CONNECTING TO THE INTERCONNECTOR SYSTEM

The Interconnector Transmission System is connected in the United Kingdom to the National Transmission System and the SILK System (which provides a direct link to a number of UKCS offshore fields), and to the Fluxys Transmission System in Belgium.

Any Interconnector Shipper may request that IUK connect to another high pressure transmission system. If such a request is received, the Standard Transportation Agreement sets out the process to be followed when considering and progressing such an application.

Particular consideration will be given to:

• Operating costs specific to the new connection
• The GCV and Wobbe Index of natural gas expected to be delivered through the proposed new system

And Interconnector acting as an 'RPO', will make a decision as to whether the existing service will be materially jeopardised by the proposed new connection. Such decision may be referred to and determined by an Expert.

Any new connection to the Interconnector Transmission System will be governed by interface agreements entered into between IUK, the operator of the relevant high pressure transmission system and the applicant IUK Shipper.

In the case of a new connection which is reasonably expected may materially threaten the existing service, the relevant interface agreements will contain provisions to prevent the service being jeopardised and/or for compensation in the event that the service is adversely affected.

CONNECTED TRANSPORTERS

At the Bacton Terminal there are two connection points to the Interconnector system. The main connection point is with the UK National Grid and there is a second connection point (SILK Connection Point) that allows SEAL gas to flow directly into the Interconnector pipeline.

In Belgium, there is a single connection point between the Fluxys system and the Interconnector pipeline which allows gas to physically flow into and out of the Belgian gas network.

NATIONAL GRID

National Grid Gas is the operator of the natural gas transmission system (NTS) in Great Britain. To flow gas from the NTS to Interconnector, shippers (Users) need to accede to the CSEP Ancillary Agreement for Interconnector. For more information contact:

One of the obligations in the CSEP Ancillary Agreement is that Users must accede to the Designated Agency Agreement. This is the Bacton Principals Agreement (BPA) between approximately 25 shippers (Principals) and Bacton Agent Company Ltd (BACL), a company set up and run by a subset of Principals specifically for this purpose. The BPA acts as an interface between the shippers and Interconnector for matching of nominations and between National Grid Gas and the shippers for gas allocation.

Bacton Agent Company has appointed Bacton Agency Services Ltd (a subsidiary of Interconnector (UK) Ltd) to perform the operational services, including:

• management of the submissions and matching of gas flow nominations between NTS shippers and Interconnector, before and during the day;
• allocation of the actual gas flow between the NTS shippers after the day; and
• calculation of shippers' entitlement to flow during periods of interruption or curtailment.

If you require further information on the activities of the Bacton Agent, please contact the BACL General Manager at:

or visit the Bacton Agency Company website http://www.bactonagent.co.uk

FLUXYS

Fluxys is the independent operator of the natural gas transport system, the transit grid and gas storage infrastructure in Belgium.

Contact the Fluxys Matching Agent for more information:
Telephone: +32 222 827 052
or visit the Fluxys website: http://www.fluxys.net