1. Shippers’ Meeting 7 February 2006
Radisson SAS Hotel – Schiphol-Rijk
1 februari 2006

2. Program Introduction Paul van der Laan Open Season Gert Sloet
Combiflex Henk Kuyper
Coffee break
Customer satisfaction Mirjam Vogelzang &
Arjan Leeuwerke
Miscellaneous Jan Eggink
Closing Paul van der Laan
Lunch

3. Program Introduction Paul van der Laan Open Season Gert Sloet
Combiflex Henk Kuyper
Coffee break
Customer satisfaction Mirjam Vogelzang &
Arjan Leeuwerke
Miscellaneous Jan Eggink
Closing Paul van der Laan
Lunch

4. Topics Looking back Current status Proposed measures Future
Participants
Capacities
Proposed measures
Future

5. Looking back Capacity planning until 2004:
Informal indications for capacity needs from long term planning consultation rounds
Single requests from shippers not substantial enough to justify investments
Approach in 2005: Open season hi-cal grid
Use capacity booking commitments instead of
informal indications
Combine single requests into one project to justify
the required investments
First time NV Nederlandse Gasunie acts as a pure
transmission company
Particular attention to:
Efficiency
Reduction of inconvenience to communities

6. Open season progress Information Elaboration
37 Confidentiality Agreements
Bilateral discussions with parties
Elaboration
26 Letters of Intent
Very high entry and exit capacities requested
Commitment on top of existing firm bookings:
18 Precedent Agreements
Focus on entry NE, exit SW:
Entry NE 3.8m m3[n;35.17]/h
Exit SW 0.9m m3[n;35.17]/h
Exit SE 0.3m m3[n;35.17]/h

7. Capacity commitments
Capacity commitments on top of current firm bookings:
Situation 2012
Entry Emden 2.5m m3/h
Entry Oude Statenzijl 1.3m m3/h
Entry and exit BBL 0.3m m3/h
Exit Zelzate 0.6m m3/h
Exits Bocholtz and ‘s Gravenvoeren 0.2m m3/h

8. Proposed measures Extensive expansion of hi-cal grid required
GTS (TSO) and NV Nederlandse Gasunie (asset owner)
discuss expansion of hi-cal grid with:
370 km of new trunk lines, including 2nd Eems crossing
120 km of connection lines
4 new compressor stations:
Update of border stations to accommodate increased entry capacities and new exit capacities (Zelzate)
Expected required investment > €1bn

9. Pipeline routes and measures
Eems crossing (Emden entry)
Compressor station Delfzijl
Compressor station Tripscompagnie
Compressor station Wijngaarden
Compressor station Hernen
Upgrade for exit South-East
Hollands Diep crossing
Schelde crossing

10. Realization Points for consideration: Work in progress:
Complex project to handle
Magnitude much bigger than normal yearly investments
Work in progress:
Technical preparations:
Planological inventories (internal, external)
Surveying of technical bottlenecks
Debottlenecking studies
Investment approval/comfort
Constructive talks with NMa/DTe
Overall planning:
Phased realization due to magnitude
Capacity available from Q – Q4 2012

11. What causes the leadtime?

12. Next steps Continuation of on-going activities:
Function specifications
Environmental impact studies
Permits
Allocation of capacity to participants
Consultation with NNOs
Comfort from NMa/DTe on required investments
Board and shareholder approval Gasunie

13. Program Introduction Paul van der Laan Open Season Gert Sloet
Combiflex Henk Kuyper
Coffee break
Customer satisfaction Mirjam Vogelzang &
Arjan Leeuwerke
Miscellaneous Jan Eggink
Closing Paul van der Laan
Lunch

