1. 13th March 2009, Bilbao GLE Workshop on LNG ERGEG MONITORING GGPLNG Rocío Prieto

2. 2 GGPLNG – Monitoring INDEX 1. GGPLNG main provisions 2. GGPLNG monitoring design 3. GGPLNG preliminary results 4. Conclusions and next steps

3. 3  Objective: establish common rules to guarantee transparent, non- discriminatory and appropriately homogeneous TPA  Scope: rTPA LNG facilities on a voluntary basis  Tariffs: general principles on methodology and structure, to assure cost- reflectivity, non-discrimination and transparent principles  TPA services: common rules regarding agents’ roles and responsibilities, services definition and cooperation with adjacent TSOs  Capacity allocation and congestion management: main principles on capacity calculation, CAM and CMP to increase efficient capacity use, market competition and liquidity. Rules for offering unused capacity to market, defining a mechanism to deal with systematically underutilised capacity  Transparency requirements: LSOs’ required to publish both operational (responsibilities, capacities,…) and commercial (services, tariffs, …) information in a user-friendly manner, updated and in English.  Trading of capacity rights: general provisions promoting secondary markets GGPLNG – Main provisions

4. 4 GGPLNG – Monitoring INDEX 1. GGPLNG main provisions 2. GGPLNG monitoring design 3. GGPLNG Preliminary results 4. Conclusions and next steps

5. 5 GGPLNG – Monitoring design  First ERGEG online survey, with external participation  Agents invited to answer:  LSOs operating regulated terminals  LSOs operating exempted terminals (main characteristics, cooperation with TSOs, scheduling procedures, CAM, CMP and trading of capacity rights)  Future LSOs terminals (under construction or projects)  Current and potential LNG terminals users – approx. 38 Users  NRAs – 7 Regulators  Countries participating:  Portugal, Belgium, Italy, Greece, France, UK and Spain 14 LSOs

6. 6 GGPLNG – Monitoring design 1.LSOs’ questionnaires: LSOs responsibilities in defining tariffs, terminal code and CAM and CMP Services offered CAMs and CMPs in force Cooperation with interconnected TSOs Secondary capacity market 2.Users’ questionnaires: Business relationship with the terminal/s Service needs and their role in defining them Preferences regarding CAMs, CMPs, and cargoes unloading notice period Transparency needs Services to facilitate secondary capacity market

7. 7  Main points to monitor (cont.): 3. NRAs’ questionnaires: National regulation regarding TPA for LNG terminals, exclusion from TPA and transparency National regulation affecting vertically integrated companies to avoid anticompetitive behaviour NRAs’ role in defining tariffs, services offered, CAM, CMP, Rules for excluding TPA, penalties for non compliance with contractual obligations and underused or underutilized capacity GGPLNG – Monitoring desing

8. 8 GGPLNG – Monitoring INDEX 1. GGPLNG main provisions 2. GGPLNG monitoring design 3. GGPLNG Preliminary results 4. Conclusions and next steps

9. 9 GGPLNG – Results  Level of response up to present day  NRAs: 100% (7 responses)  LSO: Country Number of LSOs (terminals) Responses received Level of response Spain 4(6) 100% UK 300% France 2(3) 100% Italy 22100% Portugal 11100% Belgium 11100% Greece 11100% TOTAL 16(17)11(14)67% (74%)

10. 10 GGPLNG – Results  Level of response, up to present day (cont.)  Users: Country Responses received Spain 5 France 2 Italy 3 UK 1 Belgium 0 Portugal 3 Greece 1 TOTAL 15

11. 11 GGPLNG – Monitoring INDEX 1. GGPLNG main provisions 2. GGPLNG monitoring design 3. GGPLNG Preliminary results 4. Conclusions and next steps

12. 12 GGPLNG – Next steps  Next steps (depending on the “quality” of answers): Draft report by chairs –March 2009 General Assembly approval – May 2009 Monitoring report to be presented at Madrid Forum meeting in May 2009

13. 13 Conclusions Transparency needs to be achieved all around European LNG terminals, as a priority: Users need to be able to understand all services provided in all terminals Common approach and common “language” for all commercial services and all technical requirements. Effort to be made by GLE to encourage a common market understanding as services providers.

14. 14 Conclusions Congestion management procedures could also be on the agenda for next months: Further analysis of anti-hoarding mechanisms and notice period for all type of terminals Minimum requirements concerning the anti-hoarding mechanisms: harmonization of the definition of capacity hoarding and type of mechanism to be used.

15. 15 GGPLNG – Monitoring Thank you for your attention! rpg@cne.es