The Iberian Gas Hub project aims to develop a liquid natural gas hub in the Iberian Peninsula. It will provide market services along the entire forward curve of natural gas, including voice broking in OTC trading initially. An electronic trading platform is planned, initially for OTC products, which is already operational. The hub will integrate with the organized market OMIE and clearing services from OMIClear. It has begun operating and closing OTC trades as a broker and is taking part in regulatory working groups to develop the gas market in line with the European gas target model.

1. IBERIAN GAS HUB
Bilbao, 24 June 2014

2. The Iberian Gas Hub project
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 The objective of the Iberian Gas Hub project is to promote the development
of a liquid natural gas hub in the Iberian peninsula
Source: Iberian Gas Hub
 Adaptable to the
future role of TSOs
under new codes
 Integrating and
non-exclusive,
open to new
stakeholders
 Design in line with other
European hubs
 Self-financing on the
basis of value-adding
services
 Approach from the
current reality of
the market
(inclusion of OTC)
 Flexibility to
adjust to a
transitory period
 Adapted to the
physical reality of
natural gas and LNG
Value-adding services
and innovation

3. Initial steps
Voice broking in the
OTC space
Take off
Electronic trading
platform
(initially, OTC)
Liquidity
Forward
Platform with
Counterparty
services + CCP
Matureness
Futures market
Market services at the
VTP
Standardization
and liquidity
Iberian Gas Hub roadmap
Q2-Q3
2013
Q1-Q2
2014
2014-15 2015-6
Spot Trading Platform
(OMIE)
Implementation of
Network Code on
Balancing
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Source: Iberian Gas Hub

4. Regulatory Roadmap –Adaptation of the Spanish
gas system to European Regulation
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Source: Enagás GTS/TSO (51st meeting CSSG).
Sector Reform
-Adaptation of Hydrocarbons Law
- RD. Adaptation
- Market rules
- Gas day 06h-06h
- NCB: Information provision
- Congestion mechanism (auctions)
CAM/CMP (A-T-S)
Daily operation gas auction
Organized Market (HUB)
CAM/CMP (Day-intraday)
Change of gas day
NBC: information provision
NC Balancing
J F M AM JJA S O N D J F M AM JJA S O N D J F M AM JJA S O N D
Jun-Jul
Sep
JanJan
NovNovNov
Apr

5. IBGH: Where we stand (June 2014)
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OTC Market • Operating and closing OTC trades as a broker since July 2013
Trading Platform
• Trading Platform (Trayport Exchange Trading System) operational
since 29 January 2014 (initially, OTC products)
IT
• Infrastructures and IT systems to support the Trading Platform are
fully operational, with redundancies and security
IBGH Client Committee
• Meetings regularly take place since July 2013 (contracts have been
designed)
Hub development and
regulation
• Agreement with OMI Group (OMIE, OMIClear)
• Taking part in Ministry of Energy and TSO’s working groups
New services
• Working with OMIClear to offer counterparty services (complete
anonymity, collateral through the CCP)
• Defining services similar to those provided by other hub operators
Source: Iberian Gas Hub

6. Shareholders
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 Sociedad Promotora Bilbao Gas Hub, S.A. is developing an institutional framework and
infrastructures to offer market services along the entire forward curve of natural gas and for
various trading channels (short, medium and long-term, OTC and organized markets, financial
and physical contracts, etc.).
Current shareholders
Spanish
TSO
Energy agencies of the Basque and Catalan
regional governments
Two of
Spain’s key
financial
institutions
Relevant
energy
utilities in
Spain
Additional new shareholders
(June 2014 share capital increase)
Source: Iberian Gas Hub
TO BE ANNOUNCED

7. The Gas Target Model as the basis for the
definition of gas hubs in Europe
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Promotion of
cross-border
exchanges
(between VTPs)
Virtual Trading
Points
Entry-exit system
on a physical
zone without
congestions
Linked to
each other
Defined on
Gas Target Model’s essential elements
Virtual Trading Point
Short-term Organized
Market (Spot)
Short-term standard
products
THE VIRTUAL
TRADING
POINT IS A
DELIVERY
POINT FOR THE
ORGANIZED
SPOT AND
FORWARD
MARKETS AND
THE OTC
MARKET Disposing/acquiring trade notifications to the TSO
Forward Organized
Market (Forward/Futures)
Forward standard products
OTC Market
Non-standard forward
products
THE GAS
TARGET
MODEL
DEFINES
MARKET
AREAS
AROUND
VIRTUAL
TRADING
POINTS (HUBS)
Source: Iberian Gas Hub

8. Iberian Gas Hub main services
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Tracking and reporting of transactions at the VTP
Matching of net positions at the VTP
Flexibility services (BUBD, imbalance management)
Notification of net positions at the VTP to the TSO
Market,
flexibility and
financial
services at the
VTP
Reporting and
REMIT
compliance
Reporting services for the market participants
Organized
Forward Market
Exchange services through a Central Counterparty
Brokerage
services
Brokerage services in the OTC market
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2
3
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Support in market surveillance (required by REMIT)
Source: Iberian Gas Hub

9. IBGH- OMI Group Agreement
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Spot Trading Platform (OMIE)
Central Counterparty clearing services
(OMIClear)
Services in the OTC Market and in the
Organized Forward Market
Market services at the Virtual Trading Point
Source: Iberian Gas Hub

10. IBGH: Companies which take part in our Client Committee
and/or provide us with buying or selling interests
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Source: Iberian Gas Hub

11. Contact and more information
Contact:
Director of Middle and Back Office: Gabriel Pérez Urrutia
Phone: (+34) 946 124 275
E-mail addresses:
backoffice@iberiangashub.com
gperez@iberiangashub.com
More information at:
www.iberiangashub.com
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12. Thank you very much!
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