14. The start of combiflex
“Methodebesluit flexibiliteitsdiensten” (5 December 2005)
Duration of 1 week
Volume neutrality required
NMa/DTe, not yet approved tariff structure for the flexibility service
Tender Combiflex Service 2006
4 opportunities for shippers to contract the Combiflex 2006 service.
In November 2005 NMa/DTe has confirmed its decision in “Methodebesluit flexibilitieitsdiensten” that Gasunie Trade & Supply has a dominant position on the flexibility market and hence the conditions ex. Article 10a, sub 1d of the Dutch Gas act have been fulfilled.
In other words GTS as system operator has to offer an hourly, daily and week flexibility service to the market.
GTS has no flexibility source of their own except for the line pack flexibility which is already offered as standard flexibility to all users.
Therefore GTS has tendered flexibility from others. The availability of sufficient quantities Combiflex 2006 is depending on the amounts GTS is able to purchase from its suppliers.
In December 2005 shippers where invited to buy Combiflex service for the whole year 2005.
2 weeks ago we completed the sales of Combiflex for the period from April till December 2006.
During this year there will be 2 other possibilities to purchase combiflex for the coming periods Quarter 3 and 4 and From October to December.
In this presentation I will explain the main principles of the Combiflex service.
For detailed questions about combiflex we advise you to contact your account manager.
1 februari 2006

15. Standard Tolerance regime (example)
In 2006 GTS started with the new balancing regime.
The thin black graph represents the hourly imbalance.
De imbalance is defined as the difference between the entry and the exit. There is no real difference if a shipper is using the entry exit system without the two hours time delay or including the time shift.
A shipper has to be in balance on an hourly base. This is called the standard hourly tolerance this is represented by the thin red line.
This tolerance is calculated by taking the booked entry and exit capacity divided by two times the hourly tolerance being 26% 10% within the 250,000 and 1,000,000 and 5,6% above 1 million booked capacity (the bracket system)
Than in black the cumulative balance signal with 4 times more tolerance than the hourly tolerance. Represented by the red line called the standard Cumulative tolerance.
And finally you see the Standard daily margin.
As you can see in this example there will be 3 surcharges based on this balance signal.
1 februari 2006

16. Combiflex services 2006
Services consist of:
Combiflex shortage capacity m3(n;35.17)/h
Combiflex excess capacity m3(n;35.17)/h
Combiflex volume: combiflex shortage capacity times 168
Shortages and excess volumes within the standard and combi tolerance boundaries will be corrected by using the buffer volume
Shortage capacity: this capacity will be used to sent volume to your portfolio in case of shortage.
Excess capacity: this capacity will be used to take away gas from your portfolio into your buffer in case of excess.
There are 24 x 7 = 168 hours in a week, if you have booked 1 m3/hr capacity you get 168 cubic meter and it takes 1 week to empty your buffer volume
1 februari 2006

17. Balancing regime including combiflex (example)
This is the same imbalance signal but this time including additional combiflex tolerance.
The thin bleu line is the Combi Hourly tolerance. In this case 6 + 3
You can see that the hourly imbalance signals stays within the tolerance so there are no surcharges left
The other bleu line is the Combi cumulative tolerance 4 x 6 and than for every hour of the day there will be 3 added
The Combi daily Margin was 8 and 24 x 3 is added to it.
You can see that the same signal now stays within all Combi margins. With the result that there will be no surcharge.
This is the basic of the combiflex system. However we will show during this presentation that we use the buffer volume to get your balance signal within the standard margins. Aanwijzen
1 februari 2006

18. Combiflex services 2006 2 types are offered:
Combiflex A: 1 unit shortage cap., 1 unit excess cap.
Combiflex B: 1 unit shortage cap., 1/3 unit excess cap.
Starting value
Buffercontent m3n
168
126
Starting Value buffer B
Combiflex B 1:1/3 84
Starting Value buffer A
The are 2 types of combiflex offered
Combiflex A
With 1 cubic meter shortage capacity you receive 1 cubic meter excess capacity.
For every booked cubic meter per hour of shortage capacity you receive a buffer volume of 168 cubic meter.
To give the maximum of flexibilty the starting volume of your combiflex A buffer will be halfway at 84 cubic meter.
For Combiflex B
With every cubic meter shortage capacity you receive 1/3 cubic meter of excess capacity
For combiflex B you receive for every booked cubic meter per hour of shortage capacity a buffer volume of 168 cubic meter
To give the maximum of flexibility the starting volume of your combiflex B buffer will be set at 126 cubic meter. 1/3 of excess+ 3/3 of shortage = 4/3 so the starting volume will be set at ¾ times 168 is 126
Combiflex A 1:1
1 februari 2006

