Report on Enagás' Carbon Footprint

2015

2 of 30

Contents

1. Purpose of this report ......................................................................... 3

2. Enagás' profile .................................................................................... 3

2.1. Enagás' business activities ............................................................................ 3

2.2. Scope of operations ..................................................................................... 5

2.3. Organisation ............................................................................................... 6

3. Commitment to combating climate change ......................................... 7

4. Greenhouse gas (GHG) emissions inventory ....................................... 8

4.1. Enagás Carbon Footprint scope ..................................................................... 8

4.1.1. Greenhouse gases (GHG) ........................................................................ 9

4.1.2. Reporting period covered ........................................................................ 9

4.1.3. Organisational boundaries ....................................................................... 9

4.1.4. Operational Boundaries ........................................................................... 9

4.1.5. Base year ............................................................................................ 10

4.2. Identification of emission sources ................................................................ 10

4.3. Calculation methodology............................................................................. 12

4.4. Exclusions ................................................................................................ 13

4.5. Uncertainty level ....................................................................................... 14

4.6. Changes in 2015 vs 2014 Carbon Footprint ................................................... 16

5. Carbon Footprint 2015 ...................................................................... 18

5.1. Scope 1 and 2 emissions ............................................................................ 18

5.2. Scope 3 emissions ..................................................................................... 25

6. Adjustment to base year emissions ................................................... 26

7. GHG emissions reduction initiatives .................................................. 27

8. External verification statement ......................................................... 29

3 of 30

1. Purpose of this report

The purpose of this annual report is to provide information on Enagás' 2015 Carbon

Footprint.

Through this document the company intends to communicate to all stakeholders its

commitment to action against climate change and its daily efforts to make continuous

improvements by reducing emissions. Enagás also aims to report on the performance of its

business activities and its actions in relation to greenhouse gas ("GHG") emissions.

2. Enagás' profile

2.1. Enagás' business activities

Enagás is Spain’s leading natural gas transmission, regasification and storage company and

the technical manager of the gas system. It is also certified as an independent Transmission

System Operator (TSO) by the European Union. Enagás provides key strategic support to

the operation of the gas network in Spain.

The company's activities include technical management of the Spanish gas system and

operating and maintaining gas infrastructures in a secure, efficient, profitable and

environmentally-responsible manner.

Enagás develops, operates and maintains its infrastructures, providing third-party access to

the network and offering distribution companies services that meet their needs and

expectations.

The company fully controls (100% ownership) of the following infrastructure in Spain:

Over 10,000 kilometres of gas pipelines throughout Spain.

Three underground storage facilities: Serrablo (Huesca), Yela (Guadalajara) and

Gaviota (Vizcaya).

Four regasification plants: Cartagena, Huelva, Barcelona and El Musel (Gijón).

In addition, over the last few years, Enagás has acquired stakes, either directly or indirectly

through intermediaries, in various companies, both in Spain and internationally, as is

detailed below:

4 of 30

5 of 30

2.2. Scope of operations

Enagás' activities in the gas value chain, include: natural gas transmission, regasification,

underground storage, loading and unloading of LNG tankers and LNG truck loading.

The operations at the company's facilities are described below:

Regasification plants: Gas is transported in LNG tankers at 160ºC below zero in liquid

form and is offloaded at the regasification plants. At these facilities, the temperature of the

liquid natural gas (LNG) is raised through a physical process, generally using saltwater

vaporisers, transforming it into gas. The natural gas is then injected into the network of gas

pipelines and transported throughout the Spanish mainland. In addition, at these facilities

LNG is loaded onto LNG tankers and LNG trucks.

Regulation and metering stations (RMS): RMSs are located at points of supply

(outlets). They reduce the pressure of the gas to 16 bar as a means of starting a process

that will regulate pressure until it reaches the final pressure used by companies and

households. These stations also measure the natural gas delivered. Enagás currently has

493 RMS. Facilities of this kind are constantly being built and brought into service, in

response to requests for new supply points from gas distribution and transmission

companies.

Gas pipelines: Gas pipelines are high-pressure steel tubes that can carry natural gas.

Enagás’ transmission network consists of 10,314 km of pipelines designed to be operated at

maximum pressures of 72 and 80 bar.

Compressor stations (CS): The compressors installed at these stations raise the pressure

of gas transmitted to 72/80 bar so as to maximise the pipeline transmission capacity.

Enagás currently has 18 compressor stations with total installed power capacity of 508,650

kW ISO. The maximum pressure at the compressor stations is between 80 and 72 bar,

depending on the pressure design of the gas pipeline they are on, while the minimum

pressure is between 40 and 45 bar.

Underground storage facilities: To align supply with demand and cover peaks in

consumption caused by seasonal fluctuations in demand, disruption to supply, etc., the

system must be able to store large volumes of gas. In these cases, gas is either stored

underground in former deposits or injected into deep aquifers or cavities hollowed out in

saline formations.

Enagás' activities in the natural gas value chain (in blue)

6 of 30

2.3. Organisation

The Organisation and CSR Department, reporting directly to the Resources Department,

coordinates climate change management at Enagás, and together with other departments,

is responsible for managing and reporting on sustainability and environmental matters,

which include calculating the carbon footprint.

