Gasunie gaat verder in gastransport

Sharing lessons from unbundlingDutch unbundling, a long and winding road

4 November 2005, Athens

Agenda

The internal process

The position in the market

The new infrastructure level playing field

Overview of organisation of Gasunie’s transport activities 2000 – 2005

Transmission Services division was organisationally split from Gasunie

01-01-2000

Organisational unbundling of Gasunie into Gastransport Services and Gasunie Trade & Supply

01-01-2002

Establishment of Gas Transport Services B.V. as independent and regulated TSO with its own board

01-07-2004

Establishment of N.V. Nederlandse Gasunie as independent gas transmission company including GTS as TSO

01-07-2005

On July 1ST vertical integration has ended

100%

Dutch StateMinistry of Finance

DutchState

Ministry of Economic Affairs

Exxon

50%25%

Shell

25%

Ownership structureAfter July 1st, 2005Two separate companies

Gasunie

Gasunie Trade & Supply

DutchState

Exxon

25%

Shell

25%50%

Ownership structureBefore July 1st, 2005One company

Gasunie

Source:Gasunie

Transport company

Trading company

Conclusions unbundling process

•Unbundling has been a costly process

•Unbundling requires major adjustments in:

management process

corporate governance

mindset

Agenda

The internal process

The new infrastructure level playing field

The position in the market

Main transmission systemMain transmission system(end of (end of 20012001))

Pipeline Groningen gas

Pipeline high-calorific gas

Pipeline low-calorific gas

Pipeline desulphurized gas

Pipeline - nitrogen

Feeder station(s)

Compressor and blending station

Compressor station

Blending station

Underground gas storage

Export station

LNG facility

Nitrogen plant

Zevenaar

Hilvarenbeek

Zandvliet

Oude Statenzijl

Balgzand

Zelzate

Facts and figures Gasunie

Facts (2004)

• Gas volumes– 97 billion m3 transported– Max daily capacity of 420 million m3

• 1350 employees

• Infrastructure base– 11.600 km pipelines– 1,100 Gas-distribution stations– 10 Export stations

• Customer base– 40 Shippers– 10 gas distribution companies and

~400 industrial consumers/ power generators

• Leading record of safety and continuity in operations

Emden

Source:Gasunie

Main transmission systemMain transmission system(end of (end of 20012001))

Pipeline Groningen gas

Pipeline high-calorific gas

Pipeline low-calorific gas

Pipeline desulphurized gas

Pipeline - nitrogen

Feeder station(s)

Compressor and blending station

Compressor station

Blending station

Underground gas storage

Export station

LNG facility

Nitrogen plant

Other assets of Gasunie

Source:Gasunie

Zevenaar

Hilvarenbeek

Zandvliet

Oude Statenzijl

Balgzand

Zelzate

Owner of TTF-hub

Operating six quality conversion stations

Emden

33% owner of Eurohub

LNG peak shaver

Majority owner of BBL

EDIGasunie Engineering & Technology

‘s-Gravenvoeren

Access to two under-ground storage facilitates

Source: Gasunie

Transmission flows Gasunie2004, contracted flows

Dutch gas for domestic market

97 Bcm

Dutch gas for Domestic market

Import

Import

ExportTransit

Export

Export

Majority of gas streams handled by Gasunie are international

Throughput for international markets

Gasunie mission

To provide safe and reliable transport of natural gas and related services to the integrating European market. Efficient, profitable and sustainable

Agenda

The internal process

The new infrastructure level playing field

The position in the market

Changing environment

Restructuring of (regional) sales and distribution companies within countries

Marketstructure

Not only between traders but also between transmission companies

Increasedcompetition

New policy: unbundling of trading and transport activities and establishment of transmission system operators. Different tariff structures and new products

Liberalisationand regulation

Decline in European production and rise in demand will increase imports (mainly Russia and LNG)

New gas streams

Increasing number of gas transport companies in Europe

Source: GIE

European level playing field for gas infrastructure

• Gas distribution assets in the UK & US

• LNG terminal

• Involved in storage in o.a. Austria and the UK

• Transmission pipes in Slovakia, Lithuania, Latvia, Estonia and Romania

• MND (Czech R.) involved in storage

• Pending majority stake in Hungarian MOL

• BBL participation (20% stake)

• UK Gas Management Services

• Transmission and/ or distribution assets in Germany, Belgium, Slovakia, Russia, Germany, Hungary, Mexico, Canada, Italy and India

BBL:• Gasunie• Fluxys• E.ON/Ruhrgas NEGP:

• Gazprom• E.On Ruhrgas• Wingas

Interconnector:• Amerada Hess • BP • BG • ConocoPhillips • Distrigas • ENI• E.ON/Ruhrgas • Gazprom • International Power • Total

Examples

Concerns regarding restructuring EU gas market

• Uneven paths to unbundling

• Regulatory “patchwork”

• Infrastructure investors of a different kind

• Does infrastructure fragmentation hinder the attractiveness of Europe as a market for new gas?