Workshop on transportation routes Region South-South East 24th November 2006, Vienna

2 Agenda

3 Route description – capacity situation (1)  UKRAINE-SK-A-GER (Velke Kapusany - Oberkappel)  section 1: Velke Kapusany – Baumgarten  section 2: Baumgarten – Oberkappel design capacity (*)available firm capacity entry Velke Kapusany301 mcm/day11 mcm/day exit Baumgarten139 mcm/day0 mcm/day entry Baumgarten29 mcm/day5 mcm/day exit Oberkappel17 mcm/day0 mcm/day capacity data as of November 2006 sources: and  transit route not viable due to contractual congestion at section exit points

4 Route description – capacity situation (2) source: available capacities as of November 2006

5 Route description – capacity situation (3) source: sold capacities at Baumgarten (section entry) 18 months ahead

6 Route description – capacity situation (4) source: sold capacities at Oberkappel (section exit) 18 months ahead

7 Route description – capacity situation (5)  congestion management procedures  short term: how is UIOLI applied, how is 2ndary market trading facilitated ?  long-term: expansion plans (open season) ?  capacity information  published numerically on monthly basis by SPP and on daily basis by BOG  capacity allocation method  fcfs (in SK and A)  market survey by BOG

8 Route description – tariffs  tariff calculators for both sections of the route  are tariffs cost-based ?  tariff methodology not transparent  transportation case  Contracted capacity: m³/h (at 0°Celsius)  load factor of 100%  tariffs of standard contract period for 1 year  uniform conversion factor of 11,07 kWh/m³ (*) 2005 year or end 2005 data TSOSPP excl. fuel gas BOG excl. fuel gas Entry - exit pointsVelke Kapusany -Baumgarten Baumgarten - Oberkappel Distance between entry / exit (km)462245,146 Eak or entry point (EUR) Euk or exit point (EUR) Total per year (EUR) Transportation cost (EUR /m³/h/km)0,1680,232

9 Conclusions  the transportation for new shippers on the route is not possible mainly due to contractual congestion at section exit points  transparency requirements of Regulation 1775/2005 not fully implemented on all sections of the route

10 Agenda