Madrid, 27 October 2009

South Gas Regional InitiativeOpen Season France-Spain

Validation of the results

29th S GRI IG meeting – 27th October – Madrid

Test to validate capacity allocation

• As required at the 8th SG meeting of of 27th April in Paris, a test to validate capacity allocation in France has been published in the information memorandum for the open season 2013

• This test has been presented at the 9th Stakeholders meeting of 15th July in Madrid and some clarifications were brought

• No further comments were raised regarding this test

• The test is related to investment validation on the French side of the interconnection between Spain and France

39th S GRI IG meeting – 27th October – Madrid

Principles and priority of the test

• General principle: • If less than 50% of the marketed capacity is allocated, then the capacity

allocation will be considered as non valid and no capacity booking contracts will be signed

• If more than 90% of the marketed capacity is allocated, then the capacity allocation will be considered as valid and the relevant contracts will be signed

• If the capacity allocated lies between 50 and 90%, then the continuation on whether to continue the open season will be discussed

• Priority given to Larrau:1. Validation of Larrau

2. Then allocation up to the maximum capacity of Larrau

3. Remaining quantity taken into consideration to validate or not Biriatou

4. Validation of Biriatou

49th S GRI IG meeting – 27th October – Madrid

Figures of the test

Capacity Calculation of the figures

> 288 288 = 100% of Larrau (132+70) + 90% of Biriatou (48+48)

288 - 250 250 = 100% of Larrau + 50% of Biriatou

250 - 182 182 = 90% of Larrau

182 – 101 101 = 50% of Larrau

< 101

59th S GRI IG meeting – 27th October – Madrid

Result of the test

Capacity Result of the test

> 288 Larrau and Biriatou validated

288 - 250 Larrau validated and Biriatou discussed

250 - 182 Larrau validated but not Biriatou

182 – 101 Larrau discussed and Biriatou not validated

< 101 Nor Larrau neither Biriatou validated

• The demanded quantity amounts to 249 GWh/j

69th S GRI IG meeting – 27th October – Madrid

Application of the test

• According to the test:

Larrau is validated but not Biriatou

CRE proposes to validate the results of the open season accordingly, i.e. to allocate capacity at Larrau but not at Biriatou

79th S GRI IG meeting – 27th October – Madrid

Possible next steps

• CRE considers that the strong demand in the direction France to Spain has to be taken into account:

• It could be envisaged to re-offer the capacity at Irun/Biriatou during the binding phase of the open season 2015, together with the capacity of MidCat

• In this perspective, TSOs could realise some complementary studies, in order to adjust, if necessary, the physical investments needed, the investment costs and the date of availibility of capacity