Fluxys: Role in security of supply Walter Peeraer – Fluxys – 26 May 2009

GA Synergrid 26 may GERMANY LUXEMBOURG FRANCE UNITED KINGDOM NORWEGIAN GAS FIELDS LNG SOURCES NETHERLANDS Fluxys: crossroads for international gas flows in Western Europe Upstream: tied-in to all natural gas sources for the Western European market Downstream: gateway to all end user markets in Western Europe Advantage: bidirectionality of the Fluxys network

GA Synergrid 26 may Bron: Wood Mackenzie / Fluxys LNG-sources New infrastructure needed to supply Europe from other sources LNG worldwide Russian sources at large distances New storage needed as well PROFOUND CHANGE IN GAS MARKET Russia Russia bcm Natural gas consumption Europe : + 37% UK increasingly important natural gas importer from 2004/2005 Dutch reserves decline Decision Norwegian authorities: status quo of exports Norway bcm UK 646 bcm Netherlands bcm Fluxys

GA Synergrid 26 may MAJOR PIPELINE PROJECTS FOR EUROPE Opal Zeebrugge Baumgarten Under construction Planned or announced Nordstream Yamal II ? Medgaz Galsi TAP South Stream ? White Stream ? East/West MET North/South 2013 IGI Nabucco Fluxys PADB EC

GA Synergrid 26 may Infrastructure development to boost take away capacity Fluxys Sources in the East and in the North Sources in the East United kingdom Eynatten Zeebrugge Opwijk Brakel Haaltert Ranst Lier Ham Lommel Leernes Péronnes Damprémy 's-Gravenvoeren Warnant- Dreye Sinsin Berneau Desteldonk Zomergem Zelzate Blaregnies Wilsele Olen Arlon Messancy Loenhout Winksele NEW CAPACITY NORTH/SOUTH: Open Season successfully closed in cooperation with adjacent TSOsOpen Season successfully closed in cooperation with adjacent TSOs Indicative availability of new capacities: late 2013Indicative availability of new capacities: late 2013 NEW CAPACITY EAST/WEST Fluxys Board approval Feb 2009Fluxys Board approval Feb 2009 Indicative availability of new capacities: late 2010Indicative availability of new capacities: late 2010 Sources in the North New compression capacity

GA Synergrid 26 may LNG terminalling: additional 4.5 bcm/y terminalling capacity up and running since april 2008 Number of slots built up from 66 to 110 Shiploading services available since July 2008 Since September 2008 acceptance of Q-Flex LNG carriers with a capacity up to m 3 LNG

GA Synergrid 26 may … and project for second capacity enhancement at the Zeebrugge LNG terminal Open Season launched December 2007 Project lay out being reviewed with interested shippers Second berthing jetty potentially with the possibility to accommodate regasification ships Additional LNG storage tanks Additional regasification capacity

GA Synergrid 26 may Recent experience during cutdown of flows from the East Heavily impacted countries Partly impacted countries Cutdown of flows from the East partly compensated with flows from Zeebrugge: substantial capacity used by shippers in the direction of Germany and France

GA Synergrid 26 may HUBS IN EUROPE National Hubs / Balancing Points Fysical Hubs NBP Hub Zeebrugge TTF PSV CEGH PEG Balancing Zones GUD VTP NCG

GA Synergrid 26 may CONCLUSION Belgium is today at crossroads for international gas flows in Western EuropeBelgium is today at crossroads for international gas flows in Western Europe Maintenance and reinforcement of this position is key for Belgium: contribution to security of supplyMaintenance and reinforcement of this position is key for Belgium: contribution to security of supply Challenges:Challenges: –No clear picture of flows in the long run: avoid underinvestment ànd overinvestment (stranded costs) –Need for long term stability and visibility on tarifs –Need for efficient permitting procedures –Need for stronger inter TSO cooperation: national reflex to be abandoned in favour of Northwest regional scope

GA Synergrid 26 may