Nord Stream: a Major European Infrastructure Project – Status and the Way Forward > Henning Kothe, Project Director Nord Stream AG Moscow, 27 th of June The 10 th Russian Petroleum and Gas Congress

55 Meeting the Growing Need for Natural Gas Imports in the EU > 2 Domestic productionExisting imports Additional import requirements Nord Stream Source: IEA World Energy Outlook, 2011 | bcm = billion cubic metres The EU will need 211 bcm of additional gas imports by 2030 Import gap  211 bcm 626 bcm bcm Decreasing European production Current EU gas imports

Energy Infrastructure for Europe > 3 Nord Stream >Two parallel offshore pipelines of 1,224 km through the Baltic Sea >Transport capacity 55 bcm per year >A direct and fixed link between Russia’s vast proven gas reserves and the European Union Gas transported by Nord Stream can >Provide 26 million European households with electricity and heating fuel >Make a substantial contribution to EU climate protection goals >Supply consumers since November 2011

Pipe Laying of both Lines of the Pipeline Completed > 4 KP 675 KP 350 C6 Solitaire KP 1195 KP 297 KP May June July Aug. Sep. Oct. Nov. Dec. 2012Jan. Feb. March April May * KP = Kilometre Point KP 470

>Hyperbaric tie-ins Start 29 May 2012 in Finnish waters at KP 297 to be completed by end of June 2012 >De-watering of Line 2 July 2012 >Drying of Pipeline August 2012 >“Golden Welds”*E stimated to start 25 August 2012 Estimated completion: 1 September 2012 >Gas-InAfter completion of “Golden Welds” Start of operationslast quarter of 2012 Milestones – Line 2 takes Final Steps to Operation > 5 * „Golden Weld“ = the final weld connecting the offshore and onshore parts of the pipelines

Nord Stream realised on Time – Operations started on 8 November 2011 > >Nord Stream transports natural gas from Russia to the European Union >Operations started on 8 November 2011 >After a ramp-up phase, Line 1 is now fully operational with a transport capacity of 27.5 bcm per year >After completion of Line 2 in Q4 2012, capacity will be doubled to 55 bcm 6

Operation of the Nord Stream Pipeline > 7

88 >Landfall Russia  Connection to the Russian gas grid via the Gryazovets-Vyborg pipeline >Landfall Germany  Gas fed into European gas transmission system via the OPAL and NEL pipelines >Control Centre in Zug, Switzerland  Remote monitoring and control of the pipeline system 24/7, 365 days a year >Online data transfer from and to both landfall facilities >Continuous evaluation of data with SCADA system* >Monitoring of the gas flow to detect possible damage, prevent over-pressurisation and fulfil contractual gas transportation requirements *SCADA stands for Supervisory Control and Data Acquisition

Maintenance and Inspection of the Pipeline > >External inspection by ROV:  Visual, acoustic and electro-magnetic inspection surveys  Confirm position of pipeline on the seabed and possible damage to coating >Internal inspection by intelligent Pipeline Inspection Gauge (PIG)  To detect deformations or material loss such as corrosion, erosion, or material defects >Regular testing of all instruments and safety systems at both landfalls 9 Remotely Operated Vehicle (ROV) Intelligent Pipeline Inspection Gauge (PIG)

10 Feasibility Study of Additional Pipelines: A Step Further Towards Greater Long-Term Energy Security for the EU >

11 >EU’s gas import requirement grows continuously –Natural gas offers economic and environmental advantages and is the EU’s fuel of choice over long term –Production in the North Sea is in steady decline –Substantial import gap in the EU and in Northwest Europe in particular >Additional gas transport infrastructure is necessary: –To provide capacities for new supplies –To ensure diversification and operational flexibility of supply routes Rationale for Further Investments in Transport Infrastructure to Europe > EU energy mix – the growing demand for natural gas* *Sources: Eurostat 2012; IEA World Energy Outlook, 2011

12 >Nord Stream received a mandate from the Shareholders to study options to further increase gas transport capacities through the Baltic Sea >Nord Stream will assess feasibility of 1 or 2 additional offshore pipelines, including key criteria: –technical solutions –route alternatives –environment –financing >The study has started in May 2012 and will be completed in Q >The launch of the new study underlines the Shareholders commitment to explore ways to enhance the EU’s long-term energy security by providing reliable and competitive natural gas supplies and diversified transportation capacities Feasibility Study for a Nord Stream Extension >

13 >Intention of the feasibility study: to assist Nord Stream's Shareholders in evaluating possible solutions –to meet the EU’s growing need for natural gas imports over the coming decades –to secure gas deliveries under existing contracts and enhance operational flexibility >Findings of the feasibility study will be the basis for further decisions by the Shareholders >The study will build on –40 years of Russian gas supply to Europe –Experience gained from the successful implementation of the twin Nord Stream pipelines –Shareholders’ own expertise in implementing and managing natural gas pipelines Exploring Solutions to meet the Increasing Natural Gas Demand in the EU >

Contact > Nord Stream AG Grafenauweg Zug / Switzerland Phone: Henning Kothe Project Director Nord Stream AG