1. 34 th IG meeting 24 th November 2015 Enagás, GRTgaz, REN and TIGF

2. II. CMP: common methodology of OSBB in the Region Topics to be included

3. 3 Restrictions not to offer additional capacity The additional capacity will not be offered in the following cases: If there is an up-stream or downstream operator’s communication with a restriction in the physical-capacity. If a special operation has been agreed among either the operators or by the interconnection. In emergency situations that could activate or deactivate other processes or agreements between the interconnection operators. In the event of system failures of the operators or shippers, which could lead to incidents during the additional capacity supply process. If the operators take the duly justified decision to intervene in the methodology by lowering the value of the final quantity to be supplied for a certain day D. The transmission network operators will prepare and issue a report to the relevant NRAs, including details of the days on which the additional capacity supply process has not been activated, along with the causes of said non-activation. 1. Offer of additional capacity NEW

4. 4 To reverse the order of the measures Proposal: 1.Interruption of the interruptible capacities under the following order: a)Within day interruptible capacity (overnomination) b)Daily interruptible capacity c)Monthly interruptible capacity d)Quarterly interruptible capacity e)Yearly interruptible capacity 2.Management of the OBA 2. Technical & commercial measures

5. 5 Disadvantages If a TSO uploads at PRISMA a bundled “proposal to buy”, it seems that the adjacent TSO does not need to confirm the proposal to buy. If this is the case, the following paragraph should be deleted: The “proposal to buy” placed by a TSO (the one in charge to place it will vary as explained above) shall always be approved by the adjacent TSO at PRISMA platform. The “proposal to buy” must be created and validated by the TSOs at PRISMA platform at 19:30 UTC at latest (or 18:30 UTC daylight saving). If no proposal has been created or no validation has been done, then TSOs will apply pro-rata rule to all firm capacity already sold. Pro-rata will also apply if there is a rejection of the proposal made by the adjacent TSO. This is due to there is not enough time both to create and to validate a new “proposal to buy”. 3. CFO mechanism

6. 6 Information to be uploaded at PRISMA The identity of the network user applying The concerned interconnection point and direction of flow The price, which shall not be higher than the maximum price specified by the TSOs in the “proposal to buy”. Offers to sell with a price higher than the maximum price shall not be accepted. The price will be considered as the maximum price the buyer is willing to pay The amount of capacity to sell. The “offers to sell” shall be greater than zero, but may neither exceed the respective NU’s nominated capacity for that day nor the TSO’s buy-back capacity offer NEW 3. CFO mechanism

7. 7 Market based procedure: Pro-rata rule If users do not offer enough capacity in the buy-back procedure (i.e. there are not enough “offers to sell” to satisfy the “proposal to buy”), TSOs will reduce all firm bundled and unbundled capacities according to a pro-rata rule up to the amount of capacity that needs to be bought back Pro-rata rule will apply to all network users who nominated their booked capacity, no matter if they already placed a “proposal to sell” from 19:30 UTC (or 18:30 UTC daylight saving) to 20:00 UTC (or 19:00 UTC daylight saving). The pro-rata rule will apply to those network users, even when their “proposal to sell” was taken into account and, consequently, TSOs bought back some of their nominated capacity In the case a pro-rata rule is applied, TSO shall pay network users for the pro- rated capacity the daily regulated tariff, which is applicable the day of the opening of the buy-back procedure NEW 3. CFO mechanism

8. 8 Non-market based procedure: Pro-rata rule No other market based procedure shall be performed afterwards if the TSOs need to buy-back capacity after 20:00 UTC (or 19:00 UTC daylight saving): TSOs will restrict network user’s renomination rights upwards and downwards in both flow directions until the end of the gas day, and Pro-rata rule shall be applied. TSOs will reduce firm bundled and unbundled capacities according to a pro-rata rule NEW

