NORD STREAM – SECURE GAS SUPPLY FOR EUROPE

1. NORD STREAM – SECURE GAS SUPPLY FOR EUROPE Dr. Dirk von Ameln, Permitting Director, Nord Stream AG Copenhagen, 16 January 2008

2. GAS IS AN IMPORTANT SOURCE OF ENERGY Baltics [19 mtoe] United Kingdom [234 mtoe] Poland [90 mtoe] Sweden [52 mtoe] Germany [340 mtoe] Netherlands [82 mtoe] coal oil gas nuclear other PRIMARY ENERGY CONSUMPTION IN DIFFERENT COUNTRIES 2005 2

3. EUROPE NEEDS MORE GAS IMPORTS 75% of European gas to be imported in 2015, compared to 59% in 2005 712bcm 75% 570 bcm 59% Imports 41% EU domestic gas production 25% 2015 2005 3 Source: Global Insight, 2007

4. NORD STREAM AS A VITAL SUPPLY ROUTE Norway 20 Nabucco (Iran) 20 to 30 For filling the import gap of 200 bcm/a, a number of projects are planned. Nord Stream can deliver 25% of additional gas import needs ofEU-27 in 2015 Nord Stream 55 LNG 90-150 re-gasification(focus on UK) Galsi all figures: bcm/a 4 planned under construction Algeria 31 to 41 Libya 3

5. NORD STREAM AS A GENUINE EUROPEAN PROJECT Major shareholders and stakeholders from the EU and Russia One of Europe’s biggest infrastructural investments in security of supply Intensive involvement of European companies (pipes, pipe laying, logistics, engineering, design etc.) Significant element in the dialogue between the EU and Russia A "natural gas pipeline[s] via the offshore route from Russia to the EU" is specifically nominated as a priority project under the TEN-E guidelines The North European Gas Pipeline, the offshore pipeline route now known as Nord Stream, is designated as a PROJECT OF EUROPEAN INTEREST, the highest possible priority for TEN-E projects 5 Source: Decision 1364/2006/CE of the European Parliament and the Council of the European Communities, September 6, 2006

6. OFFSHORE – A WELL PROVEN TRANSPORT SOLUTION 6

7. OFFSHORE ROUTE – A RESULT OF THOROUGH ASSESSMENTS Route selected after integrated evaluation of technical, environmental and economic aspects Integrated feasibility study of alternative routes in 1997-99 by a Finnish-Russian consortium The proposed route was assessed as the most feasible 7

8. THE COST ADVANTAGE Total costs of an offshore pipeline are some 15% lower than an onshore pipeline, calculated over an period of 25 years 190 115 115 100 100 100 100 % 77 Capital expenditure Operational expenditure Length Total Offshore Onshore

9. THE EMISSIONS COMPARISON 9 Source: Global Insight, 2007

10. THE MOST COMPREHENSIVE TRANS-BOUNDARY IMPACT ASSESSMENT National and international law sets a clear agenda for reports. In addition to this, we include all the concerns voiced by the countries in the international consultation process • Landfalls in Russia and Germany • Meteorology • Bathymetry and hydrograph • Sediment and raw material sources • Pelagic and benthic environment • Fish and fishery • Birds • Marine mammals • Protected areas • Non-indigenous species • Tourism and recreational areas • Cultural heritage • Military practice areas • Dumping sites of chemical and conventional munitions • Ship traffic • Offshore infrastructure • Air quality • Noise • Climate changes

11. HIGH STANDARD OF RISK ANALYSIS • Safety analysis involving all possible incidents(air crashes, sinking ships etc.) and respective security measures are a part of the approval process and the discussion with the involved countries • Safety management activities will focus on the risks profiled in the following sections and how they relate to: • the construction of the pipeline • the operation of the pipeline • the maintenance of the pipeline • Risk studies include the infrastructure itself and also all people in direct contact to the pipeline during construction and operation

12. TAKING SAFETY SERIOUSLY • Highest safety level based on high pipe thickness • Pipelines thicker than 20 mm are virtually impenetrable • Nord Stream pipes will have a thickness of 27 to 41 mm and a concrete coating between 40 and 150 mm • Nord Stream will be much safer than the generally required standards • The probability of having interference able to create a leak in the pipeline is 10-6 per kilometre of pipeline in the Netherlands1 • A study by the Energy Institute of London’s “Update of Loss of Containment Data for Offshore Pipelines” shows that there have been no documented incidents causing shutdowns or repairs of pipelines built since the 1980s Nord Stream’s vision: Our system will be the safest pipeline of this size ever built. 1 Source: Authority for monitoring the Dutch territorial waters

13. UNCOMPLICATED PIPELINE LAYING PROCESS

14. IMPACT ON FISH AND FISHERY Nord Stream’s approach and intention

15. NORD STREAM’S INTENTION RE. FISHERY • Inform fishermen regarding the impact during construction and operation of the pipeline • Initiate exchange of experiences among fishermen (as done in seminar on fish and fishery in Malmö on 30 November 2007 for Swedish and Danish fisher associations) • Listen to concerns and questions of fishermen • Make this cooperation the benchmark for all similar future endeavours  

16. IMPACT ON FISHERY – DURING CONSTRUCTION • Temporary effects, primarily by vessels and seabed intervention works (2-3 km of pipeline can be laid per day) • Local-speaking observer onboard • Guard vessels to warn and support fishermen

17. IMPACT ON FISHERY – DURING OPERATION • No specific exclusion zone for fishing necessary • Potential influence at some areas, where the pipe is protected by dumped rocks • Training programme for trawling will be developed

18. Where the pipeline is placed directly on the seabed, sediment spreading is insignificant and effects on fish negligible Temporary avoidance reactions from almost all fish species will occur in lay barge operating area Pipelines on the seabed act as shelter for some fish species Higher number of some fish species around pipelines IMPACT ON FISH

19. LEARNING FROM THE EXPERIENCES IN THE NORTH SEA • Limited influence on fishery • Large diameter pipelines are over-trawlable • Intensive exchange between fisher associations and operators of infrastructure projects

20. CONTACTS Nord Stream AG Grafenauweg 2 6304 Zug / Switzerland Phone: +41 (0) 41 766 91 91 www.nord-stream.com Dirk von Ameln Permitting Director dirk.vonameln@nord-stream.com 20