2. 25 th IG meeting 13 th December 2013 Enagás, REN and TIGF Issues to be discussed

3. 2 Index 1.Specific calendar of auctions. 2.Definition of large and small price steps for each type of product. 3.Transfer of existing contracts to the VIP 4.Capacity to be offered 5.Financial guarantees. 6.Contracts: standard and annexes/standard after the auction. 7.Secondary market: when and where trades will take place, public information. 8.Stakeholders information 9.EIC and transfer to affiliates

4. 3 1. Auction calendar Since the binding application of the CAM NC, the auction calendar will be determined by ENTSOG Until that date, TSOs will follow PRISMA’s auction calendar

5. 4 2. Definition of price steps Large price steps: Rules in other IPs in Europe according to NRAs: Yearly auctions: large price step = 10 ct/kWh/h/Runtime, small price step = 2 ct/kWh/h/Runtime Quarterly auctions: large price step = 2.5 ct/kWh/h/Runtime, small price step = 0.5 ct/kWh/h/Runtime Monthly auctions: large price step = 1 ct/kWh/h/Runtime, small price step = 0.2 ct/kWh/h/Runtime To be discussed … Small prices steps: PRISMA booking platform sets, as a default rule, that small price steps are 20% of the large price steps. In principle, TSOs will follow this default rule for all products (yearly, quarterly and monthly)

6. 5 3. Transfer of existing contracts to the VIP ENAGASTIGFDecision required YES NO At the Spanish-French border, Enagás and TIGF agree to transfer existing contracts at physical IPs to VIP. This will imply that as from October 2014 for commercial and operational purposes the physical IPs will no longer exits. This will not imply that existing contracts have to be bundled. At the Spanish-Portuguese border, Enagás will also transfer existing contracts at physical IPs to VIP without bundling existing contracts. REN will only transfer contracts from physical IPs to the VIP as from October 2014 as long as all unbundled capacity at the IPs is contracted by the same shipper on both sides. ENAGASRENDecision required YES without changing the conditions in the contracts YES, but only if existing unbundled capacity is fully contracted YES

7. 6 4. Capacity to be offered PENDING ON SEVERAL DECISSIONS DESCRIBED IN THE NEXT SLIDES

8. 7 4. Firm and interruptible capacity CapacityOpinion on how to offer capacityDecision required SIDE 1SIDE 2 RENENAGASTIGF Firm Bundled NO FirmInterruptible BundledUnbundled YES Interruptible BundledUnbundled YES

9. 8 4. Bundled and unbundled products Where capacity will be offered RENENAGASTIGFDecision required Bundled capacityVIP NO Unbundled capacityVIP, but…VIP YES At the Spanish-French border, Enagás and TIGF will offered all the available capacity (bundled and unbundled) at the VIP. At the Spanish-Portuguese border, Enagás and REN will offere all the available capacity (bundled and unbundled) at the VIP, whereby REN considers that the following conditions should be met: for the existing unbundled capacity at both IPs, comercial mismatching must be eliminated by contracting the same capacity at both sides of the border by the same shipper; if available, unbundled capacity at the VIP shall be only due to mismatch of technical capacity as offered by both TSOs.

10. 9 4. Capacity between Spain and France (2014) SPAIN  FRANCE (bundled capacity) FRANCE  SPAIN (bundled capacity) Note that the figures are provided at 0ºC

11. 10 4. Capacity between Spain and France (2014) SPAIN  FRANCE (unbundled capacity) FRANCE  SPAIN (unbundled capacity) Note that the figures are provided at 0ºC

12. 11 4. Enagas-REN Technical capacities Badajoz/Campo Maior: Spain  Portugal Actual capacities (*) When the delivery pressure at the border is 80 bar the maximum physical capacity is 128 GWh Capacities are calculated at 25ºC

13. 12 4. Enagas-REN Technical capacities Badajoz/Campo Maior: Portugal  Spain Actual capacities Capacities are calculated at 25ºC

14. 13 4. Enagas-REN Technical capacities Valença do Minho/Tuy: Spain  Portugal Actual capacities Capacities are calculated at 25ºC

15. 14 4. Enagas-REN Technical capacities Valença do Minho/Tuy: Portugal  Spain Actual capacities Capacities are calculated at 25ºC

16. 15 5. Financial guarantees Each TSO will establish its own financial guarantees. There is no need for alignment or decision as regards this point. Neither Enagás nor TIGF, nor REN will use PRISMA functionality for managing financial guarantees. On the Spanish side and on the French side as well on Portuguese side, there will not be any need to establish additional financial guarantees for participating in the auctions. Each TSO will require the financial guarantees establish in their national regulation.

