Uwe H. FipSenior Vice President

E.ON Global Commodities SE, Düsseldorf

EBC Working Committee Energy

Introductory Remarks by the Chairman

EBC WORKING COMMITTEE “ENERGY”Lerici, 17 April 2015

1. Introductory Remarksby the Chairman Uwe H. Fip, Senior Vice President, E.ON Global Commodities SE

2. Recent developments in European gas markets

by Vyacheslav Krupenkov, Managing Director, Gazprom Germania GmbH

3. Med Hydrocarbon opportunities: the Italian case

by Massimo Sciancalepore, Senior Vice President, Enel

4. European Gas Market Developments

by David Salfati, Vice President Gas Supply East, GDF Suez

5. New gas infrastructure in Europe

by Oliver Giese, Senior Vice President, E.ON Global Commodities SE

6. Esimit Europe Energy

Igor Simcic, Chairman of the Esimit Europa Project and owner of the Esimit Europa 2

7. Discussion and outlook on upcoming meetings

Agenda

Source: CERA, bcm @ 9,500 kWh/cm; Alba Soluzioni

The Italian gas market is the third larges market within the EU…

Italy is the third largest market for consumption of natural gas within the EU, following Germany and UK.

The consumption is expected to decline from a peak of over 80 bcm (2005) to about 60 bcm in 2020. During the same time, indigenous production is expected to decrease by 40%.

Russia and Algeria supply about 2/3 of total imports of the country.

Gas accounts for 40% of power production.

By 2020, renewable energy sources shall have a share of 17% of the total gross final energy consumption.

807267

807665

3

AlgeriaPipe

LNG

NetherlandsRussia Other

Pipe

LNG

% Share of total imports

Norway

bcm

51%

18%

10%

14%

7%

Key facts of the Italian marketGas imports to Italy by country

… with a well established infrastructure …

Vast storage capacity available with about 16 bcm working gas capacity

Current storage filling level at approx. 35%*

Location of storagesExiting pipeline network and main entry points

Tarvisio (44/23)

Gorizia(2/0.2)

Passo Griess(24/9)

PanigagliaLNG

(24/9)

Mazara del Vallo (38/21) Gela

(12/7)

Name (technical Capacity/

Volume 2012)

CellinoCollalto

Cotignola

Brugherio

Sergnano

Minerbio

Sabbioncello

Fiume Treste

Cortemaggiore

Settala

Ripalta

Source: CERA, Alba Soluzioni, Stogit, Edison

OLT(3.8/)

* Information as of 08th April 2015

4

… but shrinking demand for natural gas

Source: CERA, Eclipse

residential/commercial

industry

power generation

other €/MWh

%

bcm

%

%

%

Hub prices for selected European countriesGas demand by sector

5

The 3rd Energy Package is almost fully adopted by the member states

DG Energy reports about the positive impact of the market integration with prominence on the following issues: the continuous stability of wholesale gas prices

an increase in the choice of suppliers for consumers

better infrastructure links between EU countries

an intensified cross-border trading of gas

common rules on the use of gas networks that result

in an increased efficiency of pipeline use

non-discriminatory access to core infrastructure

accomplished

pending

Status of implementation

HU RO

Check of amendment

of national lawNo informationavailable

LV

Amendment of national lawas of 2017

Do we share this view?

Important findings of the latest EU Single Market Report

Source: Single Market Report 2014

6

The Southern Corridor has significant potential to bring new pipeline gas to Europe…

TAP(10 bcm/a)

TANAP* (16 bcm/a)

South Caucasus Pipeline(+16 bcm/a)

Trans CaspianGas Pipeline

IGI / Poseidon(14 bcm/a)

Blue Stream(16 bcm/a)

East Med(15 bcm/a)

Bulgaria-Austria

Israel-Turkey/(8 bcm/a)

Irak-Turkey(10+ bcm/a)

Existing pipeline

planned pipelineSouthern corridor

76

Turkish Stream

Romania-Slovakia

Source: E.ON

7

…with two big projects, Turkish Stream and TANAP as part of the Southern Corridor…

Source: Gazprom

8

…and also supports ambitious mega projects on the EU side like TAP and Eastring

The Eastring Mega Project

Approx. 832 – 1.015 km length

(depending on route)

Planned final capacity of 40 bcm

Fully compliant with EU rules and

regulations

Secures 100% of Balkan countries

consumption of natural gas

Enhances security of supply to Europe by

providing diverse supply routes (e.g. via

the Black Sea or the Caspian region)

Key facts of “Eastring”

Source: Eastring

9

South Stream

Sou

rce:

Gaz

prom

Route of Hungarian segment of South Stream under discussion

Design to be selected until the end of late October 2014

First gas flows expected for 2017

12 m

2,380 km (offshore: 931 km)

Total capacity: 63 billion cubic meters

32 inch

Latest developments

On Tuesday, 7th of April 2015, Greece repeated its amition to play an important role in the pipeline project

Length of onshore currently planed with about 180 km

Capacity in total 63 bcm/a

Arround 50 bcm for the creation of a regional hub (at the Turkish-Greek border)

Announced date of completion is Dec 2016

Turkish Stream

Project details

Gazprom cancelled project South Stream on Dec 2014

10

The next EBC Energy Committee will take place in the cause of the

18th AGM on 28th/29th May 2015 in Belgrade

TopicLow oil price environment – what

does it mean for the energy industry?

Upcoming EBC dates for your Calendar

1. Introductory Remarksby the Chairman Uwe H. Fip, Senior Vice President, E.ON Global Commodities SE

2. Recent developments in European gas markets

by Vyacheslav Krupenkov, Managing Director, Gazprom Germania GmbH

3. Med Hydrocarbon opportunities: the Italian case

by Massimo Sciancalepore, Senior Vice President, Enel

4. European Gas Market Developments

by David Salfati, Vice President Gas Supply East, GDF Suez

5. New gas infrastructure in Europe

by Oliver Giese, Senior Vice President, E.ON Global Commodities SE

6. Esimit Europe Energy

Igor Simcic, Chairman of the Esimit Europa Project and owner of the Esimit Europa 2

7. Discussion and outlook on upcoming meetings

Agenda