1. Groningen, 07/08/2015 Natural gas infrastructure in Europe Experiences of an independent system operator Helmer Horlings

2. Groningen, 07/08/2015 Who we are…

3. Infrastructure Trade 25% 50% Shareholders Prior to 1 July 2005 Integrated company Gasunie Shareholders From 1 July 2005 Two companies 100% Ministry of Finance 50% 25% N.V. Nederlandse Gasunie GasTerra Ministry of Economic Affairs N.V. Nederlandse Gasunie From an integrated natural gas company to infrastructure provider

4. Gasunie’s natural gas transport grid From 1 July 2008  Total length 15,000 km  Gas qualities: H-, L- and G-gas  Transported volumes: 125 BCM in 2007  18 compressor stations  1 LNG peak shaver

5. Groningen, 07/08/2015 Natural gas in the European Union…

6. Annual volumes in BCM Indigenous production Imports from outside EU Natural gas supply situation in 2020 Projected imports amount more than 530 BCM 110 30 155 120 20 210 200 50 120 30 90 Natural gas supply situation in 2007 Imports amounted some 290 BCM Natural gas imports of EU-27 to grow substantially 240 BCM on imported gas to be added in the period 2007-2020

7. Securing natural gas deliveries also under more extreme than average conditions  Colder and longer than average winters  Technical failure  Terrorism  Commercial disputes  Political tensions  Natural disasters Questions  1-in-10, 1-in-20 or 1-in-50 winter?  30, 60 or 90 days with interruption of largest supply?  National measures or a European solution?  Who is responsible for deliveries at extreme conditions?  … Policy choices Broad discussion Gas supply security Markets’ preparedness for extreme conditions

8. Relative comparison of gas security Important gas markets of EU-27 High Plentiful A large spread on a national level National means to deal with gas crisis Exposure to natural gas supply shocks Low Absent Anno 2007 With an increased interconnectivity EU member states could all approach this level Investment requirement € 20 to 30 billion MODEL INPUT Energy supply mix Natural gas diversity Natural gas storage

9. Gas security of the EU Maintaining current gas security level requires investments in new storages High Plentiful National means to deal with gas crisis Exposure to natural gas supply shocks Low Absent Anno 2020 If no additional large-scale storage constructed +70 BCM of storage above current level +120 BCM of storage above current level 2007 Investment requirement € 35 to 50 billion Investment requirement € 60 to 90 billion

10. How to tackle extreme conditions? To what extent are market players willing to invest? Should the governments intervene or participate in projects? By 2020, some € 120 billion need to be invested in EU infrastructure to assure gas security close to its current level Measures assuring gas security  Long distance pipelines  LNG receiving terminals  Interconnection pipelines  Storages for normal conditions  Demand side management  Storages for extreme conditions Both supply & demand Market  Let market players take all responsibility  Government to set proper boundary conditions Governments & market  Let governments take a large share of responsibility through direct participation in strategic projects ? ? How to assure adequate investments, including extreme conditions?

11. Groningen, 07/08/2015 Gasunie’s new activities…

12. Gasunie’s business philosophy Independent gas infrastructure business creates a platform for market openness Open access philosophy Aggregation role LNG re-gasification Gas transport Gas storage

13. Gas storage Zuidwending LNG Gate BBL North-South expansion Nord Stream Gasunie Deutschland Gasunie invests intensely into infrastructure in Northwest-Europe Progress between 2005 and present Integrated Open Season