Paris, 16 th March th SG Meeting South Gas Regional Initiative

2 Agenda

3 II. Action plan for 2010 During the 8 th RCC, held on 29 January 2010, the Regulators approved the following work program for 2010 : INTERCONNECTION CAPACITIES 1.Capacity allocation mechanisms (CAM): 2010 OSP. GRI South will continue allocating short term capacity at Larrau, (scheduled in November) 2.New infrastructures: 2013 OS. Regulators in the GRI South will monitor infrastructure construction associated to 2013 OS French TSOs and CRE to report on French investments decisions, (Done in January) TSOs to provide a list of infrastructures, cost and operational start dates, (Done in February)

4 II. Action plan for 2010 INTERCONNECTION CAPACITIES (cont.) 3.New infrastructures: 2015 OS. The GRI South will launch the binding phase of the 2015 OS Regulators to decide on economic test, tariff visibility and capacity products, (scheduled for February) TSOs to provide a list of infrastructures, investments cost and services’ availability dates, (Done in February) Regulators and TSOs to communicate Stakeholders on the procedure (scheduled for early March) Final documentation and procedure launch, (before summer) Stakeholders to sign contracts (before August) 4.GRI South will develop a regional investment plan according to requirements in Regulation 715/2009 (art. 12), (scheduled for December)

5 II. Action plan for 2010 INTEROPERABILITY 1.Study on CMPs at interconnection points: current status in each country, characterization, identification of problems taking into account CMP ERGEG Comitology Guidelines, future action plan to solve them at the borders (Regulation715/2009, art. 16), October (Possibility to have different timetable for the interconnection Fr-Sp, Pt-Sp) 2.Study on compatibility between LNG terminals and interconnected pipeline networks: regulation 715/2009, art. 17, to be developed once fulfilled the task above TRANSPARENCY 1.Update of Regulators’ 2007 Transparency Study: 1 st to check compliance (regulators) September with Regulation715/2009, 2 nd to invite comments by Stakeholders afterwards 2.TSOs to update building status records of OS infrastructures, June and December 3.TSOs to report on ENTSOG progress, quarterly REGULATORY HARMONIZATION 1.Regulatory proposals regarding common trading licence between Pt-Sp, Done January 2.Comparative study on cross border access tariffs between Pt and Sp, July 3.Regulatory proposal regarding cross border access tariffs between Pt-Sp, November, and Public Consultation on the proposal, January 2011

6 Western axis: Capacity increase at existing interconnections by 2013, reaching GRTgaz South. OS 2013 Eastern axis: Creation of a new interconnection point, reaching GRTgaz North. OS 2015 III. Preparation of the OS 2015 Introduction: development of new interconnection capacity between F-S Rhône MidCat North South Guyenne Larrau Euskadour 2013 capacities 2015 capacities

7 Results of the non-binding phase OS 2015: Two phases: Non-binding phase: launched in September 2009, at the same time that 2013 OS Binding phase: to be launched before summer 2010 III. Preparation of the OS 2015 Introduction: development of new interconnection capacity between F-S

8 III. Preparation of the OS 2015 Introduction:Work Programm afecting Open Season 2015 After last SG meeting, held on the 13 th of November 2009, Regulators and TSOs have continued working on the binding phase of OS 2015: 12 th IG meeting on 14 th of December th RCC meeting on the 29 th of January th IG meeting on the 17th of February 2010 CNE and CRE conference call on the 25 th of February 2010

9 To offer capacity at MIDCAT and Irún simultaneously To give more transparency to the economic test To launch the process before summer When deciding on the investments, to built both if there is sufficient requests according with the economic test, if not to build MIDCAT alone and if demand is not enough to built MIDCAT but sufficient to built Irun, then only Irun will be built. III. Preparation of the OS 2015 General agreements

10 III. Preparation of the OS 2015 III.1. Products Products to be offered: MIDCAT: Among the three possibilities discussed regarding Spain - France interconnection: Spain-TIGF connection, Spain-GRTgaz South connection Both Spain-TIGF and Spain-GRTgaz South TIGF –GRTgaz South GRTgaz South – GRTgaz North Same structure for Irún/Biriatou ALREADY DECIDED D+B F H C+A E G Spain- GRTgaz South GRTgaz North -Spain

11 III. Preparation of the OS 2015 Different capacities scenarios depending on the infrastructures to be built (depending on the capacity requested) To be reviewed by TSOs Total Capacity GWh/day MIDCAT + IRUN MIDCATIRUN GRTgaz N GRTgaz S 200 ?111* GRTgaz S TIGF *55* TIGF Spain III.2. Capacities (*) Capacity not allocated in 2013 OS

12 III. Preparation of the OS 2015 Capacity offered. To be reviewed by TSOs OFFER Capacity GWh/day MIDCAT + IRUN MIDCATIRUN GRTgaz N GRTgaz S 160 ?111 GRTgaz S TIGF TIGF Spain III.2. Capacities (*) Capacity not allocated in 2013 OS 80% Capacity

13 IV. AOB and next meetings  Next IG meeting in April  Next SG meeting to be scheduled