1. GRIP South Region Gas Regional Investment Plans Investment WS – 29 th Sep 2011

2. GRIP South Region Index 2 1.GRIP South Region: TSOs vision 2.Content of the Report: main chapters Bottom up approach: IP cross border projects Top down approach: oMarket characteristics oSecurity of Supply oMarket integration 3.Conclusions. Next Steps

3. GRIP South Region Tool for ensuring business development CONVERGENCE and COHERENCE GRIP South Region: TSOs purposeGRIP EIP TYNDP

4. GRIP South Region Cooperating since 2006, the added value for this stage, GRIP South Region under ENTSOG umbrella, is: tohighlight the value of the North-South Corridor in Western Europe and each of the cross border projects included in the TYNDP, to achieve the European Energy objectives for 2020 and beyond. to highlight the value of the North-South Corridor in Western Europe and each of the cross border projects included in the TYNDP, to achieve the European Energy objectives for 2020 and beyond. South Region GRIP seen as a regional zoom of TYNDP progressing towards the implementation of the Energy European priorities (EIP) GRIP South Region: added value

5. GRIP South Region Index 5 1.GRIP South Region: TSOs vision 2.Content of the Report: main chapters Bottom up approach: IP cross border projects Top down approach: oMarket characteristics oSecurity of Supply oMarket integration 3.Conclusions. Next Steps

6. GRIP South Region 6 Content of the REPORT Main CHAPTERS 3. CURRENT GAS MARKET IN THE SOUTH REGION 3.1 Regional overview: South Region 4. INTERCONNECTION PROJECTS 5. TEN-YEAR GAS MARKET IN THE SOUTH REGION 6. SECURITY of SUPPLY 7. MARKET INTEGRATION

7. GRIP South Region Top down approach Methodology of work 7 1 DEMAND SUPPLY SECURITY of SUPPLY MARKET INTEGRATION Bottom up approach 2 IBERIAN-FRENCH CORRIDOR Western Axis: FID Eastern Axis: non FID MIBGAS Portugal-Spain IPs: non FID & Convergence of TYNDP & & GRIP & EIP & PCI Focusing in the criteria proposed by EC to determine Gas Priority Projects: Diversification of sources and routes and counterparts; Increase interconnection level, Increase of market integration Reduction of market concentration

8. GRIP South Region 8 Specific IP cross border projects Bottom up approach: Specific IP cross border projects The GRIP South Region is focused on cross-border projects stressing its role creating the internal European market. TSOs envision the GRIP integrating and coordinating at regional level the individual developments on infrastructures needed for increasing cross border capacity elaborated by TSOs at national level. Provide update on the current cross border IP projects Larrau and Biriatou and Badajoz/Campo Maior and Tuy/Valença do Minho Specific further analysis on non-FID cross-border projects included in TYNDP: Technical description, functionality,… MidCat 3 rd IP Portugal-Spain

9. GRIP South Region 9 Market characteristics Top down approach: Market characteristics DEMAND Gas market composition Role of gas-fired for power generation Peak vs. Average: modulation,… SUPPLY Share of LNG/NG Diversification & Convergence of TYNDP & & GRIP & EIP & PCI

10. GRIP South Region 10 The GRIP South Region includes a resilience network assessment considering the special characteristics of the Region and under specific risk scenarios as the following: 1. LNG Disruption 2. North Africa disruption 3. Algerian disruption (NG & LNG) 4. Low deliverability of UGS facilities. Security of Supply Top down approach: Security of Supply The modelling of the network: will be done using the ENTSOG tool, and the GLE study LNG disruption is taken for granted

11. GRIP South Region 11 Market integration Top down approach: Market integration The GRIP South Region investigates the contribution of the Iberian- France Corridor to the European internal market focus on: Interconnect the Mediterranean Area and the Northern supply Corridor The challenge for the following years are: 1. a well-meshed network, 2. enabling the access to different supply sources, 3. facilitating the establishment of diversified suppliers portfolios, 4. improving its robustness and making it more flexible.

12. GRIP South Region Index 12 1.GRIP South Region: TSOs vision 2.Content of the Report: main chapters Bottom up approach: IP cross border projects Top down approach: oMarket characteristics oSecurity of Supply oMarket integration 3.Conclusions. Next Steps

13. GRIP South Region TSOs challenge: Publication of the document in October-November 2011. 13 TSOs in the South Region collaborating since 2006, want to continue their close cooperation promoting interconnection capacity. Investment in gas infrastructures is a key issue in the construction of the European Internal Gas Market, and, in this construction, the TSOs have a vital role to play. TSOs in the South Region want to use this GRIP to give a clear picture of the different infrastructures projects so far identified, focusing on the interconnection projects, showing the capacity created by development on its. Conclusions. Next Steps

14. GRIP South Region Gas Regional Investment Plans Thank you for your attention