The Nord Stream 2 Project for the European Security of Supply: Building on the Proven Nord Stream Success Henning Kothe Chief Project Officer, Nord Stream 2 AG

Nord Stream: Blueprint Energy Infrastructure for Europe >

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Nord Stream > Two parallel offshore pipelines of

1,224 km through the Baltic Sea > Transport capacity 55 bcm per year > A direct and fixed link between

Russia’s vast proven gas reserves and the European Union

> An additional route complementing existing network and other planned pipelines. Operations of Line 1 started on 8 November 2011

Gas transported by Nord Stream can > Provide 26 million European

households with electricity and heating fuel

> Make a substantial contribution to EU climate protection goals

Realisation of Nord Stream on Schedule >

Nord Stream contributes to the EU’s energy security and to meeting its climate change goals > Nord Stream is a key infrastructure project which will increase the EU’s energy security

for at least 50 years

> Nord Stream is a safe and environmentally-friendly pipeline, constructed according to stringent international and national requirements

> Nord Stream is a long-term benchmark project for EU-Russia cooperation

> Nord Stream came on stream on schedule and on budget

> Nord Stream project has been implemented by a dedicated project team

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2011-2012 2011 2012 2010-2011 1997-1999 2009 2006-2008 2005-2009

Feasibility Study

Pipeline design

Laying Line 1

Start of Operations

Line 1 Laying Line 2

Applications & Permitting EIA

Start of Operations

Line 2

2009-2011

Financing Phase I & II

Nord Stream’s Success Factors >

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Open dialogue & transparency

Dedicated company & strong shareholders

Meticulous compliance & permitting

Focus on environment

Solid financing structure

Committed business partners

Outstanding technical design

Safety track record during construction

Safe & reliable operations

Focus on Environment >

100 million euros

invested to survey the Baltic Sea

Investigation

> 40 million euros dedicated to

environmental monitoring

Protection

1,224 km route selection

with least environmental

impact

Challenge

1,000 sampling locations

along the route

Success

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Committed to Preserving the Environment >

Nord Stream

> Invested 100 million euros into environmental studies, planning and route design

> Devoted over 40 million euros to environmental monitoring

> Surveyed 40,000 line kilometres of the Baltic Sea in geophysical investigations

> Concluded comprehensive EIA and environmental studies

> Cleared over 100 munitions successfully for safe routing

> Preserved cultural heritage and identified 100 wrecks in the pipeline corridor

> Will share the findings with scientists and others working on preserving and improving the Baltic Sea

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Project Players – A True European Endeavour >

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Italy

France

UK

Denmark

Germany

Russia

Sweden Finland

Netherlands

Switzerland

Norway

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2

6 5 4

3

1

2 4

3 6

5

7

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Nord Stream & Shareholders Nord Stream AG OAO Gazprom GDF SUEZ S.A.

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3

4 5 6

BASF SE/Wintershall Holding GmbH E.ON Ruhrgas AG N.V. Nederlandse Gasunie

EUPEC Port of Sassnitz-Mukran Port of Kotka

Logistics

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1 2 5

4 Port of Hanko Port of Slite Port of Karlskrona 6

Saipem Allseas Van Oord Boskalis-Tideway Rohde Nielsen

5 6 7

Construction*

8 9

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* Selection of contractors **Sumitomo is headquartered in Tokyo, Japan

Gazprom Marketing and Trading Ltd, UK DONG Energy A/S

Nord Stream Gas Purchasers 3 1

2 5 4

GDF SUEZ S. A. WINGAS GmbH & Co. KG E.ON Ruhrgas AG

Pipes & Materials* EUROPIPE OMK Sumitomo** PetrolValves

1 2 3 4

Operations* Technip Statoil Siemens IMPaC

10 11 12 13

FOGA SGS TÜV

Marin Mätteknik Rambøll DoF

1 2 3

PeterGaz ERM DNV

4 5 6

7 8

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Saipem Allseas Van Oord Boskalis-Tideway Rohde Nielsen

5 6 7

Construction*

8 9

Pipes & Materials* EUROPIPE OMK Sumitomo** PetrolValves

1 2 3 4

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Nord Stream & Shareholders Nord Stream AG OAO Gazprom GDF SUEZ S.A.

