DEPA. Participations. Trading Activities. DESFA S.A. EDA S.A. IGI Poseidon S.A. Thessaloniki EPA. Eni

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1 Hellenic-Bulgarian Cooperation in the Energy Sector Sofia, April 29 th 2010 Meeting the gas supply challenges in the Balkans and SE Europe Spiros Paleoyannis Vice Chairman & Deputy CEO, DEPA S.A. An event organized by IENE, in association with the Hellenic Business Council in Bulgaria

2 The natural gas industry in Greece Gas industry structure Infrastructure Domestic gas market

3 The DEPA Group Hellenic Petroleum Greek State 35% 65% DEPA Trading Activities Participations 100% 100% 50% DESFA S.A. EDA S.A. IGI Poseidon S.A. 50% Edison Attiki EPA 51% 51% Thessaloniki EPA Thessalia EPA 49% 49% 49% 51% New EPAs Attiki Denmark Eni Investors 49%

4 The Greek Gas System Pentalofos Nea Messimvria Plati Imathias Katerini Promahonas Strimonohori Drimos Serres Thessaloniki Drama Kavala Xanthi THESSALONIKI EPA Natural gas entry from Russia Komotini Kipoi Natural gas entry from Turkey Larissa Ampelia THESSALIA EPA Volos Lamia Livadia Thiva Patima Revythoussa Inofita ATTIKI EPA Keratsini Athens Lavrio Liquefied natural gas from Algeria

5 The Greek natural gas market (Historic operating statistics) Gas Sales Volumes (mio Nm3) Electricity Generation Industry EPAs 3, % 4, % 3,373 2,514 2,670 3, % 14.2% 15.8% 16.8% % 1, % 28.9% 1,906 1, % 23.0% 75.5% 4.0% 19.9% 76.1% 2, % 19.7% 74.6% 2, % 20.1% 72.9% 8.5% 11.4% 19.5% 20.7% 72.0% 67.9% 18.6% 67.2% 73.6% 71.6% 21.4% 61.8% 36.7% 70.2% 61.7%

6 Gas consumption by sector in gas consumption: 3.4 bcm 0,5% 0,9% 12,1% 0,1% 1,2% 8,2% 61,8% 15,3% Power generation Industry-thermal use Industry-chemical use Cogeneration Residential CNG DESFA Transit Gas 5

7 Gas supply contracts Supplier Duration till ACQ 2010 (mil.νm 3 ) Pipeline gas GazpromExport ,800 Botaş LNG Sonatrach Master Agreements for spot LNG supplies

8 Gas supply by source in 2009 Total gas imports 2009: 3.4 bcm 2,3% 6,1% 19,9% 56,7% 15,03% Gazexport Sonatrach Botas GdF BG 7

9 Future Developments in the Greek and the Regional Gas Market

10 Gas Market Liberalization The Greek natural gas market is liberalized, based on EU and national (Law 3428/2005) legislation The Network Code of the Greek National Gas Transmission System was issued recently (Official Gazette 379/ ) Other gas suppliers may enter the market creating a competitive environment DEPA must and will response/adjust to this new competitive environment A similar process for gas market opening is also taking place in other countries in the region, although with a different pattern and pace in each country 9

11 Additional Gas Supply Requirements in the Greek Market Power generation will continue to drive gas demand in Greece, following by the residential sector There is a need to secure additional gas quantities for covering Greek market requirements, which, in a time horizon of 2020 and beyond, are estimated in the order of 7-8 bcm/yr Additional needs will be met by further diversification of natural gas supplies DEPA s goal is to ensure the security of natural gas supply for the Greek market at the best market prices under both short-term term and long-term supply contracts 10

12 Additional Gas Supply Requirements in the broader region Europe is expected to require additional volumes of 150 bcm/annum of natural gas by 2020 Similarly, gas demand in Southeastern European countries is expected to double in the same period But simultaneously there are strong concerns about security of gas supply Especially countries with high dependence on Russian gas are consistently seeking for access to new gas supply sources With the proper strategy, DEPA and other gas companies in the area will be able to take advantage of opportunities in the SE Europe energy market 11

13 Investment Projects of Regional Interest

14 The Turkey Greece Interconnector (ITG) 13

15 The Greece Bulgaria gas pipeline (IGB) 14

16 IGB Project plan Timetable Feasibility & Basic Engineering Detail Engineering Procurement & Construction Commercial Operations 15

17 IGB Next Steps Establishment of the Commercial Company Finalization of the engineering and procurement activities Construction and commissioning of the pipeline by the end of

18 The Greece-Italy gas pipeline (IGI) 17

19 Project potential 18

20 Greece as a Natural Gas Hub 19

21 Thank you for your attention