The establishment of the 2nd list of Projects of common interest Southern Gas Corridor Regional Group Meeting Brussels, 24th February 2015 European Commission DG Energy Internal Market I: Networks and Regional initiatives

Agenda Introduction The TYNDP process (ENTSOG) Preliminary conclusions of the TYNDP, final CBA template & guidelines for Regional Groups Project evaluation process and tools (JRC) Presentation of updated method and discussion Project presentations (promoters) ACER/NRA feedback Commissioning dates, allocation of costs of "enabler" projects Discussion on projects Outstanding questions Identification of further analyses, sensitivity analyses for project evaluation Next steps

State of play of the 2nd PCI evaluation process (Mid-March) 1 2 3 4 5 6 7 8 9 There's a 1 month delay due to SouthStream cancellation 1st mtg: Launch the 2nd PCI process 2nd mtg: PCI candidates and methodology 3rd – 4th mtg: System wide assessment Discuss and agree on methodology Prepare for project specific CBA 5th -6th – (7th) mtg: Assessment Apply methodology Discuss projects Rank projects 8th mtg: agree regional lists Technical level DMB We're here 9th mtg: High Level DMB to approve PCI list Regional lists may still be updated based on ACER opinion Commission adoption: end of November

State of play of the 2nd PCI evaluation process – Consultation on PCI candidates The Consultation was launched on the 22.12.2014 and will be open until the 13.03.2015 Consultation on the necessity of projects from the energy policy perspective List of PCI candidates are published on Your Voice In Europe. The lists of candidate projects can be accessed at the following links: Electricity: http://ec.europa.eu/energy/infrastructure/consultations/doc/pci_candidates_for_ electricity.pdf Gas: http://ec.europa.eu/energy/infrastructure/consultations/doc/pci_candidates_for_ gas.pdf Commission will present the results of the consultation to the Regional Groups to be taken into account when deciding on regional lists / Stakeholders invited to this meeting Commission will publish the results on the Transparency Platform Deadline extended until March 31st

The TYNDP process (ENTSOG) Preliminary conclusions from of the TYNDP Guidance to Regional Groups: Relevant / less relevant price configurations Presentation of the final project-specific CBA template Costs to be included in the CBA ("enabler" projects, including cost of connection to the transmission system) Questions & answers

Project evaluation process and tools Draft assessment method (JRC) Comments received How they were taken into consideration Questions, comments and discussion Request: access to CBA results to test methodology Regionally tailored: Proposed price configurations for the region Non-mature projects – proposal for their evaluation GR_6_SGC – TRA-N-053: White Stream GR_6_SGC – TRA-N-339: Trans-Caspian GR_8_SGC – UGS-N-067: Mediterranean Gas Storage

Project presentations AT (Gas Connect Austria) AZ (Socar, Azerbaijan South Caucasus Pipeline, White Stream) BG (Bulgartransgaz) CY (Ministry of Energy, Commerce, Industry and Tourism) EL (TAP, DESFA, IGI) HU (FGSZ) IT (Snam Rete Gas) RO (Transgaz, AGRI LNG Project Company) TM (White Stream Caspian Pipeline Company)

ACER/NRA feedback done Sufficiently mature projects will be evaluated based on a common CBA methodology developed by ENTSOG ACER to check consistent application of CBA across regions NRAs' views on: Interdependency between projects (e.g. "enabler" projects) Realistic commissioning date of projects Allocation of costs of "enabler" projects between interconnectors Group 1 and Group 6 – Trans-Caspian and South Caucasus Pipeline; enabler or enhancer? Other? Cross-check of project costs? done

Project discussions Outstanding questions Gas Connect (CBA with the HU mirror elements) Identifictation of further analyses, sensitivity analyses for project evaluation Specific analyses needed for some projects? Non-mature projects? Individual impact of internal projects? Etc. Sensitivity analysis on commissioning dates? Other? Principle: Be aware that if a group / cluster is chosen as a PCI, all its elements will become a PCI if promoters are not willing to share (cost) information between them, then either JRC/COM can do it for them or they can just not do it and then the combination is not assessed, that is, it is taken off the potential list of candidates

Next steps Next meeting March (18th – 31st) "Homework": Separate for each Regional Group Objectives: Agreement on JRC methodology ENTSOG presentation of TYNDP Monitoring of PCIs (1st list) "Homework": Final comments on JRC methodology by March 9th (to xxxxxxxxxxxxxxxx@xx.xxxxxx.xx or your Regional Group lead) COM to circulate updated JRC methodology by March 16th Promoters to start work on their PS-CBA qualitative assessment prepare for financial analysis (cooperate if in group) – cost of enabler projects, CAPEX, OPEX, etc