ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE ANRE

Romanian Case Study on Interconnection Agreements

Cristian Selav ărdeanu Gas Expert Romanian Energy Regulatory Authority - ANRE

3rd Technical Workshop on Gas Market Design and Natural Gas Transmission Grid Codes May 21-23, 2018 Vilnius, Lithuania ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

DESCRIPTION OF THE ROMANIAN NATIONAL GAS TRANSMISSION SYSTEM NETWORK TOPOLOGY

IMPORT RUSIA (UCRAINA)

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16 28 14 12 Valea 8 10 Frasin Seac ă Abramut 12 Pocoleni 16 INTERCONECTARE Marghita UNGHENI Câmpulung Abr ămu Moldovenesc 20

20 20 28 Jibou 28 Năsăud LECANI 12 16 Casei 10 16 16 Iaşi Zalău Târgu 16 Aleşd Neam 16 16 20 Târgu Beclean Frumos Oradea Bistri aU 20 16 10 10 Borș 28 Enciu 6 20 Fântânele S GHER ĂIEŞTI 12 Nasal Arghirescu 16 Roman 28 aga S 12 Bicaz Secuieni Negre şti Legend ă Săvineşti 20 - Nod Tehnologic SCADA 16 20 Gilău 20 16 SĂRMAŞU Sarmas Extrasu s 16 Cluj 1 10 - Nod Tehnologic in curs de implementare SCADA 20 20 Cluj 2 Salonta 24 20 - Sta ie Comand ă Va e 20 Reghin Tazl ău 20 Balda SU Tazl ău 20 RACOVA Huşi 12 20 28 Ulie - Sta ie Com primare Gaze Naturale 12 ş Vaslui CEANU MARE9n 10 Zau Ernei Golire - Debitmetru tehnologic unidirec ional 10 Band Nord 24 Band Sovata - Debitmetrua tehnologic bidirec n ional incai Târgu 20 Mures SU P9 24 Ş BAND 24 Vest Stei Iernut Mure ş Mures 12 Depo Extras Bac ău 14 V3 Şăuşa Corunca P10 xx - Conduct ă mgi stral ă de traesport i gazem a sitemlui zero de II III 24 Socodor Ludus Iernut I Bac ău II 28 16 Mures Cuci transport cu diamet rul nomie nala Ø xx" 20 Cuci 28 P12 24 20 28 xx - Conduct ă d trnsport gaz a s steuluia regional d deem transport cun 14 20 F1 24 i 20 F2 Vaideiu SU 20 aetr ulg nomi al u Ø xx" 10 Cucerdea UNGHENI Bordosiu Beresti TazlauU 20 Bogata II Târn veni V3 COROI Comăneşti - Interconectare sistem de transportt gaze adiacent m 10 ă 24 28 BOGATA III 24 Deleni- V2 Bordo şiu Herepea 20 20 Miercurea Ciuc 16 10 8 Ocna M r eş Tarnaveni 24 - Interconectare local ă conducte de transport, normal închis ă 20 Cristur Refulare 12 V3 igmandru Lasl ău 16 24 Idrifaia 32 Odorhei INTERCONECTARE UNGARIA Arad 3 NV G ne ti e 16 - Staie d rel are măs r are gaze natur l e ă ă ş Filitelnic- Deleni- 24 V2 12 Sancel-Blaj Turdas BOTORCA Coroi 24 ONEŞTI Bârlad - Punct de intrare productie gaze CSANADPALOTA 28 Cuci 28 Hetiur 12 Botorca Refulare 32 HORIA V3 28 28 16 24 Seleu ş Coofăneşti zit de înagazin nare sub eran Blaj V2 24 (Cetate) ă Nădlac N dlac Sonda 3 V1 20 Nade ş - Sighisoara FELICENI ă 20 Botorca Vest I Colibi Sighisaora Sighi şoara 1 32 - Depo V2 Bazna- Sighi şoara 2 - Sensul de curgere de referinta 12 20 Sonda 3 Arad 1 Medias 20 20 ½ Cesiro 28 SC Onesti 20 Media ş 10 Beia L Z RE TI Homocea 24 Lunca-Refulare B-Noul Ă Ă Ş Săsesc Refulare eline Bune şti 16 Copşa 20 14 Vest -Refulare 20 28 32 20 Mică 20 Copşa - Danes 32 Burcioaia Noul Sasesc Retis 28 32 Cop a - Medias 28 Lunca- ş 24 Bățani Combinat 20 12 BIXAD Ma şloc SC Vinu d Jo 20 20 16 Şoala D-DEALU Târgu 12 Carani Bârghi FRUMOS Secuiesc 10 20 ş 10 16 Munteni 24 Covasna PM VINTU-SEBES - proiect 20 20 Rupea Ruşi 14 V1 20 Alămor 20 MUNTENI RECACŞ Mintia Simeria SC DEALU Hoghiz Dumbr ăvia 12 V2 20 Ocna FRUMOS 20 ½ 16 12 Hunedoara Sibiului 12 Tecuci Tecuci 24 V3 Ilimbav 10 20 10 20 Sfântu 6 Marpod Torcesti 1 12 Gheorghe 12 BĂCIA 2 16 Rodbav 20 Timi şoara 1 24 Sibiu 16 20 10 3 28 14 10 Cudalbi 16 20½ V1 20 12 Sinca Foc şani 20 Mâr a 10 Nitroporos 20 20 V2 ş Victoria Purolite Făgăraş S Şi ca CODLEA 8 Turnu Roşu Braşov Dinias 20 Cisn ădie Victoria 20 Ghimbav 32 PALTIN 20 HAEG Tălmaciu 28 10 14 20½ Boia Foeni 20 STÂLP 8 20 Tohan Jupa 20 Zărneşti Mital Steel Gala i ŞENDRENII 16 16 14 Paroşeni 24 Mara (Sinaia) RUSIA (ORLOVKA) 20 IMPORT TRANZIT Paroseni SC ŞLI ŞTEA 28 32 24 Ghergheasa Balta Alba 24 Reşia Posada 20 32 (Boldu) 14 Br ila 28 20 Ghergheasa ă Câmpulung O Balta Alba 20 40 Posada Galbenu Chi cani Muscel Rosioru 20 gr 22 ş Bărbunce şti ISACCEA SCHITU G LEŞTI 16 Benu Câmpina 24 SÂMBOTIN 20 32 Buz ău 20 ElectroArge ş 28 24 Bârseşti Ciofrangeni Schitu 16 Mihăieşti Drăgoieni i Govora (Târgu J u) Stâlpeni FILIPE ŞTI 20 Scăieni MOISICA 12 CET Govora Moreni Scaieni Compresoare 54 Jugureanu 24 40 Dezbenzinare cleni ieşti 16 28 Scaieni Compresoare 54 GDF Jugureanu Padina i 48 20 Socu II Tătărani Aricesti Teleajen Mioveni 20 16 12 Socu I 20 Valea C lug reasc Petre şti Săpunari Micesti Târgovi şte ă ă ă 20 Hurezani- Băbeni 8 Padina JUGUREANU Tămăşeşti Barbatesti 20 (Răzvad) km 65 Valea Calugareasca 48 icleni Bulbuceni Grădiştea 20 Gârbovi Merisani (Bascov) Gârbovi 20 Nord I Strâmba Targu Hurezani Hurezani- Pope şti 16 20 Brazi 16 6 Paraieni de Jos 20 Coliba şi MĂNEŞTI Petrom SU Bustuchini 10 20 CCC Brazi 32 Jiu 12 HUREZANI Zătreni Lăpusata Păpuce şti Br te ti Urleşti ă ş Frasin - Brazi Rovinari 20 SU 28 Vlădeni Florica Finta-Gheboaia 32 Prundeni 10 20 Zătreni Piteşti 20 Oveselu SU 20 Bibe ti 20 Postarnacu URZICENI ş Mamu Gura Ş ii Urziceni Nord 24 Piscu Stejari 20 Avicola Titu 16 Urziceni Extras TURBUREA 20 20 SU Gura Sutii Butimanu MOŞU Drobeta Turnu C2-Turburea Hălăngeşti Extras Fierbinti Mădulari 20 DRĂGĂŞANI 12 20 32 Severin 20 Peris 20 20 20 20 20 16 20 16 20 Scornice ti AFUMA I Drăgăşani 20 ş Filiasi 20 20 32 Făureşti Slatina Slobozia 32 Petromar Sud CORBU BUCIUMENI 20 (Doba 20 8 Afumati S-da Ileana 12 20 Iancu 32 175 Pasarea 20 gr. 26) 32 10 16 Februarie TASAUL - proiect 20 Jianu Depozit 160 PODI ŞOR Gradinari 8 Slatina 10 20 BUCURE ŞTI Oveselu Măgurele 16 6 (Doba gr. Deparati 20 N vodari Slatina Corbu 20 20 ă Br de ti (+Alro+Alprom) 20 Titan ă ş 6 23) Harlesti Glavacioc Statia Centralax 28 Işalnia Gherce şti Et r Cartojani 20 Şimnic Bal 20 ş Balaceanca 20 20 Extras Călăraşi Saint Gobain- C l ra i 8 20 ă ă ş 40 Constan a 48

