1. Global Competitiveness in a Liberalised EU Energy Market Wim Groenendijk, Member of the Board Brussels, 22 November 2011 Gas infrastructure and Markets Founded 1st December 2009 39 TSOs from 23 countries

2. ENTSOG's Mission … by fulfilling its tasks under the 3rd package and offering a platform for a truly European TSO cooperation, ENTSOG shall: - enable easy grid access - facilitate cross-border gas flows - promote the integration of the European energy market - be a fair partner to all stakeholders 2

3. ENTSOG activity Network Code Development Ten Year Network Development Plan (TYNDP) Summer and Winter Supply Outlook Gas Regional Investment Plans (GRIP) Transparency Platform (www.gas-roads.eu)www.gas-roads.eu Regional cooperation Co-operation with EC and ACER 3

4. Network Code Development – Process & Actors Priority setting Framework Guidelines Network Codes Comitology Process Lead Commission ACER ENTSOG Council / Parliament Participation and contribution throughout Stakeholders Member States Commission Regulators TSOs 4

5. Network Code development: 12 months On the way to EU law Preparatory work Project planning Prepare launch document Interactive draft code development Consultation Prepare final code ACER reviewComitology BAL INT CAM CMP Final Draft NC through internal approval process: delivery date 6 March 2012 Invitation from EC to prepare NC received on Nov 4 th 2011 Prepare for delivery of NC in the area of interoperability rules in 2013 EC currently reviewing text; direct comitology process 5 TAR Tariff provisions form an important part of CAM NC. Process for producing separate tariff legislation currently under discussion

6. Ten Year Network Development Plan Published bi-annually 1 st (pilot) edition of TYNDP published Dec 2009 2 nd (first formal) edition of TYNDP published 17 Feb 2011 3-month consultation process finished on 25 June TYNDP 2011-2020 formally submitted to ACER July 2011 As of September, work started on TYNDP 2013-2022  Next TYNDP to be published Q1 2013 6

7. Summer / Winter Supply Outlooks Published six-monthly 1 st Winter Outlook was published Oct 2007 by GTE 1 st Summer Supply Outlook was published in June 2010 Some Outlook Reviews are planned to provide a retrospective of actual situation 1 st Review of Summer and Winter Supply Outlooks is planned for Q4 this year, included with Winter Outlook 2011-2012 7

8. Gas Regional Development Plans (GRIPs) A new process for most TSOs (started in Feb 2011) − Different framework than for TYNDP; management is with TSOs of the respective regions; ENTSOG to ensure consistency between GRIPs and TYNDP and between GRIPs themselves − Whereas a minimum set of requirements will be agreed for all (six) regions, the GRIPs will nevertheless have a specific regional focus possibly addressing different issues 8

9. Infrastructure investment influenced by, and in line with, political goals Single European gas market  Third Energy Package  Internal market deadline 2014  Target Model & market rules Security of supply  No energy islands after 2015  SoS Regulation  Energy infrastructure package Sustainability  Climate goals  Renewables & Emissions Directives  Nuclear Phase-Out 9

10. Ambitious goals require large investments Investment needs and flexibility determined and supported by the market Construction and operation of such infrastructure by TSOs must be sustainable from a long-term financial and regulatory perspective National regulation needs to truly embrace the objective of creating an internal market in gas within the whole Union  Only then it will be possible to realize an integrated gas network supporting the vision for an internal market in gas 10

11. 11 Thank You for Your Attention Wim Groenendijk, Member of the Board ENTSOG -- European Network of Transmission System Operators for Gas Av de Cortenbergh 100, B-1000 Brussels www.entsog.eu