Allocation of Capacity in Portugal Under the New Regulation 24th IG meeting S-GRI, Madrid September 23, 2013

Main changes New Regulatory Framework Capacity Managment Next Steps Index

Main changes What has changed with the new regulation on Access to Gas Infrastructures? Shippers must buy capacity rights to use the transmission system The new Regulation sets a complete new standard for capacity booking and trading, promoting convergence with CAM NC and enabling the implementation of secondary market Assignment of capacity rights by the TSO for MT and ST products Convergence towards CAM NC rules Ex-ante payment of capacity rights Capacity allocation via booking platform (Primary Market) Promotion of the secondary market for capacity rights trading Capacity allocation calendar, standardization of products, allocation through auction, etc. Shippers pay according to allocated capacity, instead of used capacity, at all entry/exit points (except LDC) Improves interaction between primary and secondary market, while enabling daily auctions Enhances liquidity, avoiding contractual congestion 5 Major changes

Main changes New Regulatory Framework Capacity Managment Next Steps Index

Programming / Nomination Daily Operation / System Management New Regulatory Framework Changes within the scope of Regulatory documents NOTE: MPAI (Infrastructures Access Procedures Manual) – New regulatory document, encompasses former 8 documents governing cap. calculation (MEDC), cap. allocation (MAC), congestion management (MRC) and Strategic Reserves storages MPGTGMAC, MEDC, MRC (per infrastructure) Before After Relevant regulatory documents that govern the capacity allocation process: MPGTG Cap. Calculation Cap. Programming Congestion Mgmt. System Operation Commercial Margins Imbalances Penalties Combines former contents with nomination rules Includes provisions on Secondary Market MPAI Product definition Auction rules Cap. Allocation Invoicing Credit Risk Mgmt. Main activities Assignment of Capacity Rights

Main changes New Regulatory Framework Capacity Managment Next Steps Index

Capacity Management A major change in the capacity management chain Available capacity is published Programming / Nominating AllocationUtilization Payment due for used capacity Available Products Capacity allocation (auctions) Capacity contracting Payment due for contracted capacity Shippers Forecasts/ Nomination Utilization Global System Manager Commercial Mgmt. (TSO) Before Gas DayGas DayAfter Gas Day Until 30 th September, 2013 As from 1 st October, 2013

Capacity Management Standard Products offered Products \ Maturity YearlyQuarterlyMonthly Daily (week-ahead) Daily (day-ahead) Storage of LNG xxxxx Underground storage xxx Physical IPs (*) xxxxx Regasification at LNG terminal xxxxx Backhaul at LNG terminal x UGS injection xx UGS withdrawal xx (*) only for unbundled capacity at Valença do Minho and Campo Maior (outside the VIP)

Capacity Management 2013/ 2014 Jun/Jul (VIP) Y and Q Capacity Auctions Calendar for 2013 and beyond Governing Reg. 31.Jul-06.Sep Yearly Capacity Products * 06–13.Sep Sep 30.Sep Sep 2014 As from Jul (VIP) M and D Cap. Allocation (FCFS) MPAIMPGTG 2014/ … Mar Yearly Capacity Auctions Yearly Consumption Forecast Yearly Consumption Forecast 3.Sep Sep Daily Capacity (Re)-Nomination Daily Capacity (Re)-Nomination Yearly and Monthly Utilization Forecast Yearly and Monthly Utilization Forecast 30.Sep Sep … 30.Sep Sep … Jun Quarterly Capacity Auctions As from Sep Rolling Monthly Capacity Auctions Rolling Day- Ahead Capacity Auctions * This activity includes the publication of available capacity, the auction and the final allocation of capacity to shippers Quarterly Capacity Products * 3.Sep Yearly Consumpt Forecast Monthly Capacity Products * 23.Sep Y and M Utilization Forecast Rolling Day- Ahead Capacity Auctions

Capacity Management Changes on Shipper / TSO interaction Activity Publication of Available Capacity Capacity Bidding Annual Consumption Forecast Announcement of Congestion Preliminary Auction Results Registration of Allocated Capacity Utilization Forecast/ Nomination Concerned Entity / Means TSO RENs Platform Shipper / Form ( to OMIP) Shipper / Form ( to GSM) TSO RENs Platform REN via OMIP / OMIPlus REN via OMIP / OMIClear TSO RENs Platform

Main changes New Regulatory Framework Capacity Managment Next Steps Index

Next steps Provisions to complete the regulatory framework Revision of general terms of capacity contracts Revision of the main operational procedures manual – MPGTG Definition and implementation of CMP rules Further harmonization (Gas Day, nomination schedules, etc.)

Thank you for your attention! 24th IG meeting S-GRI, Madrid September 23, 2013