7 of 30

3. Commitment to combating climate change

Every year, Enagás increases its commitment to the fight against climate change, through

its model of management and continuous improvement. This is based on public

commitment, measures to reduce emissions and reporting our actions and their results,

along with the extension of our commitment to the entire supply chain:

Enagás’ climate change management model

Enagas’ 2015 milestones in climate change matters:

Setting a new emissions reduction for the company: “Enagás will reduce its GHG

emissions by 30% in the period 2016-2018 compared to 2013-2015”.

Report on the climate change-related actions, risks and opportunities through the

Carbon Disclosure Project ("CDP"), obtained a score of 99B.

Participation in the “We Mean Business” campaign against climate change.

Support the development of a low-carbon economy through participation in various

different platforms, associations or forums, for example, joining the Spanish

Green Growth Group.

Setting an internal carbon price with the aim of including environmental externalities

in the company's business and investment decisions.

8 of 30

4. Greenhouse gas (GHG) emissions inventory

In 2011 Enagás set up an internal multidisciplinary working group that monitors GHG

emissions on a monthly basis, identifies improvement initiatives and reviews compliance

with the objective of reducing its emissions, which has an effect on the variable

remuneration of all employees.

In addition, Enagás annually calculates and publishes, through various mediums, the

Carbon Footprint of its activities. For the third consecutive year, Enagás' Carbon Footprint

has been verified by an independent third party, in accordance with standard UNE-EN ISO

14064 to enable its validity to be recognised, thus increasing transparency for its

stakeholders.

In 2015, 48% of emissions in scope 1 and 2 of the Carbon Footprint were included within

the European Union Emissions Trading System ("EU ETS"); being strictly monitored and

verified by the relevant bodies.

The remaining 52% corresponds to fugitive emissions, venting and emissions from

greenhouse gases (other than carbon dioxide), among other sources not included in EU ETS

(methane (CH4), nitrous oxide (N2O) and coolant gases). These emissions were measured

using a reliable methodology in accordance with the requirements of ISO standards and the

GHG Protocol.

4.1. Enagás Carbon Footprint scope

Enagás' activities include natural gas transmission, regasification, underground storage,

loading and unloading of LNG tankers and LNG truck loading. In that sense, all the

emissions that form part of Enagás' Carbon Footprint and are included in this report, come

from such activities.

9 of 30

4.1.1. Greenhouse gases (GHG)

Enagás' Carbon Footprint includes all GHG listed in the Kyoto Protocol and generated

by its own activities: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O) and

refrigeration and air conditioning gases: hydrofluorocarbons (HFC) and

perfluorocarbons (PFC).

4.1.2. Reporting period covered

The scope of this report includes information related to year 2015.

4.1.3. Organisational boundaries

The Enagás Group is formed by different companies in which it has different degrees

of ownership and control. For Carbon Footprint reporting purposes, emissions are

calculated under the financial control approach.

In this sense, Enagás has financial control of those companies over which it has

“accounting control”, defined according to the GHG Protocol as, “the ability to direct

their financial and operating policies with a view to gaining economic benefits from its

activities”. In these cases, according to International Accounting Standards, a method

of global consolidation in the financial statements is applied.

Accordingly, Scope 1 accounts for 100% of GHG emissions from companies in which

Enagás has financial control (shareholding ≥ 50%) and which were constituted during

the first half of 2015. In this respect, emissions generated by the following companies

are included as direct emissions:

The emissions of those Spanish investees over which Enagás does not have financial

control are also included within Scope 3. Enagás' share of the verified GHG emissions

of these investees within the EU ETS framework, corresponds to the proportion of

equity it holds in them: Bahía de Bizkaia Gas, S.L (50%) and Planta de Regasificación

de Sagunto, S.A. (Saggas) (30%).

4.1.4. Operational Boundaries

After defining the organisational boundaries, Enagás identifies its emissions sources,

classifying them as direct or indirect emissions according to the 3 scopes defined in

the GHG Protocol:

Scope 1: Direct GHG emissions. Direct GHG emissions from sources that are

owned or controlled by the company.

Scope 2: Indirect GHG emissions associated with electricity. Accounts for

emissions from the generation of electricity acquired and consumed by the

company, but that physically occur outside the scope of its activities.

Scope 3: Other indirect GHG emissions. Includes the rest of the indirect

emissions resulting from the activities of the company, but which occur from

sources not owned or controlled by the company. These are categorised

according to GHG Protocol.

Company Country%

shareholding

FINANCIAL

CONTROL?

Emissions

attributable to

Enagás, S.A. Spain 100,00% YES 100% SCOPE 1

Compañía Transportista de Gas Canarias, S.A. (Gascan) Spain 100,00% YES 100% SCOPE 1

Enagás Transporte del Norte, S.L. Spain 90,00% YES 100% SCOPE 1

Enagás Transporte, S.A.U. Spain 100,00% YES 100% SCOPE 1

Gasoducto Al-Andalus, S.A. Spain 66,96% YES 100% SCOPE 1

Gasoducto de Extremadura, S.A. Spain 51,00% YES 100% SCOPE 1

10 of 30

4.1.5. Base year

The base year for tracking the Enagás Carbon Footprint is established as being 2013,

when the first verified Carbon Footprint Report appeared.