9. 9 Maximum price Enagás is allowed to pay Clarification: The price is set as a multiplier of the tariffs to be applied; thus, the price is the daily reference price + 25% of the daily reference price. 4. Price

10. 10 5. Under evaluation Uploading buy-back offers by TSOs through CFO mechanism - Upload of buy-back offers is a manual procedure done by one TSO - evaluation of automatic IT connection needed - After uploading, the adjacent TSO receives a trade notification allowing him to validate the capacity offer uploaded - If the offer is not correct (mistaken value uploaded), he can reject the offer, but time may lack in order to upload another proposal Application of a pro-rata rule - CFO mechanism only allows for a complete acceptance or rejection of selling offers by NUs - no pro-rata rule embedded in the mechanism - Application of pro-rata rule must be performed outside PRISMA, unless CFO mechanism is adapted (needs prior evaluation by PRISMA, including cost estimation)

11. 11 5. Under evaluation In brief: CFO mechanism is suited for secondary market trading - TSOs act as a shipper when using it for BB procedure, with “some” limitations Allocation of several offers placed by NU limited to situations where offers do not have to be pro-rated Changing current features by PRISMA requires investment (to be covered by TSOs) and development time (by PRISMA and TSO’s IT systems) Conclusion:  TSOs are looking for a way to overcome such limitations, maintaining transparency, cost and time constraints as fundamental vectors  Other alternative mechanisms envisaged could be FCFS, Reverse Auction, etc.  NRA’s to be updated and decide upon the possible alternatives

12. III.Interoperability NC. Latest developments and next steps in the Region

13. 13 1. Implementation of the INT NC Latest developments: Nomination, re-nomination and matching procedures (according to the BAL NC and INT NC) are already implemented Data exchange: An Integrated Data Exchange solution (HTTP/S-SOAP, Edig@s-XML) has been implemented for the TSO-TSO communication. For the TSO-Network User communication, both an Integrated Data Exchange solution and an Interactive Data Exchange solution are already offered in the majority of the cases. Reference temperature (capacity and nominations) already in place for IPs Ongoing developments: Bilateral discussions to review (if needed) the Interconnection Agreements according to the content of NC Short term monitoring on gas quality: data publication (Wobbe-index and gross calorific value) – Trying to harmonise the publication as much as possible

14. IV. Infrastructures

15. IV.1 Update of the second list of PCIs in the Region

16. 16 IV.1 Update of the second list of PCIs in the Region This first ranking was discussed on the last regional group meeting on 14 th of September, based on CBA results; The final list was published on the 18 th of November by the EC and includes 76 gas projects; The projects included in the 2 nd PCI list related to the region are:  3 rd Interconnection Point between Portugal and Spain (PCI 5.4);  Midcat project (PCI 5.5);  Obergailbach Interconnection Point (PCI 5.6);  Val de Saône Pipeline between Etrez and Voisines (PCI 5.7.1);  Gascogne-Midi Pipeline (PCI 5.7.2);  Est Lyonnais pipeline between Saint-Avit and Etrez (PCI 5.8.1);  Eridan pipeline between Saint-Martin-de-Crau and Saint-Avit (PCI 5.8.2).

17. 17 IV.1 Update of the second list of PCIs in the Region 3 rd IP REN 2 nd Phase (TRAN-N-284) CS Cantanhede Celorico- Spanish border 3 rd IP REN 1 st Phase (TRAN-N-283) Cantanhede- Mangualde 3 rd IP REN 3 rd Phase (TRAN-N-285) Zamora-Portuguese border CS Zamora 3 rd IP Enagás (TRAN-N-168)(*) Loop Castelnou- Villar de Arnedo Loop Tivisa-Arbós CS Martorell Hostalrich-Figueras MidCat Enagás (TRAN-N-161) Spanish border-Barbaira Lupiac-Barran Figueras-French border Gascogne-Midi TIGF (TRAN-N-331) Gascogne-Midi CS Montpellier CS Saint-Martin de Crau MidCat GRTgaz (TRAN-N-256) ERIDAN (TRAN-F-041) ARC LYONNAIS (TRAN-N-253) CS Voisines CS Voisines- Morelmaison CS Chopy CS Evy Obergailbach GRTgaz (TRAN-N-047) Infrastructures submitted to the TYNDP 2015 MidCat TIGF (TRAN-N-252) VAL DE SAONE GRTgaz (TRA-N-043) Gascogne Midi GRTgaz (TRAN-N-391) (*) Additionally core network reinforcements are needed in the Spanish system

