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REGASIFICATION CODE GNL Italia

pursuant to Article 24, paragraph 5, of Legislative Decree 23 may 2000, n. 164/00

as approved by the Authority for Electricity Gas and Water with resolution n. 115/07

and subsequent amendments and additions.

REGASIFICATION CODE, REV 2018 - II Approved by the Authority for Energy, Networks and Environment with resolution 9/10/2018, 500/2018/R/gas

This document is not binding and is provided by GNL Italia exclusively for information purposes. The Italian documents being the sole and unique legally valid reference and in any case prevailing over the translated version. GNL Italia will provide updates of the translation at any time as deemed necessary, also to improve and/or adjust the quality and/or content of the translation submitted.

Regasification Code Contents

CONTENTS

The Operators

Glossary

________________________________________________________________

SECTION: “INFORMATION”

Chapter 1 REGULATORY FRAMEWORK

Chapter 2 DESCRIPTION OF THE LNG TERMINAL AND ITS MANAGEMENT

Chapter 3 DESCRIPTION OF THE SERVICES

Chapter 4 INFORMATION COORDINATION PROCEDURES

SECTION: “ACCESS TO THE REGASIFICATION SERVICE”

Chapter 5 REGASIFICATION CAPACITY ALLOCATION

Chapter 6 METHODS AND PROCEDURES FOR AUTHORISING LNG CARRIERS TO UNLOAD

SECTION: “PROVISION OF THE REGASIFICATION SERVICE”

Chapter 7 FINANCIAL GUARANTEES AND INSURANCE

Chapter 8 REGASIFICATION CAPACITY TRANSACTIONS

Chapter 9 SCHEDULING OF LNG DELIVERY AND REGASIFICATION

Chapter 10 RECEIVING, STORAGE AND REGASIFICATION OF THE LNG

Chapter 11 MEASUREMENT OF THE LNG DELIVERED AND OF THE GAS REDELIVERED

Chapter 12 QUALITY OF THE LNG DELIVERED AND OF THE GAS REDELIVERED

Chapter 13 DELIVERY OF LNG AND REDELIVERY OF NATURAL GAS

SECTION: “SERVICE QUALITY”

Chapter 14 SERVICE QUALITY

Regasification Code Contents

SECTION: “SCHEDULING”

Chapter 15 MAINTENANCE SCHEDULING AND MANAGEMENT

Chapter 16 OPERATIONAL COORDINATION

SECTION: “ADMINISTRATION”

Chapter 17 TAX AND CUSTOMS REGULATIONS

Chapter 18 INVOICING AND PAYMENT

Chapter 19 OBLIGATIONS OF THE PARTIES

Chapter 20 GENERAL PROVISIONS

SECTION: “EMERGENCY”

Chapter 21 SERVICE EMERGENCIES MANAGEMENT

Chapter 22 METHODS FOR TRANSITION FROM NORMAL OPERATING CONDITIONS TO GENERAL EMERGENCY CONDITIONS

SECTION: “AMENDMENT OF THE REGASIFICATION CODE”

Chapter 23 AMENDMENT OF THE REGASIFICATION CODE

Regasification Code The Operators

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OPERATORS Below is a list, in alphabetical order, of the main players which appear often in the descriptions of the rules and processes that govern the regasification service.

Authority

The Italian Regulatory Authority for Energy, Networks and the Environment.

Consultation

Committee

The LNG regasification technical consultation body, established under Article 5 of Resolution ARG/gas 55/09

GME Gestore dei Mercati Energetici SpA

Regasification Company

The company that performs the LNG regasification activity: used as an alternative to "GNL Italia".

Operator

GNL Italia SpA, which provides LNG unloading, storage and regasification services at the Panigaglia Terminal: used as an alternative to "GNL Italia".

User A User of the Panigaglia Terminal which, by signing the Regasification Agreement or Spot Regasification Agreement with the Operator, is entitled access to the services provided by the Operator.

Snam Rete Gas

The company that provides the transport and dispatching service to the gas pipeline network interconnected with the Panigaglia Terminal.

Party or Parties GNL Italia and the User, either individually or collectively.

Regasification Code Regulatory framework

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REGULATORY FRAMEWORK

1) REGULATION OF THE GAS MARKET IN EUROPE ........................................................................ 2

2) REGULATION OF THE GAS MARKET IN ITALY ............................................................................ 2

3) RESOLUTIONS OF THE AUTHORITY FOR DRAWING UP THE REGASIFICATION

CODE .......................................................................................................................................................... 3

3.1) RESOLUTION NO. 120/01 ....................................................................................................................... 3 3.2) NEW LNG TERMINALS .......................................................................................................................... 3 3.3) THE CONSULTATION DOCUMENT OF 14 JULY 2004 ............................................................................... 3 3.4) RESOLUTION NO. 167/05 ....................................................................................................................... 3 3.5) RESOLUTION NO. 178/05 ....................................................................................................................... 4

4) THE REGULATORY ENVIRONMENT ................................................................................................ 4


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1) REGULATION OF THE GAS MARKET IN EUROPE

The legislative framework concerning LNG regasification was introduced at Community and national level with the implementation of Directive 98/30/EC of the European Parliament and the Council of 22 June 1998 (the "Gas Directive"), that set common rules for the internal natural gas market.

This Directive initiated the gradual liberalisation of the sector with the aim of creating a single European market for natural gas while ensuring a level playing field and the non-discriminatory treatment of system operators. In June 2003, the European Parliament and the Council adopted Directive 03/55/EC (the "Second Gas Directive"), which also established common rules for the internal natural gas market, repealing the previous Directive 98/30/EC.

2) REGULATION OF THE GAS MARKET IN ITALY The Gas Directive was implemented in Italy with Law No. 144 of 17 May 1999 ("Enabling Law") and Legislative Decree No. 164 of 23 May 2000 ("Letta Decree") on common rules for the internal natural gas market, pursuant to the aforementioned Law No. 144 of 17 May 1999. The second Gas Directive, subsequently repealed by Directive 2009/73/EC ("Third Gas Directive") was transposed in the Italian legislation by Legislative Decree No. 93/11.

Such Legislative Decree set rules that define the methods and timelines for the liberalisation process outlined in that Gas Directive, identifying and defining the roles of the several links of the natural gas "chain", such as import, extraction, export, transport and dispatching, storage, regasification, distribution and sale. Concerning regasification, the Legislative Decree also identified:

the LNG plant;

the regulations for importing LNG;

the requirement for those responsible for LNG terminals – following the relevant Resolution of the Authority – to prepare a regasification code governing access to the regasification terminals (Article 24(5)).

In 2004, the Bill for the "Reform and Reorganisation of the Energy Sector" ("Marzano Decree") was approved. The Decree became law on 23 August 2004 (Law No. 239, entitled "Reform of the energy sector delegating powers to the Government for the reorganisation of the existing energy-related provisions"). These regulations apply to all areas related to energy, reorganising the entire sector.


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3) RESOLUTIONS OF THE AUTHORITY FOR DRAWING UP THE REGASIFICATION CODE

3.1) Resolution No. 120/01 Pending the establishment of a regulatory framework (which would include the above regasification codes), in Articles 14 and 15, sections 12 and 13 of Resolution No. 120/01 the Authority defined the transitional and partial regulation of the conditions for access to and provision of the service. The timeframe such regulation was in force, initially only for Thermal Year 2001 – 2002, was subsequently extended by the Regulatory Authority to Thermal Years 2002 – 2003 (Article 23 of Resolution No. 137/02), 2003 – 2004 (Resolution No. 113/03) and 2004 – 2005 (Resolution No. 141/04).

3.2) New LNG terminals Law No. 239/04 introduced the right, for parties that invest directly or indirectly in the construction of new regasification terminals, to request an exemption from the rules and regulations whereby the Ministry for Trade and Industry (now Ministry of Economic Development) grants access to third parties, for the new capacity, on a case by case basis, after receiving the Authority’s opinion. This exemption, which also applies to major upgrades of existing infrastructure, is granted for at least 20 years and for a share of at least 80% of the new capacity. With the decree published on 11 April 2006, the Ministry for Trade and Industry (now the Ministry of Economic Development) established the procedures for granting exemptions from the rules and regulations that provide the right of access to third parties. In the decree published on 28 April 2006, the Ministry issued a policy that defines the methods used to access the National Network following the granting of the exemption and the criteria used to allocate the capacity that is not subject to exemption. In Resolution No. 168/06, the Authority adopted urgent measures for the definition and allocation of transport capacity at Entry Points to the National Network, interconnected with the infrastructure for which an exemption has been granted.

3.3) The Consultation Document of 14 July 2004 With the Consultation Document of 14 July 2004, the Regulatory Authority initiated a consultation process with interested parties on access to the LNG regasification service and the preparation of regasification codes, to define the measures set out in Article 24(5), of Legislative Decree No. 164/00.

3.4) Resolution No. 167/05

With Resolution No. 167/05, the Authority defined the system of guarantees for access to the liquefied natural gas regasification service and the standards for the preparation of the regasification codes.


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3.5) Resolution No. 178/05 With Resolution No. 178/05, the Authority defined the criteria to determine allowed revenues and rates relating to liquid natural gas regasification.

4) THE REGULATORY ENVIRONMENT Below is a list of key documents that form the regulatory framework as concerns the preparation of the Regasification Code: - Law No. 481 of 14 November 1995 – Rules for competition in and regulation of

public utility services. Establishment of the regulatory authorities of public utility services;

- Directive No. 98/30/EC of the European Parliament and of the Council of 22 June 1998 concerning common rules for the internal natural gas market;

- Law No. 144 of 17 May 1999 – Investment measures, delegation to the Government to reform employment incentives and the regulations governing INAIL, as well as the provisions for the reform of social security institutions (Article 41);

- Legislative Decree No. 164 of 23 May 2000 implementing Directive No. 30/98/EC on common rules for the internal natural gas market, in accordance with Article 41 of Law No. 144 of 17 May 1999;

- Ministerial Decree of 27 March 2001 – Definition of criteria for granting authorisations to import natural gas produced in non-EU member states, under Article 3 of Legislative Decree No. 164 of 23 May 2000;

- Resolution No. 120/01 – Criteria for determining rates for natural gas transport and dispatch and for the use of LNG terminals;

- Resolution No. 193/01 – Provisions with regard to tariffs for natural gas transport and dispatch and for the use of LNG terminals, implementing the Authority’s Resolution No. 120/01 of 30 May 2001;

- Resolution No. 91/02 – Regulations governing the right of allocation under Article 27(2), of Law No. 273 of 12 December 2002, for the construction of new liquefied natural gas terminals and the expansion of existing terminals;

- Resolution No. 137/02 – Adoption of guarantees for free access to the liquefied natural gas transport service and rules for the preparation of the Network Codes;

- Resolution No. 146/02 – Provisions on tariffs for natural gas transport and dispatch, implementing the Authority’s Resolution No. 120/01 of 30 May 2001;

- Law No. 273 of 12 December 2002 – Measures to promote private initiatives and the development of competition;

- Resolution No. 90/03 – Amendment of the Authority’s Resolution of 15 May 2002 No. 91/02 implementing Article 27(2), of Law No. 273 of 12 December 2002;

- Resolution No. 113/03 – Extension of the period set out in Articles 14 and 15(12 and 13), of the Authority’s Resolution No. 120/01 of 30 May 2001 on LNG regasification;

- Resolution No. 119/03 – Transitional provisions on access to the natural gas transportation service at the entry point to the national gas pipeline network interconnected with the LNG Terminal located in Panigaglia (La Spezia);


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- Resolution No. 120/04 – Adoption of a measure under Article 2(20)(D) of Law No. 481 of 14 November 1995 with regard to GNL Italia SpA and the initiation of a formal investigation on that company with the aim of adopting a measure under Article 2(20)(C) of Law No. 481 of 14 November 1995;

- Resolution No. 141/04 – Extension of the period set out in Articles 14 and 15(12 and 13) of the Authority’s Resolution No. 120/01 of 30 May 2001 on LNG regasification;

- Resolution No. 142/04 – Extension of the period set out in point 1 of the Authority’s Resolution No. 119/03 of 22 October 2003 on access to the natural gas transportation service at the entry point to the national gas pipeline network interconnected with the LNG terminal located in Panigaglia (La Spezia);

- Law No. 239 of 23 August 2004 – Reorganisation of the energy sector and authorisation for the Government to recast existing energy-related measures (in particular Article 1(17, 18 and 20);

- Resolution No. 184/04 – Approval of the general access and supply conditions to the LNG regasification service offered by GNL Italia S.p.A;

- Resolution No. 186/04 – Correction of a material error in the Authority’s Resolution No. 184/04 of 20 October 2004;

- Resolution No. 204/04 – Commencement of a preliminary investigation on the management and use of the LNG regasification terminal located at Panigaglia (SP) and on the supply of LNG to the domestic gas market;

- Resolution No. 2/05 – Application of a penalty on GNL Italia SpA, under Article 2(20)(c) of Law No. 481 of 14 November 1995;

- Resolution No. 52/05 – Start of proceedings to prepare measures on rates for the use of LNG terminals for the second regulatory period;

- Resolution No. 134/05 – Extension of the period set out in point 1 of the Authority’s Resolution No. 119/03 of 22 October 2003 on access to the natural gas transport service at the entry point to the national gas pipeline network interconnected with the LNG terminal located in Panigaglia (La Spezia);

- Resolution No. 167/05 – Adoption of guarantees for free access to the liquefied natural gas regasification service and rules for the preparation of the regasification codes; ;

- Resolution No. 178/05 – Criteria for determining the rates for the regasification service;

- Resolution No. 185/05 – General provisions on natural gas quality under Article 2(12)(g and h) of Law No. 481 of 14 November 1995;

- Resolution No. 197/05 – Determination of regasification service rates for the Thermal Year 2005 – 2006 for GNL Italia SpA, implementing the Authority’s Resolution No. 178/05 of 4 August 2005;

- Decree of the Minister for Trade and Industry of 12 December 2005 – Update of environmental emergency procedures;

- Decree of the Minister for Trade and Industry of 11 April 2006 – Procedures for granting exemptions from third party access rights to new interconnections with European natural gas transportation networks and to new regasification terminals, and the expansion of existing terminals, as well as procedures to acknowledge priority allocation of new transport capacity created in Italy in relation to new interconnection infrastructures with non-European Union States;


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- Decree of the Minister for Trade and Industry of 28 April 2006 – Methods to access the national gas pipeline network, following the granting of an exemption from third parties access rights to new interconnections with European natural gas transportation networks, to new regasification terminals and the expansion of existing terminals, and for the acknowledgement of priority allocation, as well as criteria according to which the Authority shall determine the procedures for allocating the residual share of capacity which is not subject to exemption or priority allocation;

- Resolution No. 168/06 – Urgent provisions for the definition and assignment of transport capacity at entry points to the national gas pipeline network interconnected with infrastructure which has been granted an exemption, and for the allocation of the residual capacity, pursuant to the Decree of the Minister for Trade and Industry of 28 April 2006;

- Decree of the Ministry for Economic Development of 18 December 2006 – 2006 Update of the "Emergency procedure in the event of adverse environmental conditions".

- Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal natural gas market, repealing Directive 2003/55/EC

- Regulation (EC) No. 715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the natural gas transport networks and repealing Regulation (EC) No. 1775/2005

- Legislative Decree No. 193 of 1 June 2011 – Common rules for the internal market in electricity, of natural gas and Community procedure to improve the transparency of prices to the final consumer of industrial gas and electricity

- Resolution No. 297/2012/R/gas – Provisions relating to the access to the natural gas transportation service at entry and exit points of the transport network interconnected with storage facilities or regasification terminals

- Decree of 25 February 2016 of the Minister of Economic Development – outlines the integrated storage and regasification service, designed to authorise industrial customers to procure LNG directly from abroad, implementing Article 14 of Decree-Law No. 1/2012.

- Resolution 312/2016/R/gas approves the Consolidated Balancing Text (TIB) implementing EU Regulation 312/2014

- Resolution 660/2017/R/gas – Reform of the regulation regarding the LNG regasification capacity allocation on the basis of market mechanisms (auctions)

- Annex A to Resolution 660/2017/R/gas – Consolidated regulation on the adoption of guarantees for free access to the liquefied natural gas regasification service (TIRG).

Regasification Code Description of the LNG terminal and its management

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DESCRIPTION OF THE LNG TERMINAL AND ITS MANAGEMENT

INTRODUCTION ................................................................................................................................................. 2

1) DESCRIPTION OF THE TERMINAL ...................................................................................................... 2

1.1) RECEIVING .............................................................................................................................................. 3 1.2) STORAGE ................................................................................................................................................ 3 1.3) REGASIFICATION ..................................................................................................................................... 4 1.4) BOIL-OFF GAS (BOG) RECOVERY .......................................................................................................... 4 1.5) FINAL GAS CORRECTION .......................................................................................................................... 4 1.6) AUXILIARY SYSTEMS .............................................................................................................................. 4 1.7) CONTROL AND SECURITY SYSTEM ........................................................................................................... 5

2) PLANT CAPACITY AND THE CRITERIA FOR DETERMINING IT ................................................ 5

2.1) RECEIVING CAPACITY ............................................................................................................................. 5 2.2) VAPORIZATION CAPACITY ...................................................................................................................... 5 2.3) PLANT REGASIFICATION CAPACITY ........................................................................................................ 6


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1) INTRODUCTION The Panigaglia Terminal, owned by GNL Italia, was built between 1967 and 1970 and started operations in 1971. In its original configuration, the plant was designed to receive natural gas from Libya, make it compatible with the lighter gas extracted in Italian gas fields, and feed it into the network. With the termination of imports from Libya, the plant was upgraded to meet the standards for regasification plants and was used for the regasification of LNG of various origins.

In 1980, following the termination of contractual relations with Libya, the plant ran at reduced capacity until 1987, when a decision was made for an initial restructuring of the facility. This restructuring, which lasted from 1987 to 1991, was followed by a second upgrade carried out between 1995 and 1997 in which the two LNG storage tanks were modified, transforming them from single to double containment tanks.

2) DESCRIPTION OF THE TERMINAL

The regasification process at the Panigaglia plant uses "submerged combustion" vaporizers which heat and vaporize the LNG using heat produced by the combustion of part of the Natural Gas produced. This type of heating system is less expensive in terms of investment. However, it is more expensive from an operational perspective than the more common systems that rely on heat exchange between the liquefied gas and sea water. However, the system was adopted because of the specific environmental constraints affecting the stretch of sea where there the plant is located. The site, which covers 317,300 m2, is located in the Bay of Panigaglia, along the coast that links La Spezia with Portovenere and consists of: the plant itself, which covers approximately 45,000 m2, consisting mainly of two

LNG storage tanks, the vaporization plants, the pier for LNG carriers, and auxiliary systems;

a group of buildings used primarily as offices, maintenance workshops with associated equipment and warehouses;

green areas subject to environmental requalification following the first restructuring;

a woodland area, surrounding the facility. The plant consists of the following sections:

receiving; storage; regasification; Boil-off Gas (BOG) recovery; final gas correction; auxiliary systems; control and safety systems.


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The following are the main operations of the Terminal: Annexes to this chapter show scale drawings of the plant location and layout and a diagram of the pier.

2.1) Receiving The receiving section consists of the berthing area for LNG carriers, the unloading arms and the transfer line. The berthing area is located at the end of a 500-metre long pier which, once the relevant checks have been completed, can receive LNG carriers with a capacity of up to 65,000-70,000 m3 of LNG. The sea surrounding the head of the pier is about 10 metres deep and is used exclusively for the manoeuvring and mooring of LNG carriers. The pier has four mooring posts, each of which is equipped with quick release mooring hooks, and two fenders to protect the ships, which are at equal distances from the unloading arms and have a centre to centre distance of approximately 70 metres. To transfer the cargo, the right-hand side of the pier is equipped with three unloading arms, two for liquid (12 inches in diameter), each with a nominal maximum flow rate of 2,000 m3/h, and one, located in the centre, to return the vapour to the ship (8 inches in diameter and a maximum flow rate of 12,000 Nm3/h). However, the unloading flow rate depends on the production of vapours (Boil-Off Gas) that develop during the unloading operation which are recovered by the specific section for handling boil-off gas. The vapour is returned to the Ship, as required, by a vapour return blower with a capacity of about 12,000 Nm3/h. The LNG from the carrier is transferred to two storage tanks through a 24-inch transfer line that connects the unloading arms to the tanks.

2.2) Storage The storage section consists of a tank with a geometric capacity of 50,000 m3 and an operating capacity of approximately 44,000 m3 and of the submerged pumps for the LNG handling. The tank is made up of two coaxial, vertical cylindrical containers. The self- supporting inner container is made of 9%Ni steel and is designed to store the LNG while the outer container (added as part of the second restructuring phase) is made of prestressed reinforced concrete and has the dual function of supporting and protecting the insulating material placed around the inner container and, in the event of an emergency, containing any loss of LNG. The tank is, furthermore, installed inside a containment basin. The LNG is stored in the tanks at a temperature of approximately -160 °C and at a pressure slightly higher than atmospheric pressure (350 mmH2O rel). The storage tank is equipped with three submerged pumps, two with a capacity of 500 m3/h of LNG each, and the third with a capacity of 170 m3/h of LNG.


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2.3) Regasification

The regasification section consists of pumps for handling and pressurising LNG and of the submerged combustion vaporizers. The LNG extracted from the storage tank by means of the submerged pumps is initially pressurised to approximately 22 bar by the primary pumps (three in operation plus one in reserve) and, subsequently, to about 75 bar by the secondary pumps (three in operation plus one in reserve) and is then sent to the vaporizers. Each pump, both primary and secondary, has a maximum capacity of approximately 250 m3/h of LNG. The LNG is regasified using submerged combustion vaporizers (three in operation and one in reserve), each of which has a maximum rated capacity of approximately 250 m3/h of LNG. The heat required to vaporize the LNG is produced by the combustion of natural gas (fuel-gas) taken downstream of the vaporizer.

2.4) Boil-Off Gas (BOG) Recovery The BOG recovery system at the Panigaglia facility consists of three cryogenic compressors, one with a capacity of 2,000 kg/h and two with a capacity of 8,000 kg/h each, the absorption column and related feed pumps. The smaller compressor is used for continuous recovery of the vapours generated by the heat entering the plant during normal operations and outside of unloading periods; the two larger compressors are used for recovery of the BOG produced during unloading. Recovery takes place in the absorption column by condensing the vapours with subcooled LNG.

2.5) Final gas correction The purpose of correcting the final gas is to maintain the Wobbe Index of the gas sent to the pipeline at less than 52.33 MJ/Sm3 to meet the quality specifications of the transport network and thus ensure the interchangeability of the regasified LNG with the other natural gases normally transported through the network. Any required corrections are made by adding air or air-enriched nitrogen to keep the oxygen concentration below 0.6% (mole). Non-compliance of the natural gas sent through the network with the quality requirements will automatically block the system. The final gas correction section consists of two air compression trains and a battery of membrane units that enrich the nitrogen content. Each train is equipped with a screw compressor connected in series with a reciprocating compressor and is capable of compressing air to the pressure of the methane pipeline with a maximum flow rate of 4,300 Nm3/h.

2.6) Auxiliary systems

The auxiliary systems section includes all of the activities that support the main process and without which the plant could not operate. The most important are: the electrical substation and its transmission lines to supply power and transform electricity at the plant; the fresh water and sea water systems for the dissipation of the heat generated by the compressors; the instrument air systems to operate pneumatic


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controls; the station for measuring the quantity and quality of the gas in the methane pipeline and the fire protection system.

2.7) Control and security system The LNG regasification plant is monitored and remotely controlled from the Control Room using an automatic system. This system is divided into two subsystems: Distributed Control System (DCS) whose functions include the acquisition,

processing and regulation of the process parameters and the supervision of the plant;

Programmable logic-based automation and blocking system (PES) which governs the start-up, stopping and blocking of the equipment sequences as well as activating automatic safety procedures in the event of an emergency.

3) PLANT CAPACITY AND THE CRITERIA FOR DETERMINING IT The regasification capacity of the Panigaglia Terminal is determined by considering the following values: 1. the receiving capacity; 2. the vaporization capacity.

3.1) Receiving Capacity The plant’s receiving capacity, during a month of operation ("reference period", conventionally set at 30 days), is defined by taking into account: a) the maximum possible number of berthings; b) the LNG unloading capacity.

3.2) Vaporization Capacity The parameters to be considered for the definition of the vaporization capacity of the Panigaglia Terminal are the capacities: of the pumping system; of the vaporization system. The capacity of the pumping system is influenced by the quality of the LNG unloaded and the working pressure of the methane pipeline connected, while the capacity of the vaporization system is determined by the capacity of each of the four submerged-combustion vaporizers. It follows, therefore, that the vaporization capacity matches the capacity of the vaporization system.


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3.3) Plant Regasification Capacity The plant’s regasification capacity is determined by the number of potential berthings at the Terminal and the capacity, expressed as the volume of LNG that can be delivered to the Terminal itself. Taking into account the duration of the mooring, unloading and unmooring of an LNG Carrier at the pier, which does not allow more than one berthing every three days, the maximum number of possible berthings on an annual basis is equal to one third of the days the Terminal operates in each Thermal Year, rounded down to the nearest integer. Taking into account the safety operating margins required for a regasification terminal, the facility’s structure provides a maximum guaranteed regasification capacity of 17,500 m3liq/d of LNG. Therefore, the annual regasification capacity of the terminal is equal to 17,500 m3liq/d multiplied by the number of days that the Terminal operates in each Thermal Year.

Regasification Code Description of the services

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DESCRIPTION OF THE SERVICES

1) INTRODUCTION ......................................................................................................................................... 2

2) CORE SERVICES ........................................................................................................................................ 2

3) AUXILIARY ACTIVITIES ......................................................................................................................... 3

3.1) CAPACITY ALLOCATION ......................................................................................................................... 3 3.2) CAPACITY TRANSACTIONS ...................................................................................................................... 3 3.3) LNG DELIVERY SCHEDULING ................................................................................................................. 3 3.4) REGASIFICATION SCHEDULING ............................................................................................................... 3 3.5) GAS QUALITY PARAMETERS .................................................................................................................... 3 3.6) LNG MEASUREMENT .............................................................................................................................. 4 3.7) MAINTENANCE OPERATIONS AT THE TERMINAL ..................................................................................... 4 3.8) INVOICING ............................................................................................................................................... 4 3.9) SERVICE EMERGENCIES MANAGEMENT .................................................................................................. 4

4) ANCILLARY SERVICES ........................................................................................................................... 4

5) OPTIONAL SERVICES .............................................................................................................................. 4

5.1) PEAK SHAVING SERVICE ......................................................................................................................... 5

6) THE LNG REDELIVERY FLEXIBILITY SERVICES ........................................................................... 5

Network Code Description of the services

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1) INTRODUCTION GNL Italia offers its Users the services described herein as part of its Liquefied Natural Gas regasification business, under the provisions set out herein.

2) CORE SERVICES

The core regasification service includes:

a) the unloading of the delivered LNG, including the connection of the unloading arms, the identification of the quality of the LNG unloaded, the redelivery (if required and if available) of boil-off vapours back to the LNG carrier. Mooring/unmooring and customs procedures for importing LNG are not included;

b) operational storage, i.e. the storage capacity required to transform the quantities of LNG that is delivered in "discrete" increments into a continuous flow of gas over a given period, according to the Terminal’s production capacity. Given the limited capacity of its tanks, the Panigaglia LNG Terminal cannot provide the strategic storage set out in Article 3(6), of Legislative Decree No. 164 of 23 May 2000;

c) LNG regasification: this service does not involve an obligation to redeliver the same LNG unloaded at the Terminal but merely the obligation to deliver to the Redelivery Point the quantity of natural gas that is equivalent in energy terms, minus consumption and losses;

d) The allocation of transport capacity required to inject quantities of LNG regasified at the Terminal into the network at the Panigaglia Entry Point to the National Network: these quantities are made available by the Operator Snam Rete Gas, which takes delivery of them for redelivery to Users as part of the transport service.

The core regasification service can be either a continuous or a "spot" service. The continuous core regasification service is the regasification service that involves the delivery of LNG according to the LNG delivery schedule set out in the "Scheduling of LNG Delivery and Regasification" chapter. GNL Italia allocates continuous regasification capacity associated with the time periods required for mooring, unloading and un-mooring of an LNG Carrier at the Terminal (the Slots). Slots may or may not be bound to calendar dates (start date and end date of a Slot); if an allocated Slot is bound to a calendar date, it is called a Constrained Slot. Before starting the regasification capacity allocation processes at the beginning of a Thermal Year, on its website, GNL Italia must publish the number of days and the regasification capacity of one Slot. The regasification capacity of one Slot subject to be


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allocated is obtained by multiplying the Terminal’s daily regasification capacity, as set out in Chapter 2(3.3), by the number of days of one Slot1. The spot core regasification service is the regasification service that is provided for a single LNG unloading operation to be carried out on a date set by the Operator once the Monthly Schedule of LNG Deliveries has been defined. GNL Italia allocates spot berthings identified by a Scheduled Arrival Date and a Maximum Unloading Capacity. The regasification capacity of a spot berthing is equal to the corresponding Maximum Unloading Capacity.

3) AUXILIARY ACTIVITIES

As part of the LNG regasification service, the Operator also provides certain additional activities (also included in the related rates) that are ancillary to those indicated above and set out herein. Below is a non-exhaustive list of such activities by way of example.

3.1) Capacity Allocation As part of the capacity allocation operations at the Regasification Terminal, the Operator must publish the available capacities associated with Slots, Constrained Slots and berthings, define and manage the procedure by which Users may submit their allocation requests, carry out the capacity allocation process in accordance with the criteria set out in the TIRG and stipulate the corresponding Regasification Agreements: these services are described in the "Regasification Capacity Allocation" chapter.

3.2) Capacity transactions Users can perform regasification capacity transactions, as specified in the "Regasification capacity transactions" chapter.

3.3) LNG Delivery Scheduling Defines all the operations by which the Operator checks the LNG delivery schedule proposals submitted by Users and the related reporting methods: these activities are described in the "Scheduling of LNG Delivery and Regasification" chapter.

