1. Gasunie gaat verder in gastransport Sharing lessons from unbundling Dutch unbundling, a long and winding road 4 November 2005, Athens

2. Agenda The internal process The position in the market The new infrastructure level playing field

3. Overview of organisation of Gasunie’s transport activities 2000 – 2005 Transmission Services division was organisationally split from Gasunie 01-01-2000 Organisational unbundling of Gasunie into Gastransport Services and Gasunie Trade & Supply 01-01-2002 Establishment of Gas Transport Services B.V. as independent and regulated TSO with its own board 01-07-2004 Establishment of N.V. Nederlandse Gasunie as independent gas transmission company including GTS as TSO 01-07-2005

4. On July 1 ST vertical integration has ended 100% Dutch State Ministry of Finance Dutch State Ministry of Economic Affairs Exxon 50% 25% Shell 25% Ownership structure After July 1 st, 2005 Two separate companies Gasunie Gasunie Trade & Supply Dutch State Exxon 25% Shell 25% 50% Ownership structure Before July 1 st, 2005 One company Gasunie Source:Gasunie Transport company Trading company

5. Conclusions unbundling process Unbundling has been a costly process Unbundling requires major adjustments in:  management process  corporate governance  mindset

6. Agenda The internal process The new infrastructure level playing field The position in the market

7. Zevenaar Hilvarenbeek Zandvliet Oude Statenzijl Balgzand Zelzate Facts and figures Gasunie Facts (2004) Gas volumes –97 billion m 3 transported –Max daily capacity of 420 million m 3 1350 employees Infrastructure base –11.600 km pipelines –1,100 Gas-distribution stations –10 Export stations Customer base –40 Shippers –10 gas distribution companies and ~400 industrial consumers/ power generators Leading record of safety and continuity in operations Emden Source:Gasunie

8. Other assets of Gasunie Source:Gasunie Zevenaar Hilvarenbeek Zandvliet Oude Staten zijl Balgzand Zelzate Owner of TTF-hub Operating six quality conversion stations Emden 33% owner of Eurohub LNG peak shaver Majority owner of BBL EDI Gasunie Engineering & Technology ‘s-Gravenvoeren Access to two under- ground storage facilitates

9. Source:Gasunie Transmission flows Gasunie 2004, contracted flows Dutch gas for domestic market 97 Bcm Dutch gas for Domestic market Import Export Transit Export Majority of gas streams handled by Gasunie are international Throughput for international markets

10. Gasunie mission To provide safe and reliable transport of natural gas and related services to the integrating European market. Efficient, profitable and sustainable

11. Agenda The internal process The new infrastructure level playing field The position in the market

12. Changing environment Restructuring of (regional) sales and distribution companies within countries Market structure Not only between traders but also between transmission companies Increased competition New policy: unbundling of trading and transport activities and establishment of transmission system operators. Different tariff structures and new products Liberalisation and regulation Decline in European production and rise in demand will increase imports (mainly Russia and LNG) New gas streams

13. Increasing number of gas transport companies in Europe Source: GIE

14. European level playing field for gas infrastructure Gas distribution assets in the UK & US LNG terminal Involved in storage in o.a. Austria and the UK Transmission pipes in Slovakia, Lithuania, Latvia, Estonia and Romania MND (Czech R.) involved in storage Pending majority stake in Hungarian MOL BBL participation (20% stake) UK Gas Management Services Transmission and/ or distribution assets in Germany, Belgium, Slovakia, Russia, Germany, Hungary, Mexico, Canada, Italy and India BBL: Gasunie Fluxys E.ON/Ruhrgas NEGP: Gazprom E.On Ruhrgas Wingas Interconnector: Amerada Hess BP BG ConocoPhillips Distrigas ENI E.ON/Ruhrgas Gazprom International Power Total Examples

15. Concerns regarding restructuring EU gas market Uneven paths to unbundling Regulatory “patchwork” Infrastructure investors of a different kind Does infrastructure fragmentation hinder the attractiveness of Europe as a market for new gas?