1. First meeting of the Working Committee 1 (Exploration and Production of Natural Gas) In the triennium 2006-2009 International Gas Union VNIIGAZ, Gazprom, Moscow, Russia 25-27 September 2006 WOC1 IGU

2. International Gas Union The purposes and guidelines of WOC 1 and IGU activity Moscow, 2006 International Gas Union

3. The History of IGU First Steps:  International collaboration in the gas industry has been started in the 19th century. Initially the primary use of gas was for lighting and the International Light Measuring Commission was set up in 1900 to coordinate standards. The body evolved into the International Commission on Illumination in 1913.  At the end of 20th years the idea of creation of the formal international union has appeared.  The next step was the convening of a meeting in Paris on November 25, 1930.  After the first meeting work started on preparing the draft statutes and a second meeting was convened in Paris to finalize them on May 8, 1931.  It was agreed that members would be entitled to nominate one or two representatives to the IGU Council, but that each delegation would only have one vote. Every three years the Council would elect a President and Vice Presidents. The President was given the power to fix the headquarters of the Union and appoint a Secretary General. In addition, it was agreed that the Union would hold conferences at intervals of three years and that the national association holding the presidency would host each conference.

4. The History of IGU The Foundation and Early Years of IGU:  On Tuesday, June 2, 1931, the First International Gas Conference opened in London. There were the representatives of seven founding members of IGU and they were accompanied by observers from Norway and the United States.  Representatives of the countries have distributed fields of activity and the responsibility.  Soon new members from various countries have joined them.  The second WGC in 1934 in Zurich attracted 495 delegates. Then was started a subject of usage of natural gas. As the committee on creation of the vocabulary of gas terms has been created at that time. This vocabulary has received approval at 3 WGC in Paris in 1937 on which there were 705 delegates.  Following WGC was to take place in Berlin in 1940. But has been cancelled because of the World War II.  World Gas Conferences were resumed in 1949 in London.

5. The History of IGU * The figure is for overseas delegates only. The First International Gas Conference formed part of the 68th AGM of the Institution of Gas Engineers, which ran from the 2nd to the 4th of June and was attended by some 1,500 people in total. ** The precise dates of the 25th WGC have yet to be decided. The World Gas Conferences

6. 2006-2009 Ernesto L. Anadón The History of IGU

7. IGU: Vision, Mission and Objectives The International Gas Union (IGU) is a worldwide, independent, non- profit and non-governmental organisation based in 1931. Through its many member countries representing approximately 95% of global gas sales, IGU covers all aspects of the natural gas industry. IGU promotes the technical and economical progress of the gas industry, organizes researches and assists development in all fields of activity of the gas industry, periodically holds the World Gas Conferences and other actions, provides cooperation with the international organizations connected to power, stimulates information interchange and development of cooperation among the members. What is it IGU?

8. IGU: Vision, Mission and Objectives The vision: Recognising that natural gas has an important part to play in satisfying the global need for an environment-friendly energy source, IGU will be the most influential, effective and independent non-profit organisation, while serving as the spokesman for the gas industry worldwide.

9. IGU: Vision, Mission and Objectives The Mission: IGU will actively, directly and through its members, promote the technical and economic progress of the global gas industry. IGU will work towards improving the competitiveness of gas in the world energy markets. By promoting the development and application of new technologies and best practices, IGU will help optimise the economics of the entire gas chain, while emphasising sound environmental performance, safety and reliability. IGU – serving as a global information clearing house – will promote transfer of technology and know-how. In carrying out this mission, IGU will maximise value to its members and gas customers.

