Michael Woltran presents at the Vienna Forum on European Energy Law, 2013

1. OMV Gas & Power
Move & More.
Challenges for the
European Gas Market
Vienna, March 8, 2013
Michael Woltran
Senior Vice President
Gas Logistics

2. 2 |Vienna Forum on European Energy Law – March 8, 2013
Oil & gas import dependencyMajor global gas flows, 2010/2035 (bcm)
Ongoing Changes in the Energy Landscape
Changing supply pattern
Globalization of gas trade / LNG to link global energy market
Divergent regional import dependency
139 390
2010 2035
0 27
0 41
94 168
86 252
62 29
25 107 Source: IEA World Energy Outlook 2012

3. 3 |Vienna Forum on European Energy Law – March 8, 2013
European Gas Market – Economic Challenges I
0
100
200
300
400
500
600
700
201520102005 20252020
SOURCE: OMV market update 2012, based on public and proprietary data
Forecast
EU 27+Turkey, bcm Technical supply capacity
Widening
gap too large
to manage
byToP
flexibility
High uncertainty in forecast
OMV expected demand forecast range Full demand forecast range
Range for contracted supply volumes incl. ind. prod.
 Demand – supply gap
 Widening demand
– supply capacity
gap since 2008
 End of this decade
demand – supply
pattern to change
 Uncertain
developments
lead to broad
range in demand
forecast
 Need to meet
demand

4. 4 |Vienna Forum on European Energy Law – March 8, 2013
UK
SEE
9297
211206 3529
5938
Turkey
NWE
CEE
7477
Italy
Gas demand by submarket
bcma Stagnating demand
Growing demand
4839
Nabucco West TANAP South
Caucasus
Pipeline
Ø 2009-111 2020
 Slow demand
growth (~1.8% p.a.²)
 Regional differences
(Turkey: Fastest
growing market
(~3.6% p.a.²))
 Profitability of
market-based energy
business under
pressure
 Increasing import dependency on gas
European Gas Market – Economic Challenges II
1 Average 2009-11 taking for actual
figures to eliminate yearly weather
fluctuations
2 CAGR 2011-2020
SOURCE: OMV market update 2012/2030 based on Eurogas, Cera, local regulators and OMV analysis

5. 5 |Vienna Forum on European Energy Law – March 8, 2013
European Gas Market – Political Challenges
Energy challenges calling for feasible solutions for the European gas market
 Challenging regulatory framework for
natural gas in Europe
 Restrictive energy policies
 Natural gas squeezed from policy
environment (e.g. high subsidies for
renewables, low carbon price)

6. 6 |Vienna Forum on European Energy Law – March 8, 2013
European Gas Demand Scenario until 2035
Gas - most important energy fuel until 2035 in Europe
EU 27+Turkey primary energy demand
mn t p.a.
Coal
Nuclear
Renewables
Gas
2035
1,859
31%
25%
10%
12%
22%
2020
1,825
27%
29%
16%
12%
16%
2010
1,822
26%
33%
17%
13%
11%
Oil
Source: IEA World Energy Outlook 2012, BP Statistical Review, IHS CERA, OMV analysis

7. 7 |Vienna Forum on European Energy Law – March 8, 2013
The European Gas Market – How to Look Like
 Liberalized, but not overregulated market
 Decarbonisation targets to meet the real market environment
 Gas infrastructure
development
shaped by EU
needs and SoS,
diversification and
geostrategic goals
 Increasing regional
integration between
European energy
markets
 Stronger correlation
among Gas Hubs
 Variety of suppliers,
supply sources and
contractual terms
European
gas markets
 Long-term supply patterns to adapt to
new market reality
 Adopted contracts containing
intelligent price concepts
 LTCs to remain backbone for secured
supply?!
Gas promotion to increase the gas demand
Supply / Demand
Infrastructure
Competitive Gas Market
Regulatory Framework

8. 8 |Vienna Forum on European Energy Law – March 8, 2013
Natural Gas, the Energy Source of the Future(?)!
 Supporting decarbonization of European economy
 Natural gas in combination with increased share of Renewable Energy Sources
 Lowest CO2 emissions
 Further development of technologies and innovation
 Further enhancement of markets (liquidity, flexibility, integration)
 A wise and strategic energy turnaround offers new possibilities and markets for
natural gas:
 High potential of natural gas in the market
 Diverse fields of application (thermal / power / transportation market)
Any pragmatic roadmap for a sustainable future has to involve a larger role for gas
and to strengthen awareness of natural gas as green energy in policy, public and
among our customers
 Increased share of natural gas in the energy mix
Current situation
Vision

9. 9 |Vienna Forum on European Energy Law – March 8, 2013
OMV as Integrated Gas and Power Player
Strategy: Integrated Gas

10. 10 |Vienna Forum on European Energy Law – March 8, 2013
Reasonable Thoughts for the Gas World
 Current radical changes on the global energy market
 In combination with increasing import dependency on gas in Europe
 Lead to a challenging role for natural gas as a perfect supplement to
renewable energy in the future energy mix.
 Thus we need a fully functioning European gas market
 With supportive political and regulatory framework and
 Efficient market conditions
 Progress in geostrategic projects (Nabucco) and logistical integration
 New markets to be opened up for natural gas
 Competitive pricing
What we have to concentrate on now is the promotion of gas as the best
solution to meet future energy demand!

11. 11 |Vienna Forum on European Energy Law – March 8, 2013
Michael Woltran
Senior Vice President
OMV Gas & Power GmbH
Trabrennstrasse 6-8
1020Vienna/Austria
www.omv.com