Enagas by East Coast Promotions

COMPANY PROFILE

2014

Enagas

34 91 709 92 00 | www.enagas.es

Rosa María Nieto, Director of Underground Storages

Over land or sea, Enagás can store gas In recent years, Spain has invested heavily in its gas capabilities, both in its ability to import liquefied natural gas and in its national gas transmission system. As the country imports nearly all of the gas that it consumes this system is vital to day-to-day operations of many businesses and individuals. But once gas reaches Spain, the next consideration is storing it. Rosa María Nieto, Director of Underground Storages of Enagás tells Total World Energy that investments into underground storage are helping the company become a benchmark of knowledge and innovation in Spain’s sector.

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Enagas Q: Do you feel that Enagas is close to achieving its vision of “becoming a national and international standard bearer in the development and management of gas infrastructures, promoting their use by offering innovative services that contribute to sustainable development”? Ye s , a f t e r m o r e t h a n 4 0 years of experience, Enagás has become a benchmark of knowledge and innovation i n t h e s e c t o r. T h e c o m p a n y has maintained its company fundamental purpose (supply security in Spain, gas infrastructure network maintenance, necessary investments, etc.), while it has become a company with an international perspective and important future challenges inside a n d o u t s i d e o u r c o u n t r y. At the same time, Enagás contribute to sustainable development by increasing energy efficiency and by launching new sustainable and innovative services to its clients like, for instance, reloading ships b u n k e r i n g . R e c e n t l y, Enagás has won the Prize “Good Practice Competition”, awarded by the European Foundation for Quality Management (EFQM) and focused on innovative solutions for customers. This prize recognizes Enagás’ good

practices in new vessel reloading operations, allowing the company to go beyond the traditional model of unloading ships at regasification plants.

Q: What is the next step for the Yela Underground natural gas storage facility? Can it be expanded? Is the company working on similar projects in the region?

Brihuega, in the province of Guadalajara. Its strategic location in the centre of Spain makes it a key infrastructure project for g u a r a n t e e i n g s u p p l y. I t i s in the process of injecting cushion gas, therefore its working capacity is still in progress until it will eventually achieve 1bcm. Enagas is not currently working on other projects in the region.

T h e Ye l a u n d e r g r o u n d storage facility was put into operation in 2012. It is located in the municipal area of

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Q : W h a t a re t h e m a i n d i f fe re n ce s b e t we e n o p e ra t i n g a n a t u ra l sto ra g e fa c i l i t y ove r l a n d a n d i n t h e o ce a n? Each storage facility has its own particularities, which differ not just by being in the land or offshore, but by the features that each facility may have. Yela underground storage is a saline fossil aquifer 2,300 meters below the surface of the Earth. Gaviota storage facility is l o c a t e d i n t h e B a y o f B i s c a y, e i g h t k m o ff C a p e M a t x i t x a k o , north east of Bermeo (Biscay). It is in a depleted gas field, located at a depth of 2,150 m i n f r a c t u re d l i m e s t o n e . Serrablo Gas Storage, located within the Huesca

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Region, is the first depleted gas field transformed into a n u n d e r g ro u n d g a s s t o r a g e in Spain, once the field p ro d u c t i o n c e a s e d i n F e b r u a r y 1989. A l s o , t h e l o g i s t i c s a re q u i t e d i ff e re n t ; t h e o ff s h o re re q u i re s s h i p s , h e l i c o p t e r, s t a ff l i v i n g o n b o a rd a t l e a s t d u r i n g weekdays, etc.

Q: What progress has been made with the Gaviota expansion project? The project is in standb y, h o w e v e r E n a g a s i s accomplishing a first step in order to renew some equipment and to make some technological improvements.

Q: What have been the main challenges faced by the Gaviota platform since it was acquired by Enagas in 2010? The operations have continued in the same way as with the previous o p e r a t o r, s o t h e r e i s n ´ t any relevant challenge in that sense. The most significant difference is the launching of the mentioned project to renew some installations.

Q: Will the company look at opening similar facilities, over water, in the future? Currently there aren’t plans to open similar facilities by Enagás.

Enagas Q: Are underground storage facilities going to be the future for natural gas storage in Spain?

Q: Is the Serrablo underground storage facility still vitally important to the Huesca region?

Spain imports practically all the gas it consumes, and its storage capacity is limited; approximately 10% of that of neighbouring European states. Also, gas capacity in Spain is only enough for 20 days o f s u p p l y, f a r f r o m t h e rates of other European countries. Nevertheless, Spain has a large number of regasification plants, which allows managing supply risk and seasonal variations in demand.

Serrablo underground storage facility is key not only for Huesca region but for the whole Spanish Gas System. It is necessary to store large quantities of gas in order to adjust offer to demand and face consumption peaks brought on by seasonal variations, i n t e r r u p t i o n s i n s u p p l y, etc.

Enagás underground storage facilities has been designed and developed to the highest s t a n d a r d s o f s a f e t y. There are 627 storages worldwide, including one below the town of Berlin.

Q: What does the future hold for Serrablo? Is there a plan for expansion at this storage facility?

Q: Is it possible for Enagas to claim ‘green’ production? Can a company with such a vast infrastructure ever be environmentally friendly?

Enagás is not planning to develop new storage expansion projects for Serrablo underground s t o r a g e f a c i l i t y.

Q: What would you say to people who claim that underground storage facilities are unsafe?

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The Yela underground storage facility, already put into operation, is located in the municipal area of Brihuega in the province of Guadalajara. Its strategic location in the centre of Spain makes it a key piece of infrastructure for guaranteeing supply. PAGE 6

Enagas Our commitment in this area is strong. For the type of business we develop, we mainly work on preventing the impact on the environment. Enagás takes into consideration biodiversity protection of the areas where it operates. We ensure we appropriately plan and locate facilities, restoration and replanting of areas affected during pipeline construction and we ensure we reduce greenhouse gas emissions, from the design stage, that cause changes in the

physical conditions of the ecosystems where plant a n d a n i m a l s p e c i e s g ro w. As an evidence of t h i s e f f o r t , E n a g á s ’s carbon footprint has recently been certified in accordance with the UNEEN ISO 14064 standard, which is another step f o r w a r d i n t h e c o m p a n y ’s drive to cut greenhouse gas emissions and ensure transparency in its dealings with stakeholders. Enagás is listed on the most prestigious indices, such as the Dow Jones Sustainability Indices (DJSI) or FTSE4Good

E n a g a s i s t h e Te c h n i c a l Manager of the Spanish Gas System and the main carrier of natural gas in Spain. It is also certified as independent TSO European Union, which homologates the company to gas transmission network operators of other European countries. T h e c o m p a n y ’s m a i n mission is to ensure competition and security of the Gas System in Spain.

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+44 (0) 1603 411569 info@totalworldenergy.com East Coast Promotions Ltd, 2 Ardney Rise Norwich, Norfolk NR3 3QH