4.2. Identification of emission sources

The following emission sources have been identified by scopes:

Scope 1

1. Direct emissions

from stationary combustion

• Natural gas consumption in boilers (regasification plants, CS and

RMS boilers, and regeneration boilers for methanol and TEG at

underground storage facilities).

• Natural gas consumption in submerged combustion evaporators at

regasification plants.

• Natural gas flaring in normal operations (pilot flaring systems and

other flame maintenance systems at regasification plants and underground storage facilities).

• Natural gas flaring in tanker loading operations (boil-off gas1

generated in LNG tanker loading operations).

• Natural gas flaring at the technical minimum (below the technical

minimum production stage of each plant).

• Natural gas consumption in heating systems and electricity

generators.

• Natural gas consumed by turbo-compressors and engine-driven

compressors in the gas compression process.

• Gas oil consumption in electricity generators and fire protection

pumps.

2. Direct emissions

from mobile

combustion

• Emissions from the consumption of gasoline, diesel and compressed

natural gas (CNG) by Enagás' fleet of vehicles.

3. Process emissions

• Natural gas vented in normal and special operations (maintenance

operations and new connections in the transmission network, venting of compressors, etc.).

• Natural gas vented in tanker loading operations.

• Natural gas vented at technical minimum (venting in production

periods below technical minimum at regasification plants).

4. Fugitive

emissions

• Leaks at the Enagás facilities.

• Hydrofluorocarbon (HFC) emissions during the use of refrigeration

and air conditioning equipment.

Scope 2

Electricity

consumption • Emissions from the consumption of electricity in all Enagás facilities.

1 Boil off gas is created by evaporation of the LNG due to heat entering the tank in storage or transportation.

11 of 30

Scope 3

1. Purchase of goods

and services

• Emissions from extraction, production, and transportation of goods

and services acquired.

• Emissions from paper consumption are reported separately.

2. Capital goods • Emissions from extraction, production, and transportation of capital

goods acquired.

3. Fuel- and energy

related activities

(not included in scope 1 or scope 2)

• Emissions from extraction, production, and transportation of fuels

consumed directly by Enagás: natural gas.

4. Upstream

transportation and distribution

• Emissions from fuel consumption of helicopter and boat

transportation services between the onshore facility and offshore storage platform.

5. Waste generated

in operations

• Emissions from the transportation, management and treatment of

waste generated in Enagás facilities.

6. Business travel • Emissions derived from business travel by Enagás employees.

7. Employee

commuting

• Emissions derived from commuting to and from work by Enagás

employees.

15. Investments • Emissions, not included in scope 1 or 2, generated by companies in

which Enagás has a shareholding but not financial control.

12 of 30

4.3. Calculation methodology

Once emission sources have been identified and classified by scope, then activity data and

associated emission factors are gathered.

A centralised approach to gathering GHG emissions data is taken, whereby individual

facilities report activity data to the Organisation and CSR Department of Enagás, from

where the GHG emissions inventory is calculated. Each facility reports its own data, directly

or through a software reporting tool such as SLM, ORION, GESCON, etc.

Activity data is measured, calculated or estimated, as follows:

Natural gas consumption and venting occurring at the facilities and in the

transmission network are always measured with metering equipment owned by

Enagás. These data are dumped daily in the SLM tool.

The amount of natural gas vented over pipelines is gathered from the internal tool

ORION. Each zone manager calculates the volume of gas vented in accordance with

relevant approved procedure and sends this to GTS by mail, with data subsequently

being added manually in ORION.

Gas oil consumption in stationary sources is measured taking into account purchase

invoices and the amount stored at the beginning and end of the year. The facilities

report this information through an addendum associated with the GHG emissions

measurement procedure set out in the EU ETS framework.

Fuel used in the vehicle fleet is automatically registered on the fuel card database.

Electricity consumption data are gathered from monthly bills issued by each

distributor, to each facility. In the case of RMS, pipeline positions and transmission

centres, this is the data taken from the GESCON tool, which is directly updated by

the distributor.

Natural gas flaring at underground storage facilities is estimated from a dragging rate of natural gas by the TEG (drying) and are provided annually by each facility.

Natural gas consumption data on air-conditioning systems and electricity generators

are entered into the internal tool GESTINCID by each facility, provided separate

meters are used to measure its consumption.

In the case of fugitive emissions (or leaks), a firm of experts have carried out a

measurement campaign for Enagás between 2013-2015, which has provided real

data for leaks from regasification plants, compressor stations, RMS, pipeline

positions and underground storage areas.

The amount of HFC use in refrigeration and air conditioning is gathered using the

recharge delivery notes provided by the equipment maintenance companies.

Scope 3 emissions included in the 2015 Carbon Footprint are as follows:

- Emissions corresponding to categories 1, 2 and 3 of the GHG Protocol are

provided by the 2014 CDP Supply Chain programme, whereby each supplier

reports the emissions associated with their service provision to Enagás.

- Paper consumption data are provided by the supplier LYRECO.

