Paris, 16th March 2010

11th SG Meeting

South Gas Regional Initiative

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Agenda

I. Opening

I.1 Welcome

I.2 Approval of the agenda and last meeting minutes (for approval)

II. Action Plan for 2010 (for information by regulators)

III. Preparation of the Open Season 2015 (for information by regulators and TSOs)

III.1 Products

III.2 Capacities

III.3 Economic test and tariff visibility

III.4 Allocation rules

IV. AOB

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II. Action plan for 2010

During the 8th RCC, held on 29 January 2010, the Regulators approved the following work program for 2010:

• INTERCONNECTION CAPACITIES

1. Capacity allocation mechanisms (CAM): 2010 OSP. GRI South will continue allocating short term capacity at Larrau, (scheduled in November)

2. New infrastructures: 2013 OS. Regulators in the GRI South will monitor infrastructure construction associated to 2013 OS

French TSOs and CRE to report on French investments decisions, (Done in January)

TSOs to provide a list of infrastructures, cost and operational start dates, (Done in February)

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II. Action plan for 2010

• INTERCONNECTION CAPACITIES (cont.)

3. New infrastructures: 2015 OS. The GRI South will launch the binding phase of the 2015 OS

Regulators to decide on economic test, tariff visibility and capacity products, (scheduled for February)

TSOs to provide a list of infrastructures, investments cost and services’ availability dates, (Done in February)

Regulators and TSOs to communicate Stakeholders on the procedure (scheduled for early March)

Final documentation and procedure launch, (before summer)

Stakeholders to sign contracts (before August)

4. GRI South will develop a regional investment plan according to requirements in Regulation 715/2009 (art. 12), (scheduled for December)

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II. Action plan for 2010

• INTEROPERABILITY1. Study on CMPs at interconnection points: current status in each country,

characterization, identification of problems taking into account CMP ERGEG Comitology Guidelines, future action plan to solve them at the borders (Regulation715/2009, art. 16), October (Possibility to have different timetable for the interconnection Fr-Sp, Pt-Sp)

2. Study on compatibility between LNG terminals and interconnected pipeline networks: regulation 715/2009, art. 17, to be developed once fulfilled the task above

• TRANSPARENCY1. Update of Regulators’ 2007 Transparency Study: 1st to check compliance (regulators)

September with Regulation715/2009, 2nd to invite comments by Stakeholders afterwards

2. TSOs to update building status records of OS infrastructures, June and December

3. TSOs to report on ENTSOG progress, quarterly• REGULATORY HARMONIZATION

1. Regulatory proposals regarding common trading licence between Pt-Sp, Done January

2. Comparative study on cross border access tariffs between Pt and Sp, July

3. Regulatory proposal regarding cross border access tariffs between Pt-Sp, November, and Public Consultation on the proposal, January 2011

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• Western axis: Capacity increase at existing interconnections by 2013, reaching GRTgaz South. OS 2013

• Eastern axis: Creation of a new interconnection point, reaching GRTgaz North. OS 2015

III. Preparation of the OS 2015 Introduction: development of new

interconnection capacity between F-S

RhôneRhône

MidCatMidCat

North

SouthGuyenneGuyenne

LarrauLarrau

EuskadourEuskadour

2013 capacities

2015 capacities

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Results of the non-binding phase

OS 2015:

Two phases:

Non-binding phase: launched in September 2009, at the same time that 2013 OS

Binding phase: to be launched before summer 2010

III. Preparation of the OS 2015 Introduction: development of new

interconnection capacity between F-S

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III. Preparation of the OS 2015 Introduction:Work Programm afecting Open

Season 2015

After last SG meeting, held on the 13th of November

2009, Regulators and TSOs have continued working on the binding phase of OS 2015:

• 12th IG meeting on 14th of December 2009

• 8th RCC meeting on the 29th of January 2010

• 13th IG meeting on the 17th of February 2010

CNE and CRE conference call on the 25th of February 2010

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• To offer capacity at MIDCAT and Irún simultaneously

• To give more transparency to the economic test

• To launch the process before summer

• When deciding on the investments, to built both if there

is sufficient requests according with the economic test, if

not to build MIDCAT alone and if demand is not enough

to built MIDCAT but sufficient to built Irun, then only Irun

will be built.

III. Preparation of the OS 2015 General agreements

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III. Preparation of the OS 2015 III.1. Products

Products to be offered:

MIDCAT: Among the three possibilities discussed regarding Spain - France interconnection:

Spain-TIGF connection,

Spain-GRTgaz South connection

Both Spain-TIGF and Spain-GRTgaz South

TIGF –GRTgaz South

GRTgaz South – GRTgaz North

Same structure for Irún/Biriatou

ALREADY DECIDED

D+B

F

H

C+A

E

G

Spain-GRTgaz South

GRTgaz North-Spain

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III. Preparation of the OS 2015

Different capacities scenarios depending on the infrastructures to be built (depending on the capacity requested) To be reviewed by TSOs

Total Capacity GWh/day

MIDCAT + IRUN

MIDCAT IRUN

GRTgaz N GRTgaz S

200 200 200 200 ? 111*

GRTgaz STIGF

125 + 55

230125+ 55

230 123* 55*

TIGFSpain

240 290 180 230 60 60

III.2. Capacities

(*) Capacity not allocated in 2013 OS

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III. Preparation of the OS 2015

Capacity offered. To be reviewed by TSOs

OFFER Capacity GWh/day

MIDCAT + IRUN

MIDCAT IRUN

GRTgaz N GRTgaz S

160 160 160 160 ? 111

GRTgaz STIGF

144 184 144 184 123 55

TIGFSpain

192 232 144 184 48 48

III.2. Capacities

(*) Capacity not allocated in 2013 OS

80% Capacity

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IV. AOB and next meetings

Next IG meeting in April

Next SG meeting to be scheduled