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16 Giurgiu 10 20 RUSSE NEGRU-VOD Ă Mangalia INTERCONECTARE Negru --Vodă BULGARIAu Turnu M gurele TRANZIT 16 (KARDAM) ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

DESCRIPTION OF THE ROMANIAN NATIONAL GAS TRANSMISSION SYSTEM

The main characteristics of the National Gas Transmission System are:

• 13,303 km of main transmission pipelines and connections for gas supply, of which 553 km of pipelines are dedicated to international transmission of gas;

• 1,132 gas regulating - metering stations for domestic points;

• 6 gas metering stations for international transmission;

• 3 compressor stations (Sinca, Onesti, Silistea) ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

DESCRIPTION OF THE ROMANIAN NATIONAL GAS TRANSMISSION SYSTEM

• The system was developed during the 60’s-80’s when its main task was to connect the production fields located mostly in the central part of the country with the large industrial consumers. • Two import point where developed in order to cover the supply gap with Russian imports at GMS Isaccea import and GMS Mediesu Aurit.

Due to such system philosophy, currently the border areas of the system are faced with low pressures!

Points operated by producers/storage operators: Points operated by the TSO:

• 137physicalentrypointsfromproduction; -870physicalexit points connected to 39 DSs;

• 7physicalentry/exitpointsfrom/tostorages; -232physical exit points connected to direct consumers. ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

INTERCONNECTION POINTS

Interconnection points:

EU neighbours 1. RO-HU: Arad-Szeged 2. RO-BG: Ruse-Giurgiu 3. RO-BG: Negru Vod ă- Kardam (I, II, III)

Non-EU neighbours 4. RO-MD: Ia şi-Ungheni 5. RO-UA: Medie şu Aurit- Tekovo 6. RO-UA: Isaccea import- Orlovka 7. RO-UA: Isaccea-Orlovka (I, II, III) ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

INTERCONNECTION POINT 1: RO-HU: ARAD-SZEGED (CSANADPALOTA)

- Commissioned: - July 2010 – only HU-RO flow - January 2014 – RO-HU flow (bidirectional capacity)

- Transmission capacities: - HU-RO capacity: 1.75 bcm/y - RO-HU capacity: 0.09 bcm/y

- Planned extension of capacities in both directions (to 4.4 bcm/y), after implementing the BRUA project (phases I and II)

- First Interconnection Agreement (IA) concluded between TRANSGAZ and FGSZ in 2015 ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Structure of the IA (I) 1. Definitions 2. Scope of the IA, general provisions 3. Transfer of Risk of Loss 4. Flow control 5. Gas quantity and quality measurement Quantity and Quality Measurement Gas quality specification Rights of access 6. Business rules Business data matching Handling of Trade notifications Handling of Single Sided Nomination (SSN Handling of Double Sided Nominations (DSN) Renomination of DSN ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Structure of the IA (II) 7. Allocation 8. Operational Balancing Account 9. Settlement of the Operational Balancing Account in case of termination 10. Monthly Allocation and Report 11. Technical Rules Border pressure Temporary border pressure Border capacity Values of capacity for publication Interruption 12. Maintenance 13. Constraints and communication procedures in case of exceptional events 14. Communication and online data transmission 15. Process of amendment of IA ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Structure of the IA (III)