10. IGU: Vision, Mission and Objectives Objectives : In striving towards the vision and fulfilling the mission, IGU will regarding: ECONOMY: Promote all activities within the entire gas chain, which can add to the technical and economic progress of gas; CUSTOMERS: Encourage development of good customer services and customer relations; TECHNOLOGY: Encourage research and development towards new and better technologies for the gas community; SAFETY: Promote the safe production, transmission, distribution and utilisation of gas; ENVIRONMENT: Encourage and promote development of clean technology, renewable energy applications and other activities, which will add to the environmental benefits of gas;

11. IGU: Vision, Mission and Objectives INTERNATIONAL GAS TRADE: Encourage international trade in gas by supporting nondiscriminatory policies and sound contracting principles and practices; LEGAL: Promote and contribute to the development of legislation concerning: - the establishment of equitable, non-discriminatory and reasonable environmental and energy efficiency regulations, and - efforts to establish appropriate and relevant international standards, as well as - the promotion of and participation in the exchange of information relating to regulatory processes; COOPERATION: Enhance partnership with industry and manufacturers, and cooperation with governments, policy makers and international energy related organisations, and promote the exchange of information among members in order to help them in improving the efficiency and safety of gas operations.

12. The Articles of Association Article 1Name, Law and Registered Office Article 2 Purpose Article 3 World Gas Conference Article 4 Membership Article 5 Organisation Article 6 Languages Article 7 Council Article 8 President and Management Team The full text of articles is rather big and consequently is not presented in the report. However all interested persons can find it in the included package of documents and on the IGU site: www.igu.org Articles of Association as adopted by the IGU Council, Kuala Lumpur, Malaysia on September 18, 2002:

13. The Articles of Association Article 9Executive Committee (EXC) Article 10Coordination Committee (CC) Article 11IGU Committees, Task Forces and Delegates Article 12Secretary General, Headquarters Article 13Resources, Financial Management Article 14Honorary Offices Article 15Amendment of the Articles of Association Article 16Duration and Dissolution of the IGU

14. The Organisation of IGU 2006-2009

15. Membership According to the Articles of Association the gas industry of a country, or, on an exceptional basis, of a geographical area, is represented by one Charter member considered to be the most representative Gas entity of this country or area. Any other gas entity can become an Associate member of the IGU, if it is capable of and willing to contribute to the development of the gas industry by its active participation in the IGU. At present time IGU includes 69 charter and 25 associated members. The members of IGU pro- vide 95 % of the global production of natural gas.

16. Charter Members Algeria ( AIG) Argentina ( Instituto Argentino del Petroleo y del Gas) Australia ( Australian Gas Industry Trust) Austria ( OVGW) Bangladesh ( Petrobangla) Belarus, Republic of ( Beltransgas) Belgium ( Association Royale des Gaziers Belges) Bolivia ( Camara Boliviana de Hidrocarburos) Bosnia and Herzegovina ( Gas Association) Brazil ( ABEGAS) Brunei ( Brunei LNG Sendirian Berhad) Cameroon ( Societe Nationale des Hydrocarbures) Canada ( Canadian Gas Association) China, People’s Republic of ( China City Gas Society) Croatia ( Croatian Gas Association c/o INA Naftalin) Czech Republic ( Czech Gas Association) Denmark ( Dansk Gas Forening – Danish Gas Association) Egypt ( Egyptian Gas Association) Estonia ( Estonian Gas Association) Eurogas Finland ( The Finnish Natural Gas Association) France (Association Francaise du Gaz (AFG) Germany, Federal Republic of ( (DVGW) Greece (Public Gas Corporation of Greece (DEPA) S.A.) Hong Kong, China The Hong Kong & China Gas Co. Ltd Hungary (Association of Gas Distribution Companies) India (Gas Authority of India Ltd (GAIL) Indonesia (Indonesian Gas Association (IGA) Iran (National Iranian Gas Company (NIGC) Ireland (Irish Gas Association – Bord Gais Eireann) Israel (The Israel Institute of Petroleum & Energy) Italy (Comitato Italiano Gas (CIG) Japan (The Japan Gas Association) Kazakhstan (KazTransGas) Korea, Republic of (Korea Gas Union) Latvia (Latvijas Ga.ze) Lithuania (Lithuanian Gas Association) Malaysia (Malaysian Gas Association c/o Petronas) Monaco (SMEG) Netherlands, (KVGN) Nigeria (Nigerian Gas Associationc/o Nigeria LNG Ltd) Norway (NPF) – Norwegian Gas Association) Oman, Sultanate of (Oman LNG L.L.C.) Pakistan (Petroleum Institute of Pakistan) Poland (PZITS) Portugal (GDP – Gas de Portugal, SGPS, S.A.) Qatar (Qatar Liquefied Gas Company Ltd (Qatargas) Russia, Federation of (JSC Gazprom) Saudi Arabia (Saudi Aramco – Shedgum Gas Plant) Serbia and Montenegro (Gas Association of S&M)