3.4) Regasification Scheduling On the basis of the LNG delivery schedule, the Operator must define the monthly redelivery schedule with daily detail and publish it for Users: the procedures for this activity described in the " Scheduling of LNG Delivery and Regasification" chapter.

3.5) Gas quality parameters GNL Italia checks and validates the parameters that make it possible to determine the compliance with the LNG quality specifications: for a detailed description of these

1For Thermal Year 2018/19 the regasification capacity of one Slot is 70,000 m3liq, i.e. four days of the Terminal’s regasification capacity


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services refer to the "Quality of the LNG Delivered and of the Gas Redelivered" chapter.

3.6) LNG Measurement The tasks involved in the measurement of the LNG that is delivered and regasified are described in the "Measurement of the LNG Delivered and of the Gas Redelivered" chapter.

3.7) Maintenance Operations at the Terminal GNL Italia shall carry out the necessary maintenance operations on the Terminal's infrastructure: that work – which may cause interruptions/reductions of the regasification capacity – can either be scheduled or arise due to an emergency situation, as described in the "Maintenance Scheduling and Management" chapter.

3.8) Invoicing As described in the "Invoicing and Payment" chapter, GNL Italia issues invoices for regasification service fees as well as other types of invoices associated with activities at the Terminal.

3.9) Service Emergencies Management

To respond to unforeseen and temporary situations at the Panigaglia Terminal, GNL Italia has developed an internal emergency policy that identifies the procedures to follow in such an event, as described in the "Service Emergencies Management" chapter.

4) ANCILLARY SERVICES

The Operator also provides ancillary services at the Terminal which are not included in the core regasification service. Ancillary services include:

The correction of the Wobbe Index of the LNG delivered with values between 52.13 and 53.17 MJ/Sm3;

the unloading of the LNG if the pressure in the tanks of the Carrier is above 1,200 mm H2O rel.

5) OPTIONAL SERVICES

GNL Italia provides the following optional services for Users: special equipment, located at the Panigaglia plant, for the transfer of liquid nitrogen

from a tanker to the LNG carrier; supply of drinking water to the LNG carrier.


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To take advantage of the requested service, interested parties must send the Operator the specific form which can be downloaded from GNL Italia's website together with the conditions applicable to that service. GNL Italia reserves the right to offer – in a competitive environment – additional optional services to Users at the same conditions, according to the procedures that shall be published on GNL Italia's website. According to its specific requirements, should a User submit a request to use such services at the Terminal and should GNL Italia confirm the feasibility of the provision of such services, the conditions shall be negotiated directly between the User and GNL Italia, subject to the guarantees and the general objectives established by the Regulatory Authority in relation to the obligations of parties engaged in regasification activities.

5.1) Peak Shaving Service GNL Italia may make available to the Network Balancing Manager the temporary LNG storage service for the Peak Shaving Service under Ministerial Decree of 18 October 2013 and subsequent regulatory provisions, as well as the Authority’s Resolution 471/2013/R/gas and subsequent regulatory provisions. Users who want to make available the quantities of LNG for the temporary storage service, must sign a contract with GNL Italia for the Spot Regasification Service and if the Peak Shaving Service is not activated, the same User will be returned the same quantities supplied, decreased by consumption and losses, at the Virtual Trading Point under conditions published by GNL Italia.

6) THE LNG REDELIVERY FLEXIBILITY SERVICES Pursuant to Article 12 of the TIRG, and taking into account the Terminal’s technical and operating constraints and its actual use as a result of the scheduling of deliveries and regasification as per Chapter 9 below, the Operator shall provide flexibility services that enable Users to:

Change their regasification schedule (Redelivery Flexibility Service);

Maintain their LNG temporarily stored in the Terminal's tank (Temporary Storage Service).

Regasification Code Information Coordination Procedures

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INFORMATION COORDINATION PROCEDURES

1) GENERAL PRINCIPLES ............................................................................................................................ 2

Regasification Code Information Coordination Procedures

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1) GENERAL PRINCIPLES The exchange of data and operational information between the Terminal Operator and the Users for the management of this document shall take place by fax, letter or e-mail, or using the forms and methods published on GNL Italia's website: such communication activities include, but are not limited to, access to the regasification service, scheduling, rescheduling, communications between LNG Carrier and Terminal, and the allocation of spot unloading slots. All communications should be sent to the postal or email address specified by the Parties in the Regasification Agreement, to the attention of the individuals named therein. Each Party must promptly notify the other Party of any changes or modifications to such details as they occur during the term of the Regasification Agreement. Lacking such notification, any communication addressed by each of the Parties to the postal or email address listed in the Regasification Agreement shall be deemed valid.

Regasification Code Allocation of regasification capacity

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ALLOCATION OF REGASIFICATION CAPACITY

1) ACCESS TO THE REGASIFICATION SERVICE ................................................................................... 2

1.1) ACCESS REQUIREMENTS ............................................................................................................................ 2

2) CAPACITY ALLOCATION AT THE BEGINNING OF THE THERMAL YEAR .............................. 4

2.1) WHAT THE ALLOCATION PROCESS DEALS WITH ......................................................................................... 4 2.2) THE CAPACITY ALLOCATION PROCESS AT THE BEGINNING OF THE THERMAL YEAR .................................. 5 2.3) THE ALLOCATED CAPACITY DISTRIBUTION PROCESS AT THE BEGINNING OF THE THERMAL YEAR ............. 7 2.4) CAPACITY THAT IS MADE AVAILABLE TO THE REGASIFICATION COMPANY FOR ALLOCATION TO THIRD

PARTIES UNDER ARTICLE 14 OF THE TIRG .............................................................................................................. 8 2.4.1) Force majeure events declared by counterparties to import contracts or regasification agreements9

2.5) TRANSPORT CAPACITY FOR CAPACITY ALLOCATIONS AT THE BEGINNING OF THE THERMAL YEAR ......... 10

3) ALLOCATION OF REGASIFICATION CAPACITY FOR THE THERMAL YEAR ALREADY COMMENCED ............................................................................................................................................. 10

3.1) WHAT THE ALLOCATION PROCESS DEALS WITH ....................................................................................... 10 3.2) CAPACITY ALLOCATION PROCESS FOR THE THERMAL YEAR ALREADY COMMENCED .............................. 11 3.3) THE ALLOCATED CAPACITY DISTRIBUTION PROCEDURE FOR THE THERMAL YEAR ALREADY COMMENCED13 3.4) TRANSPORT CAPACITY ALLOCATIONS FOR THE THERMAL YEAR ALREADY COMMENCED ........................ 14

4) ALLOCATION OF SPOT REGASIFICATION CAPACITY ................................................................ 14

4.1) WHAT THE ALLOCATION PROCESS DEALS WITH ....................................................................................... 14 4.2) THE SPOT CAPACITY ALLOCATION PROCESS ........................................................................................... 15 4.3) TRANSPORT CAPACITY FOR SPOT CAPACITY ALLOCATIONS ...................................................................... 17

5) ALLOCATION OF SPOT REGASIFICATION CAPACITY BEYOND STANDARD TERMS ..... 17

5.1) WHAT THE ALLOCATION PROCESS DEALS WITH ....................................................................................... 17 5.2) SPOT CAPACITY ALLOCATION PROCESS BEYOND THE DEADLINES ............................................................ 18 5.3) TRANSPORT CAPACITY FOR SPOT CAPACITY ALLOCATION BEYOND THE DEADLINES ................................ 19

6) ACCESS TO THE FLEXIBILITY SERVICES .......................................................................................... 20


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1) ACCESS TO THE REGASIFICATION SERVICE

Access to the regasification service at the Panigaglia Terminal is granted in an impartial manner and on equal terms to all parties, whether natural or legal persons, provided that they meet certain requirements, as set out below. For the management of the regasification capacity allocation processes set out in this chapter, the Terminal Operator can use an IT Platform; the provisions relating to the management and operation of the regasification capacity allocation processes carried on the IT platform are approved by the Regulatory Authority (hereinafter: IT Platform Regulation). The Operator must publish on its website the indication of the IT Platform for managing the allocation processes of a Thermal Year, at least 60 days before the beginning of the first regasification capacity allocation process for that Thermal Year. For the Thermal Year 2018/19 GNL Italia uses the Piattaforma di Assegnazione della capacità di Rigassificazione (PAR) regasification capacity assignment platform managed by the GME as IT Platform, the regulations for which are approved by the Authority.

1.1) Access Requirements

Parties that request access to the regasification service within the allocation processes set out in paragraphs 2, 3, 4 and 5 below must certify that they meet the requirements specified in this paragraph. Parties must file their requests within the allocation processes set out in paragraphs 2, 3, 4 and 5, on the IT Platform. For managing allocations, the parties must obtain, if they do not yet have them, the access credentials for to the LNG Capacity Portal, access to which is available on the GNL Italia website, as described in it1, as well as to the IT Platform as made available by means of the features of GNL Italia's website. All parties that require access to the regasification service must also submit declarations and certificates under Legislative Decree No. 231 of 21 November 2007 using the forms published on the Terminal’s website. If conditions are met, the possession of the requisites must be certified by filing declaration in lieu of affidavit (pursuant to Presidential Decree No. 445 of 28 December 2000), using the forms published on the Terminal’s website. Any form of certification of requirements (applications, commitments, declarations or acceptances) as well as any request/communication or other expression of will made in accordance with this Chapter by the User, also by means of the specific functions of the Terminal’s website or of the IT platform constitute a formal obligation and commitment for the User, which assumes – also towards third parties – any and all liability arising from any breaches/errors or omissions.

1 GNL Italia must inform the Users of the start date of operation of the LNG Capacity Portal


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GNL Italia assumes no liability in respect of the User and of third parties as to the accuracy, correctness and completeness of the certifications and declarations provided for this purpose by the Users. Parties that request access to the regasification service must have:

- provided suitable guarantees by 14:00 of the second working day prior to the submission of the allocation request and in accordance with the procedures set out in Chapter 7 in relation to the fulfilment of all the obligations undertaken under the Regasification Agreement, both as regards the fee, and as regards compensation or indemnity, in order to protect GNL Italia and the other users of the Panigaglia Terminal from the consequences of any breach of contract;

- sent the Regasification Agreement, drawn up according to the template published by GNL Italia on its website and duly signed, by the fifth working day prior to the date of submission of the allocation request. The entry into force and the effective date of the Regasification Agreement, regardless of the date of execution thereof by GNL Italia, are subject (and therefore subject to the precedent condition) to the definition of the regasification capacity commitments (quantity and duration) for at least one of the continuous or spot services by completing one or more of the allocation and/or capacity transaction processes set out in Chapter 5 and Chapter 8, as well as the certification/verification of the requirements set out therein. Therefore, the Regasification Agreement shall become effective, regardless of the date on which it is signed by GNL Italia, at the end of the first capacity allocation and/or transfer during a Thermal Year as per Chapter 5 and Chapter 8.

On the date scheduled for the request, under Article 5(5) of the TIRG, the parties that require access to the regasification service, must :

a) have available LNG Carriers authorized by GNL Italia for unloading, at the Panigaglia Terminal, or

b) undertake to deliver the LNG by LNG Carriers that are compatible with the specifications of the Panigaglia Terminal. In such cases the requesting party shall bear the risk of failure to successfully complete the authorisation procedures for the LNG Carrier;

On the date scheduled for the request, the parties requesting access to the regasification service, must also:

c) be Users of the transport service or have signed the Snam Rete Gas Network Code except in the case in which the party requesting access to the service indicates one or more transport service Users to whom their entire quantities of gas are to be distributed for delivery to the transport company.

d) have paid the fees for the current Regasification Agreements, for amounts invoiced and already falling due in excess of the value of the guarantees issued to cover the obligations deriving from the above Agreements, as set out in Chapter 7.


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In order to use allocated capacity, regasification capacity owners must also obtain authorisation from the Ministry of Economic Development to regasify the volumes of gas covered by import contracts subject to authorisation under Article 3 of Legislative Decree No. 164/00. Should it be found that the User does not hold the above authorisation, the capacity allocated may not be scheduled/transferred by the User, without prejudice to the payment of all the charges related to this capacity and the release envisaged in Chapter 8(3). In such cases, without prejudice to any provision by the Ministry and/or the Authority, no fee shall be paid in the event of a sale of the capacity to third parties. In any case, the parties undertake, under their own responsibility, to comply with the above requirements. In the absence/loss of the requirements, subject to any provisions by the Ministry and/or the Authority, the provisions of this Regasification Code shall apply. It is also without prejudice to any verification on the part of the Ministry of Economic Development and of the Authority.

2) CAPACITY ALLOCATION AT THE BEGINNING OF THE THERMAL YEAR

The allocation of regasification capacity at the beginning of the Thermal Year concerns the continuous core regasification service described in the "Description of the services" chapter. The allocation of regasification capacity implies the allocation of the transport capacity required for the provision of the Regasification Service.

2.1) What the allocation process deals with

At the beginning of each Thermal Year the allocation process allocates the Terminal’s regasification capacity expressed in m3liq/day, for periods of one to 15 – not necessarily contiguous – Thermal Years, in accordance with the TIRG. GNL Italia must publish the regasification capacity associated with a Slot as set out in Chapter 3(2), on its website. The capacity available for allocation at the beginning of the Thermal Year is identified by:

a) Remaining Slots available at the Panigaglia Terminal taking into account the Slots being allocated as described in d) , as published on GNL Italia's website, for a Thermal Year (number of Slots/year), starting on 1 October of that year and up to the following fifteen Thermal Years (annual capacity);

b) Slots (number of Slots/year), made available by the User to the Operator for allocation to third parties for a Thermal Year, starting on 1 October of the same


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year and up to the following fifteen Thermal Years (annual capacity), as per the procedures set out in in Chapter 8(3), under Article 8(2) of the TIRG;

c) Slots (number of Slots/year), made available by the User to the Operator for allocation to third parties for the Thermal Years for which the User is also the owner of regasification capacity (annual capacity), as per the procedures set out in paragraph 2.4 of this chapter, under Article 14 of the TIRG.

d) Slots available at the Panigaglia Terminal, as published on GNL Italia's website, for periods of more than one Thermal Year (number of Slots/period), starting on 1 October of the sixth following Thermal Year and up to the fifteenth following Thermal Year (multiannual capacity)

To determine the number of Slots and the offer periods of multiannual capacity as set out in the foregoing paragraph d), the parties who intend to request access to the service may notify GNL Italia, by the end of February, of long-term import projects, starting on the sixth following Thermal Year and up to the fifteenth following Thermal Year after that notification. By the end of April, on its website, GNL Italia must publish the multiannual capacity and the periods subject to offer consistently with the long-term import projects reported by the requesting party; if the total of the import projects exceed the Panigaglia Terminal’s available capacity, priority will be given to projects that concern the greatest number of consecutive Thermal Years and, secondly, to the projects which involve the delivery to the terminal of the largest quantities of LNG. For a Thermal Year, the maximum number of unloading operations relating to the regasification capacity to be allocated at the beginning of that Thermal Year, is equal to:

maximum number of unloading operations = Cannual / CSlots where Cannual is the Terminal’s annual regasification capacity, as set out in Chapter 2(3.3),

above CSlot is the regasification capacity of one Slot, as set out in Chapter 3(2). For the same Thermal Year, the maximum number of unloading operations is equal to the sum of the number of Slots as set out in a), b), c) and d), above.

2.2) The capacity allocation process at the beginning of the Thermal Year

GNL Italia allocates regasification capacity Slots as set out in paragraph 2.1, on the IT platform. On its website, GNL Italia must publish, in the Allocation Schedule, the timings of the capacity allocation processes and of any changes thereof. The allocation processes set out in this paragraph shall take place:

- in June for the multiannual capacity; - in July for the remaining available annual capacity pursuant to the TIRG.


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Requirements for Allocation Parties which meet the requirements set out in paragraph 1 of this Chapter may participate in the capacity allocation processes at the beginning of the Thermal Year, in accordance with the timing set out in that paragraph and in the Allocation Schedule. Offers from Users that exceed, even in part, the Users’ allocation limits according to the provisions in Chapter 7 and/or individual offerings for which the Slots requested exceed the quantity available for the allocation, shall not be considered valid and therefore will not be accepted. Allocation criteria The capacity allocation set out in paragraph 2.1 is carried out on the IT Platform via the 'open ascending' tender procedure as required by Article 5(6) of the TIRG. . Within each allocation process, parties interested in capacity allocation at the beginning of the Thermal Year and that meet the requirements set out in the preceding paragraph "Requirements for Allocation" may submit purchase requests. Such requests must be submitted on the IT Platform as per the procedures set out in the IT Platform Regulation. Purchase requests submitted pursuant to this paragraph in each allocation process are considered a binding commitment for the requesting party to subscribe to the quantity of capacity requested at a price equal to the award price at the outcome of the auction as per the procedures set out in the IT Platform Regulation. Purchase requests are selected on the IT Platform as per the procedures set out in the IT Platform Regulation. The capacity allocation processes at the beginning of Thermal Years that concern multiple Thermal Years and/or different types of capacity (multiannual, annual) are independent of one another; the allocation takes place in separate sessions. Pursuant to Article 5(12) of the TIRG, the capacity allocation as set out in paragraph 2.1(a) takes precedence over the allocation of capacity set out in paragraph 2.1(b and c). The timing of the individual capacity allocation processes at the beginning of the Thermal Year will be published in the Allocation Schedule on GNL Italia's website. Outcome of the allocation Once each auction session has been completed, each requesting party shall be notified of the outcome, detailing the selected bids and the assignment price of the selected bids, as per the procedures set out in the IT Platform Regulation.


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Each requesting party that has submitted a purchase offer at the award price is allocated the capacity specified in that offer. GNL Italia shall notify each requesting party on the IT Platform of the regasification capacity allocated to it as a result of the auction and the related fee determined thereby as per the procedures set out in the IT Platform Regulation. The outcomes of the allocation are also published in aggregate form, together with the award price on the IT platform if the number of assignees for each session is at least 3. The regasification capacity allocated in accordance with this paragraph is considered to be subscribed to by the User pursuant to the Regasification Agreement.

2.3) The allocated capacity distribution process at the beginning of the Thermal Year

GNL Italia uses the IT platform to carry out the capacity distribution process to associate each Slot allocated as a result of the processes at the beginning of the Thermal Year identified in this paragraph 2 with calendar dates for the following Thermal Year. On its website, GNL Italia must publish the timing of the regasification capacity distribution procedure and the distribution of the Slots available on the calendar dates of the following Thermal Year. Users who own Slots for the following Thermal Year, must participate in this procedure as defined below. Request to associate For each Slot which they own for the following Thermal Year, Users may submit on the IT platform requests to associate the Slots with calendar dates compatible with those indicated by GNL Italia, as per the procedures set out in the IT Platform Regulation. If no association request is received from the User or if the request received is for a partial number of Slots which the User owns or the association request submitted by the User is not satisfied, GNL Italia on the IT Platform will, giving prior notice to the User, associate the Slots which that User owns to calendar dates of the next Thermal Year, as per the procedures set out in the IT Platform Regulation. Association criteria The association of a calendar date to a Slot allocated to a User will be carried out, as per the procedures set out in the IT Platform Regulation, taking into account the following priority order: i. User with higher Slot allocation price, as results from the allocation process set out

in paragraph 2.2; ii. User with a greater number of slots allocated; iii. User who has submitted the request for association earlier


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Outcome of the association Once each allocated capacity distribution procedure has been completed, GNL Italia, on the IT platform , shall inform each participating User of the outcome of the association, including the calendar dates of the Slots which the User owns for the subsequent Thermal Year as per the procedures set out in the IT Platform Regulation.

2.4) Capacity that is made available to the Regasification Company for allocation to third parties under Article 14 of the TIRG If it is found that for a Thermal Year A the volume of LNG cumulatively delivered by a user with respect to Slots allocated at the beginning of the Thermal Year is less than 90% of the volume of LNG of expected to be unloaded in the LNG delivery schedule as set out in Chapter 9 for the same Slots, the User shall make available to GNL Italia for allocation to third parties, pursuant to the procedures set out in paragraph 2.2 and in paragraph 3.2, for each subsequent Thermal Year for which it owns allocated capacity at the beginning of the Thermal Year, the regasification capacity identified by:

a) Slots (number of Slots/year) equal to:

( Vprio - Vcons ) / Cslot rounded down to the nearest integer, where:

Vprio is the volume of LNG expected to be unloaded in the LNG delivery schedule as set out in Chapter 9 for the Slots assigned to the User for Thermal Year A, within the allocation processes at the beginning of the Thermal Year;

Vcons is the volume of LNG cumulatively delivered by the User for the Slots allocated at the beginning of the Thermal Year for Thermal Year A including the volume (i) of the Slots for which unloading has been carried out , due to events that have given rise to force majeure events declared by counterparties to import contracts or regasification agreements, as set out in paragraph 2.4.1, (ii) of the Slots made available by the User for allocation to third parties as set out in Chapter 8(3), to the extent that the minimum fee indicated by the user is not higher than the fee payable by the User for the same Slot to GNL Italia, and (iii) of slots to be transferred as set out in Chapter 8

CSlot is the regasification capacity of one Slot, as set out in Chapter 3(2).

By 1 November of Thermal Year A+1, the regasification company shall check the existence of the above conditions and, if the outcome thereof is positive, notify the user involved and the Authority indicating the capacity that the User must make available for allocation to third parties.


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In order to release to GNL Italia the Slots identified above for allocation to third parties pursuant to the procedures set out in paragraph 2.2 and in paragraph 3.2, the User may indicate a minimum sale fee associated with the capacity to be released as set out in Chapter 8(3); pursuant to the TIRG the minimum sale fee cannot be higher than the fee payable by that User for the capacity to be released. Ownership of the regasification capacity made available to GNL Italia pursuant to this paragraph and allocated to another User as a result of the allocation process set out in paragraph 2.2 and in paragraph 3.2, will be transferred to the latter User that therefore must pay the fees associated with capacity subscribed to, and comply with the conditions set out in the Regasification Code. The user retains the rights and obligations associated with the capacity contract for the capacity not allocated to third parties. Upon completion of the allocation processes as set out in paragraph 2.2 and paragraph 3.2, GNL Italia shall notify the User of the share of capacity that is available to it.

The User that has released regasification capacity must, however, pay the fee for the capacity released and, if the capacity is allocated to third parties within the allocation processes set out in paragraph 2.2 and in paragraph 3.2, it will receive the proceeds of the sale from GNL Italia.

The transport capacity booked by GNL Italia pursuant to paragraph 2.5 shall, therefore, be adjusted on the basis of the User’s regasification capacity allocated to third parties pursuant to the procedures as set out in paragraph 2.2 and in paragraph 3.2.

2.4.1) Force majeure events declared by counterparties to import contracts or regasification agreements

For the sole purpose of the provisions of paragraph 2.4, pursuant to the provisions of Article 14 of the TIRG, the term "Force majeure events declared by counterparties to import contracts or regasification agreements" shall mean any event, act, fact or circumstance which is not attributable to the Party that invokes it such as to make it impossible for the User to deliver all or part of the quantities of LNG to the regasification terminal, and which could not be avoided notwithstanding the continual diligence of a reasonable and prudent operator, for as long such cause persists. Having been notified of the existence of a force majeure event of the kind identified in this paragraph, the Party concerned shall immediately notify the other Party and the Authority by sending the self-certification, the text of which is available on the GNL Italia website, containing details of:

the expected extent of the reduction in LNG;

the expected duration of the event;

measures put in place to limit the impact of the event on LNG deliveries;

actions taken to make the regasification capacity that would remain unused available to other Users.


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Except as expressly stated in this paragraph, a force majeure event as described above shall not affect the existing contractual relationship between the User and the regasification company, which shall continue to be completely and fully valid.

2.5) Transport capacity for capacity allocations at the beginning of the Thermal Year

Pursuant to Resolution 297/2012/R/gas, once the regasification capacity allocation process has been completed at the beginning of the Thermal Year, GNL Italia, on behalf of its users, shall request to Snam Rete Gas, according to the timing and procedures set out in the Network Code, to provide the transport capacity required to inject into the network at the entry point to the Transport Network at Panigaglia the regasified volumes of the capacity allocated at the beginning of the Thermal Year. The requested transport capacity must be proportionate to the Terminal's maximum send-out ratio (as defined in paragraph 1.1(o) of Resolution ARG/gas No. 2/10) which corresponds to the ratio between the regasification capacity allocated to the User and the Terminal’s regasification capacity.

3) ALLOCATION OF REGASIFICATION CAPACITY FOR THE THERMAL YEAR ALREADY COMMENCED

The allocation of regasification capacity during the current Thermal Year relates to the continuous core regasification service set out in the "Description of the services" chapter. The allocation of regasification capacity implies the allocation of the transport capacity required for the provision of the Regasification Service.

3.1) What the allocation process deals with

After the Thermal Year has already commenced, the allocation process allocates the Terminal’s regasification capacity expressed in m3liq/day, of the remaining months of the Thermal Year starting from the month following that of allocation, in accordance with the TIRG. GNL Italia must publish the regasification capacity associated with a Slot as set out in Chapter 3(2), on its website. The capacity available for allocation for the Thermal Year already commenced is identified by:

a) Slots available at the Panigaglia Terminal, after completing the allocation process at the beginning of the Thermal Year, the allocation process for the Thermal Year already commenced that has already been carried out and the regasification capacity exchanges with GNL Italia, as published on GNL


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Italia's website. For the capacity allocation process for the Thermal Year already commenced in Month M, the Slots to be allocated are offered as

i. individual Slots already associated with calendar dates (Constrained Slots), for the months M+1, M+2 and M+3;

ii. Slots available (number of Slots/period), for the period from month M+1 to the last month of the Thermal Year.

GNL Italia also reserves the right to make available regasification capacity for allocation for the Thermal Year already commenced, after informing the Authority and Users, identified by:

iii. one or more products consisting of one Slot for each remaining month available for the Thermal Year (period from month M+4 to the last month of the Thermal Year).

b) Slots made available by the User to the Operator for allocation to third parties, as per the procedures set out in Chapter 8(3), under Article 8 of the TIRG;

c) Slots made available by the User to the Operator for allocation to third parties, as per the procedures set out in paragraph 2.4 of this chapter, under Article 14 of the TIRG.

3.2) Capacity allocation process for the Thermal Year already commenced

GNL Italia allocates regasification capacity Slots as set out in paragraph 3.1, on the IT platform. The allocation processes for the Thermal Year already commenced take place on a monthly basis from September of one Thermal Year to August of the following Thermal Year; On its website, GNL Italia must publish the remaining Slots available for allocation and the schedule of the capacity allocation processes and any variation thereof. In the event that in a month M GNL Italia makes available the regasification capacity product referred to in paragraph 3.1, letter a) point iii above, the related allocation process is carried out in advance of the other regasification capacity allocation processes referred to in paragraph 3.1. Requirements for Allocation To participate in the capacity allocation process for the Thermal Year already commenced, parties must meet the conditions set out in paragraph 1 of this Chapter in accordance with the timing also indicated in paragraph 1 and in the Allocation Schedule. Offers from Users that exceed, even in part, the User's allocation limits will not be considered valid and will not be accepted, in accordance with the provisions of Chapter 7.


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Allocation criteria The capacity allocation set out in paragraph 3.1 shall be carried out on the IT Platform via the 'pay as bid' auction procedure, as set out in in Article 6(4) of the TIRG. Within each allocation process, parties interested in capacity allocation for the Thermal Year already commenced that meet the requirements set out in the preceding "Requirements for Allocation" paragraph may submit purchase requests. Such requests must be submitted on the IT Platform as per the procedures set out in the IT Platform Regulation. Purchase requests submitted pursuant to this paragraph in each allocation process are considered a binding commitment for the requesting party to subscribe to the quantity of capacity requested at a price equal to the award price at the outcome of the auction as per the procedures set out in the IT Platform Regulation. If the requesting party submits a purchase request for Constrained Slots for the months M+1, M+2 and M+3 as set out in paragraph 3.1(a)(i) that requesting party may specify, in its purchase request, the order of preference (alternative or indifferent) for multiple Constrained Slots, as per the IT Platform regulation. If the fee for the purchase request is higher than the reserve price set out in Article 7 of the TIRG, the purchase requests are selected within the IT Platform on the basis of the highest purchase fee. For purchase requests for Constrained Slots indicated as mutually alternative and indifferent, requests will be selected on the IT Platform ensuring the maximization of the regasification capacity allocation, as per the procedures set out in the IT Platform regulation. Purchase requests for Slots included in the period from month M+4 to the last month of the Thermal Year, as set out in the foregoing paragraph 3.1(a)(ii), are selected on the IT Platform on the basis of the highest purchase fee, if the fee in the purchase request is higher than the reserve price set out in Article 7 of the TIRG. Purchase requests relating to products consisting of one Slot for each remaining month available for the Thermal Year, as referred to in paragraph 3.1 (a)(iii) above, are selected on the IT Platform on the basis of the highest purchase fee, if the fee in the purchase request is higher than the reserve price. The reserve price is defined as the average of the reserve prices set out in Article 7 of the TIRG for each month of the regasification capacity product. Pursuant to Article 5(12) of the TIRG, the capacity allocation as set out in the foregoing paragraph 3.1(a) takes precedence over the allocation of the capacity set out in paragraph 3.1(b and c). The timing of the individual capacity allocation processes for the Thermal Year already commenced will be published in the Allocation Schedule on GNL Italia's website. Outcome of the allocation


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Once each auction session has been completed, each requesting party shall be informed of the outcome, detailing the selected bids and assignment price of the selected bids (award price), as per the procedures set out in the IT Platform Regulation. On the IT Platform, GNL Italia shall inform each requesting party of the regasification capacity allocated to it as a result of the auction and the related fee determined thereby. The outcomes of the allocation are also published in aggregate form, together with the award price on the IT platform if the number of assignees for each session is at least 3. The regasification capacity allocated in accordance with this paragraph is considered to be subscribed to by the User pursuant to the Regasification Agreement.