18. 18 IV.1 Update of the second list of PCIs in the Region (TRA-N-284) Grouping simulated at the PS-CBA: GR_25_WEST 3 rd IP REN 3 rd Phase (TRAN-N-285)

19. 19 IV.1 Update of the second list of PCIs in the Region Grouping simulated at the PS-CBA: GR_21_C_WEST

20. 20 Gascogne-Midi TIGF (TRA-N-331) Val de Saône GRTgaz (TRA-N-043) Gascogne-Midi GRTgaz (TRA-N-391) IV.1 Update of the second list of PCIs in the Region Grouping simulated at the PS-CBA: GR_22_WEST

21. IV.2 Update of the infrastructures status of the OS 2013-2015

22. 22 IV.2 Update of the infrastructures status of the OS 2013- 2015

23. 23 IV.2 Update of the infrastructures status of the OS 2013- 2015 InterconnectionBIRIATOU Review date: (dd/mm/yyyy):15/11/2015 1.1 Name of the infrastructure:Adour Artery Technical characteristics:Km95D(")24P(MW)0 1.2 Name of the responsible TSO:TIGF 1.3 Capacity with this infrastructure (GWh/day) 1.4 Investment approved by TSO (YES/NO) YES WinterSummer Spain-France (Common Value) :6065 France-Spain (Common Value) :010 2.1Initial Planning 2.2 Updated forecast (according to real works status) Starting operation dateQ4 2015 Administrative milestonesA) Application DateB) Concession Date 3.1 Initial (promoter choice) 2012 3.2 Environmental Assessment 2012/2013 3.3 Final (Authorisation for starting construction) Q1 2014Q2 2014 Project advanceA) In previous review (%)B) Current (%) 4.1 Engineering 100% 4.2 Procurement 100% 4.3 Construction 25%96% 4.4 Commissioning 0%46% Causes of delays (if applied)NA Comments Start Up Mid-December 2015

24. 24 IV.2 Update of the infrastructures status of the OS 2013- 2015 Interconnection Compressor Station at Chazelles Review date: (dd/mm/yyyy):12/11/2015 1.1 Name of the infrastructure:Comressor station at Chazelles Technical characteristics:Km D(") P(MW)3x12,5 1.2 Name of the responsible TSO:GRTgaz 1.3 Capacity with this infrastructure (GWh/day) 1.4 Investment approved by TSO (YES/NO) Yes WinterSummer Spain-France (Common Value) :175 France-Spain (Common Value) :70 2.1Initial Planning 2.2 Updated forecast (according to real works status) Starting operation date01/04/201324/05/2013 Administrative milestonesA) Application DateB) Concession Date 3.1 Initial (promoter choice) H2'0701/09/2007 3.2 Environmental Assessment 2009sept.-10 3.3 Final (Authorisation for starting construction) 201022/10/2010 Project advanceA) In previous review (%)B) Current (%) 4.1 Engineering 100% 4.2 Procurement 100% 4.3 Construction 100% 4.4 Commissioning 100% Causes of delays (if applied)technical issues on compressor

25. V.AOB and next meetings

26. 26 V. GRIP The 5 TSOs (ENAGAS, GRTGaz, REGANOSA, REN and TIGF) did the 1 st telco on 13 rd of October:  Coordination of the GRIP: TIGF;  Coordinator of the following GRIP: REN

27. Thank you for your attention!