1

- Press Conference -

Introductionby Mr. Willy Bosmans, President of Eurogas

19 May, 2005, Hotel Hilton Vienna

2

What is Eurogas ? Gas demand trends Major challenges

About EurogasAbout Eurogas

3

EUROGAS Membership since June 2004EUROGAS Membership since June 2004

30 MEMBERS(10 National

Federations / 20 corporate members)

21 COUNTRIES

4

Madrid Regulators’ Forum ו

… ו

5

Gas Demand Trends

100

105

110

115

120

125

130

135

140

2003 2005 2010 2015 2020

Source: Report from Eurogas members

24

25

26

27

28

29

30

2003 2005 2010 2015 2020

% Demand Increase

Market Share of Primary Energy

6

2005 Natural Gas sales by sector (EU 25)

Fast growing dependency on external sources : over 70% imports by 2010 from non EU countries

7

0

100

200

300

400

500

2003 2010 2015 2020 2025

[MTOE]

ADDITIONAL SUPPLIESTO BE DEFINED

NET CONTRACTEDIMPORTS

INDIGENOUSPRODUCTION

EU 15 Natural Gas Demand & Supply Outlook 2003-2025

8

Need for additional gas

Need for new investments

Conditions : - European Gas companies with critical

mass to take the risk for investments

- Long term contracts and spot markets

- Supportive and stable regulatory environment

- Dialogue with major producing areas

Policy ImplicationsPolicy Implications

9

▫ Eurogas developed comprehensive views ▫ Full implementation of the second gas directive▫ No new legislation without economic impact

assessment▫ Smooth functioning of system to be monitored▫ Partnership of Eurogas, Commission and other

stakeholders

Commitment to promote an efficient internal gas market

Commitment to promote an efficient internal gas market

10

Gas can positively contribute to the goal of the Kyoto protocol since CO2 produced by natural gas combustion is 25-30% lower than petroleum products and 40-45% lower than coal.

Gas is a fuel of choice for consumers with growing use for power generation and has major applications in the commerce, industry and domestic fields

New applications to be promoted e.g.– using gas as a vehicle fuel can reduce the impact of the transport sector on global warming.

Contribution to environment by natural gasContribution to environment by natural gas

11

The new Eurogas organisation 2005GENERAL ASSEMBLY

PRESIDENTExecutive CommitteeGOVERNING BOARD

Finance Committee (Wise Men Task Force)

SECRETARIAT GENERALCoordination Mechanism

POLICY ISSUESCommittees

HIGH LEVEL ADVISORYCommittees

System User CommitteeIncl. Madrid Forum

Supply and MarketsDevelopment Committee

Strategy Committee(Incl. Investment & Infrastructure)

Distribution Committee

Legal Affairs Committee

Statistics & Forecasting Committee

Taxation Committee

External Communication Committee

Social Affairs Committee

Joint Environment Committee

Security OfficersCommittee