Madrid, 29th January 2010

8th RCC Meeting

South Gas Regional Initiative

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8th RCC meeting S-GRI- Agenda

I. Opening

I.1 Welcome

I.2 Approval of the agenda and last meeting minutes (for approval)

II. 2010 Work program for the South Gas regional initiative (proposal by CNE, for discussion and approval)

III. Second phase of the Open Season Procedure for the development of new gas interconnection capacity between Spain and France (2015 OS):

Structure in the French network (for information by CRE)

Capacity products to be offered (for discussion)

Economic test and tariff visibility (for discussion)

Detailed calendar and next steps (for discussion and approval)

IV. Developments between Spain and Portugal:

Update (for information by ERSE and CNE)

Study on tariff harmonization between Portugal and Spain (for discussion)

Next steps (for discussion and approval)

V. AOB

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II. Work program for 2010

• INTERCONNECTION CAPACITIES

1. 2010 OSP: to continue allocating short term capacity at Larrau, November

2. 2013 OS: to monitor infrastructure construction associated to 2013 OS

French TSOs and CRE to report on French investments decisions, January

TSOs to provide a list of infrastructures, cost and operational start dates, 15th February

3. 2015 OS: to launch 2015 OS Regulators to decide on economic test, tariff visibility and capacity

products, January TSOs to provide a list of infrastructures, investments cost and

services’ availability dates, February Regulators and TSOs to communicate Stakeholders the procedure

details, early March Final documentation and procedure launch, to be decided Stakeholders to sign contracts before August

4. Regional investment plan to be developed: Regulation 715/2009 (art. 12), December

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II. Work program for 2010

• INTEROPERABILITY

1. Study on CMPs at interconnection points: current status in each country, characterization, identification of problems taking into account CAM/CMP ERGEG paper, future action plan to solve them at the borders (Regulation715/2009, art. 16), October (Possibility to have different timetable for the interconnection Fr-Sp, Pt-Sp)

2. Study on compatibility between LNG terminals and interconnected pipeline networks: regulation 715/2009, art. 17, to be developed once fulfilled the first priority

• TRANSPARENCY

1. Update of Regulators’ 2007 Transparency Study: 1st to check compliance (regulators) September with Regulation715/2009, 2nd to invite comments by Stakeholders afterwards

2. TSOs to update building status records of OS infrastructures, June and December

3. TSOs to report on ENTSOG progress, quaterly

• REGULATORY HARMONIZATION

1. Regulatory proposals regarding common trading licence between Pt-Sp, Done January

2. Comparative study on cross border access tariffs between Pt and Sp, July

3. Regulatory proposal regarding cross border access tariffs between Pt-Sp, November, and Public Consultation on the proposal, December

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III. Open Season ProceduresSecond Phase of 2015 OS

STRUCTURE IN THE FRENCH NETWORKInformation by CRE

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III. Open Season ProceduresSecond Phase of 2015 OS

CRE’s PROPOSAL ON ECONOMIC TEST, CAPACITY PRODUCTS AND OS

PHASES

Information by CRE

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III. Open Season ProceduresSecond Phase of 2015 OS

CNE COMMENTS ON CRE’s PROPOSAL:

POINTS TO BE CLARIFIED

1. What are the infrastructures, investments costs and the annual recovery via TPA tariffs if building …?

Irún-Biriatou project

Midcat project:

capacities at the

border

2. What will the tariffs be in France in

each possibility mentioned above…?

TPA tariff structureTPA entry/exit tariffs values €/MWh/day/year

1. Buliding 60 GWh/day2. Building 100 GWh/day

1. Buliding 180 GWh/day2. Building 80 GWh/day3. Building 0 GWh/day

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III. Open Season ProceduresSecond Phase of 2015 OS

MIDCAT +IRÚN

INVESTMENTS:

• Biriatou TIGF X1 €• MIDCAT TIGF X2 €• Artére Midi X3 €• Artére Rhône X4 €

X1+X2+X3+X4 €

MIDCAT MC2

INVESTMENTS:

• MIDCAT TIGF• Artére du Midi• Artére du Rhône

X2+X3+X4 €

MIDCAT MC1

INVESTMENTS:

• MIDCAT TIGF• CS Montpellier X5 €• Artére Rhône

X2+X4+ X5 €

MIDCAT MC0

INVESTMENTS:

• MIDCAT TIGF• Artére Rhône

X2 + X4 €

IRÚN/BIRIATOU

INVESTMENTS:

• Irún/Biriatou

X1 €

N N

S S

144 + 48 GWh/d

184 + 48 GWh/d

N N

S S

144 GWh/d

184 GWh/d

N N

S S

64 GWh/d

184 GWh/d

N N

S S

0 GWh/d

184 GWh/d

N N

S S

48 GWh/d

48 GWh/d

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III. Open Season ProceduresSecond Phase of 2015 OS

CAPACITY PRODUCTS TO BE OFFERED (for discussion)

• Midcat project:

1. Products:

Spain- France: Spain-TIGF, Spain-GRTgaz South or Spain-TIGF and Spain-GRTgaz South

TIFG-GRTgaz South

GRTgaz South-GRTgaz North

2. Capacity (GWh/day) at every interconnection point

3. Capacity availability date (start of the services)

4. Multiannual / multiseasonal capacities

5. Firm/interruptible capacities

• Irún project: new capacities from South to North and vice versa, date of capacity availability

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IV. Developments between Spain and Portugal

UPDATE OF WORK: PROGRESS ON THE COMMON TRADING

LICENSE

A proposal containing required regulatory changes have been already sent to Ministries

Information by ERSE and CNE

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IV. Developments between Spain and Portugal

Objective:

To develop a proposal of cross border access tariffs between Spain and Portugal. It is an important step in order to reach the harmonization/integration of gas markets

Creation of a task-force between ERSE and CNE to prepare a joint proposal for cross border access tariffs between the Spanish and Portuguese systems.

CROSS BORDER ACCESS TARIFFS BETWEEN SPAIN AND PORTUGAL

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IV. Developments between Spain and Portugal

CROSS BORDER ACCESS TARIFFS BETWEEN SPAIN AND PORTUGAL

1. Develop comparative study of current cross border access tariffs between Spain and Portugal

Identify the problems and main impacts for Iberian network users. We need to analyze the distortions and difficulties that cross border access tariffs between Spain and Portugal may pose for the creation of an Iberian market due to a possible pancaking effect, and to separate treatment of cross-border and domestic flows.

2. Making a proposal of harmonization cross border access tariffs

Cross border access tariffs should facilitate the development of Iberian Market.

3. Public consultation process of the document conducted by CNE and ERSE