Security of Supply and Demand in a Liberalised European Natural Gas Market

Security of Supply and Demand in a Liberalised European Natural Gas Market

Mario PuleoManaging Director, EconGas Italia S.r.l.Managing Director, EconGas Hungária Kft.

Istanbul, June 9th, 2009

Agenda

European Market Background

Key Topics for European Natural Gas Suppliers in the Medium/Long Term

The Positioning of OMV and EconGas in a Liberalised European Natural Gas Market

EconGas, June 2009

Agenda

European Market Background

Key Topics for European Natural Gas Suppliers in the Medium/Long Term

The Positioning of OMV and EconGas in a Liberalised European Natural Gas Market

EconGas, June 2009

4

EU Natural Gas Demand Increases Despite Downturn

EU Natural Gas Demand and Supply2007-2030 in bcm

511555

586622

645 654

443

320

208

46

-1

-77

-200

-100

0

100

200

300

400

500

600

700

800

2007 2010 2015 2020 2025 2030

Demand Supply Gap *

Supply vs. Demand

Short / medium term:

- Oversupply (to 2012+)

Long term:

- Supply gap

Δ Demand 2007-2030

+ 28%

Supply Gap 2030

443 bcm

Source: EconGas based on Global Insight: European Energy and Environmental Outlook 2008 und OMV 2008* Supply Gap = Consumption – Production – Contracted Imports EconGas, June 2009

55

CEGH DevelopmentCentral European Gas Hub

70 active members as of May 2009 (87 total)

Total traded volume reached an all-time high of over 2 bcm in December 2008.

Monthly CEGH Statistics

0

400

800

1200

1600

2000

2400

Jän

.06

Mär

.06

Mai

.06

Jul.

06

Sep

.06

No

v.06

Jän

.07

Mär

.07

Mai

.07

Jul.

07

Sep

.07

No

v.07

Jän

.08

Mär

.08

Mai

.08

Jul.

08

Sep

.08

No

v.08

Jän

.09

Mär

.09

0

1

2

3

4

5

Monthly Title Tracking Volume in Mio. Nm³ Monthly Physical Throughput Volume in Mio. Nm³

Churn Rate

Active Members by Origin as of May 2009

AUT12

GER9

SWI7

UK6

Others18

ITA18

Source: CEGH 2008

EconGas, June 2009

EU Natural Gas Demand Increases Despite Downturn

EU Natural Gas Demand and Supply2007-2030 in bcm

511555

586622

645 654

-200

-100

0

100

200

300

400

500

600

700

800

2007 2010 2015 2020 2025 2030

Demand Production Supply Gap *

Δ Production 2007- 2030

- 66,5%

Supply vs. Demand

Short / medium term:

- Oversupply (to 2012+)

Long term:

- Supply gap

Indigenous production declines by 60 Percent from 2007-2030

Δ Demand 2007-2030

+ 28%

Supply Gap 2030

443 bcm

Source: EconGas based on Global Insight: European Energy and Environmental Outlook 2008 und OMV 2008* Supply Gap = Consumption – Production – Contracted Imports EconGas, June 2009

Agenda

European Market Background

Key Topics for European Natural Gas Suppliers in the Medium/Long Term

The Positioning of OMV and EconGas in a Liberalised European Natural Gas Market

EconGas, June 2009

8

Aspects of security of supply?

► “Security of supply is the biggest challenge of European Energy policy.”

(acc. to Mr. A. Piebalgs; 2007)

► “Energy security is comprehensive. It’s like a coin with two sides. Security of supply cannot be separated from security of demand.”

(acc. to Mr. A. Medvedev; 2006)

► “It is our responsibility to evaluate all options to secure long-term energy supply for central Europe in an increasingly competitive environment.”

(acc. to Mr. W. Ruttenstorfer; June 2007)

► “Security of supply means that consumers are able to obtain natural gas at the time it is needed, with a defined quality and transparent and cost oriented prices.”

(acc. to CEER; 2004)

► “Security of supply means, with respect to the good of all consumers, to secure that energy sources are available on the market continuously and at prices all consumers can cope with.”

