Quality of service

The performance of REN natural gas infrastructures in terms of continuity of
service was once again excellent in 2013. No supply interruptions occurred and all
the natural gas indicators were within the limits set out in the Quality of Service
Regulations (QSR).

The accumulated indicator for the frequency of incident occurrence per year per
1 000 km of high-pressure transmission infrastructure currently stands at 0.052,
based on the total exposure time of the infrastructure. Considering only the last 5
years it is 0.154. The value of the same indicator published by the European Gas
Pipeline Incident Data Group (EGIG) for all TSOs participating in the scheme is
0.162 for the last 5 years.

In relation to the indicators defined in art. 13 for quality of service in the Natural
Gas Sector, REN Armazenagem and REN Atlântico registered the following
annual figures:

GENERAL QUALITY OF SERVICE INDICATORS FOR REN ARMAZENAGEM
Compliance with nominations for natural gas withdrawal 100.0%
Compliance with nominations for natural gas injection 99.7%
Compliance with energy storage 100.0%

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Notes:
- Compliance with nominations for natural gas withdrawal: the ratio between the number of nominations complied with and the total number of nominations
- Compliance with nominations for natural gas injection: the ratio between the number of nominations complied with and the total number of nominations
- Compliance with energy storage: determined based on the mean square error between nominated and real energy values resulting from the total requests by the users of both injection and withdrawal of gas

General quality of service indicators for Ren Atlântico

Total unavailability was 23 hours, of which 11 were planned, corresponding to
facility availability of 99.76%.

Internally, 62 301 hours of work were carried out and one non-fatal accident
took place.

In terms of subcontracted workers, 33 304 hours of work were carried out, also
with one non-fatal accident taking place.

GENERAL QUALITY OF SERVICE INDICATORS FOR REN ATLÂNTICO

Compliance with commercial service (nominations) 100.0%
Injection of natural gas into the network (injected/ requested) 99.54%
Availability of facility 99.76%

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System operation

In 2013, the intake of natural gas into the infrastructure operated by the
RNTGN concession holder was predominantly through Campo Maior (55.8%),
which connects with the Maghreb gas pipeline and supplies Portugal with gas
mainly from Algeria. The intake from the regasification of liquefied natural gas
at the REN Atlântico Sines Terminal stood at 40.0%. Inputs into the grid via
underground storage and Valença were equivalent to 3.5% and 0.7% respectively
of the total intake to the national system. The following graph shows the
weighting of entries to the system:

With regard to the usage of maximum system capacities, in 2013 the maximum
entry figure through Campo Maior was 110.4 GWh and 150.2 GWh through
Sines. These recorded highs are equivalent to the use of 82.4% of the maximum
capacity in Campo Maior and 78% in Sines. With regard to the interface with
underground storage, the maximum extraction reached 85.1GWh whilst the
maximum injection reached 23.5GWh, equivalent to almost 100% usage of the
maximum infrastructure capacity.

During 2013, plans were laid out for the commissioning and entry into operation
of a new cavern alongside the underground storage caverns currently in
operation, thereby guaranteeing sufficient availability for both the gas station
and the operating conditions of RNTIAT.

With regard to the supervision of the system carried out from the dispatch
centre, December 2013 saw the conclusion of the upgrade of REN Gasodutos
supervisory, control and data acquisition system, leading to the involvement of
various technical teams and the coordination of activities to ensure availability of
supervision and to control the NG transmission system. The aim of this project,
covering all the stations, is to ensure the timely availability of SCADA data to
those downstream interfaces that depend on it, thereby ensuring the proper
functioning of their technological processes.

