1. How to attract funds for storage investments? Andrea Stegher GSE Vice-President & Chairman of Security of Supply and Investment WG GIE Annual Conference 2008 Bucharest, 24 October 2008

2. Agenda The GSE Investment Database: updated figures Financing storage projects The financial crisis and possible impacts on storage developments How to attract funds for storage investments Conclusions

3. The GSE Investments Database Database of EU storage investments was launched in July 2007: –Publicly available information –Projects divided into 3 categories: planned, committed and under construction –Updated regularly –From an initial 30 bcm WG capacity increase to 2015 (July 2007) to around 60 bcm (October 2008) –Grand total of around 110 projects “Independents”/new players are increasing their role: 25% of projects and 30% of planned new capacity (~ 19 bcm) A powerful and transparent instrument to evaluate storage supply perspectives.

4. Storage Investments: GSE internal survey Results of a 2006 internal survey conducted among GSE members showed that nearly all respondents were satisfied or very satisfied with financing the investment

5. Storage investments: which impacts from the financial crisis Is the 2006 result still true ? Possibly too early to draw conclusions on real consequences, but analysis could be conducted on two different aspects: –Direct: restricting financing opportunities for new ventures (addressing mainly independent players ?) Short term impact: delay of planned projects Selling development options to “more robust” players A possibly “positive” side of the story: reduction in cushion gas prices –Indirect: revision of gas consumption and storage need estimates Long term impact: reassessment of storage future demand

6. How to attract funds for storage investments Possible title reformulation: “How to keep funds in storage investments” Issue is: how storage is looked at in a more volatile world ? Two features of storage projects could provide the key to making funds available (on time): –To serve clients New capacities should rely on a solid client base: if product is “right”, investment should be fine –To contribute to SOS New gas flows come from further away and could be “diverted” (e.g. LNG world competition) In some areas we could nonetheless see some projects disappear

7. GSE beliefs for preserving a sound investment climate for storage …reaffirms its commitment to the full implementation of GGPSSO …does not believe in unnecessary administrative & regulatory burdens …believes that binding regulation, if implemented, must remain in the scope of GGPSSO …considers GGPSSO a guarantee for equal treatment of storage users & positive investment signals …is committed to promoting a clear & stable investment climate fostering new ventures …strives for the realisation of a competitive internal gas market Regulatory frameworkAccess and transparencyMarket investments

8. Thank you for your attention ! http:// www.gie.eu.com http:// www.gie.eu.com