1. Algiers, 30 th -31 st january 2001 EMERGING INVESTMENT OPPORTUNITES IN ALGERIAS ENERGY AND MINING SECTORS INTERNATIONAL PARTNERSHIP AND ALGERIAN GAS MARKETING Ali Hached Vice-Président Commercialisation, Sonatrach

2. Algiers, 30 th -31 st january 2001 Europe 49% Algeria 15% Russia 24% Norway 12% Algeria 29% Norway 23% Russia 46% Others 2% Sonatrach : 29% of imports Sonatrach : 15% of consumption SONATRACHS POSITION ON THE EU GAS MARKET (1999) INTERNATIONAL PARTNERSHIP AND ALGERIAN GAS MARKETING EMERGING INVESTMENT OPPORTUNITES IN ALGERIAS ENERGY AND MINING SECTORS

3. Algiers, 30 th -31 st january 2001 TRADITIONAL CONCEPTS Specific Markets Long Term Contracts Periodic Price Revision Take or Pay Clause INTERNATIONAL PARTNERSHIP AND ALGERIAN GAS MARKETING EMERGING INVESTMENT OPPORTUNITES IN ALGERIAS ENERGY AND MINING SECTORS

4. Algiers, 30 th -31 st january 2001 NEW CONCEPTS Subsidiarity Eligibility Unbundling Third Party Access INTERNATIONAL PARTNERSHIP AND ALGERIAN GAS MARKETING EMERGING INVESTMENT OPPORTUNITES IN ALGERIAS ENERGY AND MINING SECTORS

5. Algiers, 30 th -31 st january 2001 TYPICAL EUROPEAN GAS MARKET ORGANISATION PHYSICAL MARKET PRODUCERS SUPPLIERS LARGE INDUSTRIAL CONSUMERS DISTRIBUTION COMPANIES POWER COMPANIES TRANSPORTATION COMPANIES SMALL INDUSTRIAL CONSUMERS RESIDENTIAL COMMERCIAL INTERNATIONAL PARTNERSHIP AND ALGERIAN GAS MARKETING EMERGING INVESTMENT OPPORTUNITES IN ALGERIAS ENERGY AND MINING SECTORS

6. Algiers, 30 th -31 st january 2001 Physical Flows Transportation Contract : Regulated / Negotiated Tariff Sales / Purchase Contract : Contractual /Spot Price Service Contract : Regulated Tariff PRODUCERS / SUPPLIERS TRANSPORTATION COMPANIES DISTRIBUTION COMPANIESMARKETERS LARGE CONSUM. MEDIUM AND SMALL CONSUM. PHYSICAL MARKET FINANCIAL MARKET HEDGING SPECULATION ARBITRAGE THE NEW EUROPEAN GAS MARKET ORGANISATION INTERNATIONAL PARTNERSHIP AND ALGERIAN GAS MARKETING EMERGING INVESTMENT OPPORTUNITES IN ALGERIAS ENERGY AND MINING SECTORS

7. Algiers, 30 th -31 st january 2001 SONATRACHS KEY SUCCESS FACTORS Close to the growing Mediterranean and European markets Exports infrastructures capacity extension at low marginal costs Operational flexibility allowing to reach gas markets either by pipeline or LNG Long experience of the gas industry Important base of gas reserves INTERNATIONAL PARTNERSHIP AND ALGERIAN GAS MARKETING EMERGING INVESTMENT OPPORTUNITES IN ALGERIAS ENERGY AND MINING SECTORS

8. Algiers, 30 th -31 st january 2001 STRENGTHENING A CONTRACTUAL WARANTEE WITH AN OPERATIONAL WARANTEE Regazeification Terminals Large Outlets : Power Plants and Cogeneration Plants Gas Transportation and Distribution Participation in Downstream Projects Producer–Producer Partnership (Gas Equity) Producer-Distributors Partnership Producers-Power Generator Partnership Joint Marketing Company Forms of partnership to achieve this target : INTERNATIONAL PARTNERSHIP AND ALGERIAN GAS MARKETING EMERGING INVESTMENT OPPORTUNITES IN ALGERIAS ENERGY AND MINING SECTORS