16. Entry Into Force, Duration and Termination

17. Liability

18. Governing law and dispute resolution

19. Waiver of sovereign immunity

20. Force Majeure Force Majeure Notification requirements Mitigation

21. Confidential information

22. Miscellaneous ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Compulsory terms and conditions according to the EU Regulation no. 2015/703 (INT NC) - I

Flow control

 FGSZ controls the gas flow in cooperation with TRANSGAZ in order to ensure that the difference of the sum of all confirmed nominations and the total gas quantity measured shall at all times be as close to zero as possible.  Parties consider the latest confirmed (matched) daily quantity for the bundled and the unbundled booked capacities as delivery task for the given Gas Day.  Parties consider the daily delivery task must be delivered equally during the Gas Day independently from the matched profile, unless the parties agree to use different flow profile.  The parties shall make their best endeavours to keep the flow rate above 20,000 m3/h(s) (at normal conditions) at any direction. If the matched daily delivery schedule results in lower flow rate, the Parties shall agree on intermittent delivery schedule, which shall keep the nominated daily quantity unchanged.  Parties are entitled to reduce the deliveries scheduled in the framework of interruptible capacity any time during the Gas-Day. ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Compulsory terms and conditions according to the EU Regulation no. 2015/703 (INT NC) - II

Gas quantity and quality measurement (I)

 Quantity and quality measurement of custody transfer is carried out at Csanadpalota measuring station by the equipment owned, controlled and operated by FGSZ.  The Measuring Station at Csanadpalota is operated according to the Technical Operating Manual of Csanadpalota Measuring Station specified in anAnnex to the IA.  FGSZ carries out the main control and calibration operations in presence of a representative of TRANSGAZ. FGSZ informs TRANSGAZ about the calibration works in a prior written notice form to ensure the effectiveness of this action.  FGSZ informs TRANSGAZ of any modifications which have an effect on energy determination (for example, but not exclusively: modifications to the piping, primary elements, instrumentation, calculation methodology, control procedures and frequencies) and the Operating Manual shall be updated accordingly after prior agreement between the Parties.  All equipment for the commercial measurement of the quantity and quality of natural gas should have valid type approval certificate and certificate of calibration according to Hungarian legislation. ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Compulsory terms and conditions according to the EU Regulation no. 2015/703 (INT NC) - III

Gas quantity and quality measurement (II)

Gas Quality Specification Hydrocarbon dew point Chemical composition (in mol percent) No hydrocarbons shall condensate at a temperature of zero Methane (C1) minimum 70.0 degrees Celsius (0°C) at a pressure (27.0) bar absolute. Ethane (C2) maximum 10.0 Propane (C3) maximum 3.5 Water dew point Butane (C4) maximum 1.5 Not higher than minus 8 degrees Celsius (-8°C) at a Pentane (C5) maximum 0.5 pressure of 41.0 bar absolute. Hexane (C6 +) maximum 0.2 Nitrogen (N2) maximum 10.0 Impurities Carbon dioxide (C02) maximum 8.0 Content of mechanic impurity: max. 0.05 g/m3(s) Oxygen (02) maximum 0.02 Temperature max. plus 50°C Sulphur content Hydrogen sulphide (H2S) maximum 6.8 mg/irr(n) Mercaptan sulphur (RSH) maximum 8.0 mg/m3(n) Total sulphur maximum 100.0 mg/m3(n)

Gross Calorific value Minimum 10.14 kWh/m3/(n) Maximum 12.79 kWh/m3/(n) ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Compulsory terms and conditions according to the EU Regulation no. 2015/703 (INT NC) - IV

Business rules (I)

