Bulgargaz Is a Vertically Integrated Energy Enterprise Activities in the Gas Sector: - Supply and Transmission - Transit - Storage - Distribution Bulgargaz at Present

Home , Botevgrad, Dobrich, Elin Pelin (town), Ihtiman, Isperih, Kubrat (town)

Activities

Bulgargaz is a vertically integrated energy enterprise Activities in the gas sector: - Supply and Transmission - Transit - Storage - Distribution Bulgargaz at Present

Deals with: % Import 100 Production 0 Transmission 100 Supply to industrial consumers and gas distribution companies 100 Storage 100 Transit 100 Bulgargaz Profile

Joint Stock company, 100% state owned The owner’s rights are applied by the Minister of Energy and Energy Resources (Principal) Bulgargaz: • Owner of the high pressure gas grid on the territory of the country and • Transmission System Operator (TSO) Gas Market Players

• Bulgargaz (TSO)

• 28 gas distribution companies in 33 municipalities

• 2 production companies National Gas Network (Actual status)

CS Kardam 2 CS Kardam 1 ROMANIA Gen. Toshevo Kubrat Dobrich Isperih Russe Montana UGS + CS Chiren Varna Biala Razgrad Pleven Levski CS Provadia Vratza YUGOSLAVIA Roman CS Polski Senovetz Lovech Turgoviste Sofia Zlatna Panega Sevlievo Botevgrad Sliven Burgas Pernik CS Lozenetz Elin Pelin Stara Zagora Debelt Iambol Rakovski Nova Zagora CS Ihtiman CS Strandja Plovdiv Pazardjik

Parvomaj Dimitrovgrad Asenovgrad TURKEY Haskovo Legend: CS Petrich Main gas pipeline Gas pipeline branch Transit gas pipeline Compressor station GREECE Gas reduction station Technical Parameters

• High pressure pipelines: 2 645 км (1650 mi) • Compressor stations: 10 In total : 262 МW • Gas reduction stations: 57 • Chiren underground gas storage 1

• Personnel: 1000 Investment Programme (1)

Million Leva

(1 Leva = 1.75 SUD)

400

300

200

100

0 1998 1999 2000 2001 2002 2003 Total Investment Programme (2) 2002 - 2003

• Rehabilitation of the compressor stations • Profound modernization of the equipment and technologies of the Chiren gas storage • Construction of a communication system based on optic technologies • Introduction of a modern corporate information system • Total investments : 30 million leva (1 leva=1.75 USD) Investment Program 2003 (3)

Investments' Allocation in 2003

Head Quarter Gas Transit and Country Offices 15.24% 16,65%

Storage Transmission on ht e 41.93% territory of the country 26.18% Gas Consumption (BSCMY)

8.00

7.00

6.00

5.00

4.00

3.00

2.00

1.00

- 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Gas Consumption Structure (2002)

4% 3% 5% 5%

39% 12% Power&Heat Chemistry Metallurgy Glass and Porcelain Others Gas Distribution - 4% 32% Cement Gas Distribution, 2002

Companies Sales % (MMSCM) Overgas 75 66 Black Sea Technology Company 17 15 Primagas 6 5 Balkangaz 6 5 Sevlievogaz 5 4 Komekes 4 4 Bulgargaz 0.09 0.07 Total 113 100 Gas Transit via Bulgaria

Turkey: 93 BSCM in total from 1987

Greece: 7 BSCM in total from 1996

Macedonia: 0.3 BSCM in total from 1998 Gas Transit (1987 – 2002) (BSCMY)

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Transit in 2002

BSCMY % of total Turkey 11.8 87

Greece 1.6 12

Macedonia 0.09 1

Total: 13.5 100 Gas Infrastructure Development Perspectives (1)

• Gas pipeline to Serbia

• Expansion of the transit pipeline capacity to Greece Gas Infrastructure Development Perspectives (2)

CS Kardam 2 CS Kardam 1 ROMANIA General. Toshevo CS Vulchi dol Kubrat Dobrich Russe Isperih Montana UGS + CS Chiren Va rna Razgrad Levski Biala Pleven CS Provadia Vratza Roman SERBIA CS Polski Senovetz Turgoviste Lovech Sofia Zlatna Panega Sevlievo Botevgrad Sliven Burgas Pernik CS Lozenec Elin Pelin Stara Zagora Debelt Iambol Rakovski Nova Zagor a Dupnitsa CS Ihtiman CS Strandga Plovdiv Pazardgik

Parvomai Dimitrovgrad Asenovgrad TURKEY Haskovo Legend: CS Petrich Main gas pipeline Gas pipeline branch Transit gas pipeline Transit gas pipeline in a project GREECE Compressor station Gas reduction station Gas Infrastructure Development Perspectives (3)

Greece Up to 4 – 4.5 BSCMY By 2010 Up to 6 BSCMY By 2016 Macedonia Up to 0.4 BSCMY By 2007 Up to 0.5 BSCMY By 2016 Serbia Up to 0.5 BSCMY By 2007 Up to 1.5 BSCMY By 2016 New Transit Routs

Nabucco Project:

Main gas pipeline from Caspian region/Iran to Central and Western Europe

Nabucco Project Preliminary Assessments

¾ Length: 4000 km (2500 mi) ¾ Diameter: 1200–1400 mm (48 – 56 in) ¾ Capacity: 20-25 BSCMY including: - for the transit countries: 6–8 BSCMY - for Central and Western Europe: 14–17 BSCMY ¾ Investments: 4.5 – 5 billion Euro Nabucco Project Time Schedule

¾Pre-investment study: 2003 – 2004

¾Detailed design and financial arrangements : 2005 – 2007

¾Construction start and completion: 2008 – 2012 Nabucco Project On the Territory of Bulgaria (1)

¾Lenght: 400 км (250 mi)

¾Compressor stations: 2

¾Investments: 400 – 450 million Euro Nabucco Project On the Territory of Bulgaria (2)

CS Kardam 2 CS Kardam 1 ROMANIA General. Toshevo CS Vulchi dol Kubrat Dobrich Kozloduj Russe Isperih Montana Va rna UGS + CS Chiren Razgrad Levski Biala Pleven CS Provadia Vratza Roman YUGOSLAVIA CS Polski Senovetz Turgoviste Lovech Sofia Zlatna Panega Sevlievo Botevgrad Sliven Burgas Pernik CS Lozenec Elin Pelin Stara Zagora Debelt Iambol Rakovski Nova Zagora CS Ihtiman CS Strandga Plovdiv Pazardgik

Parvomai Dimitrovgrad Asenovgrad TURKEY Haskovo Legend: CS Petrich Main gas pipeline Gas pipeline branch Transit gas pipeline Compressor station GREECE Gas reduction station Nabucco project Strategic Tasks of Bulgargaz

• Local gas market development/expansion

• Transit expansion and achievement of a diversification of gas supply

• Resigning a contract for the gas transit via Romania

• Preparations for a privatization of Bulgargaz Kiril GEGOV CEO Bulgargaz EAD

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