Gas Regional Investment Plans GRIP South Region Gas Regional Investment Plans Investment WS – 29th Sep 2011

Index GRIP South Region: TSOs vision Content of the Report: main chapters Bottom up approach: IP cross border projects Top down approach: Market characteristics Security of Supply Market integration Conclusions. Next Steps 2

GRIP South Region: TSOs purpose Tool for ensuring business development GRIP TYNDP CONVERGENCE and COHERENCE EIP

GRIP South Region: added value Cooperating since 2006, the added value for this stage, GRIP South Region under ENTSOG umbrella, is: to highlight the value of the North-South Corridor in Western Europe and each of the cross border projects included in the TYNDP, to achieve the European Energy objectives for 2020 and beyond. South Region GRIP seen as a regional zoom of TYNDP progressing towards the implementation of the Energy European priorities (EIP)

Index GRIP South Region: TSOs vision Content of the Report: main chapters Bottom up approach: IP cross border projects Top down approach: Market characteristics Security of Supply Market integration Conclusions. Next Steps 5

Main CHAPTERS Content of the REPORT . CURRENT GAS MARKET IN THE SOUTH REGION 3.1 Regional overview: South Region . INTERCONNECTION PROJECTS . TEN-YEAR GAS MARKET IN THE SOUTH REGION . SECURITY of SUPPLY . MARKET INTEGRATION 6

Methodology of work Top down approach 1 Bottom up approach 2 Convergence of TYNDP & GRIP & EIP & PCI DEMAND SUPPLY SECURITY of SUPPLY MARKET INTEGRATION Focusing in the criteria proposed by EC to determine Gas Priority Projects: Diversification of sources and routes and counterparts; Increase interconnection level, Increase of market integration Reduction of market concentration IBERIAN-FRENCH CORRIDOR Western Axis: FID Eastern Axis: non FID MIBGAS Portugal-Spain IPs: non FID Bottom up approach 2 7

Bottom up approach: Specific IP cross border projects The GRIP South Region is focused on cross-border projects stressing its role creating the internal European market. TSOs envision the GRIP “integrating and coordinating at regional level the individual developments on infrastructures needed for increasing cross border capacity elaborated by TSOs at national level”. Provide update on the current cross border IP projects Larrau and Biriatou and Badajoz/Campo Maior and Tuy/Valença do Minho Specific further analysis on non-FID cross-border projects included in TYNDP: Technical description, functionality,… MidCat 3rd IP Portugal-Spain 8

Top down approach: Market characteristics Convergence of TYNDP & GRIP & EIP & PCI DEMAND Gas market composition Role of gas-fired for power generation Peak vs. Average: modulation,… SUPPLY Share of LNG/NG Diversification 9

Top down approach: Security of Supply The modelling of the network: will be done using the ENTSOG tool, and the GLE study “LNG disruption” is taken for granted The GRIP South Region includes a resilience network assessment considering the special characteristics of the Region and under specific risk scenarios as the following: LNG Disruption North Africa disruption Algerian disruption (NG & LNG) Low deliverability of UGS facilities. 10

Interconnect the Mediterranean Area and the Northern supply Corridor Top down approach: Market integration The challenge for the following years are: a well-meshed network, enabling the access to different supply sources, facilitating the establishment of diversified suppliers’ portfolios, improving its robustness and making it more flexible. The GRIP South Region investigates the contribution of the Iberian-France Corridor to the European internal market focus on: Interconnect the Mediterranean Area and the Northern supply Corridor 11

Index GRIP South Region: TSOs vision Content of the Report: main chapters Bottom up approach: IP cross border projects Top down approach: Market characteristics Security of Supply Market integration Conclusions. Next Steps 12

TSOs challenge: Publication of the document in October-November 2011. Conclusions. Next Steps TSOs in the South Region collaborating since 2006, want to continue their close cooperation promoting interconnection capacity. Investment in gas infrastructures is a key issue in the construction of the European Internal Gas Market, and, in this construction, the TSOs have a vital role to play. TSOs in the South Region want to use this GRIP to give a clear picture of the different infrastructures projects so far identified, focusing on the interconnection projects, showing the capacity created by development on its. TSOs challenge: Publication of the document in October-November 2011. 13

Gas Regional Investment Plans Thank you for your attention GRIP South Region Gas Regional Investment Plans Thank you for your attention