3.3) The allocated capacity distribution procedure for the Thermal Year already commenced

GNL Italia carries out the capacity distribution process on the IT platform, to associate calendar dates of the current Thermal Year with each slot that has been allocated as a result of the Thermal Year already commenced processes as set out in paragraph 3.1(a)(ii), for the period from month M+4 to the last month of the Thermal Year and set out in paragraph 3.1(a)(iii), for the period from month M+1 to the last month of the Thermal Year. On its website, GNL Italia must publish the timing for the regasification capacity distribution procedure and the distribution of the available Slots to calendar dates of the current Thermal Year. Users who own slots as set out in paragraph 3.1(a)(ii) must participate in this process as defined below. Request to associate Users for each slot as set out in paragraphs 3.1(a)(ii) and 3.1(a)(iii), may submit on the IT platform, requests to associate them with calendar dates compatible with those indicated by GNL Italia, as per the procedures set out in the IT Platform Regulation. If no association request is received from the User or if the request received is for a partial number of Slots which the User owns or the association request submitted by the User is not satisfied, GNL Italia on the IT Platform will, giving prior notice to the User, associate the Slots which that User owns to calendar dates of the Thermal Year, as per the procedures set out in the IT Platform Regulation. Association criteria The association of a calendar date to a Slot allocated to a User will be carried out, as per the procedures set out in the IT Platform Regulation, taking into account the following priority order:


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i. User with higher Slot allocation price, as results from the allocation process set out

in paragraph 3.2; ii. User that has submitted a purchase request earlier, as set out in the foregoing

paragraph 3.2

Outcome of the association Once each allocated capacity distribution process has been completed, GNL Italia, on the IT platform, shall notify each User of the outcome of the association, including the calendar dates of the Slots which the User owns for the current Thermal Year, as per the procedures set out in the IT Platform Regulation.

3.4) Transport capacity allocations for the Thermal Year already commenced

Pursuant to Resolution 297/2012/R/gas, once the regasification capacity allocation process has been completed for the Thermal Year already commenced, GNL Italia, on behalf of its users, shall request to Snam Rete Gas, according to the timing and procedures set out in the Network Code, to provide the transport capacity required to inject into the network at the entry point to the Transport Network at Panigaglia the regasified volumes of the capacity allocated for the Thermal Year already commenced. The requested transport capacity must be proportionate to the Terminal's maximum send-out ratio (as defined in paragraph 1.1(o) of Resolution ARG/gas No. 2/10) which corresponds to the ratio between the regasification capacity allocated to the User and the Terminal’s regasification capacity.

4) ALLOCATION OF SPOT REGASIFICATION CAPACITY

The allocation of spot regasification capacity relates to the spot core regasification service described in the "Description of the services" chapter. The allocation of regasification capacity implies the allocation of the transport capacity required for the provision of the Regasification Service.

4.1) What the allocation process deals with The spot allocation process allocates the Terminal’s regasification capacity expressed in m3liq/day, of the month being allocated or of the following month, that is available as a result of the LNG delivery schedule set out in Chapter 9(1), in accordance with Article 6(2) of the TIRG.


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The spot capacity for allocation is identified, pursuant to Chapter 3(2), by the number of berthings at the Panigaglia Terminal and by the corresponding Scheduled Arrival Date and Maximum Unloading Capacity:

a) available after the capacity allocation processes at the beginning of the Thermal Year, the allocation processes for thermal year already commenced, and the regasification capacity exchanges with GNL Italia, as published on GNL Italia's website;

b) available as a result of the definition of the delivery schedule set out in Chapter 9(1); made available by the User to the Operator for allocation to third parties, as per the procedures set out in Chapter 8(3), under Article 8 of the TIRG.

GNL Italia shall define the spot regasification capacity (in terms of Scheduled Arrival Date and Maximum Unloading Capacity of each unloading slot) and publish it on its website and on the IT Platform based on the plant maintenance days specified in the following "Maintenance Scheduling and Management" chapter and in compliance with the following constraints:

there is a time window of at least 5 days between the Scheduled Arrival Date of one LNG carrier and the Scheduled Arrival Date of the next Carrier, as defined in the Schedule of LNG Deliveries for month M;

the total volume of LNG present in the tanks at 6:00 on the Scheduled Arrival Date

for the next Carrier scheduled to unload must not exceed 20,000 m3liq;

the total volume of LNG in the tanks at 6:00 on each Gas Day must be between 5,000 m3liq (lower limit) and 45,000 m3liq (upper limit);

the total volume of LNG in the tanks at the end of each month must not exceed 20,000 m3liq;

daily production may not exceed 17,500 m3liq/d, and shall be considered equal to 0 when the tanks reach a level corresponding to a volume of LNG of 5,000 m3liq;

The volume of LNG unloaded during each unloading slot is considered as delivered in the days scheduled for the unloading slot and in shares equal to the daily volume actually unloaded.

For each berthing available for allocation, details must also be published on

the Scheduled Arrival Date;

the Maximum Unloading Capacity of LNG;

the indicative redelivery profile of the regasified quantity as set out in Chapter 9.

4.2) The Spot Capacity Allocation Process


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GNL Italia allocates the available spot berthings as set out in the foregoing paragraph 4.1, using the IT platform. The spot capacity allocation processes take place in the period from September of one Thermal Year to August of the following Thermal Year; On its website, GNL Italia must publish the spot berthings available for allocation and the schedule of the spot capacity allocation processes and any variation thereof. Requirements for Allocation To participate in the spot capacity allocation process, Parties must meet the conditions set out in paragraph 1 of this Chapter in accordance with the timing also indicated in paragraph 1 and in the Allocation Schedule. Offers from Users that exceed, even in part, the User's allocation limits will not be considered valid and will not be accepted, in accordance with the provisions of Chapter 7. Allocation criteria The capacity allocation as set out in the foregoing paragraph 4.1 is carried out on the IT Platform via the 'pay as bid' auction, according to the provisions in Article 6(4) of the TIRG. Within each allocation process, parties interested in the spot capacity allocation that meet the requirements set out in the foregoing paragraph "Requirements for Allocation" may submit purchase requests. Such requests must be submitted on the IT Platform as per the procedures set out in the IT Platform Regulation. Purchase requests submitted pursuant to this paragraph in each allocation process are considered a binding commitment for the requesting party to subscribe to the quantity of capacity required at a price equal to the award price for the auction as per the procedures set out in the IT Platform Regulation. The requesting party may specify in its purchase request the order of preference (alternative or indifferent) for multiple Constrained Slots, as per the procedures set out in the IT Platform Regulation. If the fee for the purchase request is higher than the reserve price set out in Article 7 of the TIRG, the purchase requests are selected within the IT Platform on the basis of the highest purchase fee. For purchase requests for Constrained Slots indicated as mutually alternative and indifferent, requests will be selected on the IT Platform ensuring the maximization of the regasification capacity allocation, as per the procedures set out in the IT Platform Regulation. Pursuant to Article 5(12) of the TIRG the capacity allocation as set out in paragraph 4.1(a) and (b) takes precedence over the allocation of capacity as set out in paragraph 4.1(c).


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The timing of the individual spot capacity allocation processes will be published in the Allocation Schedule on GNL Italia's website. Outcome of the allocation Once each auction session has been completed, each requesting party shall be informed of the outcome, detailing the selected bids and assignment price of the selected bids (award price), as per the procedures set out in the IT Platform regulation. GNL Italia shall notify each requesting party on the IT Platform of the spot regasification capacity allocated to it as a result of the auction and the related fee determined thereby. The outcomes of the allocation are also published in aggregate form, together with the award price on the IT platform, if the number of assignees for each session is at least 3. The spot regasification capacity allocated in accordance with this paragraph is considered to be subscribed to by the User pursuant to the Regasification Agreement.

4.3) Transport capacity for spot capacity allocations

Pursuant to Resolution 297/2012/R/gas, once the spot regasification capacity allocation process has been completed, GNL Italia, on behalf of its users, shall request to Snam Rete Gas, according to timing and procedures set out in the Network Code, to provide the transport capacity required to inject into the network at the entry point to the Transport Network at Panigaglia the regasified volumes of the spot capacity allocated. The requested transport capacity must be proportionate to the Terminal's maximum send-out ratio (as defined in paragraph 1.1(o) of Resolution ARG/gas No. 2/10) which corresponds to the ratio between the regasification capacity allocated to the User and the Terminal’s regasification capacity.

5) ALLOCATION OF SPOT REGASIFICATION CAPACITY BEYOND STANDARD TERMS

The allocation of spot regasification capacity relates to the spot core regasification service described in the "Description of the services" chapter. The allocation of regasification capacity implies the allocation of the transport capacity required for the provision of the Regasification Service.

5.1) What the allocation process deals with After the deadlines have expired, the allocation process allocates the Terminal’s regasification capacity expressed in m3liq/day, that is available as a result of the latest


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insolvency proceedings as set out in paragraph 4.2, according to the provisions of Article 6(6) of the TIRG. The spot capacity after the deadlines have expired for allocation is identified, pursuant to Chapter 3(2), by the number of berthings at the Terminal and by the corresponding Scheduled Arrival Date and Maximum Unloading Capacity. Each spot berthing beyond the deadlines remains available for allocation until:

- the fifth working day before the Scheduled Arrival Date if the Terminal is not in operation;

- the third working day before the Scheduled Arrival Date if the Terminal is in operation.

GNL Italia reserves the right to update and change the spot berthings available for allocation if the following events occur:

non-compliance with the schedule;

rescheduling of the unloading slots;

maintenance in addition to that set out in the "Maintenance Scheduling and Management" chapter;

GNL Italia shall make available updates with regard to the availability of spot berthings by:

the same working day, for events accepted by GNL Italia on a working day;

the next working day, for events accepted by GNL Italia on public holidays.

5.2) Spot capacity allocation process beyond the deadlines GNL Italia allocates the available spot berthings as set out in the foregoing paragraph 5.1, using the IT platform. Spot allocation processes beyond the deadlines take place on a monthly basis during the Thermal Year; GNL Italia must make available the schedule with the timing for the capacity allocation processes and any variation thereof as well as the assignment price for every spot berthing available, defined pursuant to the TIRG. Requirements for Allocation To participate in the spot capacity allocation process beyond the deadlines, Parties must meet the conditions set out in paragraph 1 of this Chapter in accordance with the timing also indicated in that paragraph 1 and in the Allocation Schedule.


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Offers from Users that exceed, even in part, the User's allocation limits will not be considered valid and will not be accepted, in accordance with the provisions of Chapter 7. Allocation criteria The capacity allocation as set out in the foregoing paragraph 5.1 shall be carried out on the IT Platform on the basis of the 'first come first served’ criteria, as required by Article 6(6) of the TIRG. Within each allocation process, parties interested in the spot capacity allocation that meet the requirements set out in the foregoing paragraph "Requirements for Allocation" may submit purchase requests. Such requests must be submitted on the IT Platform as per the procedures set out in the IT Platform Regulation. Purchase requests submitted pursuant to this paragraph in each allocation process are considered a binding commitment for the requesting party to subscribe to the amount of spot capacity requested at a price equal to the assignment price as defined in the procedures set out in the IT Platform Regulation. Purchase requests are selected on the IT Platform as per the procedures set out in the IT Platform Regulation. The spot capacity allocation processes beyond the deadlines related to different berthings are independent from one another. Pursuant to Article 5(12) of the TIRG the allocation of spot berthings beyond the deadlines as set out in paragraph 4.1(a) and (b) takes precedence over that of spot berthings beyond the deadlines as set out in paragraph 4.1(c). Outcome of the allocation After each requesting party has presented its offer, the outcome is reported, stating the assignment price of the tender selected (award price), as per the procedures set out in the IT Platform Regulation. GNL Italia shall notify on the IT Platform each requesting party of the amount of spot regasification capacity beyond the deadlines that has been allocated to each party and the corresponding award price. The regasification capacity allocated in accordance with this paragraph is considered to be subscribed to by the User pursuant to the Regasification Agreement.

5.3) Transport capacity for spot capacity allocation beyond the deadlines Pursuant to Resolution 297/2012/R/gas, once the spot regasification capacity allocation process beyond the deadlines has been completed, GNL Italia, on behalf of its users,


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shall request to Snam Rete Gas, according to timing and procedures set out in the Network Code, to provide the transport capacity required to inject into the network at the entry point to the Transport Network at Panigaglia the regasified volumes of the spot capacity allocated beyond the deadlines. The requested transport capacity must be proportionate to the Terminal's maximum send-out ratio (as defined in paragraph 1.1(o) of Resolution ARG/gas No. 2/10) which corresponds to the ratio between the regasification capacity allocated to the User and the Terminal’s regasification capacity.

6) ACCESS TO THE FLEXIBILITY SERVICES

Users that own regasification capacity as a result of a capacity allocation process as set out in this Chapter may request access to the Temporary Storage Service, by sending a request to the Terminal Operator using the forms published by GNL Italia on its website. The subscription request, duly completed, must be sent to the Operator for month M, no later than the third working day before the beginning of month M. Within two working days of receipt of the application request form, the Operator shall confirm to the User the possibility of accessing the Temporary Storage Service, taking into account the technical and operational constraints of the Terminal and its actual use as a result of the scheduling of deliveries and regasification as set out in Chapter 9. If the Ministry of Economic Development envisages the use of regasification terminals that are partially used to provide the Peak Shaving Service, the Terminal Operator, should it decide to implement such measures, reserves the right to not offer the Temporary Storage Service during the service activation period between the unloading of the LNG load required for aforementioned Peak Shaving Service and the end of the service activation period, as defined by the MISE.

Regasification CodeMethods and procedures for authorising LNG Carriers to Unload

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METHODS AND PROCEDURES FOR AUTHORISING LNG CARRIERS TO UNLOAD

1) ACCEPTANCE OF LNG CARRIERS ......................................................................................................... 2

1.1) FOREWORD ................................................................................................................................................ 2 1.2) LIST OF ACCEPTED LNG CARRIERS ........................................................................................................... 2

2) PROCEDURE FOR AUTHORISING LNG CARRIERS ......................................................................... 2

2.1) SHIP APPROVAL PROCEDURE ..................................................................................................................... 2 2.2) UNLOADING TEST ...................................................................................................................................... 2 2.3) AUTHORISATIONS AND PERMITS ................................................................................................................ 3 2.4) REVOCATION OF AUTHORISATION TO MOOR AT THE TERMINAL................................................................ 4 2.5) PREREQUISITES WITH REGARD TO THE LNG CARRIER'S LOADING SYSTEM ................................................ 4


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1) ACCEPTANCE OF LNG CARRIERS

1.1) Foreword The purpose of this document is to define the methods and procedures for authorising LNG Carriers to unload LNG. The Panigaglia LNG Terminal is capable of receiving LNG Carriers that have a maximum capacity of approximately 65,000 to 70,000 m3 of LNG, provided that they are compatible with the technical and safety characteristics of the pier and the manoeuvring area and have appropriate load measurement systems.

The activity described can be divided into four phases:

1. requirements which the LNG Carriers must comply with to obtain authorisation; 2. procedures for the submission of authorisation requests by Users and the content

thereof; 3. checks and compatibility criteria; 4. timelines for approval of requests.

1.2) List of Accepted LNG Carriers The list of the LNG Carriers accepted at the Panigaglia Terminal is shown – and regularly updated – on GNL Italia's website. LNG Carriers that intend to unload at the Terminal must be pre-authorised by the Operator pursuant to this chapter; LNG Carriers must also comply with the safety requirements of the Terminal, of the Port of La Spezia and of other competent authorities concerning unloading.

2) PROCEDURE FOR AUTHORISING LNG CARRIERS

2.1) Ship Approval Procedure If a User is interested in obtaining authorisation from the Operator to unload the cargo of an LNG Carrier that is not yet included in the LNG Carrier List (published and constantly updated on GNL Italia’s website), it must submit to the Operator for the necessary technical assessments, the data and information specified in the "Ship Approval Procedure", also published on GNL Italia’s website. In the event of a positive outcome of the above assessments, the Operator will allow the ship to perform an unloading test under the conditions set out herein. The outcome will be reported by fax by GNL Italia no later than sixty days from the date of receipt of the authorisation request for the carrier to unload LNG at the Terminal.

2.2) Unloading Test "Unloading Test" means the first unloading at the Panigaglia Terminal of an LNG Carrier that has not previously unloaded at that Terminal, or for which, compared to the most recent unloading, changes have been made to the LNG Carrier which could affect its compatibility with the Terminal.


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A Carrier that must carry out the unloading test must come to the port of La Spezia with sufficient advance notice so that, before starting the mooring procedures at the Terminal, the Operator can check the documentation kept on board the Carrier, so as to: obtain objective evidence of the information received; inform the ship's Captain of the main procedural, environmental and safety aspects of

the operation. If, on the basis of the evidence resulting from the aforementioned documentation check, the LNG Carrier cannot carry out the unloading test, the provisions of the "Receiving, storage and regasification of LNG" chapter, paragraph 1.1, shall apply, except for the fee for failure to unload (Cmd in the event of reasons not attributable to the Operator and C’md for reasons attributable to the Operator). Should problems arise during the mooring procedures and until the completion of the unloading operations that, in the opinion of the Operator, may endanger workers, unloading operations and the facility, the LNG Carrier will be required to leave the berthing area immediately. Within ten days of completion of the unloading test, the Operator shall communicate by fax the results with regard to the inclusion of the Carrier in the List of LNG Carriers accepted at the Terminal. The results can be: positive: in this case the Carrier will be included in the List; negative, including details of the relevant action to be taken prior to any subsequent

test unloading. Except for the details expressly provided above in relation to the failure to carry out the unloading test (after completing the checks on the Ship's records), the provisions referred to in this document shall apply.

2.3) Authorisations and Permits Pursuant to the provisions of the ISPS (International Ship and Port Facility Security) Code all LNG Carriers that moor at the Terminal must possess an ISSC (International Ship Security Certificate) issued by the competent authority. As the Terminal is a Port Facility, it possesses an SoCPF (State of Compliance of a Port Facility). When mooring an LNG Carrier at the Terminal, the User must comply with the regulations contained in the SSP (Ship Security Plan) and the Operator must comply with those contained in the PFSP (Port Facility Security Plan). LNG Carriers authorised to moor at the Terminal must also provide, upon request of the Operator, a Ship Inspection Report (SIRE) issued by an authorised inspector and dated not over 12 months prior to the date of berthing at the Terminal, to confirm the Carrier’s compliance with minimum safety requirements (based on the information contained in such report). The inspection report must be accompanied by an overall opinion regarding the acceptability of the Ship with regard to safety. This opinion must be issued by a leading company in the sector and be based on the details of the report itself. In any case, GNL


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Italia reserves the right to independently assess to contents of the report and, if necessary, refuse to authorise the carrier to moor.

2.4) Revocation of Authorisation to Moor at the Terminal The Operator may, at any time, revoke authorisation to moor if the LNG Carrier does not comply with the required safety procedures or if its configuration has been altered in such a way that it no longer guarantees compatibility with the Terminal structures. The Operator may also revoke authorisation to moor if changes have been made to the receiving facilities that cause the LNG Carrier to be no longer compatible with the modified structure, due to new regulations, legislative measures or new security procedures issued by the Operator. The Operator must inform the Users of any changes made to the receiving structures well in advance of their implementation.

2.5) Prerequisites with regard to the LNG Carrier's loading system

Tank "Calibration Tables" and the load measurement system must be accepted by the Customs Authorities. The Carrier is responsible for obtaining such acceptance and the process must be completed prior to the first unloading at the Terminal. If the "Calibration Tables" and the load measurement system are rejected or revoked, the Operator will automatically revoke the mooring authorisation.

Regasification CodeFinancial Guarantees and Insurance

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FINANCIAL GUARANTEES AND INSURANCE

1) FINANCIAL GUARANTEES RELATING TO REGASIFICATION SERVICES ............................... 2

2) INSURANCE POLICIES ............................................................................................................................... 4

2.1) POLICIES TAKEN OUT BY THE REGASIFICATION COMPANY ............................................................................ 4 2.2) POLICIES TAKEN OUT BY THE USER ............................................................................................................... 4

3) FINANCIAL GUARANTEE COVERING NON-COMPLIANCE WITH THE LNG DELIVERY SCHEDULE SET OUT IN CHAPTER 9(1) ................................................................................................. 5


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1) FINANCIAL GUARANTEES RELATING TO REGASIFICATION SERVICES To guarantee payment of the obligations arising from the subscription of the Regasification Agreement and to cover the obligations arising from the provision of the service, both as fee, and as indemnity or compensation, in order to protect GNL Italia and other users of the regasification service, the requesting party must have:

- a credit rating, as described in a), below

or failing that:

- a financial guarantee as set out in paragraph (b) or a non-interest-bearing security deposit as set out in point (c)

a) The party interested in the regasification capacity allocation must have a credit rating, provided by leading international bodies, of at least:

Baa3 if provided by Moody's Investor Services;

or

BBB- if issued by Standard & Poor's Corporation

and must provide GNL Italia with the relevant certificate issued by one of the aforementioned agencies as evidence of the assigned rating, and to report any changes to that rating. If the criterion set out in a) above is met by the parent company of the requesting party, under Article 2362 of the Italian Civil Code, that latter must submit to GNL Italia a letter of guarantee issued by the parent company that expresses the parent company’s commitment to meet any payment obligations towards GNL Italia in the name and on behalf of the requesting party. The text of the letter of guarantee to be signed by the parent company is provided in Annex 7/A. If these criteria are not met, the requesting party must submit b) a first-call bank guarantee, issued by an Italian bank or by an Italian branch/office of a foreign bank, the text of which is in Annex 7/B. The amount guaranteed will be used to cover all or part of the guarantee required. or c) a non-interest-bearing security deposit. The non-interest-bearing security deposit shall be lodged by means of bank transfer separate from the payment of any other invoices and with express indication of the reason for the payment, on a current bank account expressly indicated by GNL Italia. GNL Italia shall issue a certificate of the deposit, the


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text of which is attached as Annex 7/C. The amount paid may be used to cover all or part of the guarantee required. The minimum amount of the guarantee set out in a), b) and c) above provided by the User shall be at least equal to the greater of

i. 100% of the commitments associated with the 3 Slots/Constrained Slots/spot berthings requested/allocated having the greatest economic value for a Thermal Year, increased by 100% of the commitments relating to transport fees as set out in Chapter 10(4.2); and

ii. 36% of the maximum annual fee of the greater of the commitments for a Thermal Year requested/allocated, increased by 100% of commitments for transport fees as set out in Chapter 10(4.2)

It is agreed that the services invoiced and paid for during the Thermal Year do not contribute to the reduction of the minimum amount identified above. The guarantee levels provided are checked by means of the allocation limits set out in paragraph 1.1. The guarantee must be valid for the entire duration of the Regasification Agreement, and terminate at the end of the sixth month after the end of the last Thermal Year covered by the Agreement. In relation to the capacity commitments for the continuous Regasification Service for Thermal Years subsequent to the first Thermal Year being allocated, the User can present a guarantee that lasts one year which, at the end of each Thermal Year, automatically renews for the following Thermal Year until the end of the sixth month following the end of the last Thermal Year covered by the Regasification Agreement. The guarantee is considered automatically renewed if no cancellation notice has been received by the bank that issued the guarantee as per the procedures set out in the text thereof by the end of the fifth month prior to the end of the Thermal Year to which the guarantee applies, or of each subsequent Thermal Year for which the guarantee has been renewed. It is agreed that the failure to renew the guarantee within this deadline will immediately result in loss of access requirements under this Code. If GNL Italia decides to enforce the bank guarantee in part or in full, the User must immediately reinstate the guarantee at issue, within seven days of enforcement under penalty of application of the measures set out in the "Obligations of the Parties" chapter. The adjustment of the guarantee according to the terms specified is a mandatory prerequisite for:

1. Allocation of regasification capacity as set out in the "Allocation of regasification

capacity” chapter, in the processes at the beginning of the Thermal Year, for the Thermal Year already commenced, for spot capacity and spot capacity beyond the deadlines;

2. the capacity transactions set out in the "Regasification capacity transactions" chapter.


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In any case, the guarantees described in this paragraph will be valid from the filing of the application for allocation request by the requesting party until returned to the User by GNL Italia.

1.1) Allocation limits

For submitting purchase offers to buy/requests of capacity within the allocation processes of Chapters 5 and 8, GNL Italia checks the capacity of the guarantees provided by the requesting User. To do so, the Operator determines an allocation limit equal to the difference between the total financial value of the guarantees provided for the obligations related to the regasification service as set out in paragraph 1 above, where fully effective and valid during the period covered by the offers to buy/requests of capacity (net of any guarantees enforced), and the portion of such guarantee already committed to cover the capacity requested and/or already subscribed at the time of submission of the purchase offer, for the amount equal to the greater of

i. 100% of the commitments associated with the 3 Slots/Constrained Slots/spot berthings requested/allocated having the greatest economic value for a Thermal Year, increased by 100% of the commitments relating to transport fees as set out in Chapter 10(4.2); and

ii. 36% of the maximum annual fee of the greater of the commitments for a Thermal Year requested/allocated, increased by 100% of commitments for transport fees as set out in Chapter 10(4.2).

If the fee of the purchase offers to buy/requests of capacity exceeds the allocation limit as set out in this paragraph, the offer to purchase/request will not be accepted, except for the provisions on credit ratings set out in paragraph 1 above.

2) INSURANCE POLICIES

2.1) Policies taken out by the Regasification Company The insurance policies taken out by the Operator in relation to the Panigaglia Terminal are to cover certain risks such as:

fire, natural disasters, acts of terrorism and sabotage; damage to third parties resulting from carrying out its business.

2.2) Policies taken out by the User The User guarantees that the LNG Carriers used for unloading activities are covered by the appropriate insurance policies (Protection & Indemnity Club Membership) which include:

damage to the Terminal;


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pollution

while carrying out the User's business.

3) FINANCIAL GUARANTEE COVERING NON-COMPLIANCE WITH THE LNG DELIVERY SCHEDULE SET OUT IN CHAPTER 9(1)

For acceptance by the Operator of the monthly delivery schedule set out in Chapter 9, Debtor Users must record a sales transaction at the Virtual Trading Point in favour of the Creditor User(s); it is aimed at ensuring compliance with the monthly delivery schedule of LNG of month M set out in Chapter 9. The sales transaction registered by Debtor User in favour of the Creditor User(s) is a multi-day type starting from the third day after the arrival date of the last LNG Carrier for the monthly delivery schedule for month M and ending on the last day of month M+1. The total volume of that transaction is determined as the maximum among the technical volume – as published on GNL Italia's website – of the largest LNG Carrier scheduled by the User for the month M, converted into MWh based on the conversion factor published on GNL Italia's website, and the quantity of gas delivered in advance to the debtor User on the basis of the Monthly schedule of deliveries and of the Monthly Redelivery Schedule of month M as set out in Chapter 9. After reporting to Users their status of Debtor User or Creditor User, GNL Italia is authorised to enter the above transactions at the VTP in the name and on behalf of the Terminal Users no later than at 12:00 of the 6th working day before the beginning of month M (4th working day for monthly capacity scheduling that has been assigned and not scheduled in month M-2). On the basis of the information made available by the Network Balancing Manager, Users must report to the Operator, by 16:00 of the same day, any inaccuracies in the transactions entered versus the information provided by the User itself during the scheduling process and, if the report is confirmed to be grounded, the Operator must modify the transactions entered, by 17:00. In order to ensure the successful outcome of the aforementioned transaction, Debtor Users must act to ensure that their financial guarantees are sufficient to ensure the system against the User as required by Chapter 5 of the Network Code and reinstate them promptly if they are insufficient to carry out the sales transaction. If the deliveries scheduled by the Debtor User are carried out in compliance with the LNG delivery schedule for month M described in Chapter 9, the Operator, before the effective date of the previously recorded transaction must cancel the latter. If a delivery scheduled by the User is not carried out in compliance with the LNG delivery schedule for month M as set out in Chapter 9, the Operator must partially cancel or not cancel the previously recorded transaction. The residual quantity that has not been cancelled shall be determined on the basis of the quantity actually provided in advance to the Creditor User and implies the Debtor User returning the gas to the Creditor User. The operational procedures for the management of the guarantee set out in this paragraph will be published on GNL Italia's website.


7 - 6

Users expressly agree that the Terminal Operator may enter, cancel or modify the transactions covered by this paragraph as described and for the cases described herein, carefully and promptly checking the Operator's entries, reporting any errors to the Operator as soon as possible, and however Users indemnify and hold the Operator harmless from any negative consequences resulting from any inaccuracies in said entries. If the Terminal has particular operating requirements, such as for example the shut-down of the plant or quantities of LNG in storage above the constraints defined in this Code, involving an advance of LNG owned by GNL Italia in favour of a Debtor User, the Creditor User shall be GNL Italia itself in the transactions set out in this paragraph. This case also applies to spot capacity allocations as set out in Chapter 5(8.3).

Parent company’s letterhead LETTERA DI GARANZIA SOCIETARIA_GNL

ANNEX 7/A

OPTION 1

FIRST CALL LETTER OF GUARANTEE TO BE ISSUED TO THE

BENEFICIARY

Whereas

- The Company………………………… with registered office at………………………………….

Tax Code ………………….. VAT No. ………………………………….. holds a 100% interest,

under Article 2362 of the Italian Civil Code, in Company (USER) …………………………… with

registered office at ………………… Tax Code……………………………………. VAT No.

…………………………………….

- The Company …….(USER)……... has been allocated by GNL Italia SpA, following the allocation

request and as a result of a specific procedure, regasification capacity for Thermal Year ……/……

and/or for the period between the Thermal Year …/…… and the Thermal Year ……/……;

- In order to proceed with subscription of the Regasification Agreement with .......... (USER), GNL

Italia SpA has requested, in accordance with the Regasification Code, the issue in its favour of a

first call guarantee equal to the greater of:

i. 100% of the commitments associated with the 3 Slots/Constrained Slots/spot berthings

requested/allocated having the greatest economic value for a Thermal Year, increased by 100% of the commitments relating to transport fees as set out in Chapter 10(4.2); and

ii. 36% of the maximum annual fee of the greater of the commitments for a Thermal Year

requested/allocated, increased by 100% of commitments for transport fees as set out in Chapter

10(4.2).

to cover the obligations deriving from capacity allocation, consisting of the payment of the fees set

out in the Regasificaton Agreement signed with GNL Italia SpA;

- Acknowledging the results of the allocation process(es), and being fully aware of the provisions

that govern such process(es), ...................... intends to issue the aforementioned guarantee.

