D3 Type who consumes 83,7 GJ a year (2150 m 3 ). This average consumption estimates that the customer has cooking, water heating and central heating.

12 Methodology Consumption and Calculation by Country for Pymes (Commercial) -Argentina: The cost of the m 3 was calculated using the average tariff of the different distribution companies weighted by the corresponding consumption volume and the number of customers. For this calculation it was estimated an average consumption of m3/year, this are P3 full service customers, whose gas price corresponds to the fouth tier of the producers agreement. -Europe (Other Countries): From the 13 countries, the tariff of 12 of them was calculated using the information given by Eurostat (European statistics web site). The average consumer in this case is an I2 Type who consumes 4186 GJ a year ( m 3 ) and load factor 200 days.

13 Methodology Consumption and Calculation by Country for Pymes (Industrial) -Argentina: The cost of the m 3 was calculated using MetroGAS Tariffs for P3 unbundled customers in Capital Federal. For this calculation, it was estimated an average consumption of m3/year. The above mention are, P3 unbundled customers that consume more than m 3 /year, and whose gas price corresponds to the average gas price for brokers clients (June), taking into account not only the gas price at wellhead but the gas mix of every distribution company. -Europe (Other Countries): From the 13 countries, the tariff of 12 of them was calculated using the information given by Eurostat (European statistics web site). The average consumer in this case is an I3 Type who consumes GJ a year ( m 3 ) and load factor 200 days.

14 Methodology Consumption and Calculation by Country for Big Customers -Argentina: The cost of the m 3, was calculated using the average FD tariff of the different distribution companies weighted by the corresponding consumption volume and the number of customers. For this calculation it was estimated an average consumption of m3/year, this are FD customers, whose gas price corresponds to the average gas price for brokers clients (June), taking into account not only the gas price at wellhead but the gas mix of every distribution company. -Europe (Other Countries): From the 13 countries, the tariff of 12 of them was calculated using the information given by Eurostat (European statistics web site). The average consumer in this case is an I4 Type who consumes GJ a year ( m 3 ) and load factor 250 days.

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