1. 28 September 2004Energy Community South Eastern Europe1 Gas in South Eastern Europe GTE presentation Philippe Mannoni GTE Executive Secretary Zagreb, 28 September 2004

2. 28 September 2004Energy Community South Eastern Europe2 Agenda 1. GTE presentation 2. GTE main achievements 3. Madrid Regulatory Forum 4. Main gas projects in South Eastern Europe 5. Conclusions

3. 28 September 2004Energy Community South Eastern Europe3 Gas Transmission Europe representing transmission system operators (TSO), storage system operators (SSO) and terminal operators

4. 28 September 2004Energy Community South Eastern Europe4 main stakeholders of GTE EASEE-gas

5. 28 September 2004Energy Community South Eastern Europe5 33 full Members in 24 Countries www.gte.be

6. 28 September 2004Energy Community South Eastern Europe6 Independent SSOs and observers in the GTE Storage Group www.gte.be

7. 28 September 2004Energy Community South Eastern Europe7 28 September 2004Energy Community South Eastern Europe Organisation and Working Groups

8. 28 September 2004Energy Community South Eastern Europe8 2. GTE main achievements Guidelines for Good Practice for TSO (GGP2), Sept. 2003. GTE invited its members to implement them. GTE is actively involved in the on-going discussions on draft regulation based on the GGP2. GTE is also actively involved in current discussion on Guidelines for Good Practice concerning access to storage (GGPSSO) Organisation of workshops with the users, the Commission and regulators Co-foundation of EASEE-gas in 2002 Annual conference in October 2003 and Sept. 2004

9. 28 September 2004Energy Community South Eastern Europe9 3. Madrid Regulatory Forum Participants: -EU Commission: DGTREN (in the Chair), DG Comp -Member States -CEER and national regulators -Observers: Bulgaria, Croatia, Romania, Norway, Russia, Algeria, Switzerland, Turkey -Gas industry and stakeholders: GTE, EASEE-gas, EFET, Eurogas, Eurelectric, GEODE, IFIEC, CEFIC, OGP

10. 28 September 2004Energy Community South Eastern Europe10 Madrid Regulatory Forum (2) Many positive developments towards a fully operational European gas market, eg. Guidelines for Good Practice for TSO (GGP2) agreed in September 2003 At the last Forum in July 2004, GTE presented positions papers and/or comments on -Access to storage facilities (GGPSSO) -CEER’s compliance report on GGP2 -CEER’s entry-exit tariff system road map -Capacity Calculation Methodologies -Use-it-or-lose-it principle -Interoperability -LNG

11. 28 September 2004Energy Community South Eastern Europe11 Main differences gas - electricity Transmission Cross-border trade, over 65% of gas is crossing EU borders (less than 10% for electricity) Interoperability, gas quality Storage Production  Need for separate Forum as Madrid and Florence

12. 28 September 2004Energy Community South Eastern Europe12 4. Nabucco Gas Pipeline New gas supply route to Europe from Turkey to Austria via Bulgaria, Romania and Hungary

13. 28 September 2004Energy Community South Eastern Europe13 Nabucco Gas Pipeline (2) Source: OMV Gas GmbH, May 2004

14. 28 September 2004Energy Community South Eastern Europe14 Nabucco Gas Pipeline (3) –Opening a new gas supply corridor for Europe from Middle East and Caspian regions –Raise transit profiles of participating project countries –Contribution to security of supply in Europe –Strengthening the turntable position of Austrian pipeline grid and the Hub Baumgarten within the European network

15. 28 September 2004Energy Community South Eastern Europe15 Project Partners –OMV Gas –MOL Transmission –Transgaz –Bulgargaz –BOTAS

16. 28 September 2004Energy Community South Eastern Europe16 Nabucco Gas Pipeline (5)

17. 28 September 2004Energy Community South Eastern Europe17 Nabucco Gas Pipeline (6) Finalisation of Feasibility StudyEnd 2004 Detailed Technical Design, Environmental Assessment Study2005 – mid 2006 Construction to begin around 2H 2006 Construction completed, pipeline operational around End 2009

18. 28 September 2004Energy Community South Eastern Europe18 5. Interconnector Turkey-Greece Greek part –86 km, 36” Turkish part –200 km, 36” (17 km off-shore, max. depth 70m) Maximum capacity: 11 bcm/y On stream: end 2006

19. 28 September 2004Energy Community South Eastern Europe19 Interconnector Turkey-Greece Main progress to date: –Gas sales agreement signed in Dec. 2003 –Detailed design completed (Greek part), in progress (Turkish part) –Construction (of phase 1) ready to be awarded. –Steel pipes ordered. Procurement of ball valves & hot bends at tender phase. –Contract for supervision awarded –Installation act issued

20. 28 September 2004Energy Community South Eastern Europe20 6. Interconnector Greece-Italy 1st phase: 2 bcm –280 km, 36” –224 km, 24” 2nd phase: 4 bcm –215 km, 36”, // pipe Komotini - Karperi 3rd phase: 6 bcm –95 km, 36”, // pipe Karperi-Trikala 4th phase: 8 bcm –// with off-shore pipeline In all phases a 3 bcm capacity to the Greek market is to be added

21. 28 September 2004Energy Community South Eastern Europe21 Interconnector Greece-Italy Main progress to date: –Technical feasibility study –Financial feasibility study awarded in July 2004 –Preliminary report issued in Sept. 2004. Next steps: –Financial feasibility study by end 2004. –Project sanctioning by DEPA, Edison Gas and BOTAS according to the outcome of the feasibility study.

22. 28 September 2004Energy Community South Eastern Europe22 7. Western Balkans corridor Advantage: Routing through regions with gas demand potential - Protocol (April 2003) between DEPA/BOTAS and the gas companies or authorities of FYROM, Albania, Serbia-Montenegro, Bosnia-Herzegovina, Croatia, Slovenia. - Appointment of representatives to form a working group

23. 28 September 2004Energy Community South Eastern Europe23 Amber Major pipelines and LNG projects (IEA source)

24. 28 September 2004Energy Community South Eastern Europe24 Long term development Long term gas supply strongly influenced by long distance transmission investments Need for a clear, stable and incentivising investment climate for transmission, storage, LNG and production Need for long term commitments, notably between TSOs, SSOs and gas suppliers Need for clear allocation of responsibilities –for secure and efficient operation of the grid –for sufficient long term development of networks Regulation that fosters entrepreneurship

25. 28 September 2004Energy Community South Eastern Europe25 8. Conclusion Many gas projects in South Eastern Europe A number of GTE members as well as potential members to be actively involved GTE is willing to enhance progress in cooperation with all involved parties