- Business travel data are provided by Enagás' travel agency.

- Fuel consumption by the helicopter and boat at Gaviota underground storage

which has an offshore platform, are provided by each of the transportation

service suppliers.

13 of 30

- Activity data from transportation, management and treatment of waste

generated in Enagás facilities come from the single waste manager's annual

reports.

- Employee commuting to and from work has been estimated based on generic

trip data.

- Emissions data relating to companies in which Enagás has an equity

investment, but does not have financial control, are taken from verified

reports of the GHG emissions included under the EU ETS.

Emission factors, global warming potentials and conversion factors have been carefully

selected to ensure the reliability of sources and ensure that the data used is both

representative and up-to-date. Also, as far as possible an attempt has been made to

prioritise country-specific factors rather than global factors. These factors are as follows:

For the combustion of natural gas, gas oil and gasoline, the emission factor and the

net calorific value (NCV) listed in the Spanish national inventory for 2015, and

reported to the United Nations Framework Convention on Climate Change (UNFCCC)

have been used.

The remaining emissions have been calculated based on the most recent emission

factors published by the Intergovernmental Panel on Climate Change (IPCC). The

global warming potentials (GWP) used for CH4, N2O and HFC, also come from the

same source and are the most recent available.

The electricity emission factor corresponds to latest data published by the WWF

Electricity Observatory (January-November 2015 data). In addition, included this

year are three universal supply point code contracts, covered by guarantees of

origin, generating a zero emission factor in electricity consumption at the company's

headquarters in Paseo de los Olmos (Madrid) the Zaragoza R&D laboratory and the

compressor station in Denia.

GHG emissions are then calculated using the following formula:

GHG emissions (tCO2e) = Activity Data x Emission Factor

Enagás has developed a Carbon Footprint calculating and reporting procedure, which

contains the entire process of activity and consumption data gathering, emissions

calculation and reporting. This procedure has been reviewed and approved in accordance

with the company's quality management system certified under ISO 9001:2008.

All the emissions data provided in this report comes from an excel spreadsheet detailing

activity data, emission and conversion factors, and global warming potentials for all existing

GHG sources, as well as the resulting emissions.

Enagás 2015 Carbon Footprint report has been verified with a reasonable level of assurance

by AENOR, in accordance with the requirements of standard UNE-EN ISO 14064:2006.

4.4. Exclusions

GHG emissions derived from companies in which Enagás holds an equity investment,

but does not have financial control are excluded from scope 1 and scope 2, as well as

those in which a shareholding has been acquired during the second half of the

reporting year.

Likewise, the Castor underground storage facility has been excluded. In addition to

currently being in hibernation, its maintenance was entrusted to Enagás under Royal

Decree Law 13/2014, and it is not part of the company's assets.

Emissions data which it has not been possible to verify, have been excluded from

scope 3.

14 of 30

4.5. Uncertainty level

In the case of emissions subject to the EU ETS, the level of uncertainty complies with

regulation 601/2012 which establishes the requirements on accuracy depending on the type

of source stream and the characteristics of each facility.

For the other emissions, the level of uncertainty that has been taken is the maximum error

permitted in the various regulations applicable, as the emissions are calculated on the basis

of:

Consumption and activity data, which are measured and monitored to manage

invoicing.

Emission factors from tested sources.

The measuring equipment is periodically verified and calibrated (internal and external audits

of the quality management system verified in accordance with standard UNE-EN ISO 9001).

Specifically, the gas meters are under legal metrological control (Royal Decree 889/2006) in

accordance with the rules of the Technical Management of the Spanish Natural Gas System

and Detail Protocol PD-01 on Metering.

In the case of leaks, which represent 22% (67.672 tCO2e) of the total emissions of Scopes 1

and 2 of the Carbon Footprint, these are calculated on the basis of individual measurements

of concentration and conversion to mass through factors relating to Enagás, which means a

high risk of uncertainty which it has not been possible to detail.

The uncertainty associated with each category of emission source included in Scopes 1 and

2 is given below:

15 of 30

NOTE: The uncertainty associated with scope 3 emissions could not be defined.

Emissions

(tCO2e)

Emissions

(%)Measurement source

%

uncertaintySource of the uncertainty

Consumption of natural gas in boilers 25.609 8% Turbine meters 1%Maximum permissible errors in legal

metrological control 889/2006

Consumption of natural gas in submerged

combustion evaporators 4.146 1% Turbine meters 1%

Maximum permissible errors in legal

metrological control 889/2006

Natural gas flaring in normal operations 2.879 1% Ultrasonic meter 10%Maximum permissible errors stipulated

in the ISO 17089-2 standard

Natural gas flaring in tanker loading operations 601 0% Ultrasonic meter 10%Maximum permissible errors stipulated

in the ISO 17089-2 standard

Natural gas flaring at the technical minimum 9.353 3% Ultrasonic meter 10%Maximum permissible errors stipulated

in the ISO 17089-2 standard

Consumption of natural gas in heating systems and

electricity generators853 0% Turbine meters 1%

Maximum permissible errors RD

889/2006

Consumption of natural gas in turbo-compressors 130.192 43% Turbine meters 1%Maximum permissible errors in legal

metrology (RD 889/2006)

