7 th SG meeting, South Gas Regional Initiative Madrid, 23 rd September 2008

1. Procedures for the commercialisation of existing and committed capacity at the cross border point of Larrau between France and Spain 7th SG meeting, South Gas Regional Initiative Madrid, 23rd September 2008

2. Summary • Background. • Main updates. • General principles. • Capacities concerned. • Timing of the OSPs. • Binding Transmission Capacity Request. • Allocation rules.

3. 1. Background. • ENAGÁS and TIGF have committed to put in operation by 2009 new capacities in both directions at the cross border point of Larrau, and have agreed ERGEG’s South GRI proposal of evaluating shipper’s interest in existing (non-allocated) capacities and in new capacities at this point, and to allocate the referred capacities through an Open Subscription Period (OSP). • The competent regulatory authorities in both countries have committed to adapt the regulatory framework in force in order to allow the proposed OSPs to take place under the general principles agreed between the TSO and regulators. • The aim of this presentation is to introduce the procedures for subscription and allocation of capacities to be offered under the OSP for long termand shortterm capacities from 1st April 2009 to 31st March 2013 at the interconnection point of Larrau.

4. 2. Main updates. • On 16th September 2008 the Spanish Ministry of Industry, Tourism and Trade (Mityc) published the Ministerial Order ITC/2607/2008 that established the rules to allocated capacity at interconnection points with France. • Enagás and TIGF have developed the procedures for the commercialisation of capacity between France and Spain at Larrau interconnection point, which are consistent with Order ITC/2607/2008. • The Mityc will publish the official announcement for the 2008 OSP for Spanish shippers and eligible customers, and it will be adapted to the procedures developed by the TSOs.

5. 3. General principles. • Capacities will be sold by ENAGAS and TIGF respectively, and different contracts will be subscribed respecting the rules of each TSO. • The main results of the OSP will be published by both TSO. • The terms and conditions, including technical rules, applicable to the capacities sold under the OSP will not differ from the rules prevailing in each system at any particular time. • Shippers participating in the OSPs will be required to be a licensed shipper at least in one of the systems. No shipper will be allowed to make a request for capacity in a system where it is not licensed. • Only firm capacities will be sold in the OSP. • 80% of the firm the capacities will be reserved for OSP LTC in October 2008. • 20% of the firm the capacities will be reserved for OSP STC each year.

6. 4. Capacities to be offered. Note that delays are probable, although no invoices will be receive from the TSOs for the time period between the expected date of put into operation and the date of the effective provision of the capacity service.

7. 4. Committed infrastructure and capacity added.

8. 5. Timetable.

9. 6. Binding Transmission Capacity Request. • Shippers requesting OSP LTC should fill in the “Binding Transmission Capacity Request Long-Term Capacity” and shippers requesting OSP STC should fill in the “Binding Transmission Capacity Request Short-Term Capacity”. • Each capacity request should be sent to both TSOs. • The capacity request sent to the TSOs must be identical, except for the signature. • The company requesting access in France (shipper 1) will sign the “Binding Transmission Capacity Request” that must be sent to TIGF, whereas the company requesting access in Spain (shipper 2) will sign the “Binding Transmission Capacity Request” that must be sent to ENAGÁS. DRAFT

10. 7. Allocation rules.

11. Thank you for your attention