Energy Streams in Regional and European Aspect Gas supply Black Sea Technology Company Plc Ing. Giampiero Sechi CEO BSTC Plc March 12-13, 2007 Sofia, Sheraton Hotel

History of AMGA Territory covered: - 42 municipalities in Italia - 4 municipalities in the Republic of Croatia - 38 municipalities in Bulgaria Length of own network: 2,030 km Clients served: 130,000 households Sold cubic meters of natural gas in 2006: 250 million AMGA Today Established in 1889, for 119 years, AMGA (Azienda Multiservizi S.p.A Udine), have acquired wide experience in the field of natural gas distribution.

AMGA in Bulgaria In 2002 AMGA acquired 99.69% of the share capital of Black Sea Technology Company AD (BSTC), now increased to 99.98%. At the beginning of 2004 BSTC has been awarded the licenses for the regions of Moesia and Dobroudja by the State Energy Regulation Commission (SERC) for 35 years. The company will invest over 150 mln BGN for construction of gas distribution networks in the territory of both regions.

BSTC in Bulgaria ТЪРГОВИЩЕ

Project of Gasification in Bulgaria In gasification of Targovishte In gasification of Dobrich In gasification of the regions of Moesia and Dobroudja in Pleven, Lukovit, Shumen, Provadia, Dulgopol, Aksakovo In gasification of Kaspichan In the period BSTC started the following projects: … and the investment since 2004 exceeds 30,000,000 BGN.

Project of Gasification in Bulgaria Territory covered: - 38 municipalities Length of own network: km Clients served: 2, ,278 households public administration organizations industries BSTC Today

What Comes Next in March March 2009 Amount of Investment: - 47,000,000 BGN Length of new network: km Number of new clients: - Industries – Public administration organizations – Households consumers - 8,047 In the period gasification will be started of: - Valchidol, Vetrino, Devnja, Kaolinovo, Suvorovo and Hitrino. - Cherven brjag, Dolna Mitropolija, Ugarchin, Letnitza, Pordim, Yablanitza, Drjanovo and Suhindol. Summary of the Investment Program of BSTC

Period March March 2009

The History of Households Consumers

Our Vision on Gas Distribution Market in Bulgaria % average annual increase of total households customers for the next few years ( ) 7% annual growth of total gas distributed in the country In the next two/three years regional distributors will achieve significant growth results

Gasification Project/ Regulatory Frame Gasification development will improve the energy balance of the country and customers The efficiency parameter will be introduced in the regulatory frame. The resulting benefits will be shared among Customers/State/Investors We, as a distributor, totally appreciated the decision of the Bulgarian Authority for Energy SERC to organize the distribution in regions: - to find the best balance among weak and strong regions - to create the best conditions for extension of the distribution network The actual trend of growth and the gasification experience in other countries has shown that the 35- year license term is a well justified choice Our estimation is that a ten year period is the time to reach a profitable and efficient dimension of activity

Household Gasification The aforementioned is a natural trend … … but CAN THE PROCESS OF HOUSEHOLD GASIFICATION BE SPEEDED UP? We are now far up from the target fixed by the law of 30% household gasification in ten years …

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