 At the Csanadpalota IP, (HU>RO) or (RO>HU) bundled trade notifications are not available. Trade notifications rules on unbundled capacity point may be determined by the parties complying with the relevant provisions of BAL NC.  All Single Sided Nominations (SSN) shall be submitted by Network Users to FGSZ. After receiving SSN, FGSZ shall carry out a process on each nomination to ensure that it respects all validation conditions. All processed SSN shall be passed by FGSZ to the Transgaz for local processing. This shall be done as soon as technically possible and feasabie but no later than 15 minutes after the full hour of the nomination and the renomination was submitted by the Network Users. TRANSGAZ has to process all the SSN that have been received from FGSZ as if it would be a nomination sent by his own Registered Network User, to ensure that the validation rules are respected.  Validation conditions for SSN and Renomination of SSN: i. Only the registered network users have rights to submit SSN: ii. Submitted nomination must contain the; a. code of the network point, b. direction of flow, c. demanded quantity in kWh/h of each gas hour of the Gas Day, d. code of Network User, e. code of counter Network User. iii. The submitted demanded quantity must not exceed the sum of booked bundled standard capacities and bilaterally acquired bundled capacity ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Compulsory terms and conditions according to the EU Regulation no. 2015/703 (INT NC) - V

Business rules (II)

 Double sided nominations shall be handled on the IP, Network User - to - counter party Network User, a flow direction and hourly basis.  In case of delivery demand from Hungary to and/or from Romania to Hungary by UTC 13:30 (in winter time) and UTC 12:30 (in summer time) of the Gas Day D-1, TRANSGAZ shall communicate to FGSZ the quantities nominated on the IP by using Annex “Matching Schedule - TGN”.  FGSZ shall check if the quantities nominated on the IP using the FGSZ System correspond with the quantities sent by TRANSGAZ System. i. If, as a result of the above mentioned check a mismatch is noticed in the hourly data, then the “lesser rule” shall be applied for the respective hour(s). ii. If there is no difference the matching shall be deemed satisfactory and FGSZ shall communicate to TRANSGAZ the positive outcome of the matching for Gas Day D.  FGSZ shall communicate the outcome to TRANSGAZ no later than UTC 14:00 (in winter time) and UTC 13:00 (in summer time) of the Gas Day D-1 by using Annex “Matching Schedule – FGSZ”.  Renomination(s) of Network Users shall be possible at latest with two (2) hours lead time prior to the intended change between UTC 15:00 in winter time and UTC 14:00 in summer time on D-1 and UTC 02:00 in winter time and UTC 01:00 in summer time on D.  Response time on renominations is 30 minutes (maximum) in case of renomination on TRANSGAZ system and 1 hour (maximum) in case of renomination on FGSZ system. ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Compulsory terms and conditions according to the EU Regulation no. 2015/703 (INT NC) - VI

Allocation

 The allocation of the quantities delivered and/or received by the relevant Network User(s) shall be carried out based on the matched quantities. The unit of allocation is in kWh (25°C/0°C), Daily allocation report containing the daily quantities and related GCV (25°C/0°C) data shall be sent by FGSZ to TRANSGAZ every day until UTC 8:30 in winter time and UTC 7:30 in summer time.  The allocated daily quantity for the Network Users is equal with the latest matched quantities in kWh(n) (25°C/ 0°C).  By the establishment of the Operational Balancing Account, the Parties aim to ensure that in case of i) change of the gas flow, ii) flow below the minimum capacity, or iii) steering differences iv) gas flow agreed by parties (e.g. maintenance, pipe cleaning) v) emergency situation the quantities of gas properly nominated and confirmed will be allocated to the Network Users without interruptions or reductions.  Any imbalance occurred by a difference between the metered quantities for a given gas day and the quantities of the matched daily delivery schedule for the same gas day shall result in an operational imbalance to be charged or credited in kind to the Operational Balancing Account. ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Compulsory terms and conditions according to the EU Regulation no. 2015/703 (INT NC) - VII

