1. ..................................... BEB Transport und Speicher Service GmbH, Hannover Capacity Development NW Region Capacity Development in the North-West Region Madrid, 23 th November 2007 GIE Annual Conference 2008

2. ..................................... BEB Transport und Speicher Service GmbH, Hannover Capacity Development NW Region Overview Background and priority areas Capacity development –Primary Capacity Work Stream Bunde / Oude Statenzijl Quévy / Blaregnies / Taisnières H Medelsheim / Obergailbach –Secondary Capacity Work Stream Background Primary interruptible day-ahead capacities Pilot on secondary firm day-ahead capacities Lessons learned and way-forward 2

3. ..................................... BEB Transport und Speicher Service GmbH, Hannover Capacity Development NW Region Background Final merger of north and north-west region Priority areas –Primary Capacity –Secondary Capacity –Regulatory Coordination –Investment –Transparency –Balancing –Hubs Portugal Poland Czech Republic Slovakia Hungary Slovenia Spain France B DK Germany Greece Ireland Italy LUX NL Austria Sweden United Kingdom Portugal NL 3

4. ..................................... BEB Transport und Speicher Service GmbH, Hannover Capacity Development NW Region Primary Capacity Work Stream 4 Bunde / Oude Statenzijl Obergailbach / Medelsheim Quévy / Blaregnies / Taisnières H Primary Capacity work stream has several sub-work streams –In 2007 work was done on three IPs –Under discussion if additional IPs will be added in 2008

5. ..................................... BEB Transport und Speicher Service GmbH, Hannover Capacity Development NW Region Primary Capacity – Bunde / Oude Statenzijl Involved TSOs: BEB, E.ON GT, GTS and WINGAS TRANSPORT Working areas and results –Implementation goal 1 Provision of complete data –Capacity data (technical, booked and available) –Utilisation rates –Three-minus rule and confidentiality Explanations of differences with regard to capacities and (low) utilisation rates finalised –Implementation goal 2 Possibilities for increase of primary firm capacity will be discussed and analysed –Coordinated or joint investment / open seasons –Flow commitments in discussion 5

6. ..................................... BEB Transport und Speicher Service GmbH, Hannover Capacity Development NW Region Primary Capacity – Quévy/Blaregnies/Taisnières H Involved TSOs: Fluxys and GRTgaz Working areas and results –Coordinated open seasons for increasing capacity from Belgium to France (39 shippers in Belgium and 37 shippers in France have confirmed their interest) –Stimulation of use of capacities at Belgian side Conditional transit: From IZT to France (already offered) Interruptible transit: from ZPT and Zeebrugge LNG Terminal to France and from s Gravenvoeren to France (as of beginning 2008) –Transparency: Fluxys started publishing its available capacity for primary market Fluxys subscribed capacity on exit points of its network towards France 6

7. ..................................... BEB Transport und Speicher Service GmbH, Hannover Capacity Development NW Region Primary Capacity – Medelsheim / Obergailbach Involved TSOs: E.ON GT, GdF DT and GRTgaz Working areas and results –August 2007: Improvement of transparency GdF DT started publication of hourly flows in August 2007 –September 2007: TSOs finalised study of the current situation which will be the basis for identification of potential improvements Technical capacity Physical flows Offered Products etc. –Next steps: Regulators will start a consultation process to ask the market for its needs and improvement proposals (questionnaire in November 2007) Next IP meeting with shippers is planned for January 2008 7

8. ..................................... BEB Transport und Speicher Service GmbH, Hannover Capacity Development NW Region Secondary Capacity – Background Request of stakeholders in October 2006 –Auctions for Day-ahead Combined (exit plus entry) Firm Primary and secondary capacities –At interconnection points Bunde / Oude Statenzijl (NL – D) Ellund (DK – D) These proposals were picked up by the GRI work stream Secondary Capacity –Primary interruptible day-ahead capacities –Secondary firm day-ahead capacities 8

9. ..................................... BEB Transport und Speicher Service GmbH, Hannover Capacity Development NW Region Secondary Capacity – Primary Interruptible C. December 2006 involved TSOs proposed to implement pilot project –Combined day-ahead auction platform –Primary interruptible capacities –Bunde / Oude Statenzijl and Ellund But: Legal barriers were identified –In Germany and the Netherlands primary capacities have to be sold on first-come-first-served basis and for regulated tariffs No primary capacity auctions possible In June 2007 work stream decided to postpone this project Results –Detailed analysis of legal bottlenecks –Relevant Member States were informed about legal bottlenecks Next steps –Further discussion how pilot project for primary interruptible day-ahead capacity can be made possible 9

10. ..................................... BEB Transport und Speicher Service GmbH, Hannover Capacity Development NW Region Secondary Capacity – Pilot on Secondary Firm C. June 2007: Concentration on secondary firm day-ahead pilot But: Legal barriers were identified –Under German regulation, all secondary trading has take place on one single common platform, once this platform has been established Non-German platform operators could offer combined capacities only in very close co-operation with the German platform, e. g. development of a joint platform –Prices for secondary capacity must not be significantly higher than primary capacity prices In case of auctions tariff risk for sellers Result and next steps –Two pilot projects are scheduled for April 2008 Trac-X and APX announced implementation of platforms Stakeholders and TSOs work on implementation –TSOs: Technical and contractual implementation –EFET: Standard trading agreement 10

11. ..................................... BEB Transport und Speicher Service GmbH, Hannover Capacity Development NW Region Lessons learned and way-forward Lessons learned –Legal bottlenecks have to be identified and solved earlier in the process –Strong involvement of shippers and suppliers is absolutely necessary –Clear and practical goals for all work streams and sub-work streams are necessary Way-forward –TSOs will continue to support the work streams Primary Capacity and Secondary Capacity within the GRI 11