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Energy in Argentina Final Customers Identification

Customers Categorization

The final customers in Argentina's energy value chains can be categorized into two primary segments: Business-to-Business (B2B) and Business-to-Consumer (B2C). These segments represent the entities and individuals who ultimately consume the energy products and services delivered through the various value chains.

B2C (Business-to-Consumer): This segment includes individual residential users who consume energy for household purposes. * Residential users of natural gas, typically receiving supply through local distribution companies (LDCs). * Residential users of electricity, receiving power from regulated distribution companies within their concession areas. * Individual vehicle owners who purchase gasoline, diesel, or other fuels at retail service stations.

B2B (Business-to-Business): This segment encompasses commercial entities, industrial operations, and other businesses that consume energy for their operations or as inputs for their products. * Commercial users of natural gas, supplied by LDCs for heating, processes, or other business needs. * Commercial users of electricity, receiving power from distribution companies or directly from the wholesale market for commercial activities. * Industrial users of natural gas, consuming large volumes for manufacturing processes, heating, or power generation. * Industrial users of electricity, representing significant power consumers in various manufacturing and processing sectors, receiving power from distribution companies or the transmission system. * Utilities that may purchase natural gas or fuels for electricity generation or other energy services. * Retailers, specifically service station operators, who purchase fuels wholesale from downstream companies for resale to final consumers. * Large industrial consumers who purchase refined petroleum products in bulk for their operations (e.g., transportation fleets, industrial furnaces). * Industrial converters and users of petrochemical products, such as plastics manufacturers, companies in the agricultural sector, and the textile industry, who use chemicals and polymers as raw materials. * Specialized chemical distributors who purchase petrochemical products in bulk from producers for redistribution to a wider customer base. * International buyers who import crude oil, refined products, natural gas (potentially as LNG), or petrochemicals from Argentina.

Detailed Report on Final Customers

Detailed profiles of customer characteristics and demographics

Based on the provided value chain analysis, the characteristics and demographics of these final customers can be described as follows:

B2C Customers:

  • Residential Users (Natural Gas and Electricity): These customers are geographically dispersed across Argentina, residing in both dense urban centers and provincial regions served by respective natural gas and electricity distribution companies operating under concessions. For electricity, residential consumers in the Greater Buenos Aires metropolitan area served by Edenor and Edesur have historically been subject to artificially low regulated tariffs. The consumption patterns of residential customers are influenced by factors such as climate (heating/cooling needs), household size, and appliance usage. While specific demographic data like age or income levels are not detailed in the provided text, their consumption is directly linked to household energy needs.
  • Vehicle Owners (Fuels): This group represents the large number of individuals across the country who own vehicles and require gasoline, diesel, or other fuels for transportation. The retail fuel market serving these customers is characterized by a significant presence of major brands, with the top four companies controlling over 67% of retail fuel stations. Their purchasing behavior is influenced by fuel prices, vehicle type, and travel patterns.

B2B Customers:

  • Commercial and Industrial Users (Natural Gas and Electricity): This is a diverse group spanning various economic sectors across Argentina. Industrial users, in particular, represent significant energy demand due to their operational needs, such as manufacturing processes, machinery operation, and facility heating or cooling. Their energy consumption is often large-scale and critical to their production output. Geographically, large industrial users may be concentrated in industrial parks or areas with access to high-voltage electricity transmission lines or major natural gas pipelines. Commercial users include a wide array of businesses, from small shops to large office buildings, with energy needs varying significantly based on the type and size of the business.
  • Utilities: This B2B segment includes companies involved in power generation or other energy services that purchase fuels (like natural gas or fuel oil) as inputs. Their characteristics are defined by their operational scale, generation capacity, and fuel requirements, which can be substantial, particularly for thermal power plants.
  • Retailers (Service Stations): These are businesses operating service stations that function as the final point of sale for fuels to B2C customers. They are characterized by their location, brand affiliation (e.g., YPF, Axion, Shell, Puma), and the volume of fuel they sell. There are numerous service stations across the country, reflecting the extensive road network and vehicle ownership.
  • Large Industrial Consumers (Wholesale Fuels): These businesses have substantial fuel needs that are met through direct wholesale purchases rather than retail stations. Their characteristics include the size of their operations, their specific fuel requirements (e.g., diesel for transportation fleets, fuel oil for industrial boilers), and their logistical capabilities to receive bulk deliveries.
  • Industrial Converters and Users (Petrochemicals): This segment comprises industries that use petrochemical products as essential raw materials. The provided text specifically mentions plastics manufacturers, the agricultural sector, and the textile industry as key consumers. Their characteristics are defined by their manufacturing processes, the types and volumes of petrochemicals they require, and their position within their respective industry value chains. Geographically, these industries may be concentrated in specific industrial zones.
  • Specialized Chemical Distributors: These companies act as intermediaries in the petrochemical value chain, purchasing products in bulk from producers and selling them to a wider array of industrial clients, often smaller ones. There are over 120 such companies operating in Argentina. Their characteristics include their logistical capabilities, storage facilities, sales networks, and technical expertise in handling and distributing chemicals.
  • International Buyers: This segment includes entities outside of Argentina that import the country's surplus hydrocarbon and petrochemical products. Their characteristics are diverse, depending on the specific commodity being imported and their own domestic market needs and regulations. Argentina's crude oil exports, for instance, were primarily directed to the US, Brazil, and Chile in 2023.

References:

  • Deloitte: Argentina Oil & Gas Sector
  • Pampa Energía: The Argentine Electricity Sector
  • U.S. Energy Information Administration (EIA): Argentina's crude oil and natural gas production near record highs
  • Global Practice Guides: Power Generation, Transmission & Distribution 2024 - Argentina
  • EPCM Holdings: An Overview of the Oil & Gas Industry in Argentina
  • Twin Feathers: Argentina-An Increasing Energy Market
  • Wikipedia: Electricity sector in Argentina
  • Verified Market Research: Argentina Oil and Gas Downstream Market - Forecast, Companies & Size
  • Deloitte: Argentina oil and gas sector: Vaca Muerta shale can drive near-term growth and fuel medium-term opportunities
  • Global Business Reports: Argentina Latin America Petrochemicals and Chemicals 2023
  • The Energy Year: Argentina - Oil and Gas Industry
  • The Power Sector in Argentina
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  • Mordor Intelligence: Argentina Oil and Gas Upstream Market Size & Share Analysis
  • Verified Market Research: Argentina Oil and Gas Downstream Market Size & Forecast
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