1. Madrid, 15th June 2007 3rd SG Meeting South Gas Regional Initiative TSOs’ report 2013/2015 – Main Findings

2. 2 Agenda 1. Introduction 2. Map of the area 3. The MidCat project: general design 4. The MidCat project: development stages 5. Conclusion 6. Next steps

3. 3 1. Introduction  In the context of market opening, interconnections are aimed at:  Increasing security of supply  Fostering competition  For years, TSO have worked together in order to promote interconnection capacity between France and Spain.  In February 2007, 1st TSO report  Interconnection capacity development by 2010/11 at Biriatou and Larrau  2nd SG meeting conclusion:  Stakeholders view = positive perception of capacity proposed in 1st report, but not sufficient  Necessity to offer capacity as soon as possible  This presentation shows  Further capacity development projects beyond Biriatou and Larrau  Next steps proposal regarding the process to be followed in order to develop interconnection capacities

4. 4 2. Map of the area The following map shows the current interconnection points in the South Region and the location of a possible new project

5. 5 3. The MidCat project: general design Spain Category A (approved) and already under Administrative Procedure.  165 km of 36’’ Martorell – Figueras Category B (conditional approval)  30 km of 36’’ Figueras – SP/FR border  1 CS 25 MW near Martorell France GRTgaz (under study)  190 km of 42’’ to 48’’ Artère du Rhône  1 CS 20 MW at Etrez  Additional CS ~10 MW at St Martin TIGF (under study)  120 km of 36’’ SP/FR border – Barbaira  Additional CS ~10 MW at Barbaira

6. 6 4. The MidCat project: development stages Phase 1 (tentative first gas date : 2013/2015) (*) : Assuming all infrastructure included in the mandatory planning review 2005/11 is in operation, especially reinforcements in “Levante” axis and “Valle del Ebro” axis Phase 2  Based on the proposed network design, a phase 2 for the project could provide additional capacity. This would require intermediate compression stations (or reinforcement of existing stations), as well as debottlenecking North of Artère du Rhône.

7. 7 5. Conclusion Spain to France direction  The MidCat project provides a potential of 230 GWh/d in the first phase. A second phase can increase the capacity. France to Spain direction  The MidCat project provides a potential of 180 (winter) to 200 (summer) GWh/d in the first phase. A second phase can increase the capacity.

8. 8 6. Next Steps  Capacity allocation  in France: through an open season,  in Spain: regulated by the R.D. 949/2001 and further developments.  French TSOs aim to launch an open-season (information phase) by year end 2007.  Larrau + Biriatou (MidCat probably at a later stage)  French TSOs consider that before launching any open-season, a preparatory working group must be set up, in which Spanish and French regulatory authorities will get involved together with TSOs.  Improve commercialisation conditions on existing interconnections  Ensure consistency of TPA models and tariff structures  Ensure consistency of booking procedures and capacity allocation  The positive outcome of an open season and investment decisions in France will trigger corresponding investment decisions approved under “Category B” in Spain.

9. 9 Backup slide: TIGF/GRTgaz interface Until 2011, capacity development of the Western axis:  TIGF -> GRTgaz Sud capacity  GRTgaz Sud -> TIGF capacity If Spain to France capacity is added after Larrau and Biriatou, the French network will require further developments on the Eastern Axis GWh/dSummerWinter 2011 (*) - Guyenne phase 3 265270 GWh/dSummerWinter 2011 (*) - Guyenne phase 3 565395 Artère de Guyenne (Western axis) Artère du Rhône (Eastern axis) TIGF network GRTgaz network (*) under study