19. Combi Hourly imbalance
Surcharge
Combi Hourly Tolerance
To buffer
To buffer
Excess
Standard Hourly Tolerance
entry = exit
Send-in/Send-out
To the extent the buffer volume is available
For every hour of the gas day GTS calculate if volume needs to be send in or out of the buffer.
We start with the check of the combi hourly imbalance.
In case of excess in your portfolio we check if the excess is below the Standard Hourly Tolerance. In this case nothing happens.
In the next example the excess is between the Standard Hourly tolerance and the Combi Hourly tolerance. The amount exceeding the standard hourly tolerance will be send-in the buffer, to the extent the stock has not reached the contracted maximum Combiflex-volume.
In the next example you see an excess outside the standard hourly tolerance and outside the Combi hourly tolerance. The volume between the SHT and CHT will be sent into the buffer and you will get a surcharge for the (red) exceeding volume.
This same 3 examples could be made in a similar way on the shortage side.
Standard Hourly Tolerance
Shortage
Combi Hourly Tolerance
1 februari 2006

20. Combi Cumulative imbalance
Combi Cumulative Tolerance
Excess
Standard Cumulative Tolerance
Send-in/Send-out
To the extent the buffer volume is available
entry = exit
Here we check the combi cumulative imbalance.
This time we take for this example 3 shortages.
Example 1 there is a shortage within the Standard cumulative tolerance. Nothing happens.
Example 2
The volume exceeding the standard Cumulative tolerance, minus the net result of volume stored or withdrawn in the previous hours, may (in this case) withdrawn out of the buffer, but only to the extent that the buffer is not empty.
Example 3
The shortage exceeds the Combi Cumulative Tolerance. The volume between the Combi cumulated Tolerance and the Standard Cumulative tolerance will be retracted from the buffer. The red section will cause a surcharge.
Shortage
Standard Cumulative Tolerance
From buffer
From buffer
Combi Cumulative Tolerance
Surcharge
1 februari 2006

21. Net result buffer volume
Hourly and cumulative imbalance check
For each hour, the largest exceeding volume of the calculated hourly and cumulative imbalance will be a send-in (excess) to or a send-out (shortage) from the buffer.
Net result of exceeding hourly and cumulative volumes, sent in and out of the buffer during all hours in a gas day, is defined as B1
We check this calculation every hour of the day.
1 februari 2006

22. To the extent the buffer volume is available
Combi Daily Margin
Surcharge
Combi Daily Margin
To buffer=B1
To buffer=B1
Excess
To buffer=B2
Standard Daily margin
To buffer=B2
entry = exit
Send-in/Send-out
To the extent the buffer volume is available
Example 1
The daily excess volume is within the standard daily margin. Perfect
Example 2
The daily excess volume is over the Standard Daily Margin but below the Combi daily margin.
The excess will be sent to the buffer KLIK However The volume B1 already sent to the buffer during the day. So only B2 has to be send in addition to the buffer.
Example 3
The daily excess volume is over the Combi daily Tolerance.
B1 and B2 will be sent to the buffer.
Assume B1 is positive (excess volume) not all daily excess has to end into the buffer, but only the remaining volume B2
Standard Daily Margin
Shortage
Combi Daily Margin
1 februari 2006

23. End of day buffer stock
To enhance the volume-neutrality of the service, the daily imbalance will be used to correct the actual buffer volume regarding the starting position.
This part is the most complicated part of the combiflex but also the cherry on the pudding
1 februari 2006

24. End of day buffer stock B = B1 + B2 - > send-in
Combi Daily Margin
Standard Daily margin
Excess
Buffercontent m3n B3
168 84
Starting value B3
Actual value
B = B1 + B2 - > send-in B1 B2
A standard procedure for each day during the month is to send hourly, cumulative and daily excess and shortage to the buffer (the explained net results B1 and daily imbalance B2.
Imagine that at a certain moment the buffer volume is below its Set Value.
In this case we check if there is any spare volume left between the Combi daily Margin and the Standard daily margin.
This is defined as B3. The volume B3 will be used to bring the stock value of the buffer in the direction of its Starting Value.
1 : 1
1 februari 2006