17. Charter Members Singapore Power Gas Ltd Slovak Republic Slovak Gas & Oil Association Slovenia Geoplin South Africa CEF Ltd Spain Spanish Gas Association – Asociacion Espanola del Gas (SEDIGAS) Sweden Svenska Gasforeningen – Swedish Gas Association Switzerland Societe Suisse de l’Industrie du Gaz et des Eaux Taiwan, China The Gas Association of the Republic of China, Taipei Thailand PTT Public Company Ltd – Petroleum Authority of Thailand Trinidad and Tobago The National Gas Company of Trinidad and Tobago Ltd Tunisia Association Tunisienne du Petrole et du Gaz (ATPG) c/o ETAP Turkey BOTAS. Ukraine Ukrainian Oil and Gas Academy /Naftogaz of Ukraine United Arab Emirates Abu Dhabi Liquefaction Company Ltd (ADGAS) United Kingdom The Institution of Gas Engineers and Managers United States of America American Gas Association Venezuela Petroleos de Venezuela S.A. (PDVSA)

18. The IGU Associate Members Tractebel s.a. (Belgium) Naturgas Fyn A/S (Denmark) TOTAL S.A. (France) E.ON Ruhrgas AG (Germany) nv NUON (the Netherlands) IGDAS - Istanbul Distribution Company (Turkey) BP Gas, Power&Renewables (United Kingdom) Shell International Gas Ltd. (United Kingdom) Chevron Texaco Overseas Petroleum (U.S.A). RWE Gas A.G.( Germany) Russian Gas Society, (Russia) Petrobras, (Brazil) TBG - Transportadora Brasileira Gasoduto (Brazil) The following entities are now Associate Members: Gaz de France (France) ROMGAZ S.A., (Romania) Union Fenosa Gas, (Spain) The Union of Independent Gas producers in Russia The Brazil Institute of Petroleum ConocoPhilips (USA) Bursagaz, (Turkey) Gasunie N.V. (The Netherlands) PetroChina (P.R. China) Cheniere Energy (USA) Indian Oil Corporation (India) Izgas Ismit Gas (Turkey)

19. IGU Work and Co-ordination with other Gas organisations 9 standing Committees with Study Groups 2 Task Forces: R&D and Gas Market Integration The World Gas Conferences every three years Organiser of: - IGU Gas Research Conferences (IGRC) (Paris – October 2008) Co-Sponsor of: - LNG Conferences (LNG 15 in Barcelona – April 2007) Liaison with UN and other international energy organisations. IGU promotes the use of gas through:

20. IGU Work and Co-ordination with other Gas organisations Climate Change, Sustainable Development and transfer of Technology to gas emerging countries: Special events at COP ( Conference of the Parties ) 5,6,7,8, 9,10 and 11 World Summit on Sustainable Development Organising Workshops and assist at regional Conferences in Argentina, Austria, Brazil, China, India, Serbia and USA. IGU is also promoting gas at:

21. IGU Work and Co-ordination with other Gas organisations Foundation IGRC ( International Gas Research Conference) GIE (Gas Infrastructure Europe) GERG (Groupe Europeen de Recherches Gazieres) IANGV/ENGVA ( International Association for Natural Gas Vehicles / Euro- pean Natural Gas Vehicles Association) Marcogaz PRCI (Pipeline Research Council) IGM ( Intergas Marketing) Organisations affiliated to IGU:

22. IGU Work and Co-ordination with other Gas organisations Joint IGU/WPC (World Petroleum Council) Statement about closer cooperation was adopted by both parties in 2003 Close co-operation with a large number of other energy related organisations, such as IEA (International Energy Agency) and WEC (World Energy Council) IGU co-operates with a number of UN-organisations dealing with Energy and sustainability. Co-operation with other International Organisations

23. The Motto for the 24 th WGC: “Global Energy Sustainability: Reviewing the Strategy for Natural Gas” IGU: 2006 – 2009 Triennium

