1. INITIATIVE FOR GAS HUB CREATION IN SOUTH EASTERN EUROPE SOFIA, 09.02.2015 г.

2. Russia North Sea Russia Algeria Libya Qatar LNG Domestic production Fgreat Britain Denmark Holland Norway LNG Domestic production Potential Domestic fields Black Sea LNG Yemen Peru Egypt Nigeria LNG Algeria Nigeria Qatar 56 % Share of Russian Gas ЕС 32 % Share of Russian Gas

3. Дял на вноса на газ от Русия спрямо общото потребление по държави за 2013 г Внос на газ от Русия по държави за 2013 г., bcm/y

5. BULGARIA KEY FACTOR ON THE REGIONAL GAS MARKET The geographic location of Bulgaria defines it as a strategic partner Well designed national gas infrastructure Well balanced national transit system related with underground gas storage capacity Exploration of Oil and gas fields in the region Low domestic consumption - spare capacity for transit Transparent public procurement procedures and construction at fair prices Long and short term capacity Bulgaria will use gained European experience in the development of trading platforms Unified system for managing gas flows, previously agreed with the European gas partners Investment opportunities - estimated investment costs Euro 2.2 billion

6. NCG+ Gaspool BAGA PSV LNG South Stream CEGH Domestic Southern Gas Corridor CS Chiren

7. South Stream 63 bcm 20 bcm/y 3 bcm/y 0,8 bcm/y 3,3 bcm/y (Bulgaria) Central Europe ITB, 3 bcm Bulgaria Domestic (Black Sea) 2 bcm/y IBS, 1,8 bcm 1,5 bcm Zajčer 42,6 bcm/y Oriahovo 42,6 bcm/y 1 a 1 b IGB, 3 bcm GMS CS Lozenets New UGS CS 2, 130 MW CS NV 1 CS NV 2, 3 CS Provadia VARNA CS 1, 130 MW Romania Domestic (Black Sea) 2 bcm/y BG Domestic (Black Sea, Future) CS Strandja CS P. Senovets CS V.Dol CS Petrich CS 21,1 bcm intermittennt 0 bcm BULGARIA – GAS HUB TAP TANAPLNG

8. Necessary infrastructure on the territory of Bulgaria – preliminary estimate ~ 844 кm. pipelines 2 compressor stations with total installed capacity of 265MW (in the regions of the city of Levski and City of Provadia) Construction of a receiving terminal Construction of new infrastructure Increase of the capacity of CS Strandja with 10 MW Construction of Lozenets – Rupcha loop – 50 km. Construction of 20 кm. Gas pipelines Modernization and expansion of the North semi-ring ~ 272 кm. Modernization of the existing infrastructure EUR 2 200 million – new infrastructure EUR 140 million – Modernization and expansion of the Northern semi-ring Estimated investment costs Chiren UGS expansion Construction of new underground storage facility Additional storage capacity

9. GAS HUB – PILOT PROJECT FOR ENERGY UNION Key mechanism to improve security of gas supply to Europe - a key objective of the European Energy Union, enhancing the negotiating power of the EU and its economic partners vis-à-vis the external gas suppliers Key project for the implementation of the Internal energy market - to overcome the energy dependence of the region of Southeast Europe, liberalization by creating a competitive gas market in compliance with EU legislation. Improving trans-border grid. Gas infrastructure, securing the Member States with natural gas at a competitive price, energy-efficient, environmentally friendly energy source - improving energy efficiency. Energy Union should be designed to maximize the benefits of energy efficiency and managing demand. In addition to energy efficiency, gas infrastructure allows reducing emissions in comparison to production from coal power plants alongside with this Bulgaria has achieved its targets for renewable energy sector. Modernization of the gas transmission network will allow the use of innovative new technologies, switching to automatic control mode and well balanced transmission system. Key mechanism to improve security of gas supply to Europe - a key objective of the European Energy Union, enhancing the negotiating power of the EU and its economic partners vis-à-vis the external gas suppliers Key project for the implementation of the Internal energy market - to overcome the energy dependence of the region of Southeast Europe, liberalization by creating a competitive gas market in compliance with EU legislation. Improving trans-border grid. Gas infrastructure, securing the Member States with natural gas at a competitive price, energy-efficient, environmentally friendly energy source - improving energy efficiency. Energy Union should be designed to maximize the benefits of energy efficiency and managing demand. In addition to energy efficiency, gas infrastructure allows reducing emissions in comparison to production from coal power plants alongside with this Bulgaria has achieved its targets for renewable energy sector. Modernization of the gas transmission network will allow the use of innovative new technologies, switching to automatic control mode and well balanced transmission system.

10. INITIATIVE FOR GAS HUB CREATION IN SOUTH EASTERN EUROPE THANK YOU FOR YOUR ATTENTION !