Development of new gas routes1- Belgium / France

2- Spain / France

Shipper’s meeting - Paris - October 20th, 2008

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1 - Belgium / France Capacity expansion project

Taisnières H Open Season

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Brief overview of Taisnières H developments

Proposed product: Taisnières H firm entry capacity into the North Zone on GRTgaz’ transmission system from Belgium

Three development steps are envisaged

Capacity allocated through this open season process to be made available on December 1, 2013

Amount of capacity kept for short-notice bookings• Currently 93 GWh/d• Level to be set by the CRE

Created Total AvailableStep 0 0 590 380Step 1 180 770 560Step 2 160 930 720

Capacity (GWh/d)

• Step 0 takes into account current commercial capacity and existing subscriptions of 210 GWh/d

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Allocation rulesConsistency Rule• Target: to ensure consistency in developments on both sides of the border• Responsibility to remain with shippers themselves: each shipper submits

requests to GRTgaz, that are consistent with capacity (to be) subscribed on Fluxys network by himself and/or its counter-parties at the flange

Max [ Cz(E, MN);Cse(E, MN) ] ≤ ΣE [ R(E, d, n) ]+S(E, MN) ≤ Cz(E, MN) + Cse(E, MN)

• Final check by GRTgaz: comparison of the total of capacity allocations on bothGRTgaz and Fluxys networks

Requests stacked by priority groups according to duration / starting date

Last priority group only to be pro-rated

20242014

Reservationsby level ofpriority

Duration of reservation

CapacityReservations reduced(α pro-rata)

Reservations 100% served

Existing SubscriptionShort notice

C

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Price of the capacity at Taisnières H

Proposed by the CRE, decided by the Ministry

Historical prices in MWh/d per year:

Indicative ratio “Regulated Asset Base / Entry Capacity Offered”• Presented in GRTgaz’ 10-Year development statement• Over the 2008-2017 period: on average above-inflation increase between 1 and

2%, i.e. close to 3 or 4% per annum.

2005 2006 2007 2008 2009 2010 2011 201291,80 91,80 78,03 78,03

ATRT3 ATRT4ATRT2

90,00

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How to participate?This new binding phase in the process is scheduled to end on December 12, under the following coordinated timetable: • November 7 – GRTgaz receives binding requests for entry capacity into the

North Zone from Belgium on GRTgaz’s transmission system. • November 21 – GRTgaz notifies shippers of the results of the capacity allocation

process. • December 3 – Fluxys receives binding requests for North-South capacity on the

Fluxys transmission system. • December 12 – Fluxys notifies shippers of the results.

Binding requests received by GRTgaz before January 30, 2008 have been cancelled

The capacity available at the Taisnières H entry point between December 1, 2012 and November 30, 2013 is again accessible under GRTgaz’s usual allocation rules

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Contact us !

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2 - New routes between Spain and France

South GRI Open Season

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A Need : Development of new gas routes connecting North of France to Spain

Limited connection between Spanish and French Gas Markets

Spain: connected to NW Europe Markets through France

France: an additional mean to foster liquidity on the South Zone

Need expected in both directions

South GRI: A strong demand from Market and Regulators for new routesfrom Spain to North Zone, to be developed through Open Season process

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A new connection to be built : PerthusWestern connection (Larrau): can be optimised by 2013

Eastern route connecting Midi with Catalonia via Perthus

Perthus : Proximity with GRTgaz network

Perthus : part of a route to be built from Northern France to Spain by 2015

TIGF

Larrau

Perthus

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GRTgaz investments related to Perthus

MidCat

TIGF

Midi

Rhône

Bourgogne

A whole new route to build from Northern France to Spain

Otherwise, Perthuslimited to local needs

Major investment program for GRTgaz• 1 to 1,5 billion Euros

« MidCat » connection : only 20% of the whole program

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Market design and tariff structure(from 1st of January, 2009)

PIR Midi (prices in MWh/d per year)• 75 € Entry / Exit GRTgaz South• 75 € Entry / Exit TIGF

Larrau (prices in MWh/d per year)• Exit from TIGF : 285 €• Entry in TIGF : 90 €

Larrau

Midi

TIGF

Nord Sud

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Market design : options to considerMARKET DESIGN 2MARKET DESIGN 1

TIGF

Larrau Perthus

Midi

Nord Sud

Midi

Nord Sud

.. or..

Larrau Perthus

TIGF

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GRTgaz proposes direct connectionGRTgaz South / Enagas

A wider choice offered to the market

A more direct route between Spain and PEG Nord

Fair balance between revenues and investments• Market Design 1:

GRTgaz invests 25 x annual incomeTIGF 3 x annual income

• Market Design 2:GRTgaz invests 9 x annual income

TIGF

Larrau Perthus

Midi

Nord Sud

GRTgaz proposes to build the whole route including MidCat

GRTgaz proposes to market Perthus as pure Entry / Exit Enagas / GRTgaz S

MARKET DESIGN 2

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Next steps

End October 2008: Market consultation to be launched by Regulators on Market design, tariff principles and Open Season schedules

Mid November 2008: End of Consultation by Regulators and analysis

December 2008: Choice of a market design

January 2009: Publication of Info Memorandum

2009: Open Season for capacities 2013 & 2015

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Thank you for your attention