2. Ι. PREAMBLE European Atomic Energy Community (EURATOM) Established on the 25/03/1957 at the same time as the Treaty establishing the European Community (EEC Treaty) Purpose: Common control and operation of production and sale of atomic power European Coal and Steel Community (ECSC) Established on the 18/04/1951 at the same time as the Treaty of Paris. Purpose: Common control (by the states involved in II World War) of production and sale of coal and steel, the main materials of Army Industry up to II World War. The Treaty expired on 23/07/2002. Petroleum Crisis (1973) One of the main reasons for undertaking of E.U. initiatives for establishment of the Internal Energy Market and diversification of energy sources.

3. Important E.U. Initiatives after 1990 towards establishment of a European Energy Market: Α. Opening of Electricity and Natural Gas Markets - First Energy Package: Directives 96/92/ΕC και 98/30/ΕC – common rules for internal market for electricity and natural gas - Second Energy Package (2003): Directives 2003/54/ΕC, 2003/55/ΕC - Third Energy Package (2009): Directives 2009/72/ΕC και 2009/73/ΕC, repealing former directives Β. Regulating of the Energy Market (2003): Establishment of European Regulatory Authorities for electricity and gas C. Regulations for establishment of cooperation for European Network of Transmission System Operators (ENTSO) for electricity (Regulation 714/2009/EC) and natural gas (Regulation 715/2009/EC) D.European Energy Networks: Decision No 1364/2006/EC

4. Security of Supply Renewables Energy Efficiency Internal Energy Market Research and Innovation ΙΙ. THE MAIN COMPONENTS OF THE ENERGY UNION

5. Main European initiatives: Security of Supply, one of the key issues of European strategy for integration of Internal Energy Market Decision 994/2012/ΕC: mechanism for exchange of information between Member States and the European Commission Directive 2005/89/ΕC: establishing measures for safeguarding security of supply in electricity Regulation 994/2010/EC of the European Parliament and the Council: establishing obligations to the Member States within the spirit of “solidarity” amongst them Directive 2009/119/ΕC: obligations to the Member States for maintenance of minimum stocks of oil and petroleum products Greek Law 4001/2011. Regulatory Authority – competent authority for safeguarding of implementation of measures of security of supply ΙΙΙ. SECURITY OF SUPPLY

6. Α.Liquefied Natural Gas is an effective tool for mitigating a supply crisis Examples of effectiveness of LNG in cases of energy crisis are the Fukushima case (2011) in Japan, Russian Ukraine case in 2009. Β.LNG today: In 2014 pipeline import capacity to the EU stood at 490 bcm/a and LNG import capacity at 197 bcm/a However most of this LNG import capacity is located in Spain, Portugal, France and the UK The current level of LNG consumption can vary between around 50% in Spain and Portugal and 3% in the Netherlands. Three main countries from where imports are sourced are Qatar, Algeria and Nigeria. Many countries especially in Central-Eastern Europe, have no access at all to this source of supply. In the geographic area of central and Southeastern Europe the LNG Terminal of Revithoussa is established, one of the most important energy infrastructures in Greece. C.Small scale LNG Encouragement of LNG use as fuel for ships is accelerated. The need for increase of LNG use as fuel for ships is also promoted because in 2020 (or 2025) Annex VI of MARPOL Convention (International Convention for the Prevention of Pollution from ships) shall enter into effect imposing stricter rules for environmental protection. ΙV. THE ROLE OF LNG IN THE SECURITY OF SUPPLY

7. Effective implementation of existing legal framework prior to adoption of new rules. Encouragement of entering into interconnection Agreements between adjacent TSOS. Encouragement of studies for construction of new N.G. interconnection infrastructure. An effective third party access will facilitate N.G. transactions and the optimum use of existing LNG Terminals. Construction or benefiting from existing LNG storage facilities will contribute significantly to the optimum use of LNG terminals which in certain cases serve as “storage facilities”. New LNG terminals are major investments; therefore their economic feasibility should be carefully examined on an ad hoc basis and if possible on a long term basis. Considerations like security and diversification of supply should be accounted for as well. Upgrades of existing LNG terminals are usually more cost-effective. V. PROPOSALS FOR IMPROVEMENT OF LNG MARKET INSIDE EUROPEAN UNION