Developments of GTE+ towards ENTSOG and the link to the GRI Jacques Laurelut

1. Developments of GTE+ towards ENTSOG and the link to the GRI Jacques Laurelut President GTE and Transition Manager GTE+ GRI NW Stakeholder Group Conference, Amsterdam, 14th April 2008

2. Consumers Shippers Traders Producers The Third Package Framework Commission • Need • Clear roles and responsibilities • Checks and balances TSO body Agency • Overcome barriers at 3 levels • Legal • Regulatory • Contractual & Industrial

3. The TSOs role • secure, reliable and efficient operation of the transmission networks which are the backbone of the gas system • provision of the market place for interested stakeholders by bridging the gap between physical and contractual aspects of gas transmission (‘commodity-making principle‘) TSOs cannot ensure a properly functioning market however TSOs can provide the necessary foundation to enable a flourishing market

4. TSO role • Provide • capacity, • access services, • information • to facilitate the market Robust Responsive Transparent consultation Outputs Network Codes to provide the foundation for the market Capacity Development Statement to inform the market TSOs Third Package Responsibilities • Tasks include, in particular, the adoption of: • an annual work programme • technical and market (network) codes in 11 areas • a 10-year network development plan every two years • annual winter supply outlooks • an annual report • Consultation processes • To establish the annual workprogramme • To consider change proposals • To inform 10 Year Capacity Development Statement

5. TSOs progress towards ENTSOG • ‘Shadow formal body‘ (GTE+) established by GTE members • 3 Senior Advisers hired • Market consultation on the work programme in the spring • Key deliverables for this year are • Transparency platform • 10-year network development plan • Winter outlook • Capacity

6. Links between GTE and GRI • Both regional and European activities have a role to deliver the single European gas market • Linkages needed to ensure efficiency and consistency GTE will contribute to all of the regions in the GRI

7. European and regional interaction • Codes and rules should be developed on the European level • GRI regions should focus on regional / local projects Some overlap in priority activity areas; information and co-operation needed to • avoid “double working” • enhance rate of progress • ensure consistency

8. Collaborative two-way communication and sharing GRI activity GTE activity Programme Board Projects ExCom Working Groups GTE ExCom members Working Group members Good co-ordination ensures efficiency and consistency enabling faster progress

9. Conclusions • Third Package • GTE support for establishing ENTSOG • First steps on the transition have been taken • GRI • GRI should focus on local projects • Regional progress can assist deliver single European gas market • Interaction between GRI and GTE activities critical • Must deliver efficiency/consistency • GTE will be involved in the GRI • Greater clarity about GRI framework needed to allow GTE to structure linkage in most appropriate way