Adjustment of the Capaciy Products at Entry Points based upon the Market Area Merger to be implemented by law as of 1 April 2011

Like all other German transmission system operators, we as Thyssengas GmbH are required by § 21 (1) Gas Network Access Order (GasNZV) to reduce the market areas for H-gas to at most two and for L-gas to at most one by 01 April 2011. For that reason we intend to bring the Thyssengas H-gas and L-gas market areas into the market area alliance of NetConnect Germany GmbH & Co. KG (NCG) as of 01 April 2011. As our shipping customer, you then have the possibility to use Germany’s biggest market area across all gas grades and to realise direct access to one of the most liquid trading points in Europe.

With this new market area alliance, however, there are also new technical requirements placed on the present Thyssengas trunk grid. To still ensure the security of supply and network stability you are used to and which is required by law, as well as the present capabilities of the Thyssengas trunk grid, within the context of the new market area alliance, introduction of load- and thus temperature-dependent usage restrictions for the firm capacities existing at Thyssengas entry points is essential. As of 01 April 2011, therefore, we are adjusting the product description for all firm capacities at the entry points of the Thyssengas trunk grid, pursuant to § 60 (4) of our General Terms & Conditions for Network Access (NZB) and § 2 of the Supplementary Terms & Conditions of Network Access (Annex NZB 3). This is in accordance with the new technical requirements within the context of the market area alliance.

Individually, this involves the entry points:

• Bocholtz - Vetschau
• Broichweiden Süd
• Emden
• Emsbüren
• Epe - (UGS-E) I
• Epe - III (UGS-E)
• Emlichheim - Kalle - 1 (UGS-E)
• Lichtenbusch
• Xanten - 1 (UGS-E)
• Zevenaar

The load- and thus temperature-dependent usage restrictions being introduced involve the transformation of the previously unlimited, firm and freely allocable capacity into a load-dependent firm and freely allocable capacity. Use of that capacity is limited collectively to the respective output in the existing Thyssengas H-gas, resp. Thyssengas L-gas, networks and, with respect to collective simultaneous use of all capacities, does not differ from the status quo, as it corresponds to the present output of the relevant market areas. The load-dependent and thus temperature-dependent limitation serves to avoid any overfeeding of the Thyssengas networks that might occur because of the enlarged allocation options in balancing groups within the enlarged market area of NCG and allows us to uphold free allocability of all presently freely allocable entry capacities whilst retaining the absolute level.

In the event of any physical overfeeding of the Thyssengas networks, which cannot be compensated for by use of balancing energy within the Thyssengas network, all physical entry capacities into the Thyssengas network will be cut back on a pro rata basis until that overfeeding has been eliminated. That process will be repeated in the event of any new overfeeding because of renominations as necessary. As a result, there remains for all entry capacities a minimal secured and temperature-dependent usability, which is based on the load share of the Thyssengas H-gas and Thyssengas L-gas networks allocated specifically to the entry capacities and presented on an updated basis in the Internet. No cutbacks of capacities due to internal bottlenecks within the Thyssengas network will take place, because the Thyssengas network is free of bottlenecks within the scope of the bookable capacities.

Finally, we would like to point out that this approach is being monitored and – as you can see from the enclosed letter – supported by the Federal Networks Agency.