IBERIAN GAS HUB

Bilbao, 24 June 2014

The Iberian Gas Hub project

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The objective of the Iberian Gas Hub project is to promote the development

of a liquid natural gas hub in the Iberian peninsula

Source: Iberian Gas Hub

Adaptable to thefuture role of TSOsunder new codes

Integrating and non-exclusive, open to new stakeholders

Design in line with otherEuropean hubs

Self-financing on thebasis of value-addingservices

Approach from thecurrent reality of the market(inclusion of OTC)

Flexibility toadjust to a transitory period

Adapted to thephysical reality of natural gas and LNG

Value-adding services and innovation

Initial steps Voice broking in the

OTC space

Take off Electronic trading

platform (initially, OTC)

Liquidity Forward

Platform with Counterparty services + CCP

Matureness Futures market

Market services at the VTP

Standardization and liquidity

Iberian Gas Hub roadmap

Q2-Q3 2013

Q1-Q2 2014

2014-15 2015-6

Spot Trading Platform (OMIE)

Implementation of Network Code on

Balancing

3 Source: Iberian Gas Hub

Regulatory Roadmap –Adaptation of the Spanish gas system to European Regulation

4 Source: Enagás GTS/TSO (51st meeting CSSG).

Sector Reform

-Adaptation of Hydrocarbons Law

- RD. Adaptation

- Market rules

- Gas day 06h-06h

- NCB: Information provision

- Congestion mechanism (auctions)

CAM/CMP (A-T-S)

Daily operation gas auction

Organized Market (HUB)

CAM/CMP (Day-intraday)

Change of gas day

NBC: information provision

NC Balancing

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

Jun

-Ju

l

Sep

Jan

Ja

n

No

v N

ov

No

v

Ap

r

IBGH: Where we stand (June 2014)

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OTC Market • Operating and closing OTC trades as a broker since July 2013

Trading Platform • Trading Platform (Trayport Exchange Trading System) operational

since 29 January 2014 (initially, OTC products)

IT • Infrastructures and IT systems to support the Trading Platform are

fully operational, with redundancies and security

IBGH Client Committee • Meetings regularly take place since July 2013 (contracts have been

designed)

Hub development and regulation

• Agreement with OMI Group (OMIE, OMIClear)

• Taking part in Ministry of Energy and TSO’s working groups

New services

• Working with OMIClear to offer counterparty services (complete anonymity, collateral through the CCP)

• Defining services similar to those provided by other hub operators

Source: Iberian Gas Hub

Shareholders

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Sociedad Promotora Bilbao Gas Hub, S.A. is developing an institutional framework and

infrastructures to offer market services along the entire forward curve of natural gas and for

various trading channels (short, medium and long-term, OTC and organized markets, financial

and physical contracts, etc.).

Current shareholders

Spanish

TSO

Energy agencies of the Basque and Catalan

regional governments

Two of

Spain’s key

financial

institutions

Relevant

energy

utilities in

Spain

Additional new shareholders (June 2014 share capital increase)

Source: Iberian Gas Hub

TO BE ANNOUNCED

The Gas Target Model as the basis for the definition of gas hubs in Europe

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Promotion of

cross-border

exchanges

(between VTPs)

Virtual Trading

Points

Entry-exit system

on a physical

zone without

congestions

Linked to

each other Defined on

Gas Target Model’s essential elements

Virtual Trading Point

Short-term Organized

Market (Spot)

Short-term standard

products

THE VIRTUAL TRADING

POINT IS A DELIVERY

POINT FOR THE ORGANIZED SPOT AND FORWARD

MARKETS AND THE OTC MARKET Disposing/acquiring trade notifications to the TSO

Forward Organized

Market (Forward/Futures)

Forward standard products

OTC Market

Non-standard forward

products

THE GAS TARGET MODEL DEFINES MARKET AREAS

AROUND VIRTUAL TRADING

POINTS (HUBS)

Source: Iberian Gas Hub

Iberian Gas Hub main services

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Tracking and reporting of transactions at the VTP

Matching of net positions at the VTP

Flexibility services (BUBD, imbalance management)

Notification of net positions at the VTP to the TSO

Market, flexibility and

financial services at the

VTP

Reporting and REMIT

compliance

Reporting services for the market participants

Organized Forward Market

Exchange services through a Central Counterparty

Brokerage services

Brokerage services in the OTC market 1

2

3

4 Support in market surveillance (required by REMIT)

Source: Iberian Gas Hub

IBGH- OMI Group Agreement

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Spot Trading Platform (OMIE)

Central Counterparty clearing services (OMIClear)

Services in the OTC Market and in the Organized Forward Market

Market services at the Virtual Trading Point

Source: Iberian Gas Hub

IBGH: Companies which take part in our Client Committee and/or provide us with buying or selling interests

10 Source: Iberian Gas Hub

Contact and more information

Contact:

Director of Middle and Back Office: Gabriel Pérez Urrutia

Phone: (+34) 946 124 275

E-mail addresses:

backoffice@iberiangashub.com

gperez@iberiangashub.com

More information at: www.iberiangashub.com

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Thank you very much!

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