Madrid 16 th February 2009 TSOs presentation 8 th IG meeting

2 Public Consultation – CRE and CNE conclusions  Willingness of the TSOs to comply with the ambitious NRA’s Calendar.  The TSOs understanding of the NRA conclusions as follows: QUESTION CRE and CNE Conclusions Transportation scheme Eastern axis (EA) No majority either for the three-steps option or for the direct link Majority would agree with a solution based either on a mix between the two options or on an increased cooperation between TIGF and GRTgaz Tariff Structure Regulators will ensure that no undue distortions occur between the EA and the WA because of tariff differences. To enhance tariff visibility, tariff principles for the interconnections will be established on a basis of transparency, cost-reflectivity and non-discrimination between national transmission and transit. Tariff principles and setting rules will be published in advance. Open Season (OS) 2013/2015 The binding phase of the OS/WA (2013) and the non-binding phase of the OS/EA (2015) should be launched at the same time. For the non-biding phase OS/EA (2015), shippers will have the possibility of making conditional bids, subject to results in OS/WA (2013). Capacity allocation methodology Best priority will be given to commitments > 10 years Part of the available capacity will be reserved for short term contracts Two allocation rounds in the binding phase (allowing shippers to partially/totally renounce the capacity allocated)

3 Work to be done by April 22nd  In order to comply with the NRAs calendar : NRAs decisions required:  Definition of tariffs principles (visibility) before launching the OS 2013 and OS 2015  French OSP’s to be redesigned  Resolution by the Ministry in Spain TSOs have to produce a set of documents:  Information Memorandum detailing:  Capacity products proposed by the TSOs in each OS  Amounts on offer and availability date for each product  Precise calendar for each phase of the OSs  Submission forms and Commercial contracts:  Confidentially agreement between TSOs and Shippers  Request letter and Request forms (binding, non-binding)  Priority and allocations rules  Booking contract for the capacities to be developed / Transmission contract  Memorandum of understanding between TSO (decisions and investments projects) Shippers’ views in line with procedures proposed on April SG  Feedback from previous open-seasons in the NW-GRI  Joint Fluxys-GRTgaz open-season

4 Work under progress  Capacity type and amount  Only firm available capacities will be sold in the OSs  All (long term) firm capacities to be made available will be sold though the OSs procedure  The marketable capacity sold in the OS will be sum of the existing, available capacity and the OSP capacity  Multi-annual and multi-seasonal capacities will be sold separately in the same OS  The amount of capacity offered on a long term basis will be constant  The Multi-annual capacity will start in April of each year  Duration of contracts  Split Long/Short term capacity (80-20%). There is a trade off between the amount of capacity sold at short term and the term required to pass the economical test  Priority will be given to commitments for 10 years and more  Maximum duration of the contract?  Requests and Allocations rules  One single request for all TSOs per point  Same procedure as the OSP Larrau  Pro-rata between requests with same priority (starting date and duration)  Priority will depend on the starting date and duration  Priority of request for Energy corridors / independents Interconnection points?  Different contracts will be signed with each TSO involved

Madrid 16 th February 2009 FRANCE-SPAIN Interconnection Infrastructures & Capacities Development Overview

6 Background This report summarizes the contents of documents agreed by TSO´s: “Addendum to TSO report dated 6 th Feb 2008” refer to LARRAU IP and Artère de GUYENNE “Development of a new interconnection between France and Spain by 2013/15: MidCat Project” (May 16th 2007) Review EUSKADOUR Capacity South SG/DD/5. Addendum to TSO report dated 6th_february_2007 ERGEG.ppt regulators.eu/portal/page/portal/EER_HOME/EER_INITIATIVES/GRI/South/Meetings1/IG_meetings/7supthsup%20South%20IG/DD/2.1.2.%207th%20IG% 20South%20GRI_TSOs%20presentation_OS.ppt regulators.eu/portal/page/portal/EER_HOME/EER_INITIATIVES/GRI/South/Meetings1/SG_meetings/3rd_South_SG/DD/3rd%20SG%20South%20GRI% %20TSOs%20Report.pdf

7 Western Corridor Eastern Corridor Projects

8 WESTERN CORRIDOR: Evolution Technical CAPACITY after OS 2013 EUSKADOUR LARRAU Artère GUYENNE

9 WESTERN CORRIDOR: Capacities to be Marketed (1)Currently, from 1st April 2013, the total technical capacity (230GWh/d) is not booked but dedicated to be marketed by short (1 year) to medium (2, 3 or 4 years) term OSP procedures, fixed by CRE. According to these rules, capacities will be marketed 6 months before the beginning of the period in question. The figures here suppose that CRE would adapt this rule in order to allow marketing of a part of existing capacity in coordination with OS. (2)Currently, from 1st April 2013, 142GWh/d is not booked but dedicated to be marketed by short (1year) to medium (2, 3, or 4 years) term OSP procedures, fixed by CRE. According to these rules, capacities will be marketed 6 months before the beginning of the period in question. The figure here supposes that CRE maintains these rules because of congestion North >South.

10 FULL DEVELOPMENT: Evolution Technical CAPACITY after OS 2013 after OS 2015

11 FULL DEVELOPMENT: Capacities to be Marketed (3)Depending on level of short term capacity decided by CRE, capacity proposed to the market would vary between 210 and 380GWh/d. (4)Capacity at the GRTgazNorth-GRTgazSouth link might be impacted by other entry points to the GRTgazSouth zone, in particular Fos. A detailed description of the different development options should be presented in the Info Memo. No capacity at the GRTgazNorth-GRTgazSouth link should be dedicated to any entry or exit point. Every procedure, OS or OSP, will be open for every shipper and every need.