1. Madrid, 23rd Sep 2008 7th SG Meeting South Gas Regional Initiative OSP and Interoperability

2. 2 II. OSP for existing capacities II. OSP for existing capacities II.1 Update of the forecasted OSP—presentation by CNE  During last IG meeting, held on the 10th July, TSOs presented last version on the Open Subscription Procedure (OSP), amended with Stakeholders’ comments  After being revised and agreed by the regulators, the new version on the OSP procedure was published on ERGEG web page and on TSOs’ web page  The TSOs committed themselves to work on developing the detailed documents to allow the OSP: capacity request form, final allocation rules and final capacities available

3. 3 II. OSP for existing capacities II. OSP for existing capacities II.1 Update of the forecasted OSP—presentation by CNE MAIN CONTENT OF THE LAST VERSION OF OSP  Shippers participating in the OSPs will be required to be a licensed shipper at least in one of the systems. No shipper will be allowed to make a request for capacity in a system where it is not licensed  Procedure to be developed in 4Q 2008 to allocate available capacity at French-Spanish interconnections from 1st April 2009 to 31st March 2013 (4 years)  80% of available capacity for LTC (more than 1 year), and will be offered for complete seasons.  20% of available capacity for STC (1 year or less), and will be offered for complete months. STC will be sold yearly, in later OSPs.

4. 4 II. OSP for existing capacities II. OSP for existing capacities II.1 Update of the forecasted OSP—presentation by CNE MAIN CONTENT OF THE LAST VERSION OF OSP (cont.)  Firm capacities to be offered under the OSP LTC 2008 and the OSP STC 2008

5. 5 II. OSP for existing capacities II. OSP for existing capacities II.1 Update of the forecasted OSP—presentation by CNE MAIN CONTENT OF THE LAST VERSION OF OSP (cont.)  Allocation request LICENSED SHIPPER IN SPAIN (S1) LICENSED SHIPPER IN FRANCE (S2) ENAGAS TIGF Request form 1  capacity  starting date  duration  licensed shipper in France Request form 2  capacity  starting date  duration  licensed shipper in Spain Capacity is not allocated for only one side To have capacity on both side two request are needed, one for Enagas and the another to TIGF

6. 6 II. OSP for existing capacities II. OSP for existing capacities II.1 Update of the forecasted OSP—presentation by CNE MAIN CONTENT OF THE LAST VERSION OF OSP (cont.)  Allocation process Allocation in 2 phases, with possibility of partial withdrawing regarding the portion of the assigned capacity which does not cover all the requested period in the 1st phase of the allocation process, but not to modify their capacity requests After the LT OSP, the remaining capacities from 1st April 2009 to 31st March 2010, if any, will be allocated by the OSP STC. After first OSP STC capacity is still available from 1st April 2009 to 31st March 2010, remaining capacities will be allocated under the standard procedures in place in each system. Further interruptible or conditional capacities might be offered by each TSO according to their own rules, once the OSP has been completed The terms and conditions applicable to the capacities sold under the OSP will not differ from the rules prevailing in each system at any particular time, unless otherwise stated

7. 7 II. OSP for existing capacities II. OSP for existing capacities II.1 Update of the forecasted OSP—presentation by CNE MAIN CONTENT OF THE LAST VERSION OF OSP (cont.)  Allocation rules

8. 8 II. OSP for existing capacities II. OSP for existing capacities II.1 Update of the forecasted OSP—presentation by CNE MAIN CONTENT OF THE LAST VERSION OF OSP (cont.)  Timming

9. 9 II. OSP for existing capacities II. OSP for existing capacities II.1 Update of the forecasted OSP—presentation by CNE Spanish Ministerial Order ITC/2607/2008, regarding the rules to allocate capacity of interconnections with France was approved on 11th September 2008 and published in the Official Asset on 16th September 2008

10. 10 II. OSP for existing capacities II. OSP for existing capacities II.1 Update of the forecasted OSP—presentation by CNE MAIN PROVISIONS IN THE OM  Object: To define the CAM for international connection pipelines with France The defined CAM procedure will allow interested agent to request capacity annually  Scope: Available capacity plus new capacity under construction (OSP+OS)  CAM: To be transparent, objective and non-discriminatory Long term and short term capacity (minimum 20% for 1year or less contracts) CAM based on prioritizing requests on objectives basis and allocating capacity for those request at the same level of priority based in objective and non-discriminatory methods.

11. 11 II. OSP for existing capacities II. OSP for existing capacities II.1 Update of the forecasted OSP—presentation by CNE MAIN PROVISIONS IN THE OM  CAM (cont.): LT capacity remaining, if any, may be allocated for ST contracts LT capacity may be offered for complete months, seasons or both ST capacity may be offered for complete days, weeks, months or seasons or both Total capacity requested by a company or a business group won’t be higher than offered capacity Possibility to renounce the assigned capacity

12. 12 II. OSP for existing capacities II. OSP for existing capacities II.1 Update of the forecasted OSP—presentation by CNE MAIN PROVISIONS IN THE OM  Roles: Dirección General de Política Energética y Minas, at every OSP  will determine the periods for which the capacity is offered, for LT and ST  will approve the CAM to be used (included the OSP to be launched in 2008) TSOs  will make public on their web page and apply the CAM approved for every OSP  will allocate the capacity jointly with French TSOs CNE:  in the 3Q of every year, it will provide DGPEyM a proposal for the yearly OSP for ST capacity  will monitor the correct application of the CAM procedure  will communicate TSOs control relationship among companies

13. 13 II. OSP for existing capacities II. OSP for existing capacities II.1 Update of the forecasted OSP—presentation by CNE MAIN PROVISIONS IN THE OM  Information to be defined and published every OSP: Request form Capacities offered Priority rules Rules for allocate request at the same level of priority Timetable  Access to the infrastructures: According to RD 949/2001

14. 14 V. Interoperability V. Interoperability Update on EASEE_GAS CBPs implementation in Spain  On 1st July 2008 the Group for the modification of the Network code met and approved the required changes to make possible applying CBPs on harmonization of units and harmonization of nomination and matching processes in the Spanish Gas System  Ministry of industry currently working to approve the Network Code modifications and make the rules that nowadays are being applied under TSOs’ agreements legally binding