25. Buffer volume reset Daily : optimize volume position towards starting
value buffer
Monthly : reset buffer to the starting position
Settlement : monthly settlement based on monthly
average of the day ahead index for TTF
At the end of each gas day the volume position is calculated.
At the end of each month the volume position of the buffer will be reset to the starting position.
Settlement will take place against the monthly average of the day ahead index for TTF of 115% in case of shortage and of 90% in case of excess.
1 februari 2006

26. Conclusions (Hourly, Cumulative tolerance and Daily Margin)
Combiflex provides additional flexibility
(Hourly, Cumulative tolerance and Daily Margin)
Effective service to stay out of the surcharges
For more information see enclosure 4 on our website and contact your account manager.
If you compare combiflex services with a natural gas storages, the following advantages apply for the virtual buffer:
There is no nomination lead time required
There is never maintenance
There are no physical delays with respect to starting up of compressors, switching of headers,filtration sections and methanol trains
Based on allocation, not on real time values
There will be never steering errors
Combiflex works always!
1 februari 2006

27. Coffee break

28. Program Introduction Paul van der Laan Open Season Gert Sloet
Combiflex Henk Kuyper
Coffee break
Customer satisfaction Mirjam Vogelzang &
Arjan Leeuwerke
Miscellaneous Jan Eggink
Closing Paul van der Laan
Lunch

29. Customer satisfaction
Why customer satisfaction?
To evaluate our performance, insight into the wishes
and requirements of customers is needed.
Method
Active shippers (40)
Focus mainly on customer orientation
Questionnaire (30) + interview (14)

30. Content General image Communication Contacts IT systems
Nomination and confirmation process

31. 1 General image: results
GTS valued as/for
Professional, reliable & precise
Cooperative & reasonable
Good information policy
Quick response to standard matters
Strict application of rules and non-discriminatory policy

32. 1 General image: results
But also assessed as
Clear monopolist
Insufficiently proactive
Inflexible
Slow in non-standard matters
Insufficiently transparent
Complicated in its services and processes
Final grade (2003: 6.85)

33. 1 General image

34. 2 Communication: results
Strong points
Pro-activity, quickness & clearness
Website & Mail “news on our site”
Shippers’ meetings
English
Points to improve
Information one-sided
Phrasing sometimes vague
Communication regarding changes TSC 2006
Market evaluation and consultation
Transport information

35. 2 Communication: actions
Improve market evaluation and consultation
Regular contact sales manager
In-depth consulting sessions
Sessions representative organizations
Improve process & status information
Transport information
Transparency physical network
Improvement (interruptible) capacity information
Total booking portfolio

36. 3 Contacts: results Strong points Friendliness, cooperation
General knowledge, accessibility
Swift response operational matters
Follow-up phonecalls & s
Points to improve (sales managers)
Too many changes
Limited availability
Limited mandate
Awareness of shipper specific consequences

37. 3 Contacts: actions Internal measures Limited mandate
Fewer changes of sales managers
Better tuning sales managers <-> backups
Limited mandate
Intrinsic consequence of non-discriminatory rule
Awareness of shipper specific consequences
Involve shippers in service development
Improve evaluation use of services
Bilateral evaluation in case of changes

38. 4 IT systems: GEA C&B results
Strong points
Quick handling of availability checks and bookings
Preparation (workshops and manual)
Availability and response time of the system
Points to improve
Limited functionality
Manual process points
Layout result screens

39. 4 IT systems: GEA C&B actions
Release November 2005
Daily contracts
Next release planned for mid-2006
Trading of rights
Insight into contract positions
Usage invoices available in C&B
Evaluation of wishes and recommendations
Attempt to reduce number of manual points

40. 4 IT systems: Nimbus-IM & Dialog
Overall assessment
Availability system fairly good
Availability & quality of data insufficient
Interface satisfactory
Functionality moderate
Actions
Additional research with frequent users
Aggregated flows available on LDC points in Nimbus
Nimbus data longer available (72 hours)

41. 5 Nomination & confirmation results
Strong points
Availability & flexibility CCP
Process good, quickness has improved
Points to improve
Explanation of deviating confirmation
Information in case of interruptions
Role GTS in case of mismatch
Request for total overview
Vhjmyil7uoktnhglog8p;orf8lirp;/9p klootzqak
1 februari 2006