(acc. to 1st energy round table E-Control; 2003)

EconGas, June 2009

9

Middle East 73.4

Russia47.6

1.5

Algeria4.5

2.3

0.1

0.2 0.4

1.4

0.1

LNG

LNG

LNG

Source: EconGas based on EIA - Energy Information Administration; 01/2009

The long term goal:Four supply channels for Europe

LNG

Proved reserves in trillion cubic metres

Nabucco

LNG

EconGas, June 2009

LNG

Storage

Relative to consumption, Austria has the largest storage volumes among EU-15 countries

4%

5%

5%

14%

15%

19%

24%

25%

37%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Belgium

UK

Spain

Netherlands

Italy

Germany

Denmark

France

Austria

Source: EconGas based on Global Insight 2008, OMV 2009

EconGas, June 2009

Agenda

European Market Background

Key Topics for European Natural Gas Suppliers in the Medium/Long Term

The Positioning of OMV and EconGas in a Liberalised European Natural Gas Market

A strong line-up

50.00% OMV Gas & Power

2.73% BEGAS

14.25% EGBV

16.51% WIEN ENERGIE

16.51% EVN

EconGas, a European natural gas sales company focused on large business customers and wholesale, combines the know how and competencies of its owners:

- OMV on the up and midstream side

- and four important Austrian multi-utilities on the downstream side.

1) Direkte und indirekte Beteiligung.

2) Petrom S.A. ist eine 51% Tochtergesellschaft der OMV Aktienge sellschaft. OMV Gas & Power koordiniert das Gasgeschäft der Petrom.

OMV Gas & Power GmbH

EconGasGmbH (50%)

OMV Gaz veEnerjiLtd. Sti(100%)

Petrom S.A. (51%)1

GmbH (65%)

Business Unit Gas Supply,

Marketing & Trading

EconGas GmbH (59,26%)1

OMV Gaz ve Enerji Ltd. Sti. (100%)

Petrom S.A. (51%)2

OMV Gas GmbH (100%)

International GmbH

OMV Gas Adria d.o.o.

Adria LNG d.o.o.

Gate terminalb.v.(5%)

OMV Gaz veEnerjiLtd. (100%)

Petrom S.A.(51%)1

BOG GmbH

TAG GmbH

OMV Gas GmbH (100%)

Business Unit Gas Logistics

OMV Gas Adria d.o.o. (100%)

BOG GmbH

TAG GmbH

Adria LNG d.o.o. (25,58%)

Gate terminalb.v. (5%)

OMV Gaz ve Enerji Ltd. Sti. (100%)

Petrom S.A. (51%)2

GmbH(100%)

OMV Gaz veEnerji(100%)

Petrom S.A.(51%)1

BorascoElectric ÜveTicaretA.S.

OMV PowerInternational GmbH

(100%)

Business Unit Power

BorascoElectric ÜretimSanaviVe TicaretA.S.

OMV Gaz ve Enerji Ltd. Sti. (100%)

Petrom S.A. (51%)2

Central European

Gas Hub AG Doljchim

Central European

Gas Hub AG

Central European

Gas Hub AG

100% NabuccoGas Pipeline AustriaGmbH

100% NabuccoHungariaGas Pipeline Ltd.

100% NabuccoGas Pipeline RomaniaS.R.L.

100% NabuccoGas Pipeline BulgariaEOOD

100% NabuccoTürkiyeGaz BoruhattiLtd. Sti.

Nabucco

Nabucco Gas Pipeline International GmbH (16,67%)

1) Direkte und indirekte Beteiligung.

2) Petrom S.A. ist eine 51% Tochtergesellschaft der OMV Aktienge sellschaft. OMV Gas & Power koordiniert das Gasgeschäft der Petrom.

OMV Gas & Power GmbH

EconGasGmbH (50%)

OMV Gaz veEnerjiLtd. Sti(100%)

Petrom S.A. (51%)1

GmbH (65%)

Business Unit Gas Supply,

Marketing & Trading

EconGas GmbH (59,26%)1

OMV Gaz ve Enerji Ltd. Sti. (100%)

Petrom S.A. (51%)2

OMV Gas GmbH (100%)

International GmbH

OMV Gas Adria d.o.o.

Adria LNG d.o.o.

Gate terminalb.v.(5%)

OMV Gaz veEnerjiLtd. (100%)

Petrom S.A.(51%)1

BOG GmbH

TAG GmbH

OMV Gas GmbH (100%)

Business Unit Gas Logistics

OMV Gas Adria d.o.o. (100%)

BOG GmbH

TAG GmbH

Adria LNG d.o.o. (25,58%)

Gate terminalb.v. (5%)

OMV Gaz ve Enerji Ltd. Sti. (100%)

Petrom S.A. (51%)2

GmbH(100%)

OMV Gaz veEnerji(100%)

Petrom S.A.(51%)1

BorascoElectric ÜveTicaretA.S.