1

3

4 5 6

BASF SE/Wintershall Holding GmbH E.ON Ruhrgas AG N.V. Nederlandse Gasunie

EUPEC Port of Sassnitz-Mukran Port of Kotka

Logistics

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1 2 5

4 Port of Hanko Port of Slite Port of Karlskrona 6

Gazprom Marketing and Trading Ltd, UK DONG Energy A/S

Nord Stream Gas Purchasers 3 1

2 5 4

GDF SUEZ S. A. WINGAS GmbH & Co. KG E.ON Ruhrgas AG

FOGA SGS TÜV

PeterGaz ERM DNV

4 5 6

Environmental Studies, Quality Management & Safety* 7 8

Italy

France

UK

Denmark

Germany

Russia

Sweden Finland

Netherlands

Switzerland

Norway

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4 3

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Operations* Technip Statoil Siemens IMPaC

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Construction Adheres to Highest Criteria >

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Health, Safety and Environment > Between 2006 and Q3 2012:

− 23.5 million project work hours performed

− 49 lost time incidents

− 0 fatalities

− 0 permanently disabling injuries

> Offshore construction:

− 7.6 million work hours

− 8 lost time incidents

> Environmental monitoring reports for 2011 showed

− Nord Stream’s activities resulted in only minor environmental impact with short duration

− Adherence to all set limits and international standards

Dedicated Company >

5 strong international shareholders from

4 countries

Basis

160 employees from

20 nations form a committed team

Team

2006 entirely new and

independent company founded

Challenge

6 years from planning and construction to operation of both pipeline strings

Success

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Nord Stream 2: Enhancing the European Gas Supply >

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Nord Stream 2 will… > provide an additional direct pipeline link between

Russia‘s gas reserves and the EU market. > compensate for the faster-than-expected retirement

of the EU domestic gas production and will help cover the EU‘s growing import gap in the future.

> have a capacity of 55 bcm per year, enough to supply 26 million European households.

> improve reliability and security of supply to the EU by providing a complimentary and competitive supply option.

> run roughly parallel to the existing Nord Stream Pipeline, with different route options under consideration.

> have a CAPEX of about 8 billion euros, at no cost to European tax payers.

Original route alternatives studied in the feasibility phase.

A Strong EU-Russian Consortium >

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51% 10% 10% 10% 10% 9%

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Stable Natural Gas Supply from Russia >

Sources: Eurostat, 2015; Eurogas Statistical Report 2014

23% natural gas

12% renewables

5-6 % Russian gas in the total EU

energy consumption

18% natural gas

38% oil

27% coal

12% nuclear

4% renewables

33% oil

17% coal

14% nuclear

1990 2013

EU energy mix > Gas consumption in the

EU rose from 18 to 24 percent in the last two decades

> Russian gas deliveries remained stable at approximately 5-6 percent of total EU primary energy consumption

> Long-term stable gas deliveries between Russia and European countries are in place since the 1970s

Additional Supplies from Russia – a Major Part of the EU’s Energy Security >

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0.0

700.0

2013 20302015 2020 2025

EU-28 production drops to 90 bcm

Norway on a slight decrease to ~80 bcm

2013 imports from Russia, Northern Africa and LNG steady

Russia imports via existing infrastructure

LNG Northern Africa

EU-28 domestic production

Norwegian exports

146 bcm Import gap 2013 -> 2030

Additional LNG up to 75 bcm

Southern Corridor up to 16 bcm

Additional Russian supplies 55 bcm

bcm

˃ Import gap is growing as domestic supply decreases

˃ Additional new supply is required to cover demand

˃ EU has a diversified import portfolio, various sources to fill the additional import gap

˃ Based on commercial factors, likely spread is shown above

Source: IHS Energy Long-Term Supply and Demand Outlooks to 2040, June 2014

European Union Gas Supply and Demand Development

Strong Business Rationale for Additional Transport Capacities > > Driven by climate protection-centred decarbonisation efforts and

increasing number of new applications for gas, demand for natural gas in the EU is projected to increase to over 510 bcm by 2030.

> Domestic gas production in the EU is in rapid decline, with depletion of supplies exacerbated by oil price-driven sector contraction.

> European Union needs a gas source that offers competitive, sustainable, robust, flexible and reliable supply for decades.

> Against the backdrop of the decreasing EU production and increasing global competition for LNG, Nord Stream 2 offers the best option for the supply of EU demand, providing − a new transport route with state-of-the-art technology, offering

permanent and secure natural gas supplies over the coming decades, strengthening EU gas infrastructure and hubs;

− Available capacities to ensure the ability to reliably supply gas to the European markets during demand peaks;

− a long-term reinforcement of the transmission system and additional supply flexibility;

− the shortest connection for gas from the Northern Russian fields to the EU market;

− Russian gas as a competitive, plentiful fuel with proven track-record, technologically and environmentally.

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2020 >

Nord Stream 2 preliminary project timeline >

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2015 2016 2017

Permitting and Environmental Impact Assessments

2018 2019

Surveys and Engineering

Procurement and Delivery, Pipe Logistics

Construction and Commissioning

2012-13

Feasibility Study

Operation

Shareholders Agreement EIA Programme

Consulatation

Environmental Monitoring

Contact >

For further information please contact: Nord Stream 2 AG Gotthardstrasse 2 6300 Zug, Switzerland Email: info@nord-stream2.com Website: www.nord-stream2.com

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