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

2 The context

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

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 REGULATORY FRAMEWORK Integrated system management TPA to all infrastructure Flexibility

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

7 THE RESULT: GAS EXCHANGES

8 EVOLUTION VS. MONTHLY DEMAND

9 GAS EXCHANGES PER INFRAESTRUCTURE

10 GAS EXCHANGES PER SHIPPER

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 Royal Decree 949/2001 MS- ATR

12 THE IT SYSTEM: MS-ATR

13 MS-ATR

14 MS-ATR: > 25 USERS

15 MS-ATR: TRADING

16 MS-ATR: IMBALANCES MANAGEMENT

17 MS-ATR: BILATERAL EXCHANGES

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