Having stated the above,

1) The undersigned ……………………………… with head office at

………………………………… and domiciled pursuant to this deed at

……………………………………….…, irrevocably undertakes to immediately pay to GNL Italia

SpA, upon written request and without requiring any evidence or justification, without exception

and without any prior communication, notice, formal notice or claim against the company

..........(USER).........., all amounts that GNL Italia SpA shall be entitled to request for the reasons

provided above, up to EUR ...........(EUR ..................../....).

2) The guarantee may be enforced multiple times, until the maximum amount identified above has

been paid.

3) The undersigned ...................., declares that the provisions of Articles 1955 and 1957 of the

Italian Civil Code do not apply to this guarantee and in any case waives any right to exercise such

an option.

4) This warranty guarantees the fulfilment of all the obligations undertaken by …… (USER) under

the Regasification Agreement signed with GNL Italia SpA on ……….. and accrued starting on the

same date, both as fee, and as indemnity or compensation, and will be valid from the date of issue,

expiring at the end of the sixth month following the end of the Thermal Year …../….., and

therefore on 31 March …. .


5) Any disputes regarding the interpretation, validity, effectiveness and enforcement of this

guarantee shall be referred exclusively to the Court of Milan.

Date and place STAMP AND SIGNATURE

Pursuant to art. 1341 of the Italian Civil Code, specifically for the following points: 1) demand

payment and waiver of the right to object, 2) method of enforcement, 3) waiver of the right to

exercise the provisions of Articles 1955 and 1957 of the Italian Civil Code, 4) validity of the

guarantee, 5) Jurisdiction.



OPTION 2 (selectable by the User only for contracts lasting over one

Thermal Year)

FIRST CALL LETTER OF GUARANTEE TO BE ISSUED TO THE

BENEFICIARY

Whereas

- The Company………………………… with registered office at………………………………….

Tax Code ………………….. VAT No. ………………………………….. holds a 100% interest,

under Article 2362 of the Italian Civil Code, in Company (USER) …………………………… with

registered office at ………………… Tax Code……………………………………. VAT No.

…………………………………….

- The Company …….(USER)……... has been allocated by GNL Italia SpA, following the allocation


and/or for the period between the Thermal Year …/…… and the Thermal Year ……/……;

- In order to proceed with subscription of the Regasification Agreement with .......... (USER), GNL

Italia SpA has requested, in accordance with the Regasification Code, the issue in its favour of a

first call guarantee equal to the greater of:


requested/allocated having the greatest economic value for a Thermal Year, increased by 100% of the commitments relating to transport fees as set out in Chapter 10(4.2); and



10(4.2);


out in the Regasificaton Agreement signed with GNL Italia SpA;

- Acknowledging the results of the allocation process(es), and being fully aware of the provisions

that govern such process(es), ...................... intends to issue the aforementioned guarantee.


1) The undersigned ……………………………… with a head office at

………………………………… and domiciled for the purposes of this deed at


SpA, by written request and without requirement for any evidence or justification, without

exception and without any prior communication, notice, formal notice or claim against the

company ..........(USER).........., all amounts that GNL Italia SpA shall be entitled to request for the

reasons provided above, up to EUR ...........(EUR ..................../ ....).


been paid.

3) The undersigned ...................., declares that the provisions of Articles 1955 and 1957 of the

Italian Civil Code do not apply to this guarantee and in any case waives any right to exercise such

an option.

4) This warranty guarantees the fulfilment of all the obligations undertaken by …… (USER) under

the Regasification Agreement signed with GNL Italia SpA on ……….. and accrued starting on the

same date, both as fee, and as indemnity or compensation, and will be valid from the date of issue,

expiring at the end of the sixth month following the end of the Thermal Year …../….., and

therefore on 31 March…...


For regasification service capacity commitments that last longer than the Thermal Year identified

in the preamble, that guarantee automatically renews each year therefore accordingly postponing

the deadline for termination of 31 March, except for the right to terminate which must be notified

to GNL Italia SpA and notified for information to the company ………(USER) ……… in writing

by …………….(BANK)……………., via registered letter with proof of delivery and in advance to

the PEC certified email address [address@pec], at least four months before the end of the

Thermal Year which the guarantee concerns, or of each subsequent Thermal Year for which the

guarantee has been renewed. In the event of cancellation, this guarantee may be enforced –

pursuant to the Regasification Code – if the User fails to replace it with a new guarantee within

the terms set out in the Regasification Code.




Pursuant to art. 1341 of the Italian Civil Code, specifically for the following points: 1) demand

payment and waiver of the right to object, 2) method of enforcement, 3) waiver of the right to

exercise the provisions of Articles 1955 and 1957 of the Italian Civil Code, 4) validity of the

guarantee, 5) Jurisdiction.


Issuing Bank’s letterhead GARANZIA 1_GNL

ANNEX 7/B

OPTION 1

TEXT OF BANK GUARANTEE TO BE ISSUED TO THE BENEFICIARY

Whereas:

- To the company …………….(USER)……… with registered office at

………………………………………… Tax Code ……………………. VAT No.

……………………………….. has been allocated by GNL Italia SpA, following the allocation


and/or for the period between the Thermal Year …/…… and the Thermal Year ……/

- In order to proceed with subscription of the Regasification Agreement with

..........….(USER)……., GNL Italia SpA has requested, in accordance with the Regasification Code,

the issue in its favour of a first call guarantee equal to the greater of:


requested/allocated having the greatest economic value for a Thermal Year, increased by 100% of

the commitments relating to transport fees as set out in Chapter 10(4.2); and



10(4.2);


out in the Regasificaton Agreement signed with GNL Italia SpA.


1) The undersigned ………(BANK)…………… with a head office at

………………………………… and domiciled for the purposes of this deed at

……………………………………….…, irrevocably undertakes to immediately pay to GNL Italia SpA, by written request and without requirement for any evidence or justification, without



reasons provided above, up to EUR ........... (EUR………………………………/….).


been paid.

3) The undersigned …………….(ISSUING BANK)……………., declares that the provisions of

Articles 1955 and 1957 of the Italian Civil Code do not apply to this guarantee and in any case

waives any right to exercise such an option.

4) This warranty guarantees the fulfilment of all the obligations undertaken by company

…………….(USER)……………. under the Regasification Agreement signed with GNL Italia SpA

on ……….. and accrued starting on the same date, both as fee, and as indemnity or compensation,

and will be valid from the date of issue,, expiring at the end of the sixth month following the end

of the Thermal Year ….../..., and therefore on 31 March 20…. .





Pursuant to and in accordance with Article 1341 of the Italian Civil Code, with specific reference

to the following points: 1) demand payment and waiver of the right to object, 2) method of

enforcement, 3) waiver of the right to exercise the provisions of Articles 1955 and 1957 of the

Italian Civil Code, 4) validity of the guarantee, 5) Jurisdiction.



OPTION 2 (selectable by the User only for contracts lasting over one

Thermal Year)

TEXT OF BANK GUARANTEE TO BE ISSUED TO THE BENEFICIARY

Whereas:

- To the company …………….(USER)……… with registered office at

………………………………………… Tax Code ……………………. VAT No.

………………………………..has been allocated by GNL Italia SpA, following the allocation


and/or for the period between the Thermal Year …/…… and the Thermal Year ……/

- In order to proceed with subscription of the Regasification Agreement with

..........….(USER)……., GNL Italia SpA has requested, in accordance with the Regasification Code,

the issue in its favour of a first call guarantee equal to the greater of:


requested/allocated having the greatest economic value for a Thermal Year, increased by 100% of

the commitments relating to transport fees as set out in Chapter 10(4.2); and



10(4.2); to cover the obligations deriving from capacity allocation, consisting of the payment of the fees set

out in the Regasificaton Agreement signed with GNL Italia SpA.


1) The undersigned ………(BANK)…………… with a head office at

………………………………… and domiciled pursuant to this deed at


SpA, by written request and without requirement for any evidence or justification, without



reasons provided above, up to EUR ........... (EUR………………………………/….).


been paid.

3) The undersigned …………….(ISSUING BANK)……………., declares that the provisions of

Articles 1955 and 1957 of the Italian Civil Code do not apply to this guarantee and in any case

waives any right to exercise such an option.

4) This warranty guarantees the fulfilment of all the obligations undertaken by company

…………….(USER)……………. under the Regasification Agreement signed with GNL Italia SpA

on ……….. and accrued starting on the same date, both as fee, and as indemnity or compensation,

and will be valid from the date of issue, expiring at the end of the sixth month following the end of

the Thermal Year ….../..., and therefore on 31 March 20….

For regasification service capacity commitments that last longer than the Thermal Year identified

in the preamble, that guarantee automatically renews each year therefore accordingly postponing

the deadline for termination of 31 March, except for the right to terminate which must be notified

to GNL Italia SpA and notified for information to the company ………(USER) ……… in writing

by …………….(BANK)……………., via registered letter with proof of delivery and in advance to

the PEC certified email address [address@pec], at least four months before the end of the

Thermal Year which the guarantee concerns, or of each subsequent Thermal Year for which the


guarantee has been renewed. In the event of cancellation, this guarantee may be enforced –

pursuant to the Regasification Code – if the User fails to replace it with a new guarantee within

the terms set out in the Regasification Code.




Pursuant to and in accordance with Article 1341 of the Italian Civil Code, with specific reference

to the following points: 1) demand payment and waiver of the right to object, 2) method of

enforcement, 3) waiver of the right to exercise the provisions of Articles 1955 and 1957 of the

Italian Civil Code, 4) validity of the guarantee, 5) Jurisdiction.


ANNEX 7/C

LETTER CERTIFYING THE DEPOSIT OF THE NON-INTEREST-BEARING DEPOSIT (On GNL Italia's letterhead)

Date and place

To: USER Street address City

Date and place [USER] Subject: receipt of non-interest-bearing deposit as guarantee for Agreement [xxx] (indicate the

Regasification Agreement) for TY xxxxxx We hereby confirm that we have received, with value date dd/mm/year, the amount of EUR xxxxxx (amount in letters) paid by you as a non-interest bearing security deposit in accordance with Chapter 5(1.1) and Chapter 7(1) of GNL Italia’s Regasification Code. The security deposit in question is to be considered valid and operative to cover the obligations deriving from the capacity allocation, consisting in the payment of the fees under the Regasification Agreement signed with GNL Italia SpA.. We confirm that, in the event of default, any use of the security deposit to pay our invoices, expired and overdue, will be formally notified to you in advance. Best regards

STAMP AND SIGNATURE

Regasification Code Regasification Capacity Transactions

8 - 1

REGASIFICATION CAPACITY TRANSACTIONS

1) EXCHANGE OF REGASIFICATION CAPACITY BETWEEN USERS ............................................... 2

1.1) PURPOSE OF CAPACITY EXCHANGE ............................................................................................................. 2 1.2) CAPACITY EXCHANGE PROCESS .................................................................................................................. 2 1.3) CONFIRMATION OF ACCEPTANCE OF THE EXCHANGE .................................................................................. 2

2) REGASIFICATION CAPACITY EXCHANGES WITH GNL ITALIA ................................................. 3

3) RELEASES OF REGASIFICATION CAPACITY TO GNL ITALIA (ART. 8.2 OF THE TIRG ) ...... 4

3.1) PURPOSE OF CAPACITY RELEASES ............................................................................................................... 4 3.2) PROCEDURE FOR RELEASE OF THE REGASIFICATION CAPACITY SET OUT IN ARTICLE 8.2 OF THE TIRG ...... 4

4) TRANSFERS OF REGASIFICATION CAPACITY FROM USERS TO THIRD PARTIES .............. 5

4.1) PURPOSE OF CAPACITY TRANSFERS ............................................................................................................ 5 4.2) CAPACITY TRANSFER PROCEDURE .............................................................................................................. 6 4.3) CONFIRMATION OF ACCEPTANCE OF THE CAPACITY TRANSFER .................................................................. 6 4.4) OWNERSHIP OF THE REGASIFICATION CAPACITY TO BE TRANSFERRED ....................................................... 6

4) CAPACITY TRANSFERS TO THIRD PARTIES


8 - 2

1) EXCHANGE OF REGASIFICATION CAPACITY BETWEEN USERS 1.1) Purpose of capacity exchange

Before the start of and during each Thermal Year, GNL Italia Users may exchange the Constrained Slots they own having entered into the Regasification Agreement. Capacity exchanges between Users are the simultaneous sale and purchase of Constrained Slots between two Terminal Users.

1.2) Capacity exchange process

To ensure acceptance, interested parties must ensure that their regasification capacity exchange acceptance requests for Constrained Slots reach GNL Italia indicatively by the 9th working day1 before the beginning of the month of the capacity exchange; In the exchange acceptance request, the parties must acknowledge that the validity of the transaction is subject to GNL Italia’s express acceptance thereof. The capacity exchange request is irrevocable and shall constitute an addendum to the Regasification Agreement containing the commitments of the exchange, once GNL Italia has accepted it. Exchanges shall not be however accepted if:

User requests are received after the deadline indicated and/or contain conflicting

information and/or are incomplete; both requests from the Users have not been received; the Users do not own the Constrained slots to be exchanged as part of the

Regasification Agreements(s) indicated in the request; at the date of submission of the request, the Users have not paid the fees due for

current Regasification Agreements, for amounts invoiced and due above the value of the bank guarantee (set out in paragraph 1 of the "Financial Guarantees and insurance" chapter) issued to cover obligations related to the aforementioned current Regasification Agreements;

as of the exchange date the Users do not have the guarantees specified in Chapter 7 to cover the obligations arising from provision of the Regasification Service

The procedures for submitting capacity exchange requests are published on GNL Italia's website.

1.3) Confirmation of acceptance of the exchange By the working day following the deadline for submission of requests, GNL Italia shall communicate: the acceptance of the exchanges by returning copies of the exchange requests to the

requesting parties, duly countersigned for acceptance; the rejection of the exchanges.

1 The date is published in the Allocation Schedule on GNL Italia's website


8 - 3

It is agreed that Users must however pay the fees for the Constrained Slots to be exchanged, including those for the transport capacity as set out in Chapter 10(4.2), and comply with the conditions set out in the Regasification Code.

2) REGASIFICATION CAPACITY EXCHANGES WITH GNL ITALIA

The exchange of capacity with GNL Italia means the transfer and simultaneous acquisition of a Constrained Slot between a Terminal User and GNL Italia. The Constrained Slots not allocated during the Thermal Year may be exchanged between GNL Italia and the Users. Requests to exchange regasification capacity with GNL Italia must be presented indicatively by the 11th working day before the beginning of the month in which the capacity exchange is to take place2. GNL Italia will accept or reject such exchanges indicatively by the 9th working day3 before the beginning of month in which the capacity exchange is to take place GNL Italia will not perform capacity exchanges if the Constrained Slot is requested by more than one User. Capacity exchange requests shall not be accepted under any circumstances if:

requests are received after the specified deadlines and/or are incomplete; the User does not own the Constrained Slot to be exchanged as part of the

Regasification Agreement(s) indicated in the request; at the date of filing of the request, the Users have not paid the fees due in relation to

existing Regasification Agreements, for amounts invoiced and due in excess of the value of the bank guarantee (set out in paragraph 1 of the "Financial Guarantees and insurance" chapter) issued to cover obligations related to the aforementioned existing Regasification Agreements;

users that as of the exchange date do not have the guarantees set out in Chapter 7 to cover obligations arising from provision of the regasification service.

The procedures for submitting capacity exchange requests are published on GNL Italia's website.

2 The date is published in the Allocation Schedule on GNL Italia's website 3 The date is published in the Allocation Schedule on GNL Italia's website


8 - 4

3) RELEASES OF REGASIFICATION CAPACITY TO GNL ITALIA (ART. 8.2 OF THE TIRG )

3.1) Purpose of capacity releases

Before the start of and during each Thermal Year, Users may make available to GNL Italia for allocation to third parties, within the allocation processes set out in Chapter 5, the regasification capacity which they own, identified by:

Slots (number of Slots/year) for the offer within the capacity allocation process at the beginning of the Thermal Year as set out in Chapter 5(2) a) Slots (number of Slots/period) i.e. Slots already linked to calendar dates

(Constrained Slots) for the offer within the capacity allocation process for Thermal Year already commenced as set out in Chapter 5(3);

b) Spot berthings for the offer within the spot capacity allocation as set out in Chapter 5(4)

A User’s release of a Slot to GNL Italia for allocation to third parties also involves the User releasing the calendar dates linked with that Slot.

3.2) Procedure for release of the regasification capacity set out in Article 8.2 of the TIRG Interested Users must send their capacity release requests to GNL Italia as set out in paragraph 3.1, according to the timing and procedures published on GNL Italia's website. Requests to release regasification capacity shall not be accepted under any circumstances if: requests are received after the specified deadlines and/or are incomplete; the requesting User does not own the capacity in question in relation to the

Regasification Agreement(s) indicated in the request. GNL Italia will make available for assignment to third parties the regasification capacity being released within the capacity allocation processes set out in Chapter 5. Pursuant to Article 5(12) of the TIRG the allocation of available capacity at the Panigaglia Terminal takes precedence over the capacity made available by Users pursuant to this paragraph. Users may revoke their capacity release requests sent to GNL Italia, according to the procedures published on GNL Italia's website, until the 3rd working day before the deadline for submitting the allocation request within the allocation processes at the beginning of the Thermal Year or after the Thermal Year already commenced or spot as set out in Chapter 5 as indicated by GNL Italia in the Allocation Schedule or by the deadline for submitting the spot capacity allocation request beyond the deadlines. GNL Italia shall communicate to the User by the next working day the request to relinquish the calendar dates linked with the regasification capacity being revoked of the request for release.


8 - 5

It is agreed that the capacity released and allocated to a third party pursuant to Chapter 5 cannot be revoked. Within two working days after the submission of the request, GNL Italia shall notify the requesting User of whether the release request has been accepted or rejected. If GNL Italia accepts the release, the User can indicate the minimum sale fee for the capacity being released as set out in Annexes 5/A and 5/B of Chapter 5; it is agreed that, if the User does not indicate the minimum sale fee, such fee shall be zero. The regasification capacity being released that is not allocated within the allocation processes set out in Chapter 5 becomes available to the User that released it, except for the regasification capacity released in month M for the same month M or M+1 that is not allocated within the spot capacity allocation process set out in Chapter 5(4). It is agreed that in such cases, the user must pay the fees for the capacity made available and not allocated within the spot capacity allocation process as set out in Chapter 5(4), including those for the transport capacity as set out in Chapter 10(4.2). Users that have released regasification capacity must however pay the fee for the capacity being released and, if the capacity is allocated to third parties within the allocation processes set out in Chapter 5, will receive the proceeds of the sale from GNL Italia.

4) TRANSFERS OF REGASIFICATION CAPACITY FROM USERS TO THIRD PARTIES

4.1) Purpose of capacity transfers

Before the start of and during each Thermal Year, GNL Italia Users may transfer the regasification capacity they own pursuant to having entered into the Regasification Agreement. Transfer of the capacity of Users means the transfer to third parties (Buying User) of regasification capacity, identified by:

a) Slots (number of Slots/year) for capacity transfers at the beginning of the Thermal Year;

b) Slots (number of Slots/period), i.e. the Slots already linked to calendar dates (Constrained Slots) for capacity transfers for the Thermal Year already commenced;

c) Spot berthings for spot capacity transfers.


8 - 6

4.2) Capacity transfer procedure Interested parties must send their transfer requests to GNL Italia by the 9th working day before the beginning of the month in which the transfer is to take place, according to the procedures published on GNL Italia's website.

For the transfer to be valid, the Buying User must have the access requirements set out in Chapter 5(1). In the transfer request, the parties acknowledge that its validity is subject to express acceptance by GNL Italia that will check the adequacy of the access requirements to the Regasification Service of the buying party, as set out in Chapter 5(1). The capacity transfer request is irrevocable and, once accepted by GNL Italia, shall constitute an addendum to the Regasification Agreement containing the commitments to be exchanged. Transfers will however not be accepted if:

the request from the Users is received after the deadline indicated and/or is

incomplete; the documentation that the Buying User must provide, as defined in this paragraph,

does not arrive; the Selling Users do not own the capacity to be transferred as indicated in the transfer

request submitted; at the date of filing of the request, the Users have not paid the fees due in relation to

current Regasification Agreements, for amounts invoiced and due in excess of the value of the guarantee (set out in paragraph 1 of the "Financial Guarantees and insurance" chapter) issued to cover obligations related to provision of the Regasification Service.

4.3) Confirmation of acceptance of the capacity transfer By the working day following the deadline for the submission of applications, GNL Italia shall communicate: acceptance of the transfer by returning copies of the transfer requests to the

requesting parties, duly countersigned for acceptance; rejection of the transfer.

4.4) Ownership of the regasification capacity to be transferred As a result of acceptance of the sale by GNL Italia, the ownership of the regasification capacity shall be transferred from the Selling User to the Buying User that therefore must pay the fees for the capacity to be exchanged, the capacity charge for the transport capacity as set out in Chapter 10(4.2) and must comply with the conditions set out in the Regasification Code. The regasification capacity allocated pursuant to this paragraph is considered subscribed by the Buying User under the Regasification Agreement.


8 - 7

If the exchange is not accepted for one of the reasons set out in paragraph 1.2 above, the Selling User will retain ownership of the capacity to be exchanged and be bound by the corresponding obligations. Transfer requests submitted by the requesting party and accepted by GNL Italia shall amend and supplement the Regasification Agreement of the requesting party.

Regasification Code Scheduling of LNG Delivery and Regasification

9 - 1

SCHEDULING OF LNG DELIVERIES AND OF REGASIFICATION ACTIVITY

1) LNG DELIVERY SCHEDULING ............................................................................................................. 2

1.1) SCHEDULE PROPOSAL .............................................................................................................................. 2 1.1.1) Schedule proposal for month M+1 ................................................................................................ 2 1.1.2) Schedule proposal for months M+2 and M+3 .............................................................................. 3 1.1.3) Acceptance criteria of the schedule proposal ................................................................................ 3

1.2) NOTIFICATION OF THE DELIVERY SCHEDULE ........................................................................................... 4

2) RESCHEDULING OF LNG DELIVERIES ............................................................................................. 5

2.1.1) Berthing rescheduling requests ..................................................................................................... 5 2.1.2) Exchange of Scheduled Arrival Dates ........................................................................................... 6 2.1.3) Change of LNG Carrier ................................................................................................................. 6

2.2) ACCEPTANCE OR REJECTIONS OF RESCHEDULING REQUESTS ................................................................... 6

3) RESCHEDULING OF REGASIFICATION ACTIVITIES ................................................................... 7

3.1) MONTHLY REDELIVERY SCHEDULE ......................................................................................................... 7 3.2) UPDATE OF THE MONTHLY REDELIVERY SCHEDULE ................................................................................ 8

3.2.1) Redelivery Allocation Criteria ....................................................................................................... 9 3.3) DAILY REDELIVERY FINAL BALANCE ..................................................................................................... 10 3.4) CRITERIA FOR THE DEFINITION OF THE MONTHLY REDELIVERY SCHEDULE AND OF THE DAILY

REDELIVERY FINAL BALANCE ................................................................................................................ 10 3.5) SCHEDULING OF REGASIFICATION FOR THE SPOT REGASIFICATION SERVICE ........................................ 13 3.6) SCHEDULING OF REGASIFICATION FOR THE LNG TEMPORARY STORAGE FOR THE PEAK SHAVING

SERVICE REFERRED TO MINISTERIAL DECREE OF 18 OCTOBER 2013 .................................................... 14 3.7) REDELIVERY FLEXIBILITY SERVICE ....................................................................................................... 15 3.8) TEMPORARY STORAGE SERVICE ............................................................................................................ 18

4) REDUCTION IN REGASIFICATION CAPACITY ............................................................................ 19

5) SCHEDULING OF THE TRANSPORT CAPACITY .......................................................................... 19


9 - 2

1) LNG DELIVERY SCHEDULING

Pursuant to Article 10 of the TIRG, the Operator shall set, every month for the following quarter, the LNG delivery schedule as set out in paragraph 1.2, on the basis of the schedule proposals submitted by Users as set out in paragraph 1.1.

1.1) Schedule proposal Users must prepare LNG delivery schedule proposals on the basis of:

regasification capacity allocated at the beginning of the Thermal Year;

regasification capacity allocated for the Thermal Year already commenced;

regasification capacity exchanges between Users;

regasification capacity exchanges with GNL Italia;

regasification capacity transfers.

1.1.1) Schedule proposal for month M+1 The schedule proposal of LNG deliveries submitted in month M for the following month, contains the following information:

The Scheduled Arrival Date of each LNG Carrier for each Constrained Slot allocated to the User, the loading date and the loading port;

the quantity of LNG expected to be delivered at each unloading;

the name of the LNG Carrier that will be used for each unloading; By 13:00 of the 7th working day before the beginning of each month M+1, the User shall notify the Operator of the LNG delivery schedule proposal according to the procedures published on GNL Italia's website.

On the basis of the schedule proposals received within the deadlines and pursuant to the conditions set out above, GNL Italia shall determine the monthly redelivery schedule in accordance with the criteria given in paragraph 3 below; by 12:00 of the 6th working day before the beginning of each month M+1 GNL Italia shall notify Users of their status of Debtor User or Creditor User and the amount of the guarantee set out in Chapter 7(4), if this quantity is greater than the largest LNG Carrier scheduled by the User for month M+1.


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1.1.2) Schedule proposal for months M+2 and M+3

The schedule proposal of LNG deliveries submitted in month M for month M+2 and M+3, contains the following information:

the number of deliveries expected;

the quantity of LNG expected to be delivered at each unloading. At the time of submission of the schedule proposal for month M+1 as set out in paragraph 1.1.1 above, the User shall notify the Operator of the schedule proposal for the months M+2 and M+3, according to the procedures published on GNL Italia's website. The schedule proposal for the months M+2 and M+3 is not binding on the Parties.

1.1.3) Acceptance criteria of the schedule proposal GNL Italia shall accept the schedule proposals for month M+1 as set out in paragraph 1.1.1 above, taking into account the following criteria:

1) the LNG Carrier scheduled to unload must be authorised by the Terminal, as reported in the LNG Carrier List, which is constantly updated and published on GNL Italia's website, or be authorised to carry out a "test unloading" as stated in paragraph 2.2 of the chapter entitled "Methods and procedures for authorising LNG Carriers to unload";

2) each Scheduled Arrival Date must be scheduled within the Constrained Slot allocated to the User on the day before the filing of the proposed monthly LNG delivery schedule. If GNL Italia provides the temporary LNG storage service for the Peak Shaving Service a ship must be scheduled on the first day of an allocated Constrained Slot;

3) the Scheduled Arrival Date must be on the first or the second day of the Constrained Slot allocated to the User;

4) Debtor Users must have sufficient guarantees to ensure the system with respect to the User as required by Chapter 5 of the Network Code in order to register the transaction set out in Chapter 7(4);

5) the maximum quantity of LNG (Qmax), expressed in m3liq, that the User can deliver within each Constrained Slot is equal to the regasification capacity of one Slot, as set out in Chapter 3(2).

6) the volume V, expressed in m3liq, that the User intends to unload during each unloading slot may not be greater than the "technical" volume of the LNG Carriers authorised by the Terminal, as stated in the LNG Carrier List which is published


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and regularly updated on GNL Italia's website. If the volume of LNG indicated is greater than the "technical" volume of the Carrier, the "technical" volume of the Carrier shall be considered in relation to the request;

7) the total volume of LNG in the tanks at the beginning of the first day of a Constrained Slot of the month is conventionally set at 20,000 m3liq. This obligation does not exist if GNL Italia makes available the temporary LNG storage service for the Peak Shaving Service;

8) the total volume of LNG in the tanks during the Gas Day must be between 5,000 m3liq (lower limit) and 45,000 m3liq (upper limit);

9) the total volume of LNG in the tanks at the end of the last day of a Constrained Slot of the month may not exceed 20,000 m3liq. This obligation does not exist if GNL Italia makes available the temporary LNG storage service for the Peak Shaving Service;

10) daily production may not exceed 17,500 m3liq/d and shall be considered equal to 0 when the tanks reach a level corresponding to a volume of LNG of 5,000 m3liq;

11) the volume of LNG unloaded during each unloading operation shall be deemed delivered in equal quotas during the days scheduled for the unloading operation, starting from the Scheduled Arrival Date.

1.2) Notification of the delivery schedule

Within the 5th working day before the beginning of each month M+1, GNL Italia shall notify all Users of the delivery schedule for month M+1. If all the deliveries schedule proposals received comply with the acceptance criteria given in paragraph 1.1.3, the delivery schedule shall match the schedule proposals submitted by the Users. If some of the delivery schedule proposals received do not fulfil criteria 2 and 3, GNL Italia shall check whether all the proposals received can be jointly accepted, and if overall the schedule proposals meet the other criteria given in paragraph 1.1.3, it shall accept the schedule proposals. If the Debtor User does not have a sufficient guarantee as set by acceptance requirement 3), GNL Italia shall restate the monthly redelivery schedule as set out in paragraph 3 so as to not determine the status of Debtor User for all Users with deliveries in the month of the schedule proposal. If GNL Italia does not accept the schedule proposal of a User for failure to comply with one of the criteria given in paragraph 1.1.3, except as specified above, GNL Italia shall determine the delivery schedule and the corresponding monthly redelivery schedule compatibly with the criteria given in paragraph 1.1.3.


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If GNL Italia has provided the temporary LNG storage service for the Peak Shaving Service, only during the period during which the service is provided, acceptance may involve shifting a load delivery from month M to month M+1 to a new date set by GNL Italia. The LNG delivery schedule is binding on the Parties, pursuant to the provisions contained in the "Receiving, storage and regasification of LNG” chapter.