The transition to the new SCADA system (VS ICS) took place gradually
(station by station), ensuring users could still have access to all the previous
functionalities in a more user friendly and intuitive environment, as well as
providing access to new technological functionalities with the aim of facilitating
access to information and subsequent decision making.
The new regulations relating to the European grid laid down by Regulation EC 715/2009, changing the framework for internal NG transmission systems, impacted above all on capacity
allocation Having therefore introduced the concept of auctions, it was necessary
to adapt the internal rules that had been in effect until this point in Portugal, to
ensure progressive and rapid adaptation to this new scenario. In this sense, the
operating system was directly involved in the establishment of regulations and
products included in the publication by ERSE in August 2013 of the Procedures
for Access to Infrastructures Manual (MPAI ), as well as in the review of the System Global Management Procedures Manual (MPGTG). Alongside the establishment of these
regulations it was necessary to put them into operation via the implementation
of the relevant access platform with the support of the operating system.

Remaining on the subject of new regulations relating to the management of
access to the infrastructure, and with reference to the adoption of new concepts
across the Portuguese gas system, of note is the operational slots that can be
reserved by market agents for the loading and unloading of LNG via the carrier
vessels at the Sines terminal, which is linked to the other new development
surrounding operational storage capacity relative to the capacity dedicated
exclusively to the undertaking of these operations.

Operation of the Sines LNG terminal

With regard to operations, the LNG Terminal received a total of 41 ships in 2013
(32 unloading operations, three cooling operations and six loading operations),
corresponding to total unloaded energy of 26.16 TWh and regasification of 19.52
TWh to the network. In the same period, 3 138 tanker trucks were loaded, all from
the domestic market, corresponding to total energy of 956 GWh.

The company conducted six audits, all with positive results, two of which were
under the SEVESO directive, two relating to the verification of the integrated
quality, environment, health and safety management system, one internal audit
relating to the ISPS Code and one within the scope of the APS concession.

A safety drill was conducted with the participation of external entities, which
tested the response capacity of REN Atlântico and other bodies involved in the
protection of the facility (ISPS) and Safety (PEI-SEVESO).

Operation of REN Armazenagem

In 2013, a total of 1 351 GWh of natural gas was withdrawn and 290 GWh was
injected into REN Armazenagem caverns, with a global self consumption of
around 4 GWh. With regard to the operation of the gas station, total processed
natural gas was 3 671 GWh, broken down into 1 719 GWh of withdrawals and 1 952
GWh of injection, with 1 587 GWh to the first filling of the cavity TGC-2
of Transgás-Armazenagem. Overall self consumption by the gas station in 2013
corresponded to 18 GWh.

At the end of the year, compared with 2012, the following balance of stocks was
observed:

NATURAL GAS STOCKS AT REN ARMAZENAGEM (GWh)*

AT 31 DECEMBER
2012

AT 31 DECEMBER
2013

VARIATION 12/13
(ENERGY)

1,509 443 -71%

* The figures indicated do not include cushion gas

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LNG STORAGE Terminal

AVERAGE DAILY LEVEL OF NATURAL GAS STOCKS AT REN ARMAZENAGEM (GWh)*

2012 2013 VARIATION 12/13 (ENERGY)
1,429 1,218 %

* The figures indicated do not include cushion gas

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The quantities stored at the end of 2013 represent a reduction of 71% compared
to figures for the previous year, justified by the movements of gas taking place in
November and December.

At 31st December 2013, the nominal capacity figures for REN Armazenagem’s three
caverns in operation were as follows:

INFRASTRUCTURE CAPACITIES [GWh]

  '12 '13
Maximum capacity 1,659 1,642
Effective maximum capacity after technical restrictions 1,483 1,478
Commercially available capacity 1,403 1,398
Cushion gas 1,591 1,591

Notes:
- Cushion gas: permanent volume of gas maintained in cavities in order to ensure the minimum pressure required to safeguard their structural stability
- Maximum capacity: total capacity minus the cushion gas volume
- Maximum effective capacity after technical restrictions: maximum capacity minus the volume restrictions for using the caverns due to technical constraints
- Commercially available capacity: maximum effective capacity after technical restrictions minus the capacity allocated to the SNGN technical system manager for operational reserves

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