Communication procedures in case of exceptional events

 If during any Gas Day (D) an unforeseen emergency event occurs, which causes capacity reductions, (e.g. compressor outage, or leakage) FGSZ and TRANSGAZ shall react promptly in order to minimize the impact of such an emergency event by using best efforts and all reasonable measures.  Both Parties shall undertake to assure prompt exchange of all relevant information (exchange within 30 minutes after occurrence of an emergency), which may affect the quantity of gas being transported in the future and the quality parameters of the gas.  The communication shall be performed by means of telephone call for information, followed by a written confirmation.  Where an exceptional event occurs on a contracting party’s network affecting the interconnection point, the relevant contracting party shall without delay inform and keep informed the other contracting party in respect of the possible impact on the quantities of gas that can be transported over the interconnection point.  Where a contracting party considers there is an evident danger to system security and/or stability and an exceptional event may have an impact on the confirmed quantities of its network users, as soon as reasonably practicable, each contracting party shall inform its respective affected network users that are active at the concerned interconnection point of the consequences for the confirmed quantities. ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Compulsory terms and conditions according to the EU Regulation no. 2015/703 (INT NC) - VIII

Process of amendment of IA

 If any essential economic, technical and/or legal conditions should change in a way to affect significantly the terms of this IA, then each Party shall be entitled to request by written notice that the IA be amended to the new situation.  Following a request for amendment under this Article, the Parties shall meet to discuss in good faith [whether or not an amendment of the IA is justified and] the means of amending IA to the new situation. Failing to reach an agreement within a period of 90 days from the request for amendment, any Party shall be entitled to terminate this IA. In this case the Parties start immediately negotiate on a new interconnection agreement between themselves in order to ensure the undisturbed cooperation in operating their systems.  In the event that one of the provisions of this IA is or becomes ineffective, invalid or unlawful, this shall not affect the validity of the other provisions herein.  The Parties undertake to replace any of such ineffective, invalid or unlawful provision with a new provision that shall have as much as possible the same effect as the ineffective, invalid or unlawful provision.  Any modification or amendment of this IA shall be valid only if executed in writing and signed by duly authorised representatives of each Party. ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND FGSZ (RO-HU IP) Compulsory terms and conditions according to the EU Regulation no. 2015/703 (INT NC) - IX

Governing law and dispute resolution

 The IA is governed by and construed in accordance with Swiss law.  Any dispute, arising out of or in relation with the IA, including the validity, invalidity, breach thereof shall be settled by arbitration in accordance with Swiss Rules of International Arbitration of the Swiss Chamber of Commerce in force on the date when the notice of arbitration is submitted in accordance with the rules set by the IA. The seat of arbitration proceedings shall be conducted in Zürich, Switzerland.  Any arbitration shall take place before a panel of three arbitrators. Out of the three (3) arbitrators one arbitrator shall be appointed by FGSZ, one by TRANSGAZ and the third arbitrator shall be mutually agreed by the Parties. If the Parties are unable to agree upon the identity of such third arbitrator within ten (10) days from the date of referral of the Dispute to arbitration, such arbitrator shall be appointed by the previously appointed two arbitrators. In the event that one of the provisions of this IA is or becomes ineffective, invalid or unlawful, this shall not affect the validity of the other provisions herein.  The arbitration procedure shall be conducted in English language. ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

INTERCONNECTION POINT 2: RO-BG: GIURGIU - RUSE

- Commissioned on January 2017 (bidirectional capacity)

- Transmission capacities: - BG-RO capacity: 0.46 bcm/y (all year around) - RO-BG capacity: 0.02 bcm/y (seasonal only – summer)

- Planned extension of capacities in both directions (to: 1.5 bcm/y BG-RO direction, 0.5 bcm/y RO-BG direction, all year around), after implementing the BRUA project (phase I)

- First IA concluded between TRANSGAZ and BULGARTRANSGAZ in 2016 ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND BULGARTRANSGAZ (RO-BG IP)

 The structure of the IA similar to the one of IA concluded between TRANSGAZ and FGSZ for the RO-HU IP – i.e. in line with the requirements of the EU Regulation no. 703/2015

 The RO-BG flow is limited during summer due to physical constraints that exist on the Romanian NTS level. These constraints will be removed once the BRUA project – phase I will be implemented

