Classification: Internal Status: Draft Statoils view on the ERGEG GRI Secondary Capacity work Helga Franse – EU & Regulatory Affairs Stockholm – 26 November 2009

Classification: Internal Status: Draft Secondary Capacity Trading according to Statoil Secondary capacity: capacity rights that are traded between market parties Secondary capacity trading is facilitated to offer market parties a commercial opportunity to solve situations of contractual congestion – Shippers who hold capacity are enabled to sell when they dont plan to use the capacity or are not commercially required to hold it, to avoid stranded costs – Shippers who need capacity are enabled to buy when primary capacity is not available Secondary Capacity Trading is a tool that has a function in the time between the sale of primary capacity and the release of additional capacity from new investments – its limitations should be recognised Primary capacity contract -> secondary capacity trade; fragmentation in time and volume should be possible

Classification: Internal Status: Draft The ERGEG GRI NW Secondary Capacity project Looking back Achievements: – Dialogue between TSOs, regulators, platform operators & market parties – Platforms developed and legal challenges determined Challenges still remaining: – Low liquidity at the 3 current platforms Further development should be put on hold, until the reason for this lack of liquidity is determined Looking forward Current phase of reflection is necessary to determine the reason for the low liquidity Fix what can be fixed, in line with the aim of secondary capacity trading – Fast, cheap, flexible – Gassco system best practice Accept the possibility that supply and demand simply wont meet at the secondary markets. Other solutions for contractual congestion should then be considered: – Investment in new capacity, where appropriate – Overselling of firm capacity by TSO

Classification: Internal Status: Draft Statoils view on the ERGEG GRI Secondary Capacity work Helga Franse European Regulation Advisor tel: Thank you