Consumption of gasoil in fire protection pumps and

generators637 0% Supplier invoices 1%

Maximum permissible errors RD

889/2006

2. Direct

emissions from

mobile

combustion

Gasoline, diesel and CNG 1.496 0% Supplier invoices 1%Maximum permissible errors RD

889/2006

Natural gas venting in normal operations 27.529 9% Ultrasonic meter 10%Maximum permissible errors stipulated

in the ISO 17089-2 standard

Natural gas vented in tanker loading operations 518 0% Ultrasonic meter 10%Maximum permissible errors stipulated

in the ISO 17089-2 standard

Natural gas vented at technical minimum 594 0% Ultrasonic meter 10%Maximum permissible errors stipulated

in the ISO 17089-2 standard

Leaks 67.672 22%Studies conducted by

Enagás or by third parties

Uncertainty

not definedn.a.

Hydrofluorocarbon (HFC) emissions during the use

of refrigeration and air conditioning equipment650 0%

Recharge reports for the

refrigeration equipment

Uncertainty

not defined n.a.

Electricity consumption 32.444 11% Supplier invoices 1%

Maximum permissible errors in legal

metrology (RD 889/2006) Multistage

load-balanced Class C meters

305.172

3%

Emission source categories

Scope 2

Carbon Footprint (Scope 1 & 2)

Carbon Footprint uncertainty (Scope 1 &2)

Scope 1

1. Direct

emissions from

stationary

combustion

3. Process

emissions

4. Direct

emissions from

fugitive sources

16 of 30

4.6. Changes in 2015 vs 2014 Carbon Footprint

The changes in the calculation of the 2015 Carbon Footprint compared to that of 2014 are

as follows:

Reclassification of emission sources:

• Venting has been reclassified as "process emissions" rather than "fugitive

emissions" in the total emissions by source report.

Updating of emission factors:

• To adjust to the requirements of EU ETS and give clarity to the company's

emissions inventory, the natural gas and gas oil emission factor taken from the

Spanish national inventory, will be calculated from now on as:

Emission factor CO2 (tCO2/TJ) (excluding oxidation factor) * Oxidation factor

Instead of using the emission factor, which already included the oxidation factor,

directly from the inventory. The impact of this change on the final figure is

minimum and mainly involves an adjustment in methodology rather than result.

• Updating of emission factors from road transportation (vehicles) pursuant to the

Spanish Ministry of Agriculture, Food and the Environment (MAGRAMA) report on

emission factors for the its Carbon Footprint Registry in April 2015.

• Updating of the emission factor for Jet-A1 aviation fuel, used in calculating

emissions in Scope 3, based on the European Commission’s decision of 16 April

2009.

• Updating of global warming potential (GWP) in line with the latest (fifth) report of

IPCC (AR5): GWPCH4 increases from 25 to 28 and GWPN2O reduces from 298 to

265). This will directly affect the emissions calculations for leaks and venting.

Change in calculation methodology for flaring:

• In the 2014 Carbon Footprint, emissions generated by flaring were calculated

using IPCC methodology, which recommended including 2% methane emissions

generated by the incomplete combustion of natural gas.

However, with the aim of standardising Carbon Footprint emissions calculations

with the calculation of verified emissions included in EU ETS, from this year

onwards, the methodology used for GHG emission permits, based on the

Regulation 601/2012 on GHG monitoring and reporting and approved by the

relevant authorities, will be applied. Under EU ETS methodology, emissions from

flaring are calculated in the same way as other stationary combustion equipment.

Change in calculation methodology for fugitive emissions:

• In 2014, leaks included the data gathered during the 2013-2015 measurement

campaign, except for that relating to gas pipelines, which were estimated by

using the transmission reference value provided by IPCC. This year, it has been

substituted by the data obtained from the real measurement in gas pipeline

positions (extrapolated to total positions), since, the pipeline itself does not leak.

• Estimates of leaks at compressor stations (CS) was made using installed

electricity capacity and now this has been changed to installed power capacity, a

more habitually used parameter for this type of facility. In addition, an upward

adjustment in the total number of regulation and/or metering stations (RMS)

(including RMS, RS and MS) existing along the entire gas pipeline network has

been made. This has been conservatively extrapolated to the rest of the non-

17 of 30

measurement stations, the average data during 2015 before repairs, instead of

the average data before and after repairs, as was the case in the last three years.

Inclusion of new sources:

• An estimate is included of the natural gas consumption in air-conditioning

equipment and of electricity consumption in the offices at calle Titán in Madrid,

resulting from the increased occupation of this building in 2015.

• Category 15 (Investments) of Scope 3, now includes the emissions attributable to

Enagás from companies in which it has an equity investment, but does not have

financial control.

18 of 30

5. Carbon Footprint 2015

In 2015 Enagás generated 305,172 tonnes of CO2 equivalent, from its activities

(Scopes 1 and 2): a significant reduction of 47% on 2014.

A breakdown of the 2015 Carbon Footprint is given below:

2015 Carbon Footprint by scope:

Direct emissions in Scope 1 totalled 272,728 tCO2e.

Indirect emissions relating to electricity consumption

(Scope 2) were 32,444 tCO2e.