2) RESCHEDULING OF LNG DELIVERIES

After GNL Italia has notified of the delivery schedule, Users may ask GNL Italia to modify the delivery schedule or the spot berthings allocated (rescheduling) according to the following timing and procedures. Rescheduling request A rescheduling request is a request made by a User according to the procedures published on GNL Italia's website, up to the third calendar day before the Scheduled Arrival Date, concerning:

1. Rescheduling a berthing

2. Exchange of Scheduled Arrival Dates

3. Change of LNG Carrier

Once the Operator has accepted the rescheduling request submitted by the User, the User’s LNG delivery schedule must be redefined. If multiple requests are submitted by Users in the same Gas Day, GNL Italia shall assess the requests taking into account the order of receipt of their requests. GNL Italia shall accept or reject the rescheduling request as set out in paragraph 2.2 below.

2.1.1) Berthing rescheduling requests Berthing rescheduling requests are:

The rescheduling in month M, of a Scheduled Arrival Date within the same month M, and/or

A change to the quantity of LNG scheduled to be unloaded in month M, of over 5% with respect to the amount reported in the LNG delivery schedule as set out in paragraph 1 above, and/or

The change of the LNG Carrier scheduled to unload in month M with another ship, involving over 5% of the quantity of LNG reported in the LNG delivery schedule as set out in paragraph 1 above.


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Berthing rescheduling requests must include the following information:

the Scheduled Arrival Date;

the quantity of LNG expected to be unloaded;

the name of the LNG Carrier expected to unload.

2.1.2) Exchange of Scheduled Arrival Dates

The Exchange of Scheduled Arrival Dates means:

swapping the Scheduled Arrival Dates between two LNG Carriers of the same User with a difference of LNG quantities scheduled to be unloaded of less than 5% with respect to the amount reported in the LNG delivery schedule set out in the paragraph 1 above;

swapping the Scheduled Arrival Dates between two LNG Carriers of two different Users with a difference of LNG quantities scheduled to be unloaded of less than 5% with respect to the amounts reported in the LNG delivery schedule set out in the paragraph 1 above.

Requests to swap Scheduled Arrival Dates must include the following information:

the Scheduled Arrival Dates to be exchanged;

the names of the LNG Carriers involved.

2.1.3) Change of LNG Carrier Change of LNG Carrier means changing the LNG Carrier expected to unload, in the LNG delivery schedule, with another LNG Carrier with the difference between the quantities of LNG scheduled to be unloaded of less than 5% with respect to the amount reported in the LNG delivery schedule set out in the paragraph 1 above. Requests to change of LNG Carrier must include the names of the LNG Carriers involved.

2.2) Acceptance or rejections of rescheduling requests GNL Italia may accept or reject rescheduling requests taking into account the criteria given in paragraph 1.1.3, except for criteria 2 and 3. A necessary condition for acceptance of a rescheduling request is the Debtor User’s registration of the transaction set out in Chapter 7(4); to do so the Debtor User must


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have guarantees sufficient to ensure the system against the User as required by Chapter 5 of the Network Code. If multiple rescheduling requests arrive on the same calendar day, GNL Italia shall check whether all the proposals received can be jointly accepted, and if overall the schedule proposals meet the other criteria given in paragraph 1.1.3 it shall accept the rescheduling requests; for this check GNL Italia shall not consider criteria 2 and 3 of paragraph 1.1.3. If the rescheduling request is received by GNL Italia by 10:00 of a working day, GNL Italia shall notify the acceptance or rejection of the rescheduling request within the same calendar day the request was sent. If the rescheduling request is received by the Operator after the deadline of 10:00 of a working day or on a Saturday or on a public holiday, GNL Italia shall notify the acceptance or rejection of the request within the calendar day after the request was sent. Once the unloading reschedule request submitted by the User has been accepted by the Operator, the Monthly LNG delivery schedule must be redefined.

3) RESCHEDULING OF REGASIFICATION ACTIVITIES

Pursuant to Article 11 of the TIRG, the Operator shall define, on the basis of the delivery schedule set out in paragraph 1 above, the regasification schedule with a period of one month in advance.

3.1) Monthly redelivery schedule

The monthly redelivery schedule contains daily details of the following information:

the total volume of natural gas expected to be redelivered;

the volume of natural gas expected to be redelivered to each User. The monthly redelivery schedule is prepared according to the criteria given in paragraph 3.4 below. The operator shall notify all Users of the monthly redelivery schedule within the working day after acceptance of the proposed monthly schedule of LNG deliveries, according to procedures published on GNL Italia's website. The monthly redelivery schedule is binding on the User If a User decides to make use of the provisions of Art. 13 of the TIRG i.e. to share its regasified quantities with one or more transport users, the monthly redelivery schedule will take into account the sharing rule notified by the User itself, chosen among those published on GNL Italia's website. The User must report the sharing rule chosen no later than the third working day before the beginning of the month that the monthly redelivery schedule concerns.


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The regasified quantities resulting from applying the sharing rule will be reported to the User that will in turn notify the transport users who are sharing its regasified volumes. Pursuant to Article 13 of the TIRG these quantities will be used by GNL Italia to fulfil the obligations of scheduling transport capacity as set out in the Code of Snam Rete Gas, except for the provisions of paragraph 3.2.1.

3.2) Update of the monthly redelivery schedule

The Operator may update the monthly redelivery schedule if necessary to ensure effective management of Terminal operations, taking into account the progress of the unloading operations that have been completed and those scheduled during the month and taking into consideration:

- acceptance of requests to reschedule unloading slots;

- non-compliance with the schedule;

- differences between the quantities of LNG expected to be unloaded according to the Monthly LNG Delivery Schedule and the quantities of LNG actually delivered;

- assignment of spot unloading slots;

- early or delayed arrivals of the LNG Carriers;

- acceptance of a Flexibility Services request;

- reductions in the regasification capacity of as set out in paragraph 4 below;

- any operational needs arising from the offer of the Temporary storage service for the Peak Shaving Service.

Except for the above cases and the cases of Force Majeure set out in Chapter 19, the Operator shall notify each User, according to procedures published on GNL Italia's website, of any changes to the monthly redelivery schedule concerning Gas Day G by 17:00 of Gas Day G-2. If GNL Italia informs the User of the update to the monthly redelivery schedule for Gas Day G after 17:00 on Gas Day G-2 and such update is not due to one of the above situations, under Article 11(5) of the TIRG, the User shall be released from the obligation to pay the access fees envisaged for it in the Regasification Agreement for a quota (RIDM) calculated as follows:

𝑅𝐼𝐷𝑀 =

{

0

𝐶𝑎𝑀 (𝑉𝐴𝑅𝑀 − 0.06 ∙ 𝑅𝐸𝐶𝑂𝐺.𝑀

𝑅𝐸𝐶𝑂𝐺.𝑀)

𝑖𝑓 𝑉𝐴𝑅𝑀 ≤ 0.06 𝑅𝐸𝐶𝑂𝐺.𝑀

𝑖𝑓 𝑉𝐴𝑅𝑀 > 0.06 𝑅𝐸𝐶𝑂𝐺.𝑀

Where:


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CaM are the access fees as set out in Chapter 10(4.1) to be paid by the User for the month M;

VARM is the sum of the absolute values of the changes in the Monthly Redelivery Schedule, as communicated by GNL Italia to the User in month M;

RICM is the total quantity of natural gas expected to be redelivered to the User in month M, in accordance with the monthly redelivery schedule as set out in paragraph 3.1 above.

The update of the monthly redelivery schedule contains daily details of the following:

the total volume of natural gas expected to be redelivered;

the volume of natural gas expected to be redelivered to each User.

The monthly redelivery schedule shall be updated according to the criteria given in paragraph 3.4 below; the Operator shall update the quantities specified in the monthly delivery schedule for each User according to a pro-quota criterion on the basis of the quantities specified in the last monthly redelivery schedule available.

The update of the Monthly schedule of re-deliveries involves the restatement of the status of Debtor or Creditor User for Terminal Users for whom redeliveries are scheduled in month M. GNL Italia must report to Users if their status has changed from Creditor User to Debtor User. The User may ask to change the quantities provided in the monthly redelivery schedule within the Redelivery Flexibility Service according to the timing and procedures set out in paragraph 3.8 below. The update of the monthly redelivery schedule is binding on the User. On each Gas Day G, the Terminal shall make available to Users the daily quantity of the last update of the monthly redelivery schedule. This is the quantity notified to Snam Rete Gas within the scheduling process set out in the Network Code of Snam Rete Gas. To support Snam Rete Gas in preparing the provisional transport balance, the quantity specified above does not change in relation to the daily redelivery final balance as set out in paragraph 3.3 below, except for the provisions of paragraph 3.2.1.

3.2.1) Redelivery Allocation Criteria If in a Gas Day G the Terminal has regasified an overall quantity greater or smaller than the sum of the quantities specified in the last update of the monthly redelivery schedule, net of the margins defined within the agreements in Article 4 of the TIB, these greater/smaller quantities shall be applied to Users proportionally to the quantities pertaining to the last monthly redelivery schedule and reported by GNL Italia to Snam Rete Gas for preparing the provisional transport balance.


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3.3) Daily redelivery final balance

On Day g+1 GNL Italia, on the basis of

the definitive data on the total quantity regasified by the Terminal, on Day g;

i. adjusts with Snam Rete Gas the difference between the total quantity of LNG regasified on Day g;

ii. The quantity of natural gas redelivered for each User on Day g, corresponding to the quantity specified in the last update of the monthly redelivery schedule;

according to the provisions in the agreements set out in Article 4 of the TIB. The daily redelivery final balance shall be prepared according to the criteria given in paragraph 3.4 below. The quantity described in point ii. above is the quantity used by Snam Rete Gas for preparing the corresponding network balance equations set out in Chapter 9 of the Network Code.

3.4) Criteria for the definition of the monthly redelivery schedule and of the daily redelivery final balance The definition of the monthly redelivery schedule – and subsequent updates – as well as the definition of the daily redelivery final balance is carried out by the Operator in compliance with the following criteria:

it contains daily details and is expressed in energy terms;

its objective is to regasify the quantities of LNG expected to be unloaded;

takes into account the LNG in the storage tanks at the beginning of the month and the minimum LNG level required to be maintained in the tanks at the end of the month by regulating the production at the Terminal in order to free up space in the tanks for the subsequent unloading slot;

Daily quantities are determined in two subsequent steps for the monthly redelivery schedule, subsequent updates to the monthly redelivery schedule and for the daily redelivery final balance. In the first phase, the volumes are determined in proportion to LNG availability in accordance with the procedures described in the following paragraph entitled "Availability Management Algorithm". In the second phase, on the basis of the quantities determined as described above, the Terminal Operator shall calculate the energy attributable to each User, for each Day g of month M, by applying the provisions in the paragraph entitled "Algorithm for managing allocation uniformity".


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Availability management algorithm In order to determine the Availability Management Algorithm, it is necessary to define the meaning of actual availability and estimated availability. Actual availability

The actual availability of LNG, expressed in MWh, for User k on Day g (kgED

) depends on the deliveries made and the quantities regasified.

It is given by following formula:

k

g

k

g

k

g

k

g ErECNEDED 111 where:

k

gED 1 = the volume of LNG stored in the tanks for User k at 06.00 on Day g-1. This value can be no less than zero;

k

gECN 1 = net quantity of LNG delivered by User k on Day g-1. It is the value of the quantities of LNG unloaded on Day d-1 net of the flat rate payment for consumption and losses and is given by:

k

g

k

g ECcECN 11

k

gEC 1 = quantity of LNG delivered by User k on Day g-1. If the unloading operations

last more then one day, the quantity must match the quantities k

gEC 1 unloaded during each individual day;

k

gEr 1 = quantities allocated permanently to User k on day g-1; c = a multiplying factor, approved by the Regulatory Authority, covering

consumption and losses incurred by the regasification process at the Panigaglia Terminal;

k = User – holder of a continuous regasification agreement – that avails of the

regasification service provided by the Terminal.

Therefore, the total actual LNG availability, expressed in MWh, for Day g (T

gED)

depends on the deliveries made by the total number of Users J and the quantities regasified:

J

k

k

g

T

g EDED1

where: J = the number of Terminal Users that have signed a continuous regasification agreement.


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Estimated availability Estimated LNG availability, expressed in MWh, for User k on a given day g of month

M (k

g'ED), and the total estimated LNG availability, expressed in MWh, for the total

number of Users on a given day g of month M (T

g'ED), is calculated according to the

available balances, the update of the unloading forecasts – respectively for User k and for the total number of Users J – and the regasification forecasts for the Terminal. Availability management algorithm The volumes, expressed in MWh, scheduled for regasification on Day g for User k with

a continuous regasification agreement (k

gEP), are calculated using the following

formula:

Tg

kgT

gkg

ED

EDEPEP

'

'

where:

TgEP

= the total scheduled quantity to be regasified on Day g, minus the quantity of energy allocated to spot unloading slots during month M;

k'

gED= the estimated LNG availability for User k on Day g;

T'

gED= the total estimated availability for Users on Day g.

The methods used to determine the quantities scheduled for regasification described

above may determine excessively low values for the term T

gEP as the term approaches

zeroT

g'ED; in this regard, when

T

g'ED300 MWh is reached for the quantityscheduled

for regasification for User k, k

gEP it will be set to

T

g'ED.

The User accepts that the actual availability of LNG on Day d is determined solely on the basis of the application of the availability management algorithm specified in this paragraph. Algorithm for managing scheduling uniformity This algorithm allows calculation of the quantities, expressed in MWh, scheduled for

regasification on Day g for each User (k

gEp '

) as specified in the last update of the Monthly Redelivery Schedule. The algorithm takes into account the User’s quota of the quantities due by GNL Italia to Snam Rete Gas to cover the consumption related to the transport service.


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These volumes are calculated as follows:

Tgm

1g

Tg

m

1g

kg

k'g EP*

EP

EP

Ep

* (1- FUELγ)

where:

m

g

k

gEP1 = the energy scheduled for User k in month M;

m

g

T

gEP1 = the energy scheduled for the total number of Users in month M;

TgEP = the total quantity scheduled for regasification by the Operator on Day g.

FUELγ = the quota to cover the consumption of the transport service, approved by the

Authority for the Panigaglia Entry Point. The above quantities, which can be updated by the operator pursuant to the foregoing Paragraph 3.2, will be used by GNL Italia to fulfil transport capacity scheduling as per the Network Code of Snam Rete Gas. In accordance with the principle set out in Article 13 of the TIRG, the User accepts that the Terminal Operator, to maintain the greatest possible uniformity of daily redelivery to Users, may reallocate on a daily basis the corresponding quantities of LNG delivered to other Terminal Users, applying the algorithm for managing allocation uniformity. For the accounting of the LNG quantities physically present in the Terminal's storage tanks, GNL Italia will attribute the variations of these quantities of LNG to the physical availability of LNG of a User, according to a priority that takes into account the chronological order in which the quantities of LNG are input into the Terminal's tanks. If the Peak Shaving Service is active, the quantities redelivered to the Terminal’s Users are net of the quantities injected into the network for said service.

3.5) Scheduling of Regasification for the Spot Regasification Service

Concerning spot berthings for month M, the Operator shall publish on its website the indicative regasified quantity allocation profile for each spot berthing available, maximising the number of redelivery days, starting from the first calendar day following the Scheduled Arrival Date: this number shall in any case depend on the


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requirement to guarantee positive inventory in the tanks for other Users and shall take into account any maintenance activities at the plant.

If the Terminal has particular operating requirements, such as for example the shut-down of the facility or quantities of LNG in storage above the constraints defined in this Code, the indicative regasified quantity allocation profile may involve a redelivery in the days preceding the scheduled unloading day. In these cases, the User must have an adequate guarantee as set out in Chapter 7(4). The Operator reserves the right to make available to Users that own spot berthings, redelivery profiles that are determined by the criteria given in paragraph 3.4 above. A User that owns a spot berthing may accept such redelivery profile or maintain the indicative redelivery profile provided by the Operator while offering the spot berthing. Any quantities of LNG remaining at the end of the month in relation to spot unloading slots shall be redelivered in the following month in accordance with the criteria given in paragraph 3.4 above.

Terminal Users that own spot berthings must communicate within the 3rd working day before the date scheduled for the spot unloading slot the load sharing rule to use to share the LNG load among transport users, if the User of the regasification service decides to share its regasified quantities among one or more transport users under Art. 13 of the TIRG. The User must notify GNL Italia of the sharing rule chosen among those published on GNL Italia's website.

The updates to the regasified quantity redelivery profile are prepared according to the procedures set out in paragraph 3.2 above

The updated regasified volume redelivery profile is binding on the User. Every Gas Day G, the Operator must make available – to its Users of the spot service – the daily quantity of the last update of the indicative redelivery profile. Pursuant to Article 13 of the TIRG, these quantities will be used by GNL Italia to fulfil the transport capacity scheduling obligations set out in the Network Code of Snam Rete Gas. If the Peak Shaving Service is active, the quantities redelivered to the Users to whom spot capacity has been allocated are net of the quantities injected into the network for said service.

3.6) Scheduling of regasification for the LNG temporary storage for the Peak Shaving Service referred to Ministerial Decree of 18 October 2013

In relation to the unloading operations for the LNG storage service for the Peak Shaving Service set out in Ministerial Decree of 18 October 2013 the redelivery of the regasified volume will be performed by the Operator in accordance with an indicative allocation profile of the regasified quantity that envisages redelivery at the VTP of the quantities


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delivered net of consumption and losses of the regasification chain and any quantities of gas redelivered before April.

3.7) Redelivery Flexibility Service

Users may change the monthly redelivery schedule issued by the Terminal upon request, taking into account the technical and operating criteria and the actual use thereof resulting from the scheduling of deliveries and regasification. No later than 15:00 on Gas Day G-1 with reference to Gas Day G the operator must publish in a dedicated area of its website, the following information:

1. The quantity of natural gas (in MWh) scheduled for redelivery on Gas Day G, indicated below as C

2. the maximum quantity of natural gas (MWh) that can be produced on day D, indicated by Qsup;

3. the minimum quantity of natural gas (MWh) that can be produced on Gas Day G, indicated by Qinf;

4. The Terminal’s overall return plans in the days following Gas Day G, i.e. a plan for the return of quantity Qsup and a plan for quantity Qinf;

5. The timeframes for sending requests for the Redelivery Flexibility Service and for GNL Italia to report the allocation.

GNL Italia reserves the right to update the information referred to in the previous points, except for point 5, as a result of the allocation of flexibility for Gas Day G. Users can send the Operator requests for the Redelivery Flexibility Service until 17:00 on Gas Day G, according to procedures published on GNL Italia's website. Requests must specify the changes, increases or decreases, versus the most recent monthly redelivery schedule, expressed in MWh, with reference to Gas Day G. Such changes must necessarily comply with the maximum quantity (Qsup) or minimum quantity (Qinf) provided by GNL Italia, failing which the request will not be accepted. User requests that exceed, even in part, the guarantees provided by the User according to the provisions in Chapter 7 shall not be considered valid and therefore will not be accepted. If a User submits multiple requests for same Gas Day G, the last request received by GNL Italia will be processed. If multiple users require redelivery on the same Gas Day G, the Operator must allocate the available flexibility quotas according to the distribution criteria described below. The Operator shall inform the Users of the flexibility quota assigned within 18:00 of Gas Day G.


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GNL Italia shall charge to Users of the Redelivery Flexibility Service the fees set out in Chapter 10(7). Allocation of flexibility Quotas Among Users If multiple requests are received for the Redelivery Flexibility Service, the Operator shall allocate the available flexibility in accordance with the criteria given below. Where: - N is the number of Terminal Users on Day G; - C and ci respectively are the total quantity of natural gas scheduled on Day G and for

the generic User i; - ∆ and are respectively the change requested for Day G overall and for User i; - R and ri are respectively the quantity requested to be redelivered on Day G overall

and for User i. The following relations are defined:

N

icC1 ,

N

i

1

and

N

ii

N

i crCR11

Based on the value of R, the following cases can be distinguished: 1) Qinf < R < Qsup The total number of User requests (R) for the flexibility service is within the limits defined for Day G (Qsup and Qinf). In this case the operator will assign to Users a flexibility equal to the quantity requested.

2) R > Qsup The total quantity requested by Users (R) exceeds the maximum flexibility value made available by the Terminal (Qsup). Given the overall quantity requested being greater than the Terminal’s availability, amounting to Recc = R - Qsup, for all Users k for which the condition δi > 0 is true, the quantity ri will be reduced as explained below:

k

kiecc

iR

rRd

,

where di is the quantity of gas subject to reduction for User i.


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The new quantity of gas expected to be redelivered (ri*) for each User i that has requested flexibility is equal to:

iii drr *

3) R < Qinf The flexibility requested by Users (R) determines an overall production lower than the minimum set for Gas Day G (Qinf). Given the overall quantity requested being lower than the Terminal’s availability, amounting to Rdif = Qinf - R, for all Users k for which the condition δi < 0 is true, the quantity ri will be increased as explained below:

k

kidif

iR

rRd

,

Where di is the quantity of gas subject to increase for User i. The new quantity of gas expected to be redelivered (ri*) for each User i that has requested flexibility is equal to:

iii drr *

Change Return Plan If: R = C (i.e. Δ = 0): No change return plan is needed. If: R > C (i.e. Δ > 0): The return plan of the Qsup quantity provided shall be used as the Terminal’s overall return plan. If: R < C (i.e. Δ < 0): The return plan of the Qinf quantity provided shall be used as the Terminal’s overall return plan. In the latter two cases, Users will be assigned a share of the quantities scheduled to be changed in the overall return plan of the Terminal proportionally to the quota of flexibility assigned to the User as compared to the Qsup or Qinf quantity.


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3.8) Temporary Storage Service Users may store the LNG volumes delivered at the Terminal, taking into account the Terminal's technical and operational constraints and the actual use thereof as a result of the scheduling of the deliveries and regasification. For this purpose, the Operator shall publish in a special area of its website the available storage capacity (MWh) and the period (number of Gas Days) for which such volumes can be stored. Users who have had access to the Flexibility Services pursuant to Chapter 5 can send the Operator requests for the Temporary Storage Service within the third day before the Scheduled Arrival Date, according to procedures published on GNL Italia's website. User requests that exceed, even in part, the guarantees provided by the User according to the provisions in Chapter 7 shall not be considered valid and therefore will not be accepted. The request must include:

The quantity of storage requested by day; The day of month M in which the storage period must begin; The day, not necessarily of month M, in which the storage period must end.

The daily maximum quantity that can be stored may not be greater than the quantity owned by the User already stored at GNL/scheduled to be redelivered to the User or in the days of the month preceding the unloading date it may not be greater than the quantity already scheduled to be redelivered on the same days. If the storage period requested is comprised in the days of scheduled unavailability of the Terminal the redelivery of stored gas may take place at the end of the scheduled unavailability period. If the Operator receives requests from multiple Users for the same storage period, the allocation of the temporary storage service will be made to the first User that requested it, on the basis of the order of receipt of their requests. Within the working day after the request, the Operator shall notify the User of the daily quantities of LNG that can be stored and the maximum duration available for LNG storage. On the days on which the monthly redelivery schedule does not envisage that quantities of gas will be injected at the Panigaglia entry point, the operator will redeliver to the User of the Temporary Storage Service the daily quantity, variable due to the formation of boil off gas, amounting to approximately 0,004 MWh/day for each cubic meter of LNG stored. If multiple Users have requested and obtained the Temporary Storage Service, the above total daily quantity will be distributed uniformly among the users that have requested the Temporary Storage Service.


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Following the rescheduling/non-compliance of a load of LNG, the User that requested the Temporary Storage Service will be notified of the possible change to the maximum duration available for LNG storage within the next working day. Users may request early redelivery of the stored LNG with at least four Gas Days notice prior to the scheduled redelivery date. In this case, the Operator must notify of the stored LNG redelivery schedule the next working day. The early redelivery of the LNG stored under the temporary storage service requires a Redelivery Flexibility Service; the provisions of paragraph 3.8 above shall therefore apply. GNL Italia shall charge Users of the Temporary Storage Service the fees set out in Chapter 10 (7).

4) REDUCTION IN REGASIFICATION CAPACITY

Except for the responsibilities and obligations set out herein, if for any reason beyond the Operator’s intentions, but including ordinary and extraordinary maintenance, there is a reduction in the Terminal’s regasification capacity, the daily quantity of gas provided by the Operator at the Redelivery Point shall be deemed reduced proportionally to such reduction in the Terminal's capacity. Without prejudice to the responsibilities and obligations set out herein, in the event of a reduction in the Terminal’s capacity, the Parties shall reschedule unloading slots on a non-discriminatory basis, as applicable. Should such an event occur, the Operator shall immediately notify the Users, providing appropriate information on the event, its cause and the reduction in capacity of the Terminal. If the aforementioned reduction in capacity is the result of ordinary or extraordinary scheduled maintenance, the Operator shall notify the Users as soon as possible.

5) SCHEDULING OF THE TRANSPORT CAPACITY

Due to the allocation of transport capacity to GNL Italia, as needed to provide the Regasification Service, GNL Italia becomes responsible, based on the information received from its Users, for fulfilling the transport contract’s obligations, including scheduling the quantities owned by each User, injected at the Panigaglia Entry Point. To meet the above-mentioned requirements, GNL Italia, based on the information received from its Users – including the sharing rule chosen if the User decides to make use of the provisions of Art. 13 of the TIRG – shall carry out the scheduling required by the Network Code at the Panigaglia Entry Point, on the basis of information related to the regasification scheduling as set out in Chapter 9(3). The schedules provided to Snam Rete Gas include the details of the Users or of the parties identified by such Users pursuant to Article 13 of the TIRG.

Regasification Code Receiving, storage and regasification of the LNG

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RECEIVING, STORAGE AND REGASIFICATION OF THE LNG

1) MANAGEMENT OF NON-COMPLIANCE WITH THE MONTHLY LNG DELIVERY

SCHEDULE OR OF SPOT BERTHINGS ................................................................................................. 2

1.1) FAILURE TO PERFORM AN UNLOADING OPERATION ................................................................................... 2 1.1.1) Failure to Unload for Reasons not Attributable to the Operator ......................................................... 2 1.1.2) Failure to Unload for Reasons Attributable to the Operator ............................................................... 3

1.2) FAILURE TO COMPLY WITH THE ACCEPTANCE WINDOW ............................................................................ 3 1.2.1) Carrier in the Acceptance Window ...................................................................................................... 3 1.2.2) Failure to Comply with the Acceptance Window for Reasons not Attributable to the Operator ......... 4 1.2.3) Failure to comply with the Window for reasons attributable to the Operator ..................................... 4

1.3) FAILURE TO COMPLY WITH THE UNLOADING WINDOW .............................................................................. 4 1.3.1) Failure to comply with the Unloading Window for reasons not attributable to the Operator ............. 4 1.3.2) Failure to comply with the Unloading Window for reasons attributable to the Operator ................... 5

1.4) DELAYS NOT ATTRIBUTABLE TO THE OPERATOR ....................................................................................... 5 1.5) ACCEPTANCE OF THE LNG CARRIER TO UNLOAD AFTER THE ACCEPTANCE WINDOW

HAS CLOSED .................................................................................................................................................... 6

2) [REMOVED IN THE UPDATE OF THE REGASIFICATION CODE, REV. 2018 – I] ....................... 6

3) FAILURE TO COMPLY WITH QUALITY SPECIFICATIONS ........................................................... 6

3.1) OFF-SPECIFICATION LNG AT THE LOADING PORT ...................................................................................... 6 3.2) OFF-SPECIFICATION LNG AT THE DELIVERY POINT ................................................................................... 7 3.3) ADJUSTMENT OF THE WOBBE INDEX .......................................................................................................... 7 3.4) QUALITY AND PRESSURE AT THE REDELIVERY POINT ................................................................................ 7

4) FEES FOR REGASIFICATION SERVICE ............................................................................................... 7

4.1) FEES FOR CORE REGASIFICATION SERVICES ............................................................................................... 7

5) IMBALANCE CHARGES FOR THE CORE CONTINUOUS REGASIFICATION SERVICE ......... 9

5.1) IMBALANCE CHARGES BETWEEN THE SCHEDULED VOLUME IN MONTH M AND THE VOLUME DELIVERED IN

MONTH M+1 ........................................................................................................................................................ 9 5.2) IMBALANCE CHARGES BETWEEN THE VOLUME DELIVERED AND AVAILABLE CAPACITY ............................. 9

6) IMBALANCE CHARGES FOR THE CORE SPOT REGASIFICATION SERVICE ........................ 10

6.1) IMBALANCE CHARGE BETWEEN THE VOLUME SCHEDULED AND DELIVERED ............................................. 10 6.2) IMBALANCE CHARGES BETWEEN THE VOLUME DELIVERED AND AVAILABLE CAPACITY ........................... 10

7) FEES FOR FLEXIBILITY SERVICES ................................................................................................... 10

7.1) REDELIVERY FLEXIBILITY SERVICE ......................................................................................................... 10 7.2) TEMPORARY STORAGE SERVICE ............................................................................................................... 11

8) FEES FOR ANCILLARY AND OPTIONAL SERVICES ...................................................................... 11


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1) MANAGEMENT OF NON-COMPLIANCE WITH THE MONTHLY LNG DELIVERY SCHEDULE OR OF SPOT BERTHINGS

Non-compliance with the schedule of LNG delivery or of allocated spot berthings, means: failure to perform an unloading operation scheduled for month M or a spot berthing

allocated in month M; failure to comply with the Acceptance Window of a Scheduled Arrival Date in

month M, if the communication between the Parties takes place later than the third calendar day before the Scheduled Arrival Date;

failure to comply with the Unloading Window of a Scheduled Arrival Date in month M

1.1) Failure to Perform an Unloading Operation 1.1.1) Failure to Unload for Reasons not Attributable to the Operator

If, for reasons not attributable to the Operator, the User is unable to perform an unloading operation scheduled in month M or a spot berthing allocated in month M, the User must notify the Operator.

In that case, the User shall lose the right, acquired during the scheduling process or of the spot capacity allocation, to perform that unloading operation.

Following receipt of notice from the User of the failure to perform a delivery operation, GNL Italia shall apply the following fees.

