Natural Gas for Transport – Making it happen Timo Vehrs Director Business Development GAZPROM Germania GmbH Brussels, July 09

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GAZPROM GERMANIA GmbH - NGV 2014 Brussels – July 09, 2014

CLUSTER APPROACH TO CNG AND LNG MARKET DEVELOPMENT •

Light duty vehicles and personal cars with continuing growth in CNG St.Petersburg

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Buses and local distribution will continue to facilitate CNG growth, with LNG entering the picture

Kingisepp

Kaliningrad

LNG growth facilitated by international heavy duty transport and bunkering

NW-E-Cluster

NE-E-Cluster

SE-E-Cluster

SW-E-Cluster

NGV markets

South Stream

Bunkering markets

Up- / midstream Infrastructure options

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LNG Bunkering Mediterranean Sea

GAZPROM GERMANIA GmbH - NGV 2014 Brussels – July 09, 2014

GAZPROM IS WELL PRESENTED IN THE MARKET AND THE EXISTING REFILLING INFRASTRUCTURE WILL BE EXPANDED

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GAZPROM GERMANIA GmbH - NGV 2014 Brussels – July 09, 2014

2012 – PROOF OF FEASIBILITY OF LNG-FUELLED BUSES IN 6 POLISH CITIES TOGETHER WITH SOLBUS 2 Solbus Solcity LNG buses in operation on regular lines of public transport in — Torun (18.04.-22.04.) — Gdynia (23.04.-29.04.) — Olsztyn (30.04.– 06.05.) — Warsaw (07.05.-20.05.) — Katowice (21.05.-27.05.) — Krakow (28.05.-02.06.) GAZPROM Germania provided the mobile LNG refueling station Step from theory to practice: customers see, feel and experience the benefits of LNG-fuelled buses 4

GAZPROM GERMANIA GmbH - NGV 2014 Brussels – July 09, 2014

2013: 4-WEEKS FIELD TEST WITH VOLVO FM460 METHANE-DIESEL WITH ALBA (BERLIN) Cooperation with erdgas mobil and Berlin Waste Management Services Alba Trial of Volvo FM460 Methane Diesel under Real Live conditions Medium distances with 40t trailer Vehicle is Euro-5 and currently not commercially available neither as Euro-5 nor as Euro-6

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GAZPROM GERMANIA GmbH - NGV 2014 Brussels – July 09, 2014

OCTOBER 2013: LAUNCH OF EUROPE’S FIRST 11 LNG CITY BUSES IN THE POLISH CITY OF OLSZTYN Public tender for serving bus routes in Olsztyn won in March 2013 Cooperation between GPG (fuel supply and LNG station), Solbus (LNG buses) and KDD Dariusz Gackowski (operator of bus routes) 11 x 12m solo LNG buses up to later 50 LNG buses by 2016/2017 Operations 7 days per week / 65.000 km per bus p.a. Since Oct 2013: refueling by GPG’s mobile LNG station Implementation of fixed station started 03/2014 From Nov 2014: refueling by fixed station

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GAZPROM GERMANIA GmbH - NGV 2014 Brussels – July 09, 2014

JANUARY 2015: LAUNCH OF 35 LNG CITY BUSES IN THE POLISH CITY OF WARSAW Public tender for 35 LNG-buses and LNG fuel deliveries to municipal transport company of Warsaw (MZA) won in November 2013, contract signed in December 2013 Cooperation between GPG (fuel supply and LNG station), Solbus (LNG bus producer) and Lider Trading (Solbus dealer as face o the client) 35 x 18m articulated LNG buses up to later 200 LNG buses by 2016/2017 Operations 7 days per week / 80.000 km per bus p.a. From Jan 2015: refueling by mobile LNG station From Jun 2015: refueling by fixed station Possible LCNG-addon for 30 CNG buses (subject to further tender)

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GAZPROM GERMANIA GmbH - NGV 2014 Brussels – July 09, 2014

LNG/LCNG STATION 3D LAYOUT

LNG scope 8

LCNG scope GAZPROM GERMANIA GmbH - NGV 2014 Brussels – July 09, 2014

WE ARE PREPARED TO SUPPORT AN ACCELERATED DEVELOPMENT Provide sustainable supply of natural gas

Establish own presence for CNG/ LNG

Engage in longterm partnerships

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Provide sustainable supply of Russian natural gas to the transportation sector (CNG / LNG)

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Develop own presence of natural gas filling stations for CNG and LNG in areas of high demand

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Assess opportunities for investments in CNG and/or LNG filling station infrastructure projects in cooperation with automotive manufacturers and clients

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Attract economical and political interest for development of alternative fuel projects in Europe

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Liaise with potential clients interested in lowering operating cost whilst at the same time fulfilling environmental objectives

GAZPROM GERMANIA GmbH - NGV 2014 Brussels – July 09, 2014

GOVERNMENTS AND POLICY MAKERS NEEDED TO PROVIDE FRAMEWORK FOR SUCCESS

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Continue energy tax relief on natural gas as motor fuel and due to its superior environmental benefits and compatibility with bio-methane differentiate it from LPG (liquefied petroleum gas)

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Expand targets for NGVs in the transportation sector and introduce supporting measures, such as uniform reference basis for fuel prices at filling stations, establishing consumer-friendly energy pricing transparency

Beneficial tax regime

Energy Pricing Transparency

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GAZPROM GERMANIA GmbH - NGV 2014 Brussels – July 09, 2014

Thank you for your attention! Timo Vehrs GAZPROM Germania GmbH Email: [email protected]

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