Indirect emissions in Scope 3 totalled 21,347 tCO2e.

5.1. Scope 1 and 2 emissions

Emissions performance by scope:

In 2015, Scope 1 emissions fell 49%

compared to 2014, largely due to the

changes in activity of the

regasification plants.

Emissions from electricity

consumption remained practically

flat.

2015 Carbon Footprint by business area:

Currently, the emissions generated by

compressor stations account for almost

half of total GHG emissions, mainly as a

result of natural gas consumption in turbo-

compressors.

Unlike last year, this year the regasification

plants represented just 16% of emissions.

They are matched by the transmission

network, where venting in special operations

and fugitive emissions at gas pipeline

positions were responsible for 14% of the

company's emissions.

19 of 30

Emissions performance by

business area:

In 2015, Enagás

reduced its Carbon

Footprint by 47% with

respect to 2014.

Despite being the principal source of GHG emissions, compressor stations reduced

their emissions by 15% compared to last year thanks to the use of flexible

mechanisms which the Technical System Manager has available to date, relating to the

operational management of gas reserves, which has permitted a better balance between

entry/exits of the different physical areas and with it a lower need for gas compression.

In this sense, once again employing the most efficient alternatives of combined operation

of compressor stations, optimising the use of gas pipeline control valves and node

alignment, has reduced natural gas consumption in compressors.

Emissions from regasification plants fell by 83% on 2014, mainly as a result of the

measures launched to reduce the plants' operating days below the technical minimum2

(757 days in 2015 versus 920 days in 2014) and the quantity of gas burned in these

days (49 GWh in 2015 versus 924 GWh in 2014).

The reduced activity in LNG tanker loading operations from regasification plants (8

tankers loaded in 2015 compared to 36 in 2014) and the measures carried out to reduce

the shrinkage associated with LNG has also played a significant role in reducing those

emissions.

Emissions generated in the gas pipeline network itself were 8% lower due to the

reduction in venting generated by special operations (102,325 Nm3 in 2015 versus

865,070 Nm3 in 2014).

In RMS, emissions increased some 16% resulting from an increase in the natural gas

consumption from boilers and a rise in leaks, the estimates of which varied as the

measurement campaign advanced and the calculation methodology of which has been

adjusted.

There has been a 17% drop in underground storage facilities emissions in 2015

as a result of reduced in injection activity undertaken in 2015 (-13% in Serrablo and -3%

in Gaviota, compared to net injection in 2014), and from good operating practice carried

out in these facilities.

In offices and transmission centres the reduction of 41% in emissions is largely

due to the updating of the emission factor and the awarding of guarantee of origin

certificates assigned to the electricity supply of Enagás' headquarters and the laboratory

in Zaragoza, which were not included in 2014.

2 Technical minimum is defined as the minimum output level which allows the boil-off gas (BOG) generated under any operating circumstances to be recovered while the facilities are cold, guaranteeing full availability to the rest of the equipment under secure and stable operating conditions.

2013 2014 2015

177.551 163.114 139.206 -15%

199.632 285.059 48.628 -83%

35.831 47.148 43.544 -8%

34.453 33.995 39.512 16%

64.197 38.111 31.612 -17%

1.584 1.616 1.496 -7%

2.006 1.990 1.174 -41%

515.254 571.033 305.172 -47%

Difference

vs. 2014

TOTAL

Underground storage

Offices and TPs

Fleet

Compressor Stations

Scope 1 & 2 emissions (tCO2e)Facilities

Plantas de regasificación

RMS

Transmission network

20 of 30

Emissions by GHG type:

Approximately 70% of Enagás' Carbon Footprint

comes from CO2 emissions, largely generated

during the combustion of natural gas in stationary

sources, i.e. compressors, boilers, flaring, etc.

CH4 emissions, which represent approximately

30% of GHG emissions, are mainly due to venting

of natural gas in maintenance or security

operations, or because it is impossible to recover

boil-off gas generated in plants (10% of GHG) and

leaks (22% of GHG).

N2O and HFC emissions are practically negligible

in comparison with the other two gases. These

emissions come from the incomplete combustion

of natural gas and gas oil and the leaks from

Enagás' refrigeration equipment, respectively.

Emissions by source:

43% of emissions are generated by natural gas

consumption in turbo-compressors from compressor

stations and underground storage facilities.

Leaks, quantified and subsequently repaired during the

2013-2015 measurement campaign, are responsible for

22% of GHG emissions.

To these two principal sources can be added electricity

consumption (11%), venting (9%) that occurs during

the operation3 and maintenance of facilities, process

boilers (8%) installed in plants, storage facilities,

compressor stations and RMS, and emissions from natural

gas flaring4 (4%).

The category "Other" (3%) includes submerged combustion

evaporators that consume natural gas, vehicle fleet, fugitive

emissions of F-gases, air-conditioning systems and

emergency natural-gas generators, and electricity

generators and fire pumps that use gas oil.

3 Includes the venting produced during the operations of the regasification plants below technical minimum, where the total recovery of boil-off gas is not always possible, and the loading of tankers.

