1 Brussels workshop: 26 and 27 February 2009 Conclusions and minutes Workshop 26 – 27 February 2009 GRI NW Investment I1- Virtual Test/Business Simulation “It’s about dialogue to come to ‘common thinking’, not 100% exact figures”

2 Brussels workshop: 26 and 27 February 2009 Timings and conclusions 1 See slides 4 and further with detailed minutes on decisions as input for work: route agreed as start; 3 hub products (based on GE-NL-BE-FR); 1 direction from GE – F via NL-BE; 10 – 20 bcm with pipe sizes 36, 46 inch) Timepath: 9 March – last call core group to confirm its members 15 March – format sheet for costs by tsos of core group 31 March For circulation to reference group by core group:  1”st Excel sheet with parameters – lay out  1 st sheet on assumptions  1 st sheet on bidding process by EFET in the lead ALL - Provide comments via Erik/Kristien for virtual case and BH case

3 Brussels workshop: 26 and 27 February 2009 Timings and conclusions 2 1 April send agenda draft 19 May workshop based on following focus: Core group to lead the presentation(s) For market test and general advise option to use BH work (subject to approval budget); presentation in May of BH work; Adam, Bas, Erik to insure link BH case to VT Manual is presented as well Goals are i.a.:  Get to better numbers for September  Start iteration with shippers for September 22 April - 2nd round of the sheets to reference group by core group and EFET 29 April docs for workshop and updated Manual (Kristien/RCC-members) 19 May, 9 to 17 (location to be confirmed, Dublin is proposed)

4 Brussels workshop: 26 and 27 February 2009 Initial proposal possible regulatory framework elements for VT as discussed during workshop (+ assumptions chapter 6 VT documentation dd ) The “nominees” are: 1.Return on investment/WACC/ROI…(eg 5 to 10%) 2.Depreciation period pipes…/Economic lifetime project (15 to 55 years) 3.Assumed/realised “sales” on future pipe (incl. mix of various contract durations: 1 to 15 years) 4.Tariff methodology (what can you charge for new pipe) 5.Period of regulatory commitment (eg budget period in Germany, price control period in NL) 6.Obligations/incentives prior to investment decision (high/med/low pressure to build) 7.(Procedure for assessing efficiency of) estimated CAPEX of proposed investment (Incentive to keep cost low) 8.The “fire/flood” category (herein goes all other potential risk of not discussed parameters; see eg VT document)

5 Brussels workshop: 26 and 27 February 2009 Initial proposal possible regulatory framework elements for VT: discussed points during workshop Remove 6) and 7) (agree assumption) 8) can be included in RoR Stress test all other parameters 1) to 5) Assumption 4) bespoke (= tailormade/customized) or postalised (= everywhere the same) tariffs Assumption 3) is about volume risk with balance of capacity not booked in the auctions

6 Brussels workshop: 26 and 27 February 2009 Initial proposal possible regulatory framework elements for VT: discussed points during workshop Context for the core group: With respect to the assumptions 1) to 8) the core group will further specify key parameters which are going to be tested in the VT (and write down if not). Moreover the core group will specify which assumptions are necessary to test later (regulators take the lead). Shipper representatives in core group will provide input on design/format for market test and the route/product where relevant. TSO representatives in core group will provide format for other TSOs on how to give input on costs and provide input on NPV All core group members will provide input on design/format for economic test.

7 Brussels workshop: 26 and 27 February 2009 Core Group (till 19 May, then option to revise): focus on building economic test; subject to confirmation by 9 March Core group is to present findings during workshop 19 May It consists of: Regulators:- BNetzA - CREG Shippers:- Helga Franse (StatoilHydro) - Jerome Duroyon (Poweo) TSOs: - GRTGaz - GTS Coordinator/ Liaison to reference group: - Kristien van de Laar (NMa/EK) Reference group all other involved tsos and regulators on the route; regulators; 2-3 shippers incl liaison to EFET; liaison to OP. group and project leader