If the notice of failure to unload is received between the eighth day before the Scheduled Arrival Date and the Scheduled Arrival Date, the User shall pay the Operator:

a fee, Cmd, for the failure to unload equal to:

Cmd = T**C* Cd

where C is the assignment charge determined by the assignment procedures set out in

Chapter 5, a coefficient equal to 0.7 – as defined by the Authority under Resolution No. 178/05 – and the value of T depends on the number of days of advance notice of failure to unload given before the Scheduled Arrival Date:

Days of advance notice Value of T

7 0.2

6 0.4

5 0.6

4 0.8

3 1

<3 2


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notwithstanding payment of the fees for the core regasification service with regard to the unloading in question.

1.1.2) Failure to Unload for Reasons Attributable to the Operator

If, for reasons attributable to the Operator, the User is unable to carry out an unloading operation scheduled in month M, the Operator must notify the User. In this case, the User shall be exempt from payment of the regasification rate for the unloading operation in question and the Operator shall pay the User an amount C'md for the failure to unload equal to:

C’md = T**C* Cd where C is the assignment charge determined by the assignment procedures set out in

Chapter 5, a coefficient equal to 0.7 – as defined by the Authority under Resolution No. 178/05 – and the value of T depends on the number of days of advance notice of failure to perform the unloading operation before the Scheduled Arrival Date:

Days of advance notice Value of T

>7 1

7 1.2

6 1.4

5 1.6

4 1.8

<4 2

1.2) Failure to Comply with the Acceptance Window 1.2.1) Carrier in the Acceptance Window

If an LNG Carrier arrives at the PBS in accordance with the Acceptance Window, the Operator must accept that Carrier for the unloading operation within the Acceptance Window, suitably informing the LNG Carrier thereof and taking into account the regulations in force. If despite the notices specified in the "Delivery of LNG and redelivery of natural gas" chapter, the LNG Carrier arrives at the PBS within the Acceptance Window but cannot moor by the end of the Acceptance Window for reasons not attributable to the Terminal, GNL Italia may refuse to accept that LNG Carrier for the unloading operation. In such a circumstance, the following shall apply: as set out under "Failure to Unload for Reasons not Attributable to the Operator", if

the conditions for acceptance of the Carrier for unloading are not met;


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the provisions set out in the "Failure to Comply with the Acceptance Window for Reasons not Attributable to the Operator" paragraph in the event of a positive outcome of the feasibility check, by the Operator, of such unloading operation.

1.2.2) Failure to Comply with the Acceptance Window for Reasons not Attributable to the Operator

If, for reasons not attributable to the Operator, the User is unable to comply with the acceptance window, the User must notify the Operator. In this case, the Operator is not bound to receive the Carrier in question for unloading.

However, in such a circumstance the Operator shall check whether it is possible to unload the LNG at a later date, provided that:

there is the availability to moor at the pier; there is available capacity in the storage tanks, also for all the other unloading

operations scheduled for the rest of the month and during the following months; the Carrier's Acceptance Window does not overlap with the Unloading Window of

the previous Carrier scheduled to unload (early arrival); the Unloading Window of the Carrier does not overlap with the Acceptance

Window of the next Carrier scheduled to unload (late arrival).

By the end of the calendar day following the date of receipt of the notice, the Operator shall notify the User of:

the new Acceptance Window (and the new Scheduled Arrival Date), in case of

acceptance of the notice sent by the User; the confirmation of the Acceptance Window as indicated in the Monthly LNG Delivery Schedule, if the notice sent by the User is rejected.

If it is not possible to unload, the User of the early/late Carrier will lose its right to unload, assigned during the scheduling process or allocation of spot capacity, and the provisions of the preceding paragraph entitled "Failure to Unload for Reasons not Attributable to the Operator" shall apply.

1.2.3) Failure to comply with the Window for reasons attributable to the Operator If, for reasons attributable to the Operator, the User is unable to comply with the Acceptance Window, the Operator must notify the concerned User, that may unload on the date agreed with the Operator.

If it is not possible to unload, the procedures described in the paragraph entitled "Failure to unload for reasons attributable to the Operator" shall apply.

1.3) Failure to Comply with the Unloading Window 1.3.1) Failure to comply with the Unloading Window for reasons not attributable to the Operator

If the unloading operations are not completed within the Unloading Window for reasons not attributable to the Operator, when the time allocated to the window is up, the Operator may request the discontinuation of unloading operation.


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If the Operator authorizes the continuation of the unloading operations, the Unloading Window will – respecting the Acceptance Window of the next scheduled LNG Carrier – be prolonged accordingly. If it is not possible to complete unloading operations in compliance with the Acceptance Window of the next scheduled Carrier, the Carrier must stop unloading operations and immediately leave the berthing area. If, for safety reasons, it is not possible to discontinue unloading operations, the User must hold the Operator harmless from all costs and expenses incurred as a consequence of its failure to comply with the Unloading Window for reasons not attributable to the Operator.

1.3.2) Failure to comply with the Unloading Window for reasons attributable to the Operator If unloading operations have not been completed within the Unloading Window for reasons directly attributable to the Operator and if – in accordance with the Acceptance Window of the next scheduled LNG Carrier – it is possible to extend the window, the User shall inform the Operator of its intention to either stop or continue unloading at the end of the original Unloading Window. If the User communicates its intention to continue the unloading operations, the Unloading Window will be extended accordingly If it is not possible to complete unloading operations in compliance with the Acceptance Window of the next scheduled LNG Carrier, the LNG Carrier must stop unloading operations and immediately leave the berthing area: in that case the provisions set out in the paragraph entitled "Failure to unload for reasons attributable to the Operator", referred to in paragraph "Failure to unload for reasons attributable to the Operator" shall apply.

1.4) Delays not Attributable to the Operator The Operator cannot be held responsible for any delays, including but not limited to the following examples:

time waiting for port services and any other operation concerning the Carrier; time taken for the LNG Carrier to move from the PBS or from the anchorage point,

starting from the time the Carrier communicates its NOR, until moored at the pier, minus any time the LNG Carrier spends waiting at the PBS or the anchorage area that is attributable to the Operator;

time lost during mooring at the start of unloading operations which is attributable to the Carrier;

time lost due to delays and/or interruptions in mooring and unloading due to adverse weather and sea conditions;

time lost due to compliance with the provisions and regulations relating to the port of La Spezia and/or the Terminal;

time taken to manage unloading if the temperature of LNG delivered is greater than -160 °C


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and further delays as indicated below, if not directly attributable to the Operator: waiting for healthcare procedures compliance; time spent completing ballast manoeuvres (if not done at the same time as

unloading); waiting for customs procedures compliance when moored or anchored in the port; the supply of fuel, supplies and nitrogen.

1.5) ACCEPTANCE OF THE LNG CARRIER TO UNLOAD AFTER THE ACCEPTANCE WINDOW HAS CLOSED GNL Italia reserves the right to accept a request made by the User concerned, no later than the day before the Scheduled Arrival Date, to moor the LNG Carrier between 20:01 and 24:00 (Italian time) of the Scheduled Arrival Date, provided that the request is occasional and occurs after the successful completion of the appropriate verification carried out by the Operator, without prejudice to: i) the application of an Unloading Window of 54 hours, starting from the end of the

acceptance window in question (24:00); ii) the payment of additional costs incurred by the Operator depending on such

activity, according to the terms and conditions published on GNL Italia's website. The corresponding request form is published on GNL Italia’s website. Communication with regard to the outcome of the verification concerning the request as set out in this paragraph shall be sent by GNL Italia by 13:00 hours on the Scheduled Arrival Date.

2) [REMOVED IN THE UPDATE OF THE REGASIFICATION CODE, REV. 2018 – I]

3) FAILURE TO COMPLY WITH QUALITY SPECIFICATIONS

3.1) Off-specification LNG at the Loading Port If the quality of the LNG loaded – as notified by the User to the Operator per the provisions of the "Methods and procedures for authorising the unloading of LNG Carriers" chapter – is not compliant with the quality specifications described in the "Quality of the LNG Delivered and of the Gas Redelivered" chapter, paragraph 2, the Operator may refuse to accept such off-specification LNG and refuse to unload the LNG Carrier's cargo at the Terminal, notifying the User within 12 hours of receipt of the aforementioned notice. In case of refusal, the User shall lose the right to that unloading operation acquired during the scheduling process or of spot capacity allocation and must pay the Operator the amount set out in paragraph 1.1.1 (Failure to Unload for Reasons Not Attributable to the Operator).


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3.2) Off-specification LNG at the Delivery Point If the quality of the LNG loaded – as notified by the User to the Operator in accordance with the provisions of the "Methods and procedures for authorising the unloading of LNG Carriers" chapter – complies with the quality specifications set out in paragraph 2 but when the LNG is unloaded, it does not conform to the specifications set out in paragraph 2, using good sense and diligence, the Operator shall take all the appropriate steps to unload the LNG, notwithstanding the Operator’s right to reject the off-specification LNG and to stop the unloading.

In the event of refusal, the User must pay the Operator the amount specified in the "receiving, storage and regasification of LNG" chapter, paragraph 1.1.1 (Failure to Unload for Reasons Not Attributable to the Operator). In the event of acceptance of the LNG in question, the User must pay all costs and expenses, duly documented, incurred by the Operator as a result of the off- specification LNG.

3.3) Adjustment of the Wobbe Index If the User delivers quantities of LNG to the Operator at the Delivery Point that have a Wobbe Index value between 52.13 and 53.17 MJ/Sm3, it will be necessary to use the Terminal's equipment to bring the Wobbe Index of the regasified LNG within compatible limits to allow it to be injected into the Snam Rete Gas methane pipeline network.

It should be noted that if the Wobbe Index of the delivered LNG is higher than 53.17 MJ/Sm3, the adjustment of this value to bring it within compatible limits for its injection into the transportation network will determine a reduction of regasification capacity at the Terminal. In this case, the Operator shall implement this reduction only if – and to the extent that – it does not have any negative impact on the receiving and regasification schedule of subsequent LNG Carriers.

If the ancillary service to adjust the Wobbe Index is provided, the relevant fees set out in this chapter shall apply.

3.4) Quality and Pressure at the Redelivery Point Notwithstanding the provisions of the preceding paragraphs of this chapter, the Operator shall ensure that the quality and pressure of the regasified LNG are compatible with the parameters required for its injection into the transportation network.

4) FEES FOR REGASIFICATION SERVICE

4.1) Fees for Core Regasification Services Access Fees In relation to the continuous and spot core regasification services set out in paragraph 2 of the "Description of the Services" chapter, the assignment charge determined by the assignment procedures as set out in Chapter 5 and all other fees relating to the regasification rates required by the Authority, as published on GNL Italia's website,


10 - 8

applied to contractual quantities of LNG committed by the User shall apply. For each Slot assigned to the User, the contractual quantity of LNG engaged shall be the regasification capacity of one Slot, obtained by multiplying the Terminal’s daily regasification capacity, as set out in Chapter 2(3.3), by the number of days of a Slot, as published on GNL Italia's website. For each spot berthing allocated to the User, the contractual quantity of LNG committed shall be the Maximum Unloading Capacity for that spot berthing. Coefficient to cover the consumption and losses related to the regasification chain In relation to the continuous and spot core regasification services as set out in paragraph 2 of the "Description of the Services" chapter, the coefficient to cover the consumption and losses related to the regasification chain applied to the volumes of LNG unloaded by the User shall apply. This coefficient, approved by the Authority, is published on GNL Italia's website.

Fees for the transport service The quantities of LNG regasified at the Terminal are injected into the network within the transport capacity available to the Operator, pursuant to the provisions of Article 8 of Resolution No. 137/02 at the Panigaglia Entry Point: the transport capacity requested by GNL Italia to Snam Rete Gas shall be determined, without prejudice to the allocations set out in Resolution No. 168/06 and ARG/gas No. 2/10, to an extent equal to the maximum send-out ratio, i.e. the ratio between the regasification capacity allocated to Users and the Terminal's regasification capacity. The Operator shall distribute the transportation fees charged to it by Snam Rete Gas among the Terminal Users on the basis of the procedures described below.

Capacity charge Each month, GNL Italia shall determine the quota of the overall capacity charge payable by GNL Italia to Snam Rete Gas for the month in question applicable to each User. The quota is determined using the following formula:

EM

tot

M

kM

k CPSOQ

QQuotaEntry

where:

M

kQuotaEntry is the share of the monthly capacity payment due by GNL Italia to Snam

Rete Gas, attributable to User k for month M; M

kQ is equal to the regasification capacity allocated to User k in month M by GNL Italia

QtotM is equal to the overall regasification capacity available in month M, as published by GNL Italia on its website;


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SO is the maximum daily send-out of the terminal (as defined in paragraph 1.1(o) of Resolution ARG/gas No. 2/10)

ECP is the unitary capacity fee for the Panigaglia Entry Point, as published on the Snam Rete Gas SpA website. represents the multiplier factor published on the website of Snam Rete Gas

SpA applicable to monthly transport capacity allocation. Variable Fee Each month, GNL Italia shall determine the quota of the overall variable transportation fee payable by GNL Italia to Snam Rete Gas and the related surcharges to be charged to each User. The quota is determined according to the quantities injected into the network for the User during the month in question, as results from the allocation procedure set out in the "Scheduling of LNG Delivery and Regasification" chapter, compared to the total amount injected into the network at the Panigaglia Entry Point in that same month. The amount of gas for own consumption Each month, GNL Italia will determine the amount of gas for own consumption attributable to each User to cover the total gas for own consumption due by GNL Italia to Snam Rete Gas. The quota is determined according to the quantities injected into the network for the User during the month in question, as results from the allocation procedure set out in the "Scheduling of LNG Delivery and Regasification" chapter, compared to the total amount injected into the network at the Panigaglia Entry Point in that same month.

5) IMBALANCE CHARGES FOR THE CORE CONTINUOUS REGASIFICATION SERVICE

5.1) Imbalance charges between the scheduled volume in month M and the volume

delivered in month M+1 If the annual deviation of an User is greater than 10% of the sum S of the volumes of LNG scheduled to be delivered in each month M+1 of the Thermal Year in the delivery schedule defined on month M, the User, in addition to the provisions of paragraph 4.1 above, must pay a fee equal to 4.5 EUR/m3liq multiplied by the difference between the annual deviation and 10% of the sum S.

5.2) Imbalance charges between the volume delivered and available capacity If the volume of LNG delivered by a User for a Constrained Slot it is entitled to is greater than the maximum quantity of LNG that the User can deliver, amounting to (Qmax), as set out in Chapter 9(1.1.3), the User, in addition to the provisions of paragraph 4.1, above, must pay a fee equal to 10% of the assignment charge determined by the assignment procedures set out in Chapter 5 for that Constrained


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Slot, applied to the difference between the quantity of LNG actually delivered and the maximum quantity of LNG that the User can deliver (Qmax). This increase does not apply to measures enacted by the Ministry for Trade and Industry under Article 8.7 of Legislative Decree No. 164/00.

6) IMBALANCE CHARGES FOR THE CORE SPOT REGASIFICATION SERVICE 6.1) Imbalance charge between the volume scheduled and delivered

If the monthly imbalance between the volume of LNG expected to be delivered by the User, as indicated in the spot regasification capacity purchase request as set out in Chapter 5, and the quantity of LNG actually delivered by the User in the same month is greater than 10% of the quantity expected to be delivered, the User, in addition to the provisions of paragraph 6.1 above, must pay a fee equal to 4.5 EUR/m3liq multiplied by the difference between the imbalance and 10% of the quantity expected to be delivered.

6.2) Imbalance charges between the volume delivered and available capacity If the volume of LNG delivered by a User for a spot berthing it is entitled to is higher than the maximum quantity of LNG that the User can deliver, equal to the Maximum Unloading Capacity for that spot berthing, the User in addition to the provisions of paragraph 4.1 above, must pay a fee equal to 10% of the assignment charge determined by the assignment procedures set out in Chapter 5 for the same spot berthing, applied to the difference between the quantity of LNG actually delivered and the maximum quantity of LNG that the User can deliver (Maximum Unloading Capacity). This increase does not apply to measures enacted by the Ministry for Trade and Industry under Article 8.7 of Legislative Decree No. 164/00.

7) FEES FOR FLEXIBILITY SERVICES

7.1) Redelivery Flexibility Service The rate for the service (Tf) is equal to:

Tf = Cf * Qf

Where:

Cf is the variable fee for the provision of the Redelivery Flexibility Service, expressed in EUR/MWh


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Qf is the daily flexibility volume of the Redelivery Flexibility Service, expressed in MWh.

7.2) Temporary Storage Service The Temporary Storage Service is provided on a monthly basis. The rate for the service (Ts) is equal to:

Ts = Cs * c * Qs Where:

- Cs is the variable fee for the volumes required for the Temporary Storage Service,

expressed in EUR/m3liq/d; - c is the number of cycles for which the Temporary Storage Service is granted. Each

cycle is of 10 days; - Qs is the total volume of LNG temporary storage provided by the Temporary Storage

Service, expressed in m3liq;

8) FEES FOR ANCILLARY AND OPTIONAL SERVICES

Fees for ancillary services provided by the Operator at the Terminal and for the optional services described herein are published on GNL Italia's website.

Regasification Code Measurement of LNG Delivered and of Gas Redelivered

11 - 1

MEASUREMENT OF LNG DELIVERED AND OF GAS REDELIVERED

1) FOREWORD................................................................................................................................................. 2

2) MEASUREMENT OF THE LNG DELIVERED....................................................................................... 2

2.1) DETERMINATION OF THE QUANTITY OF LNG DELIVERED ...................................................................... 2 2.2) MEASUREMENT SYSTEM FOR THE LNG DELIVERED ............................................................................... 3 2.3) MANAGEMENT OF THE UNLOADING OF LNG VOLUMES THAT ARE GREATER THAN EXPECTED

VOLUMES ............................................................................................................................................................. 4

3) MEASUREMENT OF THE GAS INJECTED INTO THE NETWORK ................................................ 4

3.1) SYSTEM FOR MEASURING THE VOLUME OF GAS INJECTED INTO THE NETWORK ....................................... 5 3.2) INSTRUMENT CHECKS ............................................................................................................................. 6 3.3) CONSUMPTION AND LOSSES .................................................................................................................... 6

Regasification Code Measurement of the LNG Delivered and of the Gas Redelivered

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1) FOREWORD

The quantity of LNG, expressed in cubic metres, considered delivered by the User to the Operator at the Delivery Point and the determination of the volume of gas injected into the network by the Operator at the interconnection with the Snam Rete Gas transport network shall be measured according to the procedures in use at the Terminal, as described below.

2) MEASUREMENT OF THE LNG DELIVERED 2.1) Determination of the Quantity of LNG Delivered

The quantity of LNG in the LNG Carrier's tanks is determined by measuring several parameters, such as: a) on board the Carrier, before unloading begins and again after the unloading

operation has been completed

Volume of LNG in the tanks Temperature of the LNG Pressure of the gas phase in the tanks

b) in the Terminal, as ascertained by the composition analysis performed by the gas

chromatographs, the

Density of the unloaded LNG Higher Heating Value of the LNG Wobbe index of the LNG Higher Heating Value of the Vapour Density of the vapour

The volume of LNG and the energy unloaded shall be determined by means of a joint consultation between the ship's Captain (or the first officer as a delegate), a representative of the User, a representative of the Operator, the inspector of the surveying company and, if the Customs so requires, a Customs' representative, taking into account the following two measurements: the first measurement shall be taken after mooring, before the unloading arms have

been connected to the LNG Carrier, while the unloading manifold valve is still closed, and after the ship’s Captain, as required, has sent a notice of readiness to unload the LNG;

the second measurement shall be taken out immediately after completion of the

unloading operation and the manifold valve has been closed. The difference in value between the two LNG volumes, determined by the aforementioned measurements, net of any quantities of boil-off gas from the ship


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released by the ship during the unloading phase, shall be considered the volume of LNG unloaded from the LNG Carrier’s tanks. The parties specified above shall indicate their acceptance by signing the "Assessment Report" showing the quantity – and quality – of LNG unloaded, thus confirming their complete agreement with regard to the values used for all of the aforementioned parameters. The quantity of LNG unloaded shall be converted into the equivalent amount of energy (expressed in GJ) on the basis of the HHV determined as set out in the "Quality of the LNG Delivered and of the Gas Redelivered“ chapter.

2.2) Measurement System for the LNG Delivered The LNG delivered must be measured – in terms of volume, temperature and pressure – using the following methods. The volume of LNG must be measured by measuring the height of the LNG in the tanks, making the necessary adjustments to obtain the correct height and then, using the specific calibration tables, calculating the volume of each tank. The height must be measured at least 15 minutes after the Carrier has completed the mooring and 15 minutes after unloading has been completed. The adjustments – applied to all level measurement systems – made to obtain the correct height of LNG, must be carried out according to the floating conditions of the Carrier, as follows:

Trim (forward/aft draft) List (heel)

The corrections are individually tabulated for each tank and are expressed in millimetres according to the height of the level and of the meters of forward/aft draft for Trim and the degrees of heeling of List. The millimetres of correction to be made are calculated by interpolating the tabulated values, to determine the real Trim and List values ascertained. The calibration tables, complete with all of the necessary adjustment tables, must meet ISO standards (in particular ISO 8311-1989 for prismatic membrane tanks and ISO 9091/1-1991 or ISO 9091/2-1992 for spherical tanks). For each LNG Carrier, the User must send the Terminal a certified copy of the tables with data expressed in metric units. Any physical change, distortion or change in volume of the tanks shall require a new calibration which must be certified, approved and delivered as described above. The certification of the calibration of the instruments must be carried out in accordance with the Ship Approval Procedure, as defined in the "Methods and procedures for authorising the unloading of LNG Carriers" chapter. Among other things, the procedure specifies that every three years, GNL Italia may request that the calibration certification of the LNG measurement instruments on board the Carrier be updated. The Operator reserves the right to request such documentation at any time deemed appropriate. During the unloading phase, the User may use the boil-off gas in the carrier's tanks as fuel.


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The amount of boil-off gas used during unloading must be measured with instruments that comply with applicable laws. This value is converted into energy using the Higher Heating Value of the Vapour. If the measurement system is unavailable, the energy of the Boil-Off gas used by the Carrier during unloading shall be set at 90 GJ for each hour between the measurement operations specified in paragraph 2.1. The energy used by the Carrier for its own consumption thus determined shall be deducted to determine the volume of LNG unloaded. The temperature of the LNG inside the Carrier's tanks is measured by temperature sensors. These sensors must be distributed along the entire height of the tanks and at least one must be always immersed in the LNG. The temperature of the LNG in each tank is the arithmetic mean of the values of all of the sensors immersed in the liquid. The temperature of the entire load is obtained by calculating the arithmetic mean of the average temperatures of each tank. The temperature of the vapour is obtained using the same procedure described for measuring the temperature of the LNG, taking the values transmitted by the temperature sensors that are not immersed in the LNG. The pressure measurement systems measure absolute pressure in bar or mm H2O. For load calculations, the pressure will be rounded up to 1 mbar or 1 mm H2O. The relative pressure of the vapour to atmospheric air is calculated using an atmospheric pressure value of 1.01325 bar.

2.3) Management of the Unloading of LNG Volumes that are Greater than Expected Volumes If a Carrier arrives at the Terminal with a quantity of LNG that is greater than the expected volume to be unloaded (or the Maximum Unloading Capacity, for spot unloading), the Operator shall carry out the appropriate checks to determine the feasibility of completing unloading operations for the cargo that is in excess of the expected volume, taking into consideration the space in the storage tanks and any impact it may have on the LNG delivery schedule.

If this check is positive, the Operator shall notify the affected User by fax that it may complete the unloading operations; otherwise, the Operator shall request the User to stop unloading when the volume of LNG unloaded reaches the scheduled volume (or the Maximum Unloading Capacity for spot unloading).

If it is not possible to stop the unloading operation for safety reasons, the provisions outlined in the "Receiving, storage and regasification of LNG" chapter, paragraph 1.3.1 ("Failure to Comply with the Unloading Window for Reasons not Attributable to the Operator") shall apply or, for spot unloading operations, the provisions of paragraph 2.3.1.

3) MEASUREMENT OF THE GAS INJECTED INTO THE NETWORK


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The volume of gas injected into the network for redelivery at the Panigaglia Entry Point to the National Network is determined accordance with the provisions of Article 7(4) of Annex A to Resolution No. 185/05.

Determination of the quantity of gas injected into the networkThe volume of gas injected in the network is determined at the measurement station, owned by GNL Italia, located at the interconnection with the transport network of Snam Rete Gas: this plant is equipped with a specific daily remote metering system that provides hourly details of the metering data it has collected. GNL Italia, as owner of that measurement station, is responsible for managing and maintaining it as well as for carrying out all other activities related to the measurement process (data acquisition and validation, forwarding to Snam Rete Gas in order to account for the gas injected into the network and archiving for compliance with current tax and administrative laws).

3.1) System for measuring the volume of gas injected into the network The measurement station consists of two separate lines arranged in parallel, each with its own meter with 10,000 m3/h Qmax to measure the maximum expected flow rate of gas in transit. The lines can be configured in series to perform checks. The making of the measurement lines, the performance of the equipment and the configuration of the system must comply with national and international norms and standards. The station was built for the following conditions:

maximum hourly plant capacity 600,000 Sm3/h

operating pressure between 22 and 72 bar

The quantity is determined by means of two meters, one performing "primary measurement" and the other used as "reserve and control measurement (back- up)".

The type and characteristics of the meters installed are as follows:

the primary measurement consists of a turbine meter which is constructed, installed and operated in compliance with the UNI 7988 and ISO 9951 standards and the EEC Directive; the meter also bears the "initial verification" stamp and has been tested on the bench at a pressure of 60 bar.

the reserve and control measurement (back-up) is performed by means of an ultrasonic meter installed in accordance with the ISO 9951 standard; the meter was tested on the bench at a pressure of 60 bar.

The recommended range of use of the meters is between 10% and 90% of the Qmax of the meter; if the volumes exceed the maximum flow rate of a meter, the two measurement lines can be opened simultaneously.

The measurement pressure and temperature are measured by special transmitters, in particular, the pressure is measured at the appropriate socket on the meter body while the temperature sensor is inserted 5 DN downstream.


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On each measurement line, near the primary element, there are specific sockets to connect equipment used to carry out on-line checks in parallel with the main measurement system.

3.2) Instrument Checks

Checks on the measurement instruments are performed in accordance with the procedures described in the chapter entitled "Quality of the LNG Delivered and of the Gas Redelivered".

3.3) Consumption and Losses

The quantity of regasified LNG redelivered by the Operator to Snam Rete Gas at the Redelivery Point (expressed in MWh), and that in turn Snam Rete Gas takes delivery of for redelivery to Users, must match the quantity of LNG delivered by the User to the Operator, minus the amount to cover the consumption and losses related to the Regasification Service, and the quantity to cover the consumption related to the transport service, as described in Chapter 9(3.4), above.

Regasification Code Quality of the LNG Delivered and of the Gas Redelivered

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QUALITY OF THE LNG DELIVERED AND OF THE GAS REDELIVERED

1) QUALITY OF THE LNG DELIVERED .................................................................................................... 2

1.1) DETERMINING THE QUALITY OF THE LNG UNLOADED ........................................................................... 2 1.2) QUALITY SPECIFICATIONS AT THE DELIVERY POINT ............................................................................... 2

HHV components ............................................................................................................................................ 2 Trace compounds ............................................................................................................................................ 2 Physical properties ......................................................................................................................................... 3

1.3) MIXING OF THE LNG IN THE TANKS ....................................................................................................... 3

2) QUALITY AND PRESSURE OF THE GAS INJECTED INTO THE NETWORK .............................. 3

2.1) OVERVIEW .............................................................................................................................................. 4 Molar composition .......................................................................................................................................... 5 Temperature .................................................................................................................................................... 5 Relative density ............................................................................................................................................... 5 Density ............................................................................................................................................................ 5 Determination of the HHV .............................................................................................................................. 5 Wobbe Index.................................................................................................................................................... 6 Water dew point .............................................................................................................................................. 6 Hydrocarbon dew point .................................................................................................................................. 6

2.2) ANALYSIS METHODS ............................................................................................................................... 6 In continuo ...................................................................................................................................................... 6 Discontinuous ................................................................................................................................................. 6

2.3) QUALITY SPECIFICATIONS AT THE NETWORK INSERTION POINT ............................................................. 6 HHV components: ........................................................................................................................................... 7 Trace compounds ............................................................................................................................................ 7 Physical properties ......................................................................................................................................... 7

3) CHECKS TO DETERMINE THE QUALITY OF THE LNG DELIVERED ........................................ 8

4) CHECKS TO DETERMINE THE QUALITY OF THE GAS INJECTED INTO THE NETWORK .. 8

4.1) INSTRUMENT CHECKS.............................................................................................................................. 8 4.2) AUTOMATIC CHECKS ON THE CONSISTENCY OF THE DATA PROCESSED BY THE SVC ............................... 8


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1) QUALITY OF THE LNG DELIVERED

The qualitative characteristics of the LNG delivered by the Users shall be those identified by means of the analyss carried out at the Panigaglia Terminal using the methods, procedures and instruments for measuring quality in use at the Terminal itself. The quality characteristics of the LNG delivered to the Delivery Point must comply with the quality specifications set out below.

1.1) Determining the Quality of the LNG Unloaded

The LNG quality is determined at the Terminal using its own instrumentation system. The procedure is based on determining the average composition of the LNG, obtained by means of:

a) LNG sampling; b) Gas chromatographic analysis; c) Calculations based on the average composition of each LNG component (HHV,

molar volume, molecular weight).

1.2) Quality Specifications at the Delivery Point The LNG delivered by the User to the Panigaglia Terminal must meet the following specifications:

HHV components

Component Acceptance values Unit of

measurement

Methane (*)

Ethane (*)

Propane (*)

Iso-butane (*)

Normal butane (*)

Hexanes and higher (*)

Nitrogen (*)

Oxygen ≤ 0.6 %mol

Carbon dioxide ≤3 %mol

(*) Acceptance values for these components are inherently limited by the acceptability range of the Wobbe index

Trace compounds

Parameters Acceptance values Unit of

measurement

Hydrogen sulphide ≤6.6 Mg/Sm3

Mercaptan sulphur ≤15.5 Mg/Sm3


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Total sulphur ≤150 Mg/Sm3

Physical properties

Properties Acceptance values Unit of measurement

Hydrogen sulphide (H2S) 6 mg/ Sm3

Mercaptan sulphur 15 mg/ Sm3

Total sulphur 150 mg/Sm3

Gross Heating Value 38.18 43.18 MJ/Sm3 MJ / Sm3

Wobbe Index 47.31 52.13 MJ/Sm3 MJ / Sm3

Adjustment of the Wobbe Index (1) 52.13 53.17 MJ/Sm3 MJ / Sm3

LNG Density 430 470 kg/m3 kg/m3

(1) Interval of use of the adjustment systems present at the Terminal

Please refer to the specific procedure published on GNL Italia's website to address situations in which quality data for the LNG delivered by the User is unavailable.

