Madrid, 7 th February th SG Meeting South Gas Regional Initiative

2 13th SG meeting S-GRI- Agenda

3 Work Plan for The plan will be developed around four priorities : 1.CAMs and CMPs affecting interconnection capacities 2.Ten Year Investment Plan 3.Transparency 4.Other issues: European Market Model

4 Work Plan for CAMs and CMPs affecting interconnection capacities Annual short term Open Subscription for the 20% of present existing capacities between Spain and France. CAM harmonisation (pilot testing CAM FG) beginning with the Spanish and Portuguese interconnections TSOs Common Allocation Platform CMPs at interconnections: Regulators and TSOs will analyse CMPs in force and define an action plan to coordinate and harmonise CMPs at borders following “comitology” CMP draft. Could serve as a pilot testing of the CMP to provide feed-back to the European Commission from the South Region.

5 Work Plan for Ten Year Investment Plan Keep evaluating the need of infrastructure, following market demand, using market mechanisms to decide if future investments are needed. SGRI to provide feed-back to ENTSOG on the contents and methodology to design the regional investment plan. Regulation 994/2010 concerning security of gas supply measures will be taken into consideration in the region.

6 Work Plan for Transparency Update Transparency Study, carried out in July 2007 to check compliance with new provisions on transparency in the Regulation 715/2009/CE, for transmission, LNG and storage infrastructures. Implementation of Regulation 715/2009/CE will be closely supervised checking the information published regarding capacity access and utilisation, especially for flowing gas along the Region and through the borders

7 Work Plan for Other issues: European Market Model Discussion on the future European Market Model (Model for the Region) taking into account the discussion at European level. Provide feed-back and foresee convergence. CNE and ERSE will focus on the harmonization of transmission tariff structures, initially at cross border points. Further works regarding market based mechanisms following stakeholders opinion.

8 Work Plan for Agenda

9 Questionnaire on OS Questionnaire launched in December 2010; deadline 14 th January Answers received : 2 TSOs : Enagas and TIGF 1 Association: Uprigaz 9 Shippers: BP, Cepsa, EDP, Endesa, GDF, Gas Natural Fenosa, Iberdrola, Incogas, Unión Fenosa Almost all answers are confidential

10 Questionnaire on OS

11 Questionnaire on OS

12 Questionnaire on OS

13 Questionnaire on OS Most of the respondents are satisfied with the results of the past OS There is no agreement on the need to launch a new Open Season. With the experience of the past OS, launching a new OS should not be a major problem For some respondents auctions could be a good allocation procedure for future OS, for others pro-rata is a good system. Asymmetry regarding Shippers and LSOs obligations. Big risk for shippers and also for TSOs (10 years commitment) Conclusions from the questionnaires

14 Questionnaire on OS The market is more interested in South to North capacity in the Spanish-French interconnection There is some interest in capacity in the Portuguese-Spanish border and inside the French balancing zones Improvements to be made in future Open Seasons include: cost reflectivity, tariffs and tariffs methodology visibility Infrastructures to be developed due to SoS criteria, need complex analysis and if needed could be paid by European funding Conclusions from the questionnaires (cont.)