Energy Streams in Regional andEuropean Aspect

Gas supply

Black Sea Technology Company Plc

Ing. Giampiero Sechi

CEO BSTC Plc

March 12-13, 2007

Sofia, Sheraton Hotel

History of AMGA

• Territory covered:- 42 municipalities in Italia- 4 municipalities in the Republic of Croatia - 38 municipalities in Bulgaria

• Length of own network: 2,030 km• Clients served: 130,000 households• Sold cubic meters of natural gas in 2006: 250

million

AMGA Today

Established in 1889, for 119 years, AMGA (Azienda Multiservizi S.p.A Udine), have acquired wide experience in the field of natural gas distribution.

AMGA in Bulgaria

• In 2002 AMGA acquired 99.69% of the share capital of Black Sea Technology Company AD (BSTC), now increased to 99.98%.

• At the beginning of 2004 BSTC has been awarded the licenses for the regions of Moesia and Dobroudja by the State Energy Regulation Commission (SERC) for 35 years.

• The company will invest over 150 mln BGN for construction of gas distribution networks in the territory of both regions.

BSTC in Bulgaria

ТЪРГОВИЩЕ

Project of Gasification in Bulgaria

• In 1995 - gasification of Targovishte• In 1996 - gasification of Dobrich• In 2004 - gasification of the regions of Moesia

and Dobroudja in Pleven, Lukovit, Shumen, Provadia, Dulgopol, Aksakovo

• In 2006 - gasification of Kaspichan

In the period 1995 - 2006 BSTC started the following projects:

… and the investment since 2004 exceeds 30,000,000 BGN.

Project of Gasification in Bulgaria

• Territory covered:- 38 municipalities

• Length of own network: - 300 km

• Clients served: 2,780 - 2,278 households - 376 public administration organizations - 126 industries

BSTC Today

What Comes Next in March 2007 - March 2009

• Amount of Investment: - 47,000,000 BGN• Length of new network: - 238 km• Number of new clients:

- Industries – 199- Public administration organizations – 334- Households consumers - 8,047

• In the period gasification will be started of:- Valchidol, Vetrino, Devnja, Kaolinovo, Suvorovo and Hitrino.

- Cherven brjag, Dolna Mitropolija, Ugarchin, Letnitza, Pordim, Yablanitza, Drjanovo and Suhindol.

Summary of the Investment Program of BSTC

Period March 2007 - March 2009

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The History of Households Consumers

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Targovishte

Dobrich

Our Vision on Gas Distribution Market in Bulgaria

• 180 - 200% average annual increase of total households customers for the next few years (2007 - 2008 - 2009)

• 7% annual growth of total gas distributed in the country

• In the next two/three years regional distributors will achieve significant growth results

Gasification Project/ Regulatory Frame

• Gasification development will improve the energy balance of the country and customers

• The efficiency parameter will be introduced in the regulatory frame. The resulting benefits will be shared among Customers/State/Investors

• We, as a distributor, totally appreciated the decision of the Bulgarian Authority for Energy SERC to organize the distribution in regions:

- to find the best balance among weak and strong regions- to create the best conditions for extension of the distribution network

• The actual trend of growth and the gasification experience in other countries has shown that the 35-year license term is a well justified choice

• Our estimation is that a ten year period is the time to reach a profitable and efficient dimension of activity

Household Gasification

• The aforementioned is a natural trend …

… but CAN THE PROCESS OF HOUSEHOLD GASIFICATION BE SPEEDED UP?

• We are now far up from the target fixed by the law of 30% household gasification in ten years …

Discussion