1. GAS EXCHANGES IN SPAIN 5th IG Meeting of South Gas Regional Initiative 30th November, 2007

2. 2 The context

3. 3 GEOGRAPHY & GEOLOGY Peninsula SW Europe No domestic Production / UGS Capacity interconnection LNG

4. 4 INFRASTRUCTURE & DEMAND GROWTH Group C Group A, B Regasification Plant Compression Station National Gas Field Current infrastructure Extension Urgent infrastructure Underground Gas Storage Infrastructure Basic Gas Infrastructure Territorial expansion CCGT & Renewables New basic gas infrastructure (Pipelines, LNG Plants, UGS) 2001 – 2006: x 1,8

5. 5 REGULATORY FRAMEWORK Integrated system management TPA to all infrastructure Flexibility

6. 6 LIBERALISATION PROCESS Full eligibility as form 01.01.2003 New TPA market entrants : > 50% total > 70% LNG supplies

7. 7 THE RESULT: GAS EXCHANGES

8. 8 EVOLUTION VS. MONTHLY DEMAND

9. 9 GAS EXCHANGES PER INFRAESTRUCTURE

10. 10 GAS EXCHANGES PER SHIPPER

11. 11 MAIN MILESTONES Royal Decree 1434/2002 M.O. ECO 32/2003 M.O. ECO 32/2004 Royal Decree 1716/2004 M.O. ITC103/2005 M.O. ITC103/2005 (NGTS) M.O. ITC 3283/2005 M.O.ITC 4100/2005 M.O. ITC 3996/2006 Resolución 3.6.3. Royal Decree 949/2001 MS- ATR

12. 12 THE IT SYSTEM: MS-ATR

13. 13 MS-ATR

14. 14 MS-ATR: > 25 USERS

15. 15 MS-ATR: TRADING

16. 16 MS-ATR: IMBALANCES MANAGEMENT

17. 17 MS-ATR: BILATERAL EXCHANGES

18. 18 NEXT STEPS Time – Market Maturity Complexity Bulletin Boards Capacity Transfer Title Facility OTC Gas Transfer Title Facility Financial trade OCM Multilateral trade Bilateral trade Market Clearing Price Individual bilateral prices