Petrochemicals

The petrochemicals segment is vertically integrated into our gas operations, seeking to maintain its position in the styrenics market and maximize its production value chain. Our assets cover a wide range of products, including octane bases for gasoline, benzene, aromatic solvents, hexane and other hydrogenated paraffinic solvents, propellants for the cosmetic industry, monomer styrene, rubber and polystyrene for domestic and foreign markets.

The petrochemicals market where Pampa competes is influenced by global supply and demand, which substantially impacts our results. Pampa is the only Argentine producer of monomer styrene, polystyrene and elastomers and the only integrated manufacturer of goods ranging from oil and natural gas to plastics. As part of the effort to integrate operations, we use an important volume of our benzene production to obtain styrene and, in turn, a substantial volume of styrene to manufacture polystyrene and styrene butadiene rubber (‘SBR’).

The petrochemicals division operates the Puerto General San Martín (‘PGSM’) integrated petrochemical complex in the Province of Santa Fe, with an annual production capacity of 50 thousand ton (‘kton’) of gases (liquefied petroleum gas – LPG used as raw material and propellant), 155 kton of aromatics, 290 kton of gasoline and refined products, 160 kton of styrene, 55 kton of SBR, 180 kton of ethylbenzene and 31 kton of ethylene. This business also includes a polystyrene plant in Zárate, Province of Buenos Aires, with a production capacity of 65 kton. As of December 31, 2023, Pampa’s estimated share in the Argentine styrene, polystyrene, and SBR markets amounted to 100%, 96%, and 91%, respectively.

It is worth highlighting that exports in this business are subject to an export duty which, under PEN Executive Order No. 1060/20, is 4.5% as of 2021 for most products (styrene, polystyrene, SBR and toluene), whereas for others such as naphthas, aromatics and solvents, export duties remain at 8% as per PEN Executive Order No. 488/20.

The following table shows the petrochemicals segment’s main indicators for fiscal years ended December 31, 2022 and 2023:

⁽¹⁾Percentage calculated from sales in the Financial Statements.