1. Update on GSE Activities Klaus-Dieter Barbknecht GSE President GIE General Assembly Madrid 21 November 2007

2. GIE General Assembly - The spoken word shall prevail - 2 GIE members agreed on a voluntary basis to publish storage data The initiative goes beyond the requirements by the GGPSSO and Gas Directive Protection of commercially sensitive information aggregated form to guarantee that commercially sensitive information is not disclosed Aggregated gas storage inventory Provision of information which the market needs to operate efficiently and effectively

3. 21 November 2007 GIE General Assembly - The spoken word shall prevail - 3 …preparing a list of storage sites that affect the trading at European hubs …reviewing the level of appropriate aggregation …contributing to the EC Study on natural gas storage GSE Transparency Work plan …facilitating the release of both operational information about the use of storage sites & available capacity for purchase …reviewing the potential for publication of aggregated inflows and off-takes & gas in store levels per trading zone

4. 21 November 2007 GIE General Assembly - The spoken word shall prevail - 4 Gas Storage Inventory: Aggregation by hubs

5. 21 November 2007 GIE General Assembly - The spoken word shall prevail - 5 GSE Storage Investment database  …is based on publicly available information  The data reflect the most probable expectation at the moment.  The published data shall not be understood as any company’s ultimate commitment to execute the project.  Reviewing & updating every 6 months or by request.

6. 21 November 2007 GIE General Assembly - The spoken word shall prevail - 6 § § § Impact on storage …increasing transparency 3rd EU Energy Package …making the GGPSSO legally binding „To make the guidelines legally binding, the Regulation will be extended to define how storage system operators shall offer third party access services, how they shall allocate capacity and manage congestion.“ § GGPSSO § § …tightening the regulatory framework for new investments in the gas infrastructure …amending Regulation (EC) 1775/2005 (gas)

7. 21 November 2007 GIE General Assembly - The spoken word shall prevail - 7 …proposes legal and functional unbundling for gas storage …analyses 4 options for strategic storage: –Impose mandatory strategic stocks on the companies –Improve the existing mechanism –Create regional solidarity mechanisms between Member States –Impose minimum standards on commercial stocks for improving SoS …calls for strengthening powers of national regulatory authorities and… …enhanced co-operation of EU energy regulators 3rd EU Energy Package Impact on storage …launches a „EU Study on Natural Gas storage“

8. 21 November 2007 GIE General Assembly - The spoken word shall prevail - 8 …is of the opinion that binding regulation, if implemented, must remain within the original scope of the GGPSSO …appeals to avoid unnecessary administrative & regulatory burdens …strives for the realization of an optimally functioning, competitive internal gas market …is committed to preserve and promote a clear and stable investment climate …reaffirms its commitment to the full implementation of the GGPSSO …considers the GGPSSO to be a guarantee for equal treatment of storage users & positive investment signals GSE position

9. 21 November 2007 GIE General Assembly - The spoken word shall prevail - 9 CONGESTION MANAGEMENT SECONDARY MARKET INVESTMENT TRANSPARENCY  Website on weekly storage inventory & movement by traded hubs  Contributing to the EC study on natural gas storage  Publication of storage project data GSE initiatives  Investment workshop on storage projects in Europe CONFIDENTIALITY  Creation of effective, non- discriminatory processes  Improvement of secondary market services & tools  Endorse equal treatment of all storage users

10. 21 November 2007 GIE General Assembly - The spoken word shall prevail - 10 Thank you for your attention!

11. 21 November 2007 GIE General Assembly - The spoken word shall prevail - 11 Back up

12. 21 November 2007 GIE General Assembly - The spoken word shall prevail - 12 GSE Storage Investment database (2)

13. 21 November 2007 GIE General Assembly - The spoken word shall prevail - 13 Implementation of GGPSSO 2nd Deadline for the implementation of the GGPSSO 2005 ERGEG monitoring report on GGPSSO implementation 2nd ERGEG Monitoring: Questionnaires to SSO, storage users, NRA ERGEG 2006 final monitoring report on the implementationof the GGPSSO Madrid Joint Working Group 13th Madrid Forum 2 0 0 5 2 0 0 6 2 0 0 7 1st Apr Dec Feb Oct Sep Dec Nov Apr Feb/Mar 12th Madrid Forum 3rd Energy Package by the European Commission GGPSSO - Monitoring

14. 21 November 2007 GIE General Assembly - The spoken word shall prevail - 14 Voluntary guidelines or binding legislation? recommendation to the European Commission: binding legislation for access to storage Regulation of storage Presentation of the 2006 final ERGEG Monitoring report on the implementation of the GGPSSO 3rd Energy Package 19th September 2007 continuing voluntary Implementation at risk ?

15. 21 November 2007 GIE General Assembly - The spoken word shall prevail - 15 Storage volumes – present Source: IGU 2006 The overall working gas volume in the EU is at ~80 bcm. Storage volumes need to be expanded by 60 bcm until 2025!

16. 21 November 2007 GIE General Assembly - The spoken word shall prevail - 16 Storage projects – GSE investment database –  30 bcm additional working gas capacity until 2015 (+40% with respect to present capacity)  more than 60% of new capacity in countries from where derive 80% of EU-27 gas demand  more than 70% of new capacity deriving from new storage facilities  Three digits percentage increases in:  Spain: substantial increase in gas demand and total dependency on imports  UK: shift in supply patterns, trading opportunities  Bulgaria: increasing role for Russian transit gas  Austria: commercial developments for bordering countries (e.g. Germany)  GSE commitments:  continue working with all stakeholders to fostering a “proper” investment climate for making all projects real and available for market needs on time  Publication of a European storage investment database on the GIE web site to provide a synthetic and updated status on projects (based on public information)