OMV PowerInternational GmbH

(100%)

Business Unit Power

BorascoElectric ÜretimSanaviVe TicaretA.S.

OMV Gaz ve Enerji Ltd. Sti. (100%)

Petrom S.A. (51%)2

Central European

Gas Hub AG Doljchim

Central European

Gas Hub AG

Central European

Gas Hub AG

100% NabuccoGas Pipeline AustriaGmbH

100% NabuccoHungariaGas Pipeline Ltd.

100% NabuccoGas Pipeline RomaniaS.R.L.

100% NabuccoGas Pipeline BulgariaEOOD

100% NabuccoTürkiyeGaz BoruhattiLtd. Sti.

Nabucco

Nabucco Gas Pipeline International GmbH (16,67%)

OMV Gas & Power GmbH

EconGasGmbH (50%)

OMV Gaz veEnerjiLtd. Sti(100%)

Petrom S.A. (51%)1

GmbH (65%)

Business Unit Gas Supply,

Marketing & Trading

EconGas GmbH (59,26%)

1

OMV Gaz ve Enerji Ltd. Sti. (100%)

Petrom S.A. (51%)2

OMV Gas GmbH (100%)

International GmbH

OMV Gas Adria d.o.o.

Adria LNG d.o.o.

Gate terminalb.v.(5%)

OMV Gaz veEnerjiLtd. (100%)

Petrom S.A.(51%)1

BOG GmbH

TAG GmbH

OMV Gas GmbH (100%)

Business Unit Gas Logistics

OMV Gas Adria d.o.o. (100%)

BOG GmbH

TAG GmbH

Adria LNG d.o.o. (25,58%)

Gate terminalb.v. (5%)

OMV Gaz ve Enerji Ltd. Sti. (100%)

Petrom S.A. (51%)2

GmbH(100%)

OMV Gaz veEnerji(100%)

Petrom S.A.(51%)1

BorascoElectric ÜveTicaretA.S.

OMV PowerInternational GmbH

(100%)

Business Unit Power

BorascoElectric ÜretimSanaviVe TicaretA.S.

OMV Gaz ve Enerji Ltd. Sti. (100%)

Petrom S.A. (51%)2

Central European

Gas Hub AG Doljchim

Central European

Gas Hub AG

Central European

Gas Hub AG

100% NabuccoGas Pipeline AustriaGmbH

100% NabuccoHungariaGas Pipeline Ltd.

100% NabuccoGas Pipeline RomaniaS.R.L.

100% NabuccoGas Pipeline BulgariaEOOD

100% NabuccoTürkiyeGaz BoruhattiLtd. Sti.

Nabucco

Nabucco Gas Pipeline International GmbH (16,67%)

EconGas within OMV Gas & Power

1) Direct and indirect shares.2) Petrom S.A. is a 51% subsidiary of OMV Aktiengesellschaft. OMV Gas & Power coordinates Petrom‘s gas business.

EconGas Profile

Core business

- Direct marketing of natural gas to large European consumers

- Wholesaling to European distributors

- Gas trading on international exchanges

Target markets

- Austria, Germany, Italy, Hungary, Croatia, Czech Republic, Slovakia, Slovenia

Highlights of financial year 2008

- Sales: 7.2 bcm

- Revenue: EUR 2.5 bn

- Exports: approx. 27 PercentHQ: Ares-Tower, Donau-City, Vienna

Target markets

Wholesale / strategic alliances

Organic growth: new power station projects underpin long-term volume growth

Steady growth

Market monitoring

Trading used to spearhead market entry

EconGas sites

Baumgarten hub/CEGH

EconGas LNG activities/plans

EconGas presence on hubs

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Thank you for your attention!

17

► EconGas GmbH

ARES Tower, Donau-City-Strasse 11, 1220 Vienna, Austria

Honauerstrasse 2, 4020 Linz, Austria

► EconGas Deutschland GmbH

Furtmayrstraße 3, 93053 Regensburg, Germany

► EconGas Italia S.r.l.

Piazza Castello 16, 20121 Milano, Italy

► EconGas Hungária Kft.

Andrássy út 70, 1062 Budapest, Hungary

www.econgas.com

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