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Dr. Bernhard Reutersberg Chairman, Board of Management - E.ON Ruhrgas AG

Russian Gas Society - V th International Conference THE ENERGY DIALOGUE RUSSIA - THE EUROPEAN UNION: GAS ASPECTS Natural Gas in Europe - Prospects between short-term market developments and long-term expectations.

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Dr. Bernhard Reutersberg Chairman, Board of Management - E.ON Ruhrgas AG

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  1. Russian Gas Society - Vth International ConferenceTHE ENERGY DIALOGUE RUSSIA - THE EUROPEAN UNION: GAS ASPECTSNatural Gas in Europe - Prospects between short-term market developments and long-term expectations Dr. Bernhard Reutersberg Chairman, Board of Management - E.ON Ruhrgas AG Berlin, Germany - 21 May 2010

  2. Gas in Europe: Consumption affected by financial and economic crisis EU-27: Gas consumption and economic growth bcm* % 30 5 • 2008/2009: • In EU-27, unprecedented consumption slump: over 30 bcm or - 6.4 % • Significant decreases in industry and in power generation • 2010: Recovery has started • Medium term: Demand slump completely overcome? 4 20 3 10 2 1 0 0 -10 -1 -2 -20 -3 -30 -4 -40 -5 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Change in EU-27 gas consumption against previous year (bcm) *) 11,5 kWh/m3 *) 11.5 kWh/m³ Economic growth (%)

  3. 5,0 140 120 4,0 100 3,0 80 60 2,0 40 1,0 20 0,0 0 Oct 07 Apr 08 Oct 08 Apr 09 Oct 09 Apr 10 Oct 10 Brent oil price (scale on right) UK spot gas price at NBP German border price (BAFA) US spot gas price at Henry Hub Gas procurement: Current market constellation in Europe Oil and gas price development* • Demand slump in wake of financial and economic crisis • Oversupply • New production options in USA (unconventional gas) • Additional LNG capacities • ⇒ Volumes entering the European market • Effects • Greater liquidity on spot markets • Temporary oversupply • Decoupling of spot gas prices and oil-indexed prices under long-term contracts ct/kWh $/bbl Forwards *: Monthly averages as of May 2010

  4. DK Other 3% 7 % NOR 27% NL 15% D RF 22% 26 % Long-term supply contracts – gas supplies of E.ON Ruhrgas in 2009 • Element of constancy, reliability and balance of interests in international gas procurement • For producers major prerequisite for investing in new production projects • Market and competition-oriented pricing • Flexible adaptation to changing market conditions (volume, price) 54 bcm

  5. *) e.g. Egypt, Qatar, Nigeria Basis of EU imports: Contracted volumes, probable contract extensions and additional volumes intended for the EU market. Source: E.ON Ruhrgas Prospects for Europe (EU-27) gas procurement bcm • Well diversified supply structure already secured by contracts • Decline of Europe's own production imminent • Increased imports needed (even if sales do not rise) • Closer integration into global developments • Early action needed to avert any shortage Future projects (depending on demand trend) 500 Other* ALG RUS EU imports 250 NOR EU's own production 2030 2009 2015 2020

  6. High static lifetime of gas reserves worldwide • No shortage of reserves • Good environmental and climate credentials • Cleanest fossil fuel • Efficient and environmentally friendly transport • Efficient, forward-looking application technologies • High flexibility: Partner of renewables • Biomethane as a prospect Natural gas: an energy with a future Natural gas consumption EU-27 bcm 2008 2009p 2030 Figures for 2030: Eurogas Long-Term Outlook 2010, Base Case

  7. Current issues at European level Regulation / framework • Strike a balance between competition and security of supply • Ensure that long-term contracts can be fulfilled Crisis prevention and mechanisms • Bolster company instruments with legal and administrative measures • Create European framework External energy policy • Take flanking political measures for gas procurement • Promote stable relations with producing and transit countries

  8. Natural gas from Russia • Pipeline systems • Share in gas supplies 2009 (%) Barents Sea Kara Sea Stockman Kharasavey Yamal Bovanenko Yamburg Urengoy Murmansk Vorkuta Medvezhye Nadym Yamsovey Ukhta Punga Zapolyarnoye Surgut Yuzhno- Russkoye Helsinki St. Petersburg Nord Stream T allinn Torzhok Tyumen Riga Moscow Vilnius Orenburg Berlin Minsk Warschau Bonn Karachaganak Prague Kiev Paris Vienna Astrakhan Budapest Belgrade Almaty Sofia Rome Baku Shurtan Shatlyk Ankara Athens Sovetabad/ Dauletabad Provisional data, partly estimated

  9. Russian Gas Society - Vth International ConferenceTHE ENERGY DIALOGUE RUSSIA - THE EUROPEAN UNION: GAS ASPECTSNatural Gas in Europe - Prospects between short-term market developments and long-term expectations Dr. Bernhard Reutersberg Chairman, Board of Management - E.ON Ruhrgas AG Berlin, Germany - 21 May 2010

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