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Open Seasonsbetween

France and Belgium

GRTgazFluxys

Gas Regional Initiative North-WestStakeholders Meeting

7 May 2010

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Contents

• Open Season North-South• Open Season project South-North• Key findings

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Open Season North-South

• Context– Starting point : in recent years, shippers showed

increasing interest in capacity from North to South (H-gas)

• Scope of project– Belgium : increase of capacity from Zeebrugge area

and from NL/DE area to France– France : increase of entry capacity at Taisnières– Netherlands : increase of exit capacity at 's

Gravenvoeren

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Open Season North-South

• Process– Belgium-France : co-ordinated Open Season

• binding commitments obtained on both sides of sufficient duration

• subscribed capacity consistent on both sides

– Netherlands : in the framework of OS 2012• binding commitments obtained and checked

– Investment decision subject to approval by all involved parties, involving NRAs where applicable

– Regular reporting in GRI NW

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Open Season North-South

• However…– Delays in Belgium due to tariff issues– Delays to achieve co-ordinated "green light" from 3

TSOs, including NRAs where applicable– Therefore amendments of contracts necessary in

some open seasons… possibly impacting the level of final commitments and investments

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Open Season North-South

• Current status– Fluxys and Gastransport Services have notified

shippers that the conditions precedent are fulfilled– GRTgaz is finalising amendments to contracts– All 3 TSOs are willing to deliver contracted

capacities– Optimisation of investments currently ongoing to best

fit market needs

– Attention point : increasingly difficult to obtain permits

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OS Project South-North

• Context– Project of new LNG terminal in Dunkirk by EDF

• interconnection with Zeebrugge would benefit the North-West regional market

– Potential market interest for firm South-North capacity• Scope of project

– Creating firm capacity from France to Belgium at Taisnières

and/or – New pipeline connecting Dunkirk area to Zeebrugge

area, partly in France and partly in Belgium

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OS Project South-North

• However…– For new pipeline connecting Dunkirk area to

Zeebrugge area• tariff for a short interconnection does not fit well in Entry/Exit

tariff methodology

– Complexity regarding services to be offered• products linked to physical flows in Dunkirk area• odorisation

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OS Project South-North

• Current status– Market interest for LNG terminal in Dunkirk to be

finalised soon– Potential market interest for firm South-North capacity

• CRE and CREG both support open season project… *• and request GRTgaz and Fluxys to co-ordinate• open season to start soon

* Common press release of 3 May 2010

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Key findings

• Co-ordination between TSOs – supported by co-ordination between NRAs – is key to achieve successful open season

• Visibility on tariff and tariff evolution is key for market to invest in long-term contracts

• Sound regulatory context for investment is key– ensuring balanced risk sharing between TSOs and

market– taking into account increasing uncertainty of future

gas demand and climate policy