1.3) Mixing of the LNG in the Tanks The Parties agree that, taking into account the technical issues arising from mixing, in the Terminal's storage tanks, quantities of LNG with different densities, pursuant to the Notice of the Ministry of Industry, Commerce and Handicrafts of 11 February 1975 prot. 616026, if quantities of LNG are delivered to the Operator at the Delivery Point with densities that differ by over ±25 kg/Sm3 from the density of the Liquefied Natural Gas present in the Terminal's storage tanks at the time of unloading, the Operator is entitled to delay the unloading of such LNG quantities at the Terminal, except for the provisions of the "Receiving, storage and regasification of the LNG" chapter of this document. If this circumstance arises, the Operator shall notify the User of the estimated delay that will be incurred at least 24 hours prior to the arrival date of the Carrier.

2) QUALITY AND PRESSURE OF THE GAS INJECTED INTO THE NETWORK

The qualitative characteristics of the gas injected into the Snam Rete Gas network are the result of the analyses carried out at the Panigaglia Terminal using the methods, procedures and instruments for measuring quality in use at the Terminal itself. The regasified LNG injected into the network by GNL Italia shall meet the quality and pressure specifications for gas entering the Snam Rete Gas network – as specified in the Network Code – provided that the LNG delivered by the User complies with the specifications at the Delivery Point, as described above.


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GNL Italia, owner of the transport capacity at the Entry Point to the National Network interconnected with the Terminal under Article 8(1) of Resolution No. 137/02, respects the quality specifications contained in the Network Code pursuant to the provisions of Article 8(1) of Annex A of Resolution No. 185/05, which prohibits injecting off-specification gas into the National Network, or gas that meets specifications but contains quantities of elements not normally present in the natural gas that could harm the Users, so as to be able to redeliver the gas to Users at the Redelivery Point. However, should any of the aforementioned scenarios occur, GNL Italia, in accordance with article 19(1) of Annex A of Resolution No. 185/05, must provide prompt written notice to Snam Rete Gas and to the User(s) concerned.

2.1) Overview Checks on gas quality are performed according to the methods and frequencies indicated below. The quality of the natural gas injected into the network at the redelivery flange at the Panigaglia Terminal is continuously monitored by two "mono-stream" gas chromatographs connected to the SVC (Supervisory Computer System) of the measurement system, as well as by a third gas chromatograph with similar functionality that works with the other two using a "2 out of 3" logic, interrupting the supply if two instruments out of three report an off-specification condition (in relation to the Wobbe Index value) of the gas. The three gas chromatographs mentioned above are installed in a special pressurized gas-quality control room along with other "multi-stream" gas chromatographs which are normally dedicated to the analysis of other gas flows coming from the process, but which can analyse the composition of the final gas if the instruments specifically intended for that purpose are all simultaneously unavailable. Natural gas that has been vaporised from LNG is virtually free of sulphur compounds. This is the result of a combination of the following factors: 1) the process for liquefying natural gas is always preceded by a gas supply

processing phase designed to remove all the components of the mixture which may solidify at typical liquefaction cryogenic temperatures (-162°C) from the natural gas stream (in particular H2O (dehydration) and CO2 (decarbonation)), or at least reduce the concentration thereof to a level that does not determine precipitation phenomena or problems of fouling and clogging in subsequent processes. These compounds include branched and cyclic hydrocarbons and, if present in the gas field, hydrogen sulphide and other sulphur compounds;

2) the regasification process has no possible source of input of sulphur compounds.

As far as water and hydrocarbon dew points are concerned, the liquefied natural gas unloaded at the Panigaglia Terminal is well below the network limits as a result of the treatments carried out at the loading ports, briefly outlined in point 1).


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In the light of the above, the sulphur compounds and water and hydrocarbon dew points are determined in discontinuous manner, and according to the procedures and frequency set out below. The quality shall be determined on the basis of the chemical and physical characteristics described in the following paragraphs.

Molar composition Chemical composition in %mol.

Methane (C1)

Ethane (C2)

Propane (C3)

Iso-Butane (i-C4)

n-Butane (n-C4)

Iso-Pentane (i-C5)

n-pentane (n-C5)

Hexanes and higher hydrocarbons (C6 +)

Nitrogen (N2)

Carbon dioxide (CO2)

Helium (He)

Oxygen (O2) Sulphur compounds in mg/Sm3. The following compounds are determined:

Hydrogen sulphide (H2S)

Mercaptan sulphur (S-RSH)

Total sulphur (S TOT) Temperature The temperature of the LNG delivered, expressed in degrees Celsius. Relative density The relative density of the gas-air ratio is defined as the ratio of gas and air densities at reference conditions (Rhos air = 1.22541 kg/Sm3).

Density The Density (Rhos), expressed in Kg/Sm3, is calculated on the basis of chemical composition in accordance with standard ISO 6976.

Determination of the HHV The Higher Heating Value (HHV), expressed in kJ/Sm3 is calculated on the basis of chemical composition per the ISO 6976 standard (most recent version), considering the ideal values of the components specified in that standard (reference conditions: m3 15 °C, combustion 15 °C).


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Wobbe Index The Wobbe Index (WI) is expressed in kJ/Sm3 and is calculated using the following

formula: WI = HHV/rd. Water dew point The dew point of water at delivery pressures of 70 bar, expressed in °C. Hydrocarbon dew point The dew point of hydrocarbons in the pressure range 1-70 bar, expressed in °C.

2.2) Analysis methods The chemical and physical characteristics set out in section 2.1.1 are determined continuously by means of suitable measurement equipment installed in the measurement station, or discontinuously by means of gas sampling in a cylinder that is subsequently analysed in the laboratory. In continuo The Operator and Snam Rete Gas shall agree in advance on the type of equipment to be used for continuous analysis, the accessories required for its operation and the action plans for routine maintenance thereof. The gas sample to be analysed shall be sampled by means of a suitable probe installed at a representative point of the delivered gas line, along the centreline of the pipeline or at a point at least one third into the diameter of the upper or lower route. Discontinuous Instantaneous sampling shall be carried out at the frequencies set out in accordance with ISO method 10715/97 or GPA 2166. At the time of sampling, the report must be prepared and the results of the laboratory determinations must be reported in the Quality Certificate. Analysis of Hydrogen Sulphide The Panigaglia Terminal has a H2S analysis instrument that continuously monitors the final gas. Sulphur compounds (total sulphur and mercaptan sulphur) The sulphur compounds, identified in paragraph 2.1.1 shall be determined discontinuously by laboratory analyses, according to the ASTM D5504 method or another method agreed between the Parties or between the Network Manager and the Operator. This determination shall be made each time the continuous analysis produced by the H2S analyser gives concentration values that are greater than 1 mg/Sm3 , or at least once a year.

2.3) Quality specifications at the Network Insertion Point

The regasified LNG injected into the network by the Operator meets the quality specifications for insertion of gas into the National Network, as specified in the Network Code.


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HHV components:

Component Acceptance values Unit of

measurement

Methane (*)

Ethane (*)

Propane (*)

Iso-butane (*)

Normal butane (*)

Hexanes and higher (*)

Nitrogen (*)

Oxygen ≤ 0.6 %mol

Carbon dioxide ≤3 %mol (*) Acceptance values for these components are inherently limited by the acceptability range of the Wobbe index

Trace compounds

Parameters Acceptance values Unit of measurement

Hydrogen sulphide ≤6.6 Mg/Sm3

Mercaptan sulphur ≤15.5 Mg/Sm3

Total sulphur ≤150 Mg/Sm3

Physical properties

Properties Acceptance

values Unit of

measurement Conditions

Gross Heating Value 34.95 ÷ 45.28 MJ / Sm3

Wobbe Index 47.31 52.33 MJ / Sm3

Relative density 0.5548 ÷ 0.8 Kg/Sm3

Water dew point ≤ -5 °C At a relative pressure of

7000 kPa

Hydrocarbon dew point

≤0 °C In the relative pressure

range of 100 to 7000 kPa

Max temperature < 50 °C

Min temperature > 3 °C


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3) CHECKS TO DETERMINE THE QUALITY OF THE LNG DELIVERED

Normally every 3 days, GNL Italia must check the calibration of the gas chromatographs used to analyse the quality of the LNG unloaded from the LNG Carriers. Should the User request further checks of the entire system to determine the quality parameters of the LNG delivered, GNL Italia shall implement such requests for additional checks.

4) CHECKS TO DETERMINE THE QUALITY OF THE GAS INJECTED INTO THE NETWORK

4.1) Instrument checks All of the measurement equipment must be periodically calibrated and checked to ensure correct measurement within the maximum specified accuracy limits. If an error that exceeds the allowed limits is identified while performing such checks and calibrations, all necessary actions shall be taken to eliminate the error. If it is not possible to restore proper operation of the equipment, it must be replaced. The results of the checks and calibration must be reported in specific reports, dated and signed by the tester and by representatives of Snam Rete Gas and of the Operator. Periodic calibration must also be performed on any equipment that is temporarily out of service. The samples and cylinders used for calibration must be certified by SIT (Italian Calibration Service) accredited laboratories.

4.2) Automatic checks on the consistency of the data processed by the SVC

The variable data measured by field instruments and the processed data must be continuously checked by the SVC (Supervisory Computer System). The SVC compares the density values produced by the two gas chromatographs, and compares them to the data obtained from the reference hydrometer. If the difference between the densities measured by the two gas chromatographs and between these values and that of the reference hydrometer exceeds acceptable limits, an asterisk is added next to the density value "Gas Quality Daily Report" for which the exception was identified. If such limits are exceeded – with regard to pressure, temperature and flow rate – the SVC will indicate an anomaly and report it on the alarms printer. If the anomaly does not affect the determination of the volume, no report will be noted on the daily quantity report; an asterisk will be printed next to the parameter if it exceeds the limit.

Regasification Code Delivery of LNG and Redelivery of Natural Gas

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DELIVERY OF LNG AND REDELIVERY OF NATURAL GAS

1) COMMUNICATION BETWEEN THE LNG CARRIER AND THE TERMINAL ............................... 2

2) GENERAL PROVISIONS ON THE DELIVERY OF LNG AND THE REDELIVERY OF

NATURAL GAS ............................................................................................................................................ 3

2.1) RULES AND REGULATIONS ...................................................................................................................... 3 2.2) MANOEUVRING THE LNG CARRIER IN THE PORT AREA .......................................................................... 3 2.3) EQUIPMENT NEEDED FOR LNG UNLOADING ........................................................................................... 3 2.4) TRANSFER OF LNG FROM THE DELIVERY POINT TO THE TANKS ............................................................. 3 2.5) DELIVERY TIMELINES .............................................................................................................................. 4


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1) COMMUNICATION BETWEEN THE LNG CARRIER AND THE TERMINAL With regard to the loading phase, the User shall inform the Operator of the following:

the date and time of arrival (ETA – Expected Time of Arrival) at the loading port; changes to the ETA of over 4 (four) hours; date and time of mooring at the loading port; if the mooring is not guaranteed on

arrival, updates shall be sent at 10.00 and 16.00 UTC (Coordinated Universal Time) on each day of waiting until the mooring takes place;

the time of mooring and start of loading; the estimated time of completion of loading operations/estimated time of

departure; the date and time of departure from the loading port; the ETA at the port of La Spezia.

In addition, the User shall notify the Operator within 12 hours of completion of the loading of the LNG Carrier, of the estimated quality of the LNG to be unloaded.

Between the time of departure from the loading port and arrival at the port of La Spezia, the User shall notify the Operator in writing of the name of the LNG Carrier and of the ETA (Estimated Time of Arrival) as specified below (as applicable):

a) an initial ETA notice must be sent when the LNG Carrier departs from the loading

port and must include the quantity and quality of LNG loaded; b) a second ETA notice must be sent 96 hours prior to the estimated time of arrival at

the Terminal; c) a third ETA notice must be sent 72 hours prior to the estimated time of arrival; d) a fourth ETA notice must be sent 48 hours prior to the estimated time of arrival; e) a fifth ETA notice must be sent 24 hours prior to the estimated time of arrival; f) a final ETA notice should be sent 5 hours before the estimated time of arrival in the

anchor area or the PBS.

The User must also notify the Operator of any changes to the expected time of arrival that exceed: twelve (12) hours, with reference to the notices set out in a) b) and c) above; six (6) hours, with reference to the notice set out in d) above; three (3) hours, with reference to the notice set out in e) above; two (2) hours, with reference to the notice set out in f) above.


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2) GENERAL PROVISIONS ON THE DELIVERY OF LNG AND THE REDELIVERY OF NATURAL GAS

2.1) Rules and regulations

The Operator and the User acknowledge that, in view of the fact that the Panigaglia Terminal is an integral part of the port of La Spezia, the mooring and unmooring of the LNG Carrier at the pier of the Terminal to unload LNG is governed by the provisions of the port authorities, by the regulations and operating procedures in force.

2.2) Manoeuvring the LNG Carrier in the port area

The User must make all agreements with third parties needed for manoeuvring the LNG Carrier within the La Spezia port area, including the mooring and unmooring of the LNG Carrier itself. These operations must be compatible with the operating procedures in force at the Panigaglia Terminal.

2.3) Equipment needed for LNG unloading

The Operator must make available the means and equipment installed at the Terminal for mooring the LNG Carriers and unloading the LNG, including:

the pier;

sufficient lighting to allow pierside manoeuvring in complete safety, within the limits allowed by the port authorities;

unloading arms, piping and any other equipment needed to unload LNG from the Carrier to the storage tanks with a maximum overall flow rate of about 4,000 m3/h of LNG and provided that the pressure of the Carrier’s tanks does not exceed 1,200 mm H2O rel.: unloading is also allowed for tank pressures ranging from 1200 to 2100 mm H2r rel., subject to payment of the fee set out on GNL Italia's website;

the return line for boil-off vapours;

the line at the pier to supply liquid nitrogen to the LNG Carriers;

vaporized LNG, if available, at or lower than -100 °C and the quantity thereof required to keep the relative pressure in the Carrier’s tanks between 67 and 167 mbar, relative.

2.4) Transfer of LNG from the Delivery Point to the tanks The two connecting arms between the Carrier and the Terminal allow unloading operations to be carried out up to a maximum flow rate of 4000 m3/h. The unloading operations will be carried out by the Operator, which will adjust the flow rate according to the Terminal’s plant configuration and to the characteristics of the LNG on board the Carrier. The pressure of the tanks onboard LNG Carriers must not exceed 1,200 mm H2O rel., however, unloading may be carried out at pressures of up to 1,800 mm H2O rel., subject to payment of the fee set out in the "Receiving, storage and regasification of the LNG" chapter.

Providing fuel, diesel and liquid nitrogen to a moored Carrier must be expressly authorised by the Terminal Operator pursuant to the procedures and regulations applicable to the Panigaglia Terminal and the port of La Spezia.


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2.5) Delivery timelines LNG Carriers must arrive at the port of La Spezia in accordance with the Monthly LNG Delivery Schedule – prepared according to the instructions set out in the "Scheduling of LNG Delivery and Regasification" chapter – in particular in relation to the Scheduled Arrival Dates, sending the Operator the information specified in paragraph 1 above. When the LNG Carrier reaches the anchorage area or the PBS, the ship's Captain must send a written notice to the Operator that the ship is ready to dock at the Terminal’s pier and unload the LNG cargo (NOR). At least 24 hours before the scheduled mooring date the Operator must provide to the User the mooring instructions as well as the instructions for unloading the LNG once the Carrier has moored at the pier. When the LNG Carrier has moored at the pier and is ready to unload the LNG, the ship's Captain must notify the Operator in writing that the ship is ready to unload the LNG (NOU). The Operator and the User must ensure, for the respective areas under their control, that the LNG is unloaded as quickly as possible and within the Unloading Window, taking all appropriate measures to ensure that the LNG is unloaded in total safety. Upon completion of unloading operations, the LNG Carrier must leave the berth as soon as possible, in compliance with the rules and procedures in force: any extension of berthing at the end of the unloading period must be expressly authorised by the Operator. At any time, the LNG Carrier may be required to leave the berth at the Operator's request for safety reasons. In that event, the User shall not be entitled to request any form of compensation.

Regasification Code Service Quality

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SERVICE QUALITY

1) INTRODUCTION ......................................................................................................................................... 2

2) BASIC PRINCIPLES ................................................................................................................................... 2

2.1) SERVICE EFFICIENCY ............................................................................................................................... 2 2.2) CONTINUITY ........................................................................................................................................... 2 2.3) IMPARTIALITY OF TREATMENT ................................................................................................................ 2 2.4) HEALTH, SAFETY AND THE ENVIRONMENT ............................................................................................. 2 2.5) PARTICIPATION ....................................................................................................................................... 3 2.6) INFORMATION ......................................................................................................................................... 3

3) AREAS OF INTERVENTION .................................................................................................................... 3

3.1) COMMERCIAL QUALITY STANDARDS ....................................................................................................... 3 3.2) TECHNICAL QUALITY STANDARDS .......................................................................................................... 4 3.3) STANDARDS ............................................................................................................................................ 4


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1) INTRODUCTION GNL Italia's constant objective is the adoption of a policy aimed at achieving and maintaining a high standard of service quality in order to guarantee an appropriate degree of reliability to all Users in the provision of the regasification service, in compliance with safety requirements, respect for the environment and using the best available technologies. This chapter constitutes an initial approach to the issue of service quality: GNL Italia's goal is to make known and ensure the right of Users to access a regasification service that abides by the principles of efficiency, continuity and impartiality by identifying areas of intervention in order to achieve and maintain service quality standards. Such quality standards cover both technical quality (construction, management and maintenance of regasification infrastructure) and commercial quality pertaining to the relationship with Users.

2) BASIC PRINCIPLES A common understanding of the concept of "service quality" requires that the users of the service acknowledge that their requirements have been met by the party providing the service. It is advisable, therefore, to carry out a survey among Users in order to identify the quality indicators to which they attribute a greater degree of significance. These objectives can be achieved by taking into account a number of simple but fundamental principles, identified below.

2.1) Service efficiency This objective, which makes it possible to adapt the regasification service to market requirements, requires the identification of the most effective organisational, procedural and technology solutions.

2.2) Continuity GNL Italia undertakes to provide a regular and continuous service to its Users. In the event of service interruptions due to maintenance work on the Terminal, GNL Italia shall work to minimise any resulting inconvenience, by immediately informing Users of the situation and restoring normal operating conditions as quickly as possible.

2.3) Impartiality of treatment GNL Italia's conduct with regard to its Users is based on the principles of objectivity, neutrality, transparency and impartiality. In this context, the Regasification Code identifies the set of criteria for non-discriminatory access to the regasification service.

2.4) Health, Safety and the Environment The safety and health of people and the protection of the environment are of primary concern to GNL Italia, which is committed to continuous improvement in this respect.


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In order to optimise the management of health, safety and environmental issues, the Terminal Operator has put in place specific management systems – in line with international reference standards – such as UNI EN ISO 14001 certification for the regasification plant, supplemented by a plant safety management system, in compliance with Legislative Decree No. 344/99. Every year, as part of the "Health, Safety and Environment Report" published on the Snam Rete Gas website, GNL Italia presents the initiatives taken and the achievements of the enterprise during the previous 12 months in terms of health, safety and the environment, with particular reference to energy consumption, atmospheric emissions, waste production, accidents and the associated risk types, as well as prevention and monitoring activities to protect the health and safety of workers.

2.5) Participation A procedure is in place for updating the Regasification Code that is open to the participation of authorised parties. Such parties may propose amendments to the document, as described in the "Amendment of the Regasification Code” chapter.

2.6) Information All Users may request information on their Regasification Agreement, their administrative/accounting situation and on any other issues pertaining to the management of the relationship with the Terminal Operator.

3) AREAS OF INTERVENTION To assess compliance with the above objectives, a number of areas follow in which parameters and indicators – that suitably reflect the technical and commercial quality standards – can be identified and monitored. In order to identify such parameters, GNL Italia shall refer – in addition to the applicable legal provisions – to best practices which are the result of extensive experience in the provision of natural gas regasification services, in comparison with other operators at European and international level with whom GNL Italia constantly interacts, and with quality management systems that are in line with the best international reference standards. In this regard, it should be noted that the aforementioned scheme requires the Regasification Company to gradually develop measurement and monitoring systems which require focused investments and a reasonable time for implementation.

3.1) Commercial quality standards

Some of the key areas that define the service quality provided by GNL Italia from a commercial perspective can be grouped into: 1. Procedures and response times for requests related to:


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access to the regasification service; invoicing; allocations; regasification capacity allocation/transactions; other items.

2. Replying to complaints regarding regasification service invoices. 3. Compliance with the timelines set out in the document. 4. Assessment of User satisfaction, by means of specific surveys.

3.2) Technical quality standards As far as technical quality is concerned, the definition of a service quality standard can be divided into the following areas: 1. Compliance with the limits set out in the document on the number of days of

service interruption for scheduled maintenance work at the Terminal. 2. Quality control of gas provided by GNL Italia to its Users at the Redelivery Point

by means of increasingly extensive and reliable monitoring systems. 3. The use of measurement equipment, owned by the Terminal Operator, which

ensures greater levels of precision and reliability.

3.3) Standards Annex 14/A describes the commercial and technical quality standards of the service provided by GNL Italia and defined since the Regasification Code came into force. GNL Italia shall monitor the standards contained in Annex 14/A and shall, by 31 December each year, provide the Authority with information and data regarding the performance with regard to the standards during the previous Thermal Year.

Regasification Code

ANNEX 14/A SERVICE QUALITY STANDARDS a) Guaranteed commercial service quality standards included in the Regasification Code:

Area Deadlines subject to guaranteed standards

Guaranteed standards

Allocation for the Thermal Year already commenced (Chapter 5)

Deadline for the publication of available capacity by GNL Italia

By the last working day of the month preceding the month in which the allocation process will be carried out

Regasification capacity exchanges with GNL Italia during the Thermal Year (Chapter 8)

Deadline for notification to the Users by GNL Italia of the acceptance or rejection of capacity exchange requests

By the ninth working day before the beginning of the month during which the exchange will take place

Monthly LNG Delivery Schedule (Chapter 9)

Deadline for acceptance by GNL Italia, to Users, of the proposed monthly LNG delivery schedule

By the 5th working day before the beginning of each month M

Monthly Redelivery Schedule (Chapter 9)

Deadline that must be respected by GNL Italia for preparing the Monthly Redelivery Schedule and reporting it to the Users

By the working day following acceptance of the proposed monthly LNG delivery schedule

Amendment of the Regasification Code (Chapter 23)

Deadline for declaration of admissibility request by GNL Italia of a request for amendment

Number of requests that must be rejected, reported within 3 working days of receipt

b) Guaranteed technical service quality standards included in the Regasification Code:

Area Deadlines subject to guaranteed standards

Guaranteed standards

Maintenance days at Terminal (Chapter 15)

Maintenance operations that impact the Terminal's regasification capability

Maximum number of days per year of interruption/reduction (35 days full capacity equivalent), detailed in paragraph 2.3.

Maintenance days at Terminal (Chapter 15)

Maintenance operations that impact the Terminal's regasification capability

Maximum number of days of interruption/reduction over four years (100 days full capacity equivalent), detailed in paragraph 2.3.

Scheduling and Management Regasification Code of Maintenance Operations

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SCHEDULING AND MANAGEMENT OF MAINTENANCE OPERATIONS

1) FOREWORD ................................................................................................................................................ 2

2) METHODS FOR DETERMINING MAINTENANCE OPERATIONS ................................................. 2

2.1) GENERAL PRINCIPLES ............................................................................................................................ 2 2.2) ADDITIONAL MAINTENANCE OPERATIONS ............................................................................................ 2 2.3) IMPACT OF MAINTENANCE ACTIVITIES ON THE REGASIFICATION FEE .................................................. 3

3) METHODS OF COMMUNICATION WITH USERS ............................................................................. 3


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1) FOREWORD Efficient management of the Regasification Terminal involves carrying out scheduled activities required to supervise all its plant components: this chapter deals with the general methods to determine and notify the users of maintenance operations that impact the Terminal’s operation, and that require a "plant downtime" period.

2) METHODS FOR DETERMINING MAINTENANCE OPERATIONS 2.1) General Principles

In order to ensure that all plant equipment is fully operational and compliant with safety standards, GNL Italia shall take action on these structures, considering: a) the availability of spare parts for "critical" production equipment; b) the possibility of continuing to operate such equipment in full safety and

operational capability.

The negative assessment of the availability described in a) above, as the result of the technical obsolescence of some specific components that are no longer available on the market, requires the replacement of such equipment to be replaced with another, newer, component but of the latest generation. Even if the safe and reliable operation of such "critical" equipment (point b) cannot be guaranteed due to the wear and tear of mechanical parts or similar problems, the Operator may opt for one of the following alternatives: - the full replacement of the equipment; - the maintenance of the equipment in order to restore full functionality.

In order to optimize plant downtime, in addition to making its best efforts to concentrate the maintenance operations in question within a single period of the Thermal Year, GNL Italia shall schedule maintenance activities in parallel as much as possible.

2.2) Additional Maintenance Operations In order to be able to work on the "critical” equipment, while ensuring an adequate level of safety, the plant must also be made "gas-free", by means of a special transitional shutdown period for emptying the pipes and securing the area concerned, before the actual work is carried out: the duration of this period generally varies from one to three days. In addition, the Terminal also requires a restart phase during which the main activities carried out are cooling the pipes and filling and starting-up the first production run, lasting on average one or two days.


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2.3) Impact of Maintenance Activities on the Regasification Fee With reference to the maintenance activities in question, GNL Italia shall schedule a number of plant maintenance days, equal to 100 days over four years (full day capacity equivalent) and calculated starting from Thermal Year 2006 to 2007, with a maximum number of 35 days scheduled during each Thermal Year (full day capacity equivalent): these values include any additional interventions identified in paragraph 2.2. Where the limits stated above are exceeded, Users shall be entitled to a reduction of their commitment fees in proportion to the reduction of regasified volumes.

3) METHODS OF COMMUNICATION WITH USERS GNL Italia shall publish all communications relating to scheduled maintenance activities and the duration thereof on its website.

Regasification Code Operational Coordination

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OPERATIONAL COORDINATION

1) OPERATIONAL COORDINATION BETWEEN THE REGASIFICATION COMPANY AND THE

TRANSPORT COMPANY .......................................................................................................................... 2

Regasification Code Operational Coordination

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1) OPERATIONAL COORDINATION BETWEEN THE REGASIFICATION COMPANY AND THE TRANSPORT COMPANY For the operational coordination between the regasification and transportation activities set out in Article 16 of the TIRG, GNL Italia, in its capacity as a Regasification Company, coordinates with Snam Rete Gas (the Transmission Company) with regard to technical and commercial matters such as: the monthly/weekly/daily scheduling of natural gas production (regasified LNG)

injected into the network; the allocation among individual transport users of the natural gas (regasified LNG)

injected into the network; the management of emergencies; determining the good practice rules to be adopted for the management of the

measurement station at the interconnection point. In addition, in order to reduce the periods of disruption for Users, GNL Italia and Snam Rete Gas shall jointly draw up the maintenance schedule, where possible.

Regasification Code Tax and Customs Regulations

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TAX AND CUSTOMS REGULATIONS

1) OBLIGATIONS OF THE TAX WAREHOUSEKEEPER ....................................................................... 2

1.1) EXCISE DUTIES AND REGIONAL ADDITIONAL TAX ................................................................................... 2 1.2) REGIONAL ADDITIONAL TAX ON METHANE GAS ...................................................................................... 2 1.3) ADMINISTRATIVE DOCUMENTATION ....................................................................................................... 2 1.4) INDIRECT TAXES – VAT ......................................................................................................................... 2

2) GENERAL CONCEPTS .............................................................................................................................. 3


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1) OBLIGATIONS OF THE TAX WAREHOUSEKEEPER The reports, statements and/or tax or administrative fulfilments, to comply with current and future official provisions of the competent authorities, shall be the responsibility of the User, except for those for which the law requires otherwise. In particular, the regulatory framework of the responsibilities and obligations of GNL Italia, in its capacity as tax warehousekeeper, includes the requirements set out below. Delivery of the gas to GNL Italia by the User does not imply the transfer of ownership of that gas to the company itself, which stores the gas solely to provide the service.

1.1) Excise duties and regional additional tax Excise duty is the tax that concerns the "gas" product: in particular, according to the provisions of Legislative Decree no. 504/95, the product is subject to tax at the time of its release for consumption, at a rate that depends on how it is to be used (civil, industrial, other uses). The parties which are normally required to pay the tax in question are those who sell the product directly to consumers or consumers who use dedicated infrastructure to transport their product. GNL Italia is taxable only for its own internal consumption, i.e. for the gas required for the operation of the Terminal to provide the regasification service to Users.

1.2) Regional additional tax on methane gas In relation to the consumption of gas for its own use, GNL Italia is not required to pay the above tax – required by Law No. 68 of 19 March 1993 that granted Regional Authorities the possibility of applying specific taxes in this field – since it is connected directly to the local distribution network, operational since October 2005.

1.3) Administrative documentation The statutory provisions require the Regasification Company to carry out certain administrative tasks. In this regard, GNL Italia produces, stores and makes documentation available to the tax authorities for the appropriate inspections (measurement reports, loading and unloading register, etc.). GNL Italia makes available to the competent Customs authority (La Spezia) the measurement reports, within the deadline and as required by the Ministry of Economy and Finance, to check that they match the customs declarations submitted by the individual Users.

