Update on GTE Reverse Flow Study Vaclav Vocilka GIE Vice Executive Secretary Stakeholder Group Meeting GRI SSE, Gdynia 26 June 2009

GTE+ Reverse Flow Study Task Force set up by GTE+ in February 2009 Objectives starting from the lessons learned during the crisis of January 2009, find possible investments in reverse flow using the current gas infrastructure  "small" projects … implementable on a short term (1-2 years) … improving Security of Supply … on a coordinated way across borders initial focus : crisis of January 2009, later extended to Europe additional elements to take into account possible limitations of flows due to gas quality European Energy Programme for Recovery legal and regulatory context for cost recovery

GTE+ Reverse Flow Study Methodology starting point : actual flows in January 2009 design of a revised Winter Outlook with capability to simulate supply disruption scenarios  support to assess possible solutions coordination between TSOs to design optimal solutions across countries projects proposed by the TSOs themselves  technical feasibility checked

GTE+ Reverse Flow Study Projects identified revese flow of compression station or metering installations (border points)  allow existing infrastructure to be used in reverse flow new interconnection capabilities  allow new flow patterns connections of storage designed for local market to high transport grid  possibility to export storage new / extensions of pipelines (longer term)  remove physical congestion in reverse flow, allow new sources of gas Final report expected round 15 July maps of Europe showing projects detailed description of each project (about 50)

Example – Central Europe Preliminary – Final report expected on 15 July 2009

Example Czech Republic – Slovak border bidirectional measurement and transport, Lanžhot + CS Břeclav Preliminary – Final report expected on 15 July 2009 Project Goal Crossborder SoS, reverse flow gas compression at CS Břeclav and reverse flow gas metering at BTS Lanžhot (from Czech to Slovakia). Project Description The modifications of the pipe yard at Břeclav CS and metering facilities at BDS Lanžhot enable RWE TGN. In case of cut of supplies through Ukraine this would allow the transport of significant amounts direction Slovakia. The well defined transportation routes in case of uninterrupted deliveries from Russia do not allow an economic rationale of the project. Capacity created in reverse flow 28 mcm/dProject maturity Ready for implementation Capital expenditures1.85 M€Funds breakdown Countries involved Czech Republic, Germany, Slovakia Commencement of operations Q4/2010 LanzhotBTS Lanzhot CS Břeclav

GTE+ Reverse Flow Study Cost recovery ? in most cases envisaged, no interest from the market for reverse flow capacity  need for an appropriate cost recovery mechanism European Energy Programme for Recovery allows 80 M€ for reverse flow projects individual projects will be assessed  result by end 2009 Broader question : How to recover costs for infrastructure needed for Security of Supply ? discussions with ERGEG started possible involvment of Member States ?