17. 16 6. Standard contracts (I) TSOs fully agrees that an standard capacity contracts should be signed with each TSO. ENAGAS The Standard Contract with Enagas will have to be singed in advance, as a prerequisite to participate in auctions. The Standard Contract will only be signed once during the registration process. This contract will be valid to both concluding bookings and to participate in auctions with Enagás at PRISMA booking platform. Capacity allocated to a Shipper at PRISMA booking platform will be automatically introduce at the SL-ATR, thus this allocation will be binding for shippers and it will not be necessary to sign any additional document. Once the shipper has been informed of the allocation of capacities, it will be informed of the financial guarantees associated to the contracted capacity he has to put in place in favour of Enagás. These financial guarantees are detailed in Royal Decree 949/2001.

18. 17 6. Standard contracts (II) REN In order to be able to participate in auctions Shippers must be registered as licensed shippers in the Portuguese system. The requirements and procedure to get the license are detailed by the DGEG at http://www.dgeg.pt/http://www.dgeg.pt/ Shippers have to have signed the Transport Contract with REN Gasodutos in order to participate in the auctions. Capacity allocated to a Shipper at PRISMA booking platform will be automatically introduced in REN’s Third Party Access Platform (ATR), thus this allocation will be binding for shippers and it will not be necessary to sign any additional document. Once the shipper has been informed of the allocation of capacities, it will also be informed of the financial guarantees associated to the contracted capacity he has to put in place in favor of REN. These financial guarantees are detailed in Contrato de Uso da Rede Nacional de Transporte de Gás Natural, wich general terms & conditions are available at https://www.ign.ren.pt/https://www.ign.ren.pt/ No specific financial guarantees to participate in the auctions will be required.

19. 18 6. Standard contracts (III) TIGF In order to be able to participate in auctions Shippers must be registered as licensed Shippers in the French system. The requirements and procedure to get the license are detailed by the DGEC at the following link: http://www.developpement-durable.gouv.fr/Liste-des-fournisseurs-autorises.html Then, Shippers will have to sign the Transport Contract with TIGF in advance in order to participate to the auctions. Capacity allocated to a Shipper at PRISMA booking platform will be automatically introduced in the Transport Contract (Bordereau de Capacités), thus this allocation will be binding for shippers and it will not be necessary to sign any additional document. Once the shipper has been informed of the allocation of capacities, it will be informed of the financial guarantees associated to the contracted capacity he has to put in place in favor of TIGF. These financial guarantees are detailed in Article 8 Guarantee of Transport Contract General Terms available on TIGF web site. No financial guarantees to participate in the auctions will be required.

20. 19 7. Secondary market For the year 2014, TSOs will put in place a coordinated procedure to allow shippers to trade their bundled capacity in the secondary market. Once there is a secondary booking platform, TSOs will have the opportunity to use this functionality. During 2014, Enagas and REN are working on a Pilot project with PRISMA, which doesn’t include a secondary market facility.

21. 20 8. Stakeholders information Proposed calendar January: publication of the relevant documentation by TSOs for shippers February: publication of the relevant regulation by NRAs Documentation Description of capacity products Capacities offered Auction process Link to PRISMA on TSO’s websites Creation of the VIP 2014 calendar for yearly, quarterly, monthly auctions

22. 21 9. EIC code & transfer to affiliates Situation: the company that has been allocated capacity at PRISMA should be the same as the one signing the contracts with the TSOs. Thus, there is no possibility to transfer the capacity to an affiliate at IPs; instead, gas transactions will take place within each system (PEG, AOC, VTP) Enagás agrees with this provision. TIGF, at this point of progress, would agree with this provision. REN has no objection to this provision, as it is imposed by NRAs RENENAGASTIGFDecision required Transfer to affiliates NO

23. Thank you for your attention!