42. 5 Nomination & confirmation actions
Interruptible capacity: next shippers’ meeting
Under study
Extra information in case of deviating confirmation
Total overview on nomination & confirmation position
Vhjmyil7uoktnhglog8p;orf8lirp;/9p klootzqak
1 februari 2006

43. Oneliners Quotes regarding the balancing regime for 2006:
“If you can’t convince them, confuse them”
“Hard to understand for common mortal men”

44. Program Introduction Paul van der Laan Open Season Gert Sloet
Combiflex Henk Kuyper
Coffee break
Customer satisfaction Mirjam Vogelzang &
Arjan Leeuwerke
Miscellaneous Jan Eggink
Closing Paul van der Laan
Lunch

45. Miscellaneous Exchange related gas prices (website) Quality conversion
Time shift in balancing regime (t=0 / t=2)
Consultation Flex services 2007
Amending process Gasvoorwaarden
Various topics

46. Basket of Exchange related gas prices GTS website (1)

47. Basket of Exchange related gas prices APX website

48. Basket of Exchange related gas prices GTS website (2)

49. Basket of Exchange related gas prices GTS website (3)

50. Quality conversion 2006
End 2005: 2nd round repurchase and resale of QC
Sharp and unexpected increase in demand of QC
QC shortages in all months of 2006
Distribution pro rata among participating shippers
QC situation has the full attention of GTS.
GTS is studying factors and developments that influence QC demand.
Key issue: determination of expected QC demand
- contractual/physical problem
- structural/temporary problem
- e.g. commissioning of BBL, Groningen field production, expected additional H-gas flows
Results expected June 2006 (shippers’ meeting)

51. Time shift balancing regime t=0 / t=2
In the 2006 balancing regime a standard time shift of two hours is applied (t=2)
Shippers may opt for t=0 (no time shift) in combination with 25% less tolerance (10% in 2006)
So far 20% of the relevant (TSC) shippers have opted for t=2
During 2006 shippers may shift from t=0 -> t=2
10% weinig incentive. IT nog niet gereed.
GTS geïnteresseerd in eventueel andere redenen.
1 februari 2006

52. Consultation Flex services 2007
Methodebesluit NMa requires market consultation regarding flexibility services in Q1 2006
Consultation process and timing:
Mid February: Letter to shippers and interested parties with the consultation topics:
Hourly, daily, weekly flex
H and G gas
Contract period: full year, quarter year, rest of year
Beginning of March: written reactions from parties
Mid March: review GTS, feedback to parties
End of March: publication Flex service(s)
Opm. Combiflex enclosure 4 (Ruud)
1 februari 2006

53. Amending Process Gasvoorwaarden (1)
NMa/DTe processing
NMa/DTe
amendments
If relevant
Drafting
Review
Establishing A C D G H I
Proposal by
JNO
Proposal
to Users Platform Energy Networks
JNO send proposal to NMa/DTe
Amended proposal to NMa/DTe
NMa/DTe establishes(amended)proposal
EU Notification
Discussion with EnergieNed
Publication and public hearing by NMa/DTe
Change request by NMa/DTe
Appeal/
Objection B E F J

54. Amending Process Gasvoorwaarden (2)
TarievenCode:
Established by DTe on (niet vertellen: GTS appeal on )
Gasvoorwaarden:
Following a change request amended Gasvoorwaarden put forward to DTe on
Change proposal Balancing regime:
Publication by DTe on
Public hearing on
Change proposal tariff structure Flex services
Put forward to DTe on
Public hearing on
1 februari 2006

55. Various topics HIAF/DIAF 2005: 0.25
Grid topology OSZ: introduction expected March/April
TTF: daily volumes will be published on the web (regular updates)

57. Program Introduction Paul van der Laan Open Season Gert Sloet
Combiflex Henk Kuyper
Coffee break
Customer satisfaction Mirjam Vogelzang &
Arjan Leeuwerke
Miscellaneous Jan Eggink
Closing Paul van der Laan
Lunch

58. Radisson SAS Hotel Schiphol-Rijk
Shippers’ Meeting
7 February 2006
Radisson SAS Hotel Schiphol-Rijk
Thank you for your attention and enjoy your lunch!