LATIN AMERICA

In Latin America, Repsol YPF carries out the following activities:

• Natural gas supply, storage and distribution in Argentina

• Distribution activities in Colombia, Brazil and Mexico

• Liquefied natural gas in Trinidad and Tobago.  

Distribution

Repsol YPF distributes natural gas to almost 5 million customers in Argentina, Colombia, Brazil and Mexico. In general, each of these countries is self-sufficient in natural gas, and domestic production covers demand. The group participates in natural gas distribution in five of the most important Latin American cities: Mexico FD, Monterrey, Buenos Aires, Rio de Janeiro and a recent concession in the south of Sao Paulo. Prices to the end customer are regulated. Only in Argentina is there a market of "qualified " industrial consumers with the right to freely choose their supplier, upon reaching a minimum level of consumption.

In Brazil, Repsol YPF distributes natural gas to approximately 600,000 customers in the metropolitan area and the region of Rio de Janeiro. Repsol YPF also recently obtained a concession for the south of the Sao Paulo region.

In Colombia, the company distributes to approximately 900,000 customers in Bogota, in the Cundi-Boyacense area and the Colombia East region.

In Mexico, Repsol YPF has approximately 400,000 customers

In Argentina, Repsol YPF has a stake in the companies distributing gas to more than 3 million consumers in the north and south of Buenos Aires.  

  
Liquefied natural gas in Trinidad & Tobago. Strategic alliance between Repsol YPF and BP Amoco

Repsol YPF holds a 20% stake in Atlantic LNG in Trinidad and Tobago, where it has an LNG plant. The other partners are BP, with a 34% stake, British Gas with 26%, Cabot with 10%, and NGC with 10%.

The LNG plant began its activities in April 1999, and consumes the natural gas reserves pertaining to BP Amoco in Trinidad and Tobago. It has a nominal capacity of 4,000 million cubic metres of natural gas per year, 40% of which is sold on the Spanish market.

There will be a capacity increase of 9,000 million cubic metres at this plant in 2003, of which 5,000 million m3 will go to the

Spanish market; 1,000 million m3 to Gas de Euskadi; 1,000 million m3 to the traditional Spanish market through Gas Natural, and the remaining 3,000 million m3 will supply Repsol YPF participated power stations in Spain.

The company�s stake in Atlantic LNG is part of a strategic alliance signed in June 1998 between BP Amoco and Repsol YPF for joint ventures in power generation using the companies� own natural gas reserves. Repsol YPF will also acquire 10% of the gas reserves belonging to BP Amoco in Trinidad and Tobago during 2000, and will increase this portion to 30% in 2003.

Projects to export natural gas from Argentina

Repsol YPF takes an active part in the  main natural gas projects undertaken in the region.  

   
Chile

Repsol YPF currently exports approximately 207 million cubic feet of gas per day to Chile through its participation in the Methanex, North Chile and Gas Andes projects. All these projects are directed to customers in the industrial segment, most of them electricity companies.

The Pacific pipeline, in which Repsol YPF has a 10% stake, will go into operation in 2000. Through this pipeline, Repsol YPF will sell 52 million cubic feet per day to a Chilean natural gas distribution company.

   
Brazil

The construction of a pipeline to Cuiab�, where Repsol YPF has a contract to sell 25 million cubic feet per day of gas to a power station, will be finished by the end of 2000.

In addition, Repsol YPF has a 15% stake in the Uruguayana project, which is a pipeline to connect Argentina with Porto Alegre, one of Brazil�s main industrial centres.