WINGAS GmbH

Press Release

April 18, 2007 Nicholas Neu PI-07-08 +49 561 301-3301

 +49 561 301-1321 [email protected] Innovative steam turbine technology: WINGAS and WINGAS TRANSPORT expand transport capacity

Pilot project uses waste heat and reduces emissions / network bottlenecks cleared / million investment

Mallnow. Long-distance gas distributor WINGAS GmbH and its subsidiary WINGAS TRANSPORT GmbH & Co. KG are taking a new approach to natural gas transportation: The exhaust heat of the three existing gas turbines at the Mallnow gas compressor station near Frankfurt/Oder will be used to power a new steam turbine. “In this way, we save expensive drive

energy, making use of state-of-the-art technology and reducing CO2 emissions," says Dr. Rainer Seele, Chairman of WINGAS. The companies are investing over 25 million euros in the project. The necessary planning approval to start construction has already been obtained. The steam- turbine-powered gas compressor is expected to come on stream in October 2007.

Network operator WINGAS TRANSPORT is responsible for eight compressor locations in . The Mallnow station near the German- Polish border is one of the most important facilities in the company’s 2000 kilometer pipeline system. This is where Russian gas arrives from the production fields in Western Siberia and is fed into the German long- distance gas transport system. “The additional turbine will allow us to take up to 3.5 million cubic meters of Russian gas per hour and transport it to consumers in Germany and Western Europe,” explains Ingo Neubert, Managing Director of WINGAS TRANSPORT. “Given the increasing cost pressure on network operators in Germany from taxes on fuel gases and

CO2 emission targets, this efficient technology will also contribute to enhance our competitiveness in natural gas transport,“ continues Neubert.

The continuous reduction in CO2 emissions has been one of the global environmental targets pursued by BASF Group companies since 2002. As recently as in September 2006, WINGAS’ parent company was included in the respected Climate Leadership Index for special contributions in dealing with climate change and reducing greenhouse gases. In the same context, BASF announced a significant increase in expenditure for climate

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protection and the development of new processes to increase energy efficiency.

The facility at Mallnow normally runs 24 hours a day, 365 days a year, so that the exhaust heat can continuously be fed to the steam turbine. A duct with a diameter of around four meters takes the exhaust gases of the gas turbines to a waste-heat recovery boiler. “This boiler generates the steam that drives the new turbine,” explains Horst Bokelmann, head of operations engineering. Afterward, the used steam is cooled and liquefied in a closed cycle. “The water is reused to generate more steam,” says Bokelmann, “thus creating a closed cycle.” The steam turbine generates an output of up to 20 megawatts. After the expansion of the system, which is operated by WINGAS TRANSPORT, the necessary pressure will be created by four compressors with total output of 95 megawatts.

Compressor stations are an important element in natural gas transport on its way to end consumers, gas travels several thousand kilometers, losing pressure as it travels. The compressors, situated at approximately 200- kilometer intervals, increase the gas pressure again to a level of around 95 to 100 bar. Compare this to the pressure in a car tire, which is around two bars.

European energy provider WINGAS GmbH is active in natural gas trading and distribution in Germany, , , Great Britain, , the and . Its customers include municipal utilities, regional gas suppliers, industrial firms and power plants. Since 1990 WINGAS has invested more than 3 billion euros in the development of its own natural gas transport and storage infrastructure. WINGAS pipeline network, which is over 2,000 kilometers long, connects the major gas reserves in Siberia and in the North Sea to the growing markets in Western Europe. In Rehden in North Germany, WINGAS has the largest natural gas storage facility in Western Europe – with a working gas volume of over four billion cubic meters. Additional natural gas storage facilities are currently being built in Great Britain, Austria and Germany in order to secure the supply of natural gas in Europe.

WINGAS TRANSPORT GmbH & Co. KG, a subsidiary of WINGAS GmbH, offers its customers ultra modern and competitive transport services. The company operates WINGAS’ high pressure grid throughout Germany, a natural gas pipeline network of more than 2,000 kilometers. Positioned in the middle of Europe this infrastructure has become a major hub for gas transport in Europe. WINGAS TRANSPORT is being extended continuously so that Germany can retain its role as a major gas transit country.

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0 ISO 9001: WINGAS products and processes are certified.

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