4 Includes the flaring of natural gas during the operations of the regasification plants below technical minimum, where the total recovery of boil-off gas is not always possible, and the loading of tankers.

21 of 30

Emissions performance by source:

Natural gas combustion

at turbo-compressors,

leaks, electricity

consumption and

venting account for

85% of total emissions

in the company's

Carbon Footprint.

Turbo-compressor emissions have fallen 21% on 2014. This is mainly due to the

good operating practice carried out in compressor stations. In this regard, the Technical

System Manager has made use of gas reserves to improve management of the gas

pipeline network and has optimised the use of network control valves and node

alignment to reduce the need for the compression of gas during its transmission and as

a result it has reduced self-consumption in the associated turbo-compressors.

The increase in leaks (19%) in 2015 with respect to 2014, is largely a result of the

updates to methane's global warming potential (GWP) in the latest IPCC report (AR5),

up from 25 (the figure given in IPCC report AR4 and used in Enagás' 2014 Carbon

Footprint) to 28. Stripping out the effect of this factor, leaks in 2015 rose to 60,422

tCO2e; a 7% increase on 2014. This increase is due to a positive adjustment in the total

number of RMS (including RMS, RS and MS) and the more conservative methodology of

extrapolating emissions to non-measured stations.

The emissions resulting from electricity consumption at Enagás facilities and

buildings, which have remained constant, come from both the productive process and

ancillary services like lighting, heating, etc. In this regard, Enagás has implemented

specific energy-efficiency measures designed to reduce consumption. Consumption of

renewable-source electricity certified by the supply companies is also included this year

as part of Scope 2 of the Carbon Footprint. In this respect, Enagás' company

headquarters, the Zaragoza R&D laboratory and the compressor station in Denia have

all had their electricity consumption certified as being from renewable sources.

22 of 30

In 2015, Enagás made a major reduction in natural gas

consumption and, therefore, in GHG emissions in

regasification plants, through the application of various

operational improvements. One example is the planning

and management of LNG tanker rerouting from one plant

to another, which ensures a higher production level in all

plants and avoids flaring from boil-off gas that is

generated when output levels are low. In addition, the

operating parameters have been adjusted and energy-

efficiency measures implemented, as described in Section

7, with the aim of recovering more of this gas. As a result,

the emissions generated in gas flaring fell by 226,809

tCO2e versus 2014.

Enagás has cut

emissions from gas

flaring by 95%.

In addition to the previous comments regarding the generation of boil-off gas in

regasification plants, the staff awareness at these facilities of the high global warming

potential of CH4 compared to that of CO2 has also reduced the amount of vented gas,

leading to a 40% drop in emissions from this source. In particular, emissions from

venting in special operations in the gas pipeline network have been reduced by 87%

compared to 2014.

23 of 30

Intensity of emissions:

Emissions by net profit fell 47% on 2014, largely

due to the lower emissions resulting from the

modifications to work procedures at regasification

plants that have been able to optimise their

operation so as to adapt to market changes and

increase net profit by 2% on 2014.

Emissions by employee dropped by 52% thanks to

both the significant fall in GHG and the 11%

increase in headcount last year.

Emissions by total gas outputs5 declined by 42%

due more to the notable fall in GHG than the 8%

drop in gas outputs in GWh.

5 Total gas outputs includes the following items: 1) Regulated transmission activity: Domestic gas demand, Exits

international connections, Exits Guadalquivir valley, Tanker loading and Gas for minimum linepack purposes + minimum reserve levels ("gas talón"), and 2) Exits MEP transit to Portugal REN.

24 of 30

The Enagás 2015 Carbon Footprint

48,628 tCO2e 222,262 tCO2e 31,612 tCO2e 2,670 tCO2e

25 of 30

5.2. Scope 3 emissions

Scope 3

1. Purchase of goods and services

Emissions from extraction, production, and transportation of goods and services acquired.

1,526 tCO2e

Emissions from paper consumption. 29 tCO2e

2. Capital goods Emissions from extraction, production, and transportation of capital goods acquired.

860 tCO2e

3. Fuel- and energy related activities

(not included in scope 1 or scope 2)

Emissions from extraction, production, and transportation

of fuels consumed directly by Enagás: natural gas. 16 tCO2e

4. Upstream

transportation and distribution

Emissions from fuel consumption of helicopter and boat

transportation services between the onshore facility and offshore storage platform (Gaviota).

1,335 tCO2e

5. Waste generated in

operations

Emissions from the transportation, management and

treatment of waste generated in Enagás facilities. 555 tCO2e

6. Business travel Emissions derived from business travel by Enagás

employees. 2,956 tCO2e

7. Employees

commuting

Emissions derived from commuting to and from work by

Enagás employees. 12,177 tCO2e

15. Investments

Emissions, not included in scope 1 or 2, generated by

companies in which Enagás has an equity investment but not financial control. In this case the scope is only the verified emissions of the Spanish investees, included in EU ETS.

1,893 tCO2e

TOTAL SCOPE 3 21,347 tCO2e

Scope 3 emissions are outside of Enagás' control. However, Enagás aims to understand and

control these emissions and to participate in increasing the awareness of its supply chain of

the need to lower GHG emissions.