 Future discussions will be held by TRANSGAZ and BULGARTRANSGAZ in order to further improve the content of the IA and, subsequently, open the public consultation process in accordance with the provisions of the EU Regulation no. 703/2015 ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

INTERCONNECTION POINT 4: RO-MD: IA ŞI - UNGHENI

- Commissioned on August 2014

- Transmission capacities: - RO-MD capacity only: 0.04 bcm/y

- Planned extension of capacity to 1.5 bcm/y, subject to the commissioning of Ungheni-Chi şin ău pipeline

- No IA concluded between TRANSGAZ and VESTMOLDTRANSGAZ; only Operational Agreement (AO), concluded in 2014 ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

OA CONCLUDED BETWEEN TRANSGAZ AND VESTMOLDTRANSGAZ (RO-MD IP) Structure of the OA 1. Definitions 2. Scope of the OA 3. Transfer of Risk of Loss 4. Business rules 5. Border pressure and technical capacity 6. Duration 7. Liability 8. Governing law and dispute resolution 9. Waiver of sovereign immunity Note: RO-MD IP lies outside the scope 10. Force Majeure of EU Regulations since this is an IP 11. Miscellaneous with a non-EU country ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

OA CONCLUDED BETWEEN TRANSGAZ AND VESTMOLDTRANSGAZ (RO-MD IP) Supplementary information (I) Nevertheless, in the framework of the Energy Community, ANRE has adopted, in 2017, a Declaration stating the following:

RECOGNIZING:  the need to develop energy markets in South East and Eastern Europe in close cooperation between Energy Community Contracting Parties and Member States of the  the necessity of interconnected systems in South East and Eastern Europe to operate on common and reciprocally binding rules for the benefit of system security, security of supply and market functioning as well as to achieve the critical liquidity  that treating interconnections, cross-border flows or network capacities equally and irrespectively whether the border to be crossed is situated between EU Member States and/or Contracting Parties paramountly contributes to the very idea of a single regulatory space for Network Energy and abolishment of barriers to trade  that there is no legal obstacle to treating interconnection points between Member States and third countries that are Energy Community Contracting Parties equal to interconnection points between Member States and that in certain network codes and guidelines an explicit legal basis is already provided for, namely: • point 2.1.1.1 of Annex I to Regulation (EC) 715/2009 as amended by Commission Decision of 24 August 2012 (Guidelines for Congestion Management Procedures); and • Article 1(2) of Commission Regulation (EU) 2015/703 of 30 April 2015 establishing a network code on interoperability and data exchange rules; and • Article 2(1) of Commission Regulation (EU) 984/2013 of 14 October 2013 establishing a Network Code on Capacity Allocation Mechanisms in Gas Transmission Systems ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

OA CONCLUDED BETWEEN TRANSGAZ AND VESTMOLDTRANSGAZ (RO-MD IP) Supplementary information (II) DECLARES THAT: Will apply network codes and guidelines adopted based on Article 6(11) or Article 23 of Regulation (EC) 715/2009 on the points interconnecting the gas transmission system of ROMANIA with the gas transmission system of REPUBLIC OF MOLDOVA and equally to points interconnecting the gas transmission system of ROMANIA with the gas transmission system of other Member States of the European Union, provided the Secretariat of the Energy Community has been notified by REPUBLIC OF MOLDOVA and UKRAINE of its transposition of the relevant network code(s) or guideline(s). More specifically this commitment relates to the interconnection points: - Medie şu Aurit (UA) - Isaccea Import (UA) - Isaccea I (UA) - Isaccea II (UA) - Isaccea III (UA) - Ungheni (MD)

SUBJECT TO: The resolution of challenges stemming from existing legacy agreements (i.e. contracts, technical operation conditions).