24. 2006-2009 Triennial Work Programme Concept The Motto for the 24 th WGC is “Global Energy Sustainability: Reviewing the Strategy for Natural Gas” Role of the World Gas Industry Sustainability: Global Learnings Outlook to 2030  Regulatory Framework  Market Growth vs. Supply Alternatives  Technology  Environmental Impact  Cost Effectiveness Regulation Market Drivers E&P Storage T&D Utilisation LNG R&D Global Energy Needs and Prospects Oil Prices & Geopolitical Constraints The 2006-2009 TWP concept is based on an analysis of the world gas industry ’ s experiences and challenges, which will include the development of a collective outlook to 2030. Development of the program will pass in several steps - from energy needs and prospects, through the Global Learnings when such aspects as Regulation, Market Drivers, E&P, Storage, T&D, Utilisation, LNG, R&D drivers will be reviewed and adequately "filtered" by sustainability criteria - to definition the Role of the World Gas Industry. IGU: 2006 – 2009 Triennium

25. Strategic Guidelines 1.The Global Energy Challenge: Reviewing the Strategies for Natural Gas towards 2030 2.Contribution of the Natural Gas Industry, in terms of Security of Supply, Safety and Environment 3.Regional Gas Market Integration, as a Key Driver for Sustainable Economic Growth IGU: 2006 – 2009 Triennium

26. 1.The Global Energy Challenge: Reviewing the Strategies for Natural Gas towards 2030 Global energy needs, tendencies and prices Supply and demand of natural gas Competitiveness / cooperation vs. alternative energy sources Regulatory trends Environmental / climate policy regimes New technologies / uses for natural gas IGU: 2006 – 2009 Triennium

27. → TWPStrategic Guidelines 1.The Global Energy Challenge: Reviewing the Strategies for Natural Gas towards 2030 Led by PGCB Regulation Supply & Demand Supported by all committees Price Formation & Trends Sustainability IGU: 2006 – 2009 Triennium

28. 2.Contribution of the Natural Gas Industry, in terms of Security of Supply, Safety and Environment Reliability in terms of: Gas sourcing Flexibility Infrastructure Safety Environmental concerns IGU: 2006 – 2009 Triennium

29. 2.Contribution of the Natural Gas Industry, in terms of Security of Supply, Safety and Environment Strategic Guidelines→ TWP E&P - UGS - Transmission - Distribution -Utilisation WOC1 WOC2 WOC3 WOC4 WOC5 Horizontal Issues Sustainability → PGCA LNG → PGCD Research & Development → TF R&D IGU: 2006 – 2009 Triennium

30. 3.Regional Gas Market Integration, as a Key Driver for Sustainable Economic Growth Harmonising regional rules: Contracts and trading International treaties Regulation Financing mechanisms IGU: 2006 – 2009 Triennium

31. 3.Regional Gas Market Integration, as a Key Driver for Sustainable Economic Growth Strategic Guidelines→ TWP Task Force Gas Market Integration (TF GMI) Supported by: PGCC: Developing Markets IGU: 2006 – 2009 Triennium

32. TWP → 27 Topics / Study Groups Group Study Group 1 Study Group 2 Study Group 3 WOC1 E&P Conventional resourcesUnconventional resources WOC2 Stor. UGS databaseUGS technology improvements Intelligent UGS WOC3 GT Impact of regulationNew technologiesContribution to SD WOC4 Dist. Asset managementLeakage reduction3rd party damage WOC5 Util. IndustrialDomestic & commercialTransport (NGV) Gas utilisation efficiency indicators PGCA SD Guidelines on SDGHG reduction case studies PGCB Str., Econ & Reg. Supply & demand Price formation and trends Natural gas industry outlook to 2030 Regulation & future industry structure PGCC DM SW & Central AsiaSouth AmericaSE Europe PGCD LNG LNG quality & inter- changeability LNG contracting flexibilityRemote & offshore LNG facilities TF R&DRole and structure of R&D within the gas industry /IGRC TF GMIKey success factors to favour regional energy and gas market integration IGU: 2006 – 2009 Triennium