Therefore, it once again has taken part this year in the CDP Supply Chain programme and

received replies from 47% of its suppliers contacted.

In addition, this year Enagás has launched the PAPERLESS project through which it aims

to reduce paper consumption in its offices and has already resulted in a 22% reduction in

emissions in this area.

As regards waste management, the increase in emissions in this category on last year, is

due to the greater amount of wastewater with methanol generated at the Serrablo

underground storage facility. This wastewater is produced during the extraction of natural

gas from storage and it increases in proportion to the level of activity, which this year has

been high.

Business travel has also increased due to the company's international expansion and which

requires increasingly greater levels of employee mobility.

This year part of the emissions associated with the category "Investments" in the GHG

Protocol have also been included. In this sense, emissions from EU ETS verified GHG

emission from investments have been allocated to the reporting company based on the

reporting company’s proportional share of investment in the investee: Bahía de Bizkaia Gas,

S.L (50%) and Planta de Regasificación de Sagunto, S.A. (Saggas) (30%).

26 of 30

6. Adjustment to base year emissions

Enagás has defined a base year recalculation procedure with regard to the calculation and

reporting of its Carbon Footprint, that has been followed and has entailed the following

changes.

In 2015, the scope of the activity has not been reduced and there were no methodology

changes applicable to 2013. No errors have been discovered which may have resulted in a

change equal or greater than ±5% in the Carbon Footprint measurement in the base year.

The adjustments to the 2015 Carbon Footprint correspond to non-material methodology

changes and updating of emission factors in-line with the most-recent published data, not

always applicable to 2013.

27 of 30

7. GHG emissions reduction initiatives

In 2015, Enagás launched its 2015-2017 Energy Efficiency Plan, outlined in the

Sustainable Management Plan. The aim of this plan is to establish guidelines and actions to

ensure common standards of management and monitoring energy efficiency that permit

reduction in energy consumption at Enagás facilities, so as to comply with existing

legislation and the company's internal objectives.

Within the legal framework, this plan is directed towards compliance with Directive

2012/27/UE on Energy Efficiency, which establishes a common framework of measures to

promote energy efficiency in the EU, with the aim of meeting the target of a 20% increase

in energy efficiency by 2020.

From 2016, this plan will also be linked to and feedback on the results of energy audits

carried out at the end of 2015, as required by Article 8 of the above-named Directive.

Specifically, the 2015-2017 Energy Efficiency Plan consists of various actions to be carried

out on the basis of a set of concrete measures included in three annual programs.

The plan establishes three main action areas:

natural gas consumption reduction,

electricity consumption savings, and

electricity generation through residual energy from our business activities.

As part of the 2015 Program, various Energy Efficiency Measures have been undertaken,

with an investment of approximately €8.7Mn.

The most important of the measures included in this plan with respect to investment,

energy saving and lowering emissions are detailed below.

All the measures implemented in 2015, have been evaluated case-by-case, in their related

monitoring documentation, following a specific methodology of calculating the baseline,

energy savings and GHG emission reductions for each one.

28 of 30

Code GHG emissions reduction initiatives

(Energy Efficiency Measures) Type of

energy saving

Energy

savings achieved in

2015

Emissions

reductions achieved in

2015

MAE_001 Use of nitrogen, instead of natural gas, in the flaring molecular seal at the Cartagena plant.

Natural gas consumption

savings

1.58 GWh 319 tCO2e

MAE_003

Installation of a sea water heat exchanger to cool boil-off gas, generated by the

operations of the Cartagena plant, before its entry to the recondenser; increasing the recovery capacity of this equipment and thereby avoiding flaring of the gas that is not recovered.

58.13 GWh 11,730 tCO2e

MAE_011A

Rerouting of a LNG tanker from the Barcelona regasification plant to the Cartagena

plant, thereby ensuring a minimum output level in each plant so as to avoid the loss of natural gas through flaring due to operating at below the established technical minimum at Cartagena plant. (SOE March)

69.00 GWh 13,831 tCO2e

MAE_011B

Rerouting of a LNG tanker from the Barcelona regasification plant to the Cartagena

plant, thereby ensuring a minimum output level in each plant so as to avoid the loss of natural gas through flaring due to operating at below the established technical minimum at Cartagena plant. (SOE September)

19.71 GWh 3,977 tCO2e

MAE_012 Leak detection and repair campaign at Enagás facilities, including plants, underground storage facilities, compressor stations, RMS and positions on the gas pipeline.

7.01 GWh 11,858 tCO2e

MAE_002

Recycling of boil-off gas generated by the operations of the Cartagena plant to use as

fuel for submerged combustion evaporators, thereby avoiding the use of sea water evaporators which involve electricity consumption due to the need to start pumps to collect and return the sea water.

Electricity consumption

savings 0.05 GWh 13 tCO2e

MAE_021 Installation of an electricity generator (turboexpander) at the Barcelona plant that

uses the potential energy from the expansion of natural gas and partially replaces electricity from the grid by a clean energy source.

Self-generation of electricity

3.02 GWh 725 tCO2e

Emissions reduction from GHG emissions reduction initiatives in 2015 42,453 tCO2e

29 of 30

8. External verification statement

30 of 30