In executing this commitment, national regulatory authorities or, where applicable, national authorities should coordinate and inform each other in taking their respective decisions. ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

INTERCONNECTION POINTS 5 AND 6: RO-UA: MEDIE ŞU AURIT - TEKOVO (5) AND ISACCEA IMPORT - ORLOVKA (6)

MEDIE ŞU AURIT - TEKOVO:

- Commissioned in 1999 - Transmission capacities: - UA-RO capacity only: 4.00 bcm/y - Possible reverse flow to UA, subject to the results of market consultation process started in 2017 - No IA concluded between TRANSGAZ and UKRTRANSGAZ

ISACCEA IMPORT - ORLOVKA:

- Commissioned in 1979 - Transmission capacities: - UA-RO capacity only: 8.60 bcm/y - No IA concluded between TRANSGAZ and UKRTRANSGAZ

Note: These 2 IPs lie outside the scope of EU Regulations since these are IPs with a non-EU country ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

INTERCONNECTION POINTS 3 - RO-BG: NEGRU VOD Ă - KARDAM I, II, III 7 - RO-UA: ISACCEA - ORLOVKA I, II, III

NEGRU VOD Ă – KARDAM I and ISACCEA – ORLOVKA I (so called „transit line” - T1): -Commissioned in 1974 -Transmission capacities: - RO-BG capacity only: 6.10 bcm/y - UA-RO capacity only: 6.10 bcm/y -No third party access until 1st of October, 2016 -IAs concluded between TRANSGAZ and BULGARTRANSGAZ (for Negru Vod ă-Kardam I IP) and between TRANSGAZ and UKRTRANSGAZ (for Isaccea-Orlovka I IP) in 2016 (business rules for the latter not applicable ) -The pipeline connecting the two IPs forms an independent system (cannot be operated as part of the Romanian National Transmission System) -Main supply for the BG market -Supplies also two municipalities in RO -Capacity allocated on Regional Booking Platform - RBP (equal bookings between RO entry and exit IPs without flow control on Romanian sides) ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

IA CONCLUDED BETWEEN TRANSGAZ AND BULGARTRANSGAZ (RO-BG IP NEGRU VOD Ă I – KARDAM I – T1)

 The structure of the IA similar to the one of IA concluded between TRANSGAZ and BULGARTRANSGAZ for the RO-BG IP GIURGIU-RUSE – i.e. GENERALLY in line with the requirements of the EU Regulation no. 703/2015, with several specificities:  Since there is no bidirectional flow, the introduction of backhaul transmission services was discussed. Could not be implemented due to technical problems encountered at RO-UA IP Isaccea I – Orlovka I  At present, no bundled capacity is offered at this IP. Further ammendments are necessary  Future discussions will be held by TRANSGAZ and BULGARTRANSGAZ, in the context of the Memorandum of Understanding signed in September 2016 in the framework of CESEC, in order to further improve the content of the IA (especially related to the provision of bidirectional flows) and, subsequently, open the public consultation process in accordance with the provisions of the EU Regulation no. 703/2015 ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

INTERCONNECTION POINTS 3 AND 7 - CONTINUED

NEGRU VOD Ă – KARDAM II and ISACCEA – ORLOVKA II (so called „transit line” - T2): -Commissioned in 1987 -Transmission capacities: - RO-BG capacity only: 9.60 bcm/y - UA-RO capacity only: 9.60 bcm/y -No third party access at present -No IAs concluded between TRANSGAZ and BULGARTRANSGAZ and between TRANSGAZ and UKRTRANSGAZ

NEGRU VOD Ă – KARDAM III and ISACCEA – ORLOVKA III (so called „transit line” - T3): -Commissioned in 1999 -Transmission capacities: - RO-BG capacity only: 9.70 bcm/y - UA-RO capacity only: 9.70 bcm/y -No third party access at present -No IAs concluded between TRANSGAZ and BULGARTRANSGAZ and UKRTRANSGAZ

- Historical contracts with Gazprom Export (GPE) valid until 2018 (for T2) and 2023 (for T3) - Issues in concluding IAs for all these 4 IPs in order to allocate the available capacity after 2018 based on CAM provisions ANRE ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE

Thank you for your attention!

ROMANIAN ENERGY REGULATORY AUTHORITY – ANRE

CONTACT INFORMATION Phone: (+ 40 21) 311 22 44 Fax : (+ 40 21) 312 43 65 Email: [email protected] ; [email protected] www.anre.ro