1. 6th Stakeholder Group Meeting Stockholm - 26 November, 2009 Gas Regional Initiative – North West Region Experience with coordinated o pen seasons Dominique Jamme Commission de Régulation de l’Energie

2. 2SG Meeting – Stockholm, 26 November 2009 ERGEG Guidelines on open seasons  European level: Guidelines for Good Practice on Open Season Procedures (GGPOS) published in May 2007  Aim: ensure that OS are conducted in a non-discriminatory and transparent manner and result in efficient outcomes  Main features:  Structure of the OS: preparatory phase (publication of OS notice – non binding capacity requests) and binding phase (capacity allocation and contracts signature)  The sponsor shall offer long term and short term capacities  Coordination with adjacent system operators / Coordination between NRAs  Need for transparency during the whole process Need to provide sufficient visibility to the market from the beginning of the process

3. 3SG Meeting – Stockholm, 26 November 2009 GRI NW project – OS Coordination  Aim of the project  Propose practical solutions to facilitate the coordination of OS  Provide advice to the GGPOS – Consultation to monitor compliance launched in July 2009 - Revision of the GGPOS if needed in 2010 by ERGEG  Report on open seasons coordination approved by RCC in May 2009  Confidentiality clauses  Hinder the necessary information exchange between TSOs  Recommendation from regulators: Need to exchange disaggregated data on an anonymous basis on the OS process between adjacent TSOs → alignment of capacity at both sides of the border Positive response from TSOs to regulators’ recommendation

4. 4SG Meeting – Stockholm, 26 November 2009 OS GRTgaz/Fluxys Positive points and critical issues Positive points  A really coordinated open season Consistent timeframes, coordinated contractual aspects and capacity allocation, consistency in the capacity allocation scheme, MoU  Coordination with GTS Open Season 2012 on the timetable Critical issues  9 months delay due to discussions on transit tariffs in Belgium  Significant difference between the bids submitted in the 1st phase and the binding agreements signed in the 2nd phase → How to improve the reliability of the 1st phase?  Additional short term capacity on top of the requested capacity only provided on the French side (but the total amount of capacity (old + new) at each side of the border is equivalent)  Final Investment Decision to be taken at the end of 2009

5. 5SG Meeting – Stockholm, 26 November 2009 OS France/Spain Coordination prior to the open season: Joint open subscription periods for allocating existing capacity in October 2008 Close cooperation between 4 Spanish and French TSOs, 2 regulators, CRE and CNE, and governments over the past 2 years: Adaptation of the Spanish regulatory framework to allow for allocation at the borders other than through FCFS Fully harmonized products and allocation procedures A common information memorandum A joint allocation office operated by one TSO (Enagas) A high degree of coordination regarding the works Major contribution to the integration of Iberian, French and North- West European gas markets and to European security of supply

6. 6SG Meeting – Stockholm, 26 November 2009 Lessons learned  Open seasons are functioning well when properly organized and coordinated  Open seasons are increasingly becoming the standard procedure for major investment projects - Useful instrument to develop the network and to efficiently identify market needs  Critical issues:  Need to improve cooperation between adjacent TSOs  Final Investment Decision based on the economic test

7. 7SG Meeting – Stockholm, 26 November 2009 Thank you for your attention! dominique.jamme@cre.fr www.cre.fr

8. 8SG Meeting – Stockholm, 26 November 2009 Appendices

9. 9SG Meeting – Stockholm, 26 November 2009 GRI NW Open seasons Since 2007 GRTgaz/Fluxys April 2007- Dec. 2008 FID end 2009 (cap. available Dec. 2013) E.ON Gastransport Jan. 2008 – May 2009 Phase 1: 102 customers (7.2 billion €) Phase 2: unilateral commitments 44 customers (3 billion €) FID: 400 million € (cap. available end 2012) GTS 2012 July 2007 - Nov. 2009 Split up in 2 phases FID taken for Bocholtz (cap. available Oct. 2012) No FID for ‘s Gravenvoeren (OS GRTgaz-Fluxys) (cap. available Oct. 2013) BBL OS May 2007-March 2008  Phase 1: 18 parties (forward flow capacity)  March 2008: 4 bookings agreements signed Energinet.dk Feb.09 – ongoing GTS/Gasunie Integrated OS February 2009 – ongoing

10. 10SG Meeting – Stockholm, 26 November 2009 Open seasons in France Coordinated open season IP Blaregnies- Taisnières GRTgaz/Fluxys in 2007 (cap. Available in 2013) Open season IP Obergaibach 2005 – GRTgaz (new available capacities in 2008 and 2009) Two coordinated open seasons France-Spain 2009  Reinforcement of the Western axis (Larrau) in 2013  Open season for the development of the Eastern axis in 2015 LNG open season Montoir (in 2007) LNG open season Fos Tonkin (ongoing)

11. 11SG Meeting – Stockholm, 26 November 2009 OS GRTgaz/Fluxys  Launched in April 2007  Phase 1: 39 shippers in Belgium and 37 shippers in France  Beginning 2008: Postponement of the process due to discussions on transit tariffs in Belgium between CREG and Fluxys GRTgaz GTS 2012 Open Season  Nov. –Dec. 2008: binding phase – 14 binding agreements in Belgium (~ 316 GWh/day) and 17 in France (~ 592 GWh/day)  Capacities available in December 2013 (whereas according to initial planning, capacity was forecasted for end 2012)

12. 12SG Meeting – Stockholm, 26 November 2009 OS France/Spain The development of the interconnections between France and Spain is based on 2 fully coordinated OS  Successfully completed: OS for the Western axis to increase interconnection capacity up to 5.5 bcm/y in both directions from 2013  To be held in the 1st half of 2010: creation of a new Eastern axis  could create interconnection capacity of 6 bcm/y in the direction France-Spain and 7,6 bcm/y in the other direction

13. 13SG Meeting – Stockholm, 26 November 2009 Shippers’ view ERGEG Consultation (preliminary results) Do you think that operators of adjacent systems should share the following information for a successful coordination? (1) Aggregate requested amount of capacity/point (2) Amount of requested capacity/ point/ participant (anonymised) (3) Commercially sensitive info such as the amount of requested capacity / point / participant (including identities) Yes20188 No0111 Not Known011 No answer*111 Total users21 * The shipper who did not answer to (1) and (2), answered YES to (3) 19 shippers (out of 21) support the exchange of disaggregated data on an anonymous basis