1.4) Indirect Taxes – VAT GNL Italia applies Value Added Tax (VAT) to the fees it invoices for the regasification service and for any ancillary and optional services, according to Italian and international laws.


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2) GENERAL CONCEPTS All procedures and operations related to the User’s import of LNG are the User's responsibility. All taxes, fees or charges applied in Italy on the LNG delivered by the User and/or LNG regasified by the Operator on behalf of the User, as well as on the delivery and redelivery thereof, shall be borne by the User that shall hold the Terminal Operator harmless from all liability in this regard. The Terminal Operator shall also be entitled to claim from the User any and all tax and/or administrative charge incurred as the result of an incorrect, incomplete, omitted or delayed tax return, or one which should have been submitted by the User. Should a delay in customs operations determine in delay in carrying out the next scheduled unloading, the User concerned shall fully bear the related charges set out herein. Neither Party shall assume any responsibility or solidarity in relation to the tax obligations of the other party.

Regasification Code Invoicing and Payment

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INVOICING AND PAYMENT

1) INTRODUCTION ....................................................................................... 2

2) INVOICE TYPES ......................................................................................... 2

3) CONTENT OF INVOICES ........................................................................ 3

3.1) INVOICES FOR THE CORE REGASIFICATION SERVICE AND OTHER SERVICES.......................................... 3 3.2) OTHER INVOICE TYPES ........................................................................................................................... 3

4) GENERAL INVOICE ISSUE AND PAYMENT TERMS .................... 3

4.1) ISSUE OF INVOICES ................................................................................................................................. 3 4.2) PAYMENT OF INVOICES.......................................................................................................................... 4

4.2.1) Late payment interest .................................................................................................................... 4 4.3) MANIFEST ERRORS ................................................................................................................................. 4 4.4) INVOICES FOR CONSUMPTION AND LOSSES .......................................................................................... 4 4.5) BILLING OF TRANSPORT OWN CONSUMPTION ..................................................................................... 4

5) DISPUTES .................................................................................................... 4


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1) INTRODUCTION Once it has all the relevant data, GNL Italia issues invoices both for the fees for the core regasification service and for other items, in accordance with the provisions set out below. In general, the list of invoices issued by GNL Italia, pursuant to this document can be divided between invoices for the regasification service itself and those that can be classified as "other invoice types".

2) INVOICE TYPES The invoices issued by the Operator in relation to the services covered by this Regasification Code include:

a) invoices for the core regasification service, in particular:

the access fee to the Core Regasification Service (regasification rate Cqs i.e. the

assignment charge determined on the basis of the outcome of the auction procedures as set out in Chapter 5), and all other fees relating to the regasification rate as published on GNL Italia's website. ;

the offer made within the allocated regasification capacity distribution procedure as set out in Chapter 5.

the fees applied for failure to comply with the LNG Delivery Schedule; the imbalance charges

b) invoices for the Transport Service, in particular:

the fees for transport capacity at the Panigaglia Entry Point; the variable transport fee and the related surcharges for injection into the

network at the Panigaglia Entry Point of the regasified quantities;

c) invoices for the Flexibility Services, in particular:

the fees for the Redelivery Flexibility Service; the fees for the Temporary Storage Service.

d) invoices for other services, in particular: fees for ancillary regasification services; fees for optional services offered; other amounts due under this document;

e) other invoice types, such as those relating to the correction of errors on previous

invoices, adjustments and interest for late payment.


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3) CONTENT OF INVOICES

3.1) Invoices for the core regasification service and other services Each type a), b), c) and d) of invoice shall contain the following: the User’s identification data; the invoice number; the invoice type; the month which the invoice concerns; the rate code and the description of each item on the invoice; the monthly quantity, expressed in the relevant unit of measurement, of each item

on the invoice; the monthly amount of each individual item on the invoice; the total amount invoiced; the VAT for the fees invoiced, as applicable.

3.2) Other invoice types Each type e) of invoice shall contain the following:

the User’s identification data; the invoice number; the invoice type; the period which the invoice concerns; the references to invoices to be adjusted/corrected and the items to correct/adjust

(or alternatively the interest rate applied); the amount owed by or receivable from the User; the VAT for the fees invoiced, as applicable.

4) GENERAL INVOICE ISSUE AND PAYMENT TERMS 4.1) Issue of invoices

The invoices described in sub-paragraphs (a), (b), (c) and (d) of paragraph 2 above shall be issued in the month following the month which the fee concerns: invoices as set out in e) of paragraph 2 above, shall be issued by the Operator as soon as the information that allow their determination is available. All the invoices will be made available by the Operator through special web features. GNL Italia will send any invoices not managed on IT systems by letter. The official date of the invoices in question is the issue date indicated thereon. If the Terminal User has decided to share the quantities of regasified LNG under the Regasification Agreement among one or more users of the Transport service, according to the provisions of art. 10 bis.6 of Resolution 297/2012/R/gas, the Terminal Operator shall invoice that User both the amounts for the Regasification Service and those for the transport service to the Panigaglia Entry Point.


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4.2) Payment of Invoices The User must pay the invoices in question to the bank account indicated on them within 30 (thirty) days of the invoice issue date. If the due date falls on a Saturday, Sunday or on a public holiday, the User may pay the invoices on the next working day.

4.2.1) Late payment interest In the event of late payment of an invoice, the User must pay interest on the amounts invoiced but not paid within the terms described in the foregoing paragraph, for each day past due at the reference rate set by the European Central Bank (as published in the “Ilsole24ore” newspaper) plus 8 percentage points, up to the maximum threshold rate set by Article 2(4) of Law 108/1996, calculated on the basis of the TEGM rate on advance payments and discounts for amounts exceeding € 100,000.

4.3) Manifest Errors Any printing and/or calculation errors in the amounts invoiced are generally corrected before the payment is due and reflected by issuing an adjustment invoice. If the correction cannot be made in time, the User shall pay the amount agreed and deemed correct, if such amount is lower, and the Operator shall issue a corresponding credit note; if the amount is higher, a subsequent additional invoice shall be issued by the Operator.

4.4) Invoices for Consumption and Losses As regards gas consumption and losses related to the regasification service covered by this document, the User shall issue a monthly invoice to the Operator based on a conventional price for the transfer of gas, equal to the CMEM component (determined by the Authority on a quarterly basis) on the provisioning cost of natural gas on the wholesale markets. The Operator shall charge back to the User the same amount of the previous invoice, by means of an invoice. The operating procedures for the application of the provisions of this paragraph shall be published on GNL Italia's website.

4.5) Billing of Transport Own Consumption In relation to consumption of the transport service, covered by this document, the User shall issue each month, after the final report for month M, an invoice for the sale of gas, the amount of which shall be determined on the basis of the provisions of Chapter 18(4.4) of the Network Code. GNL Italia will charge back to the User, by means of an invoice, the same amount as indicated in the aforementioned invoice. The operational methods for the application of the provisions of this paragraph will be published on GNL Italia's website.

5) DISPUTES If no dispute is raised by either Party, each invoice shall be considered final after a period of 3 months from its issue date. If a User disputes the amount invoiced, the User must however fully pay the invoice in question. If the claim is founded, upon resolution of the dispute the Operator shall


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issue a corresponding credit note, taking into account the interest defined for late payments.

Regasification Code Obligation of the Parties

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OBLIGATIONS OF THE PARTIES

1) OBLIGATIONS OF THE PARTIES .......................................................................................................... 2

1.1) OBLIGATIONS OF THE OPERATOR ............................................................................................................ 2 1.2) OBLIGATIONS OF THE USER .................................................................................................................... 3

2) NON-PERFORMANCE BY THE OPERATOR........................................................................................ 3

BREACHES OF CONTRACT .................................................................................................................................... 3

3) LIMITATION OF LIABILITY ................................................................................................................... 3

3.1) WILFUL MISCONDUCT/GROSS NEGLIGENCE ........................................................................................... 3 3.2) EXCLUSION OF LIABILITY ....................................................................................................................... 4

4) EARLY TERMINATION OF THE REGASIFICATION AGREEMENT ............................................. 4

4.1) CAUSES ................................................................................................................................................... 4 4.1.1) Loss of access requirements .......................................................................................................... 4 4.1.2) Bankruptcy procedure ................................................................................................................... 4 4.1.3) Non-payment ................................................................................................................................. 5 4.1.4) Improper use of the IT system ........................................................................................................ 5

4.2) PAYMENTS DUE ...................................................................................................................................... 5 4.3) ENFORCEMENT OF GUARANTEES PROVIDED ........................................................................................... 5 4.4) TERMINATION BY THE USER ................................................................................................................... 5

5) FORCE MAJEURE ...................................................................................................................................... 6

5.1) DEFINITION ............................................................................................................................................. 6 5.2) EFFECTS .................................................................................................................................................. 6 5.3) NOTIFICATION ......................................................................................................................................... 7 5.4) IMPACT ON THE REGASIFICATION FEES ................................................................................................... 7

6) RESOLUTION OF DISPUTES ................................................................................................................... 7

6.1) JURISDICTION OF THE AUTHORITY .......................................................................................................... 7 6.2) TEMPORARY PROVISIONS ........................................................................................................................ 7

6.2.1) Preventive investigation ................................................................................................................ 7 6.2.2) Arbitration proceedings or judicial settlement .............................................................................. 7 6.2.3) Technical arbitration ..................................................................................................................... 8


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1) OBLIGATIONS OF THE PARTIES

1.1) Obligations of the Operator The Terminal Operator, within the terms and conditions set forth herein, shall:

allocate regasification capacity on the basis of the provisions set out herein;

verify the User’s monthly LNG delivery schedule and provide the elements required to reschedule the unloading operations;

define and communicate the monthly redelivery schedule of the quantity regasified;

operate and maintain the Panigaglia Terminal in safe, reliable and efficient conditions;

define and communicate the maintenance schedule for the facility;

handle the unloading operations in accordance with the LNG delivery schedule, and the storage and regasification of the quantities of LNG delivered by the User, in accordance with the quality and pressure specifications set out herein;

according to the specific procedures described herein and the terms of quality and pressure compatible with those required by Snam Rete Gas in its Network Code, make available to Snam Rete Gas, that in turn takes them in charge for redelivery to Users at the Redelivery Point, volumes of regasified LNG that are equivalent in energy terms to the volumes of LNG delivered to the Operator at the Delivery Point, minus consumption and losses related to the regasification service and own consumption of gas for the transport service;

carry out the bookkeeping activities for the LNG received and the regasified LNG on behalf of the User;

provide Users with the information needed for proper and efficient access to the Terminal;

ensure the availability of transport capacity at the Panigaglia plant in line with the commitments made to the Users as a result of the Contract entered into. To do so, GNL Italia shall book, in the manner and timing set out in Chapter 5 of the Network Code, the transport capacity required to provide the Regasification Service;

carry out the scheduling of transport capacity using data relating to the capacity distribution set out in paragraph 4.1, Chapter 5 and the data related to the regasification scheduling of paragraph 3, Chapter 9.

In order to comply with the above obligations, in accordance with resolution 297/2012/R/gas, GNL Italia shall operate on the basis of information received from its Users.

The delivery of the LNG to GNL Italia by the User does not imply the transfer of ownership of that gas to GNL Italia, which stores the LNG solely to provide the service. In any event, the obligations undertaken by the User with regard to GNL Italia shall remain unaffected by the signing of the Regasification Service Agreement and the consequent allocation of regasification capacity.


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1.2) Obligations of the User The User, under the terms and conditions set out herein, agrees to:

deliver volumes of LNG to the Delivery Point that meet the quality and pressure specifications, using LNG Carriers that comply with the provisions regarding the acceptance thereof, as set out herein, and ensuring compliance with the procedures in use at the Panigaglia Terminal and the port of La Spezia;

perform all activities necessary for the allocation of regasification capacity, including the provision of the required financial guarantees;

schedule the unloading slots at the Terminal in accordance with the criteria set out herein;

provide the Terminal Operator with the information required by the procedures outlined in this document;

pay the Operator the fees for the regasificaton service provided at the Terminal and for the network injection at the Panigaglia Entry Point, in addition to any other amounts due, in accordance with the procedures set out herein.

2) NON-PERFORMANCE BY THE OPERATOR

Except for cases of Force Majeure and for the specific provisions contained in the chapters entitled "Scheduling of LNG deliveries and of regasification activity" and "Receiving, storage and regasification of the LNG", if the Operator does not provide the service at its own expense under the Regasification Agreement, the User shall be released from the obligation to pay any fee set out in the Regasification Agreement for the period during which such service is not provided. Breaches of Contract Being required to pay the fees and compensation set out herein, the Parties mutually agree to consider fully covered the amount of all costs and expenses incurred as a result of their respective failure to comply with the obligations set out herein – the compensation of any further damage, claim or request of one Party to the other being hereby expressly excluded – except as otherwise specified elsewhere in this document and as set out in paragraph 4 below.

3) LIMITATION OF LIABILITY

3.1) Wilful Misconduct/Gross Negligence Liability for any damage arising from or in any way related to the execution or non-fulfilment, or partial or late fulfilment of obligations under the Regasification Agreement is expressly limited to cases of wilful misconduct and/or gross negligence.


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3.2) Exclusion of Liability Except for the cases of wilful misconduct and/or gross negligence identified in paragraph 3.1 above, it is agreed that each of the parties is expressly relieved of all liability towards the other for: indirect damages, including but not limited to, termination of contracts with its

customers and/or suppliers or any consideration, disbursement, damage compensation or payment for any reason that a Party must pay in accordance with its contracts or relationships with customers and/or suppliers and/or third parties and/or competent authorities;

loss of earnings, including but not limited to, loss of profit or income; non-pecuniary damage, including but not limited to, the loss of image. Each Party is expressly indemnified by the other with regard to any claims for compensation made by third parties for any reason.

4) EARLY TERMINATION OF THE REGASIFICATION AGREEMENT

4.1) Causes Other than for the reasons envisaged by law, the Regasification Agreement can be terminated by the Terminal Operator in advance of its natural expiration by sending a written notice to the User, under Article 1456 of the Italian Civil Code, with a copy to the Authority for information, under the following circumstances: 1) loss of the User's eligibility to participate in the regasification capacity allocation

processes set out in the chapter entitled "Allocation of regasification capacity"; 2) bankruptcy proceedings against the User; 3) non-payment; 4) improper use of the IT system; 5) all the other cases, including the cases specified in this Code, in which the

Regasification Agreement may be terminated as a result of the User failing to comply with any of the commitments undertaken by signing the Regasification Agreement.

4.1.1) Loss of access requirements

Without prejudice to the specific provisions otherwise set out in the Regasification Code, if a User ceases to meet, for any reason, one or more of the requirements to participate in the regasification capacity allocation process, and is unable to restore such requirements within seven calendar days following the date on which GNL Italia has notified the User that it has lost the requirements, sent by fax to it in advance, the party in question shall lose its status of User and accordingly the entitlement to access the regasification service.

4.1.2) Bankruptcy procedure If a User is subject to bankruptcy proceedings – whether judicial, administrative or voluntary – the Terminal Operator shall be entitled to terminate the agreement, except in situations where the Regasification Agreement is taken over by the bankruptcy administrator.


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4.1.3) Non-payment

Failure by the User to pay the amounts due for any reason to the Terminal Operator in relation to the performance of the Regasification Agreement, even for a single invoice, shall entitle the Terminal Operator, without prejudice to any other remedy permitted by law and by the Regasification Agreement, to terminate the Regasification Agreement early.

4.1.4) Improper use of the IT system Protracted improper use of the IT system by the User, which is seriously detrimental to the correct operation of the IT system or of the Terminal, shall constitute grounds for early termination of the Regasification Agreement, with obligation to pay compensation for all damage caused to the Terminal Operator and to other Users.

4.2) Payments Due In all cases of contractual termination set out in paragraph 4.1 above, the User concerned must pay the Terminal Operator, in addition to the amounts due, for whatever reason and relating to the period up until the termination date of the Regasification Agreement, an amount equivalent to the discounted value – due at the termination date and at a discount rate equal to the annual average rate of return of 10 year Treasury Bonds for the last available year, plus 0.75% – of the estimated payments due in respect of the regasification capacity fees owed by the User for the period from the date of the early termination date and the natural expiration date of the Regasification Agreement.

4.3) Enforcement of Guarantees Provided In the event of early termination of the Regasification Agreement or failure to pay invoices, GNL Italia shall enforce the guarantees provided in relation to all unpaid amounts. The enforcement of the guarantees shall be communicated by GNL Italia to the User in writing. GNL Italia shall enforce the guarantees provided in the following order of priority:

(i) Non-interest-bearing security deposit; (ii) Bank guarantee;

The User expressly agrees that in all cases of termination of the Regasification Agreement or non-payment of invoices for the regasification service, GNL Italia shall, after sending a reminder, immediately enforce the guarantee provided by that User, to limit the charges on the natural gas system.

4.4) Termination by the User If circumstances prevent the User from delivering LNG to the Delivery Point for a continuous period of over 6 months, starting from the date the event occurs, the User may request the early termination of the Regasification Agreement – by sending a written notice to the Terminal Operator including objective evidence of said circumstances – in relation to the services prevented by the event in question.


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The User concerned shall, however, be obliged to pay the Terminal Operator the amounts set out in paragraph 4.2 above. If the regasification capacity allocated to the User in accordance with the terminated Agreement, is totally or partially reallocated by the Terminal Operator to another User, the fees associated with the allocated capacity shall be credited to the terminated User.

5) FORCE MAJEURE 5.1) Definition

The expression "Force Majeure" means any event, act, fact or circumstance occurring at the Regasification Terminal which is not attributable to the Operator that invokes it but which makes it totally or partially impossible for the Operator to fulfil its obligations as specified in the Regasification Agreement for as long as the Force Majeure conditions persist, and which is unavoidable notwithstanding the ongoing diligence due by reasonable and prudent operator. By way of example and without limitation, and provided that they meet the above requirements, the following events, facts, acts and circumstances shall constitute Force Majeure: wars, terrorist actions, sabotage, acts of vandalism, riots; adverse natural phenomena such as storms, tidal waves, lightning, earthquakes,

landslides and floods; fires and explosions; strikes, lockouts and other forms of industrial unrest, excluding corporate conflict,

declared on occasions other than collective bargaining; unanticipated breakdown or accidents relating to plants or equipment used for the

unloading, storage and regasification of LNG delivered by the User to the Delivery Point, provided that such events are not due to the wilful misconduct or negligence of the Terminal Operator.

The Parties expressly agree that any event, fact or circumstance that occurs outside the Regasification Terminal does not constitute Force Majeure.

5.2) Effects The Operator shall not be held liable for the failure to fulfil the obligations specified in Regasification Agreement, nor for any damage or loss incurred by the other Party, to the extent and for the duration that both Parties are affected by Force Majeure. If a Force Majeure event occurs, the Operator must use its best efforts to limit the negative effects of the event in order to allow normal operations to be resumed in the shortest possible time, thereby allowing contractual obligations to be fulfilled. A Party's inability to meet its payment obligation shall not be considered a Force Majeure event.


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5.3) Notification The Operator must notify the User, in a timely manner, of the following: a) the occurrence of an event, fact or circumstance that prevents the total or partial

fulfilment of its obligations in respect of the Regasification Agreement, providing a clear indication of the nature of the event and also identifying – if a reasonable assessment is possible – the likely time required for its resolution;

b) a progress report of the event, providing regular updates on its expected duration; c) when the Force Majeure event ceases to exist.

5.4) Impact on the Regasification Fees

In the event of a Force Majeure event, and for as long as such an event continues, the regasification capacity fee payable by the User shall apply proportionally to the actual decrease in the regasification service. If the Force Majeure event results in the total interruption of the regasification service, the User shall be exempt from payment, pro rata temporis, of the related regasification fees.

6) RESOLUTION OF DISPUTES

6.1) Jurisdiction of the Authority In the event of disputes on the interpretation and application of the Regasification Agreement, Article 2.24(b) of Law No. 481 of 14 November 1995 states that the criteria, conditions, timing, and procedures for conducting arbitration procedures in an adversarial procedure before the Authority shall be set by a government regulation, issued under Article 17(1) of Law No. 400 of 23 August 1988.

6.2) Temporary Provisions Until the issue of the regulation set out in the foregoing paragraph, any disputes shall be settled in accordance with the procedures set forth below.

6.2.1) Preventive investigation Except in cases in which, according to one Party, urgent precautionary measures are required, any disputes that arise on the interpretation and application of the Regasification Agreement shall be submitted, by initiative of either Party and subject to formal notice sent to the other Party, to the prior joint examination with the parties appointed for such purpose by the Parties themselves and selected among first line managers, in an attempt to reach a satisfactory agreement.

6.2.2) Arbitration proceedings or judicial settlement If the settlement attempt is not successful within 60 days from the notification date specified in the preceding paragraph, the decision on the dispute may alternatively:


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a) be referred – subject to agreement between the Parties – to the competence of the Authority in accordance with the procedures set out in the Authority’s Resolution No. 42/05, as amended, which the Parties acknowledge and accept, using the "Arbitration Agreement Framework" provided in Annex A of the aforementioned Resolution and attached to this document;

b) be submitted by either Party to the Judicial Authorities. In such a case, the Parties shall confer exclusive jurisdiction on the Court of Milan.

6.2.3) Technical arbitration

In the event of a dispute on a technical matter the solution to which requires an exclusively technical assessment, the Parties shall agree to submit the dispute to the decision of an independent expert appointed by them. If the Terminal Operator and the User fail to agree on the appointment of the technical expert within 15 days of notification by the requesting Party, either Party may request the Dean of the Politecnico di Milano (Engineering University of Milan) to appoint the expert. The expert thus appointed shall set the procedural rules to settle the dispute, taking into account the opinions of both parties involved. The expert’s decision shall be final and binding on all Parties, who shall thereafter comply with said decision.


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ANNEX: ARBITRATION AGREEMENT FRAMEWORK The undersigned:

A. ………….

and

B. ………….

engaged in a dispute in relation to the following:

AGREE

to submit the settlement of the dispute to an Arbitration committee as described below.

1.1 The Arbitration committee is composed as follows:

(a) arbitrator appointed by party A:

(b) arbitrator appointed by party B:

(c) chairman of the Arbitration committee whose appointment shall be jointly delegated by both parties to the Authority upon the proposal of the General Manager of the Authority;

2.1 The Arbitration Committee shall decide by means of an award issued in accordance with

the law, following completion of a procedure governed by the rules contained in Title VIII of Book IV of the Italian Code of Civil Procedure.

2.2 The deadline for issuing the arbitration award, set out in article 820(1) of the Italian Code of Civil Procedure, is set at the following number of days: …

2.3 The language used in the arbitration proceedings is Italian;


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2.4 The arbitration takes place in the Authority’s offices.

3.1 The role of Secretary of the Arbitration Committee is carried out by an employee of the Legal Department, appointed for this purpose by its Manager;

3.2 The Secretary, in particular:

- assists the Arbitration Committee throughout the proceedings; - drafts and retains the official file; - assigns a unique year-based serial number to each file, keeping record of the details of

the arbitration proceedings in chronological order in a specific register; - draws up the minutes; - communicates the statements prepared by the Arbitration Committee; - files the deeds and documents of the arbitration proceedings; - informs the parties of the dates of the hearings; - delivers the arbitration award to the parties; - closes the proceedings, following communication of the amicable settlement of the

dispute;

3.3 On the basis of the regulations in force, the Secretary allows only the contending parties to view and copy the deeds and documents of the arbitration proceedings, whether they are constituted or not. Except when access is granted to the parties, the Secretary is bound by official secrecy.

4.1 The Arbitration committee and the Secretary may use the personnel and facilities made available by the Manager of the Legislative and Legal Department to carry out administrative tasks.

5.1 For the purpose of carrying out document-based investigations and providing technical advice, the Arbitration committee may use a resource from the office of the Authority concerned, duly appointed by the Manager thereof.

6.1 All communication required during arbitration proceedings shall be handled by the Secretary by registered letter with proof of delivery, unless the Arbitration Committee decides otherwise; and such communication is delivered to the parties at their registered offices or at the following addresses:

(a) for party A:

(b) for party B:


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6.2 The deeds shall be produced and deposited in as many copies as there are other parties to the proceedings and members of the Arbitration Committee, plus a further copy for the official file. This activity must be carried out at the registered office of the arbitration;

6.3 As an alternative to hard copies, the communication, productions and deposits set out in paragraphs 6.1 and 6.2 above may also be made in digitally signed electronic format, per Decree No. 445 of the President of the Republic of 28 December 2000, and sent to the email addresses of the parties or the defence attorneys whose offices they have elected as domicile, or for communications, productions and deposits addressed to the Secretary of the Arbitration Committee.

6.4 The notifications are made in accordance with the rules for notifying court proceedings.

6.5 The notifications set out in paragraph 6.4 above may also be made by email as long as the deed is represented on a computer medium, with a digital signature. The notification must be sent to the email address of the parties or of defence attorneys whose law offices they have elected as domicile.

The original copy of this agreement has been communicated to the Manager of the Authority's Legislative and Legal Department at piazza Cavour 5, 20121 Milan, for subsequent action to be taken.

Place and date: Party A: Party B:

Regasification Code General Provisions

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GENERAL PROVISIONS

1) CONFIDENTIALITY .................................................................................................................................. 2

1.1) OBLIGATIONS OF THE PARTIES ................................................................................................................ 2 1.2) EXCEPTIONS ............................................................................................................................................ 2 1.3) EFFECTIVENESS OF OBLIGATIONS ............................................................................................................ 2

2) PERSONAL DATA PROCESSING ............................................................................................................ 2

3) CORPORATE LIABILITY ......................................................................................................................... 2


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1) CONFIDENTIALITY

1.1) Obligations of the parties All information regarding the activities of either party, in accordance with the Regasification Code, must be treated as confidential and may not be used by either party, its employees and/or agents outside the scope of the Regasification Code, nor may such information be disclosed to third parties except in accordance with prior written instructions or authorisations by the Party to which such information pertains and subject to third parties signing a similar confidentiality clause.

1.2) Exceptions Without prejudice to the provisions of the preceding paragraph, information shall not be considered confidential if and to the extent that it is: information that was in the public domain at the time it was disclosed or that

become public knowledge for reasons other than the non-fulfilment of obligations or the fault of the receiving Party;

information which the receiving Party was already aware of at the time it was disclosed to the other Party and for which there was no obligation of confidentiality;

information which can no longer be considered confidential because it is required to fulfil legal obligations or has been requested by the Regulatory Authority;

information that the receiving Party has legally obtained from third parties without breaching any confidentiality requirement towards the other Party.

1.3) Effectiveness of obligations

The confidentiality obligations listed in this chapter shall remain effective for 2 years from the date of termination or cancellation of contractual obligations in relation to the Regasification Code.

2) PERSONAL DATA PROCESSING

The Parties mutually undertake to process the personal data exchanged for the purpose of the Regasification Agreement, in full compliance with the provisions of Legislative Decree No. 196 of 30 June 2003, as amended and supplemented. The Terminal Operator shall provide to Users that are parties to the Regasification Agreement a disclosure on how it processes personal data pursuant to Legislative Decree No. 196 of 30 June 2003, by publishing such information on its website.

3) CORPORATE LIABILITY The User acknowledges being aware of current legislation on the corporate liability of legal persons and, in particular, of Legislative Decree No. 231 of 8 June 2001 and having read the document "Model 231" – which also includes the Code of Ethics –


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prepared by GNL Italia in relation to the current regulations concerning administrative offences with regard to legal persons resulting from crimes committed by directors, employees and/or collaborators. The Model 231 form is available on the Terminal Operator's website. At any time, the User may request the Terminal Operator to provide a hard copy of the document.

Regasification Code Service Emergencies Management

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SERVICE EMERGENCIES MANAGEMENT

1) INTRODUCTION ....................................................................................................................................... 2

2) SERVICE EMERGENCIES ........................................................................................................................ 2

2.1) TYPES OF EMERGENCY ........................................................................................................................... 2 2.2) EMERGENCY LEVELS .............................................................................................................................. 2 2.3) OBJECTIVES OF THE MEASURES ............................................................................................................... 3 2.4) DESCRIPTION OF PLANNED PROCEDURES ................................................................................................ 3

2.4.1) Alarms ........................................................................................................................................... 3 2.4.2) Personnel ....................................................................................................................................... 3 2.4.3) Means of communication ............................................................................................................... 3 2.4.4) Available documentation ............................................................................................................... 3 2.4.5) External communications .............................................................................................................. 3

3) EMERGENCY FOR NON SCHEDULED OUT OF SERVICE ............................................................ 4

4) INFORMATION IN RELATION TO EMERGENCIES ....................................................................... 4


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1) INTRODUCTION GNL Italia has developed an operational guideline (the "Internal emergency plan") to deal with unforeseen and temporary emergency situations which may interfere with the normal operation of its regasification plant and which may be detrimental to the safety of people and the environment (fire, leakage of flammable liquids or gases). Pursuant to Legislative Decree No. 334 of 17 August 1999 ("Implementation of Directive 96/82/EC on the control of major-accident hazards involving dangerous substances") and Legislative Decree No. 626 of 19 September 1994 ("Implementation of Directives 89/391/EC et. seq. on the improvement of occupational health and safety"), these operating instructions define the actions required and the behaviours that GNL Italia employees must adopt if the type of situation in question arises: this chapter summarises the policies adopted by the Operator in the event of an emergency, classified according to level of severity. GNL Italia shall inform Users if an emergency situation at the Terminal reduces the plant’s capacity or, in more severe cases, makes the service temporarily unavailable.

2) SERVICE EMERGENCIES 2.1) Types of Emergency

The emergencies described in this paragraph are emergencies attributable to the accidental leakage of gas/LNG that affects and makes it impossible to operate the plant safely. Management of the reduction of regasification capacity due to such events is described in paragraph 4 of the "Scheduling of LNG Delivery and Regasification" chapter of this document.

2.2) Emergency Levels The types of service emergencies at the Terminal are classified according to the different levels activated by the procedure block systems, as emergencies of: 1st Level (pre-alarm); 2nd Level (alarm); 3rd Level (general alarm). The 1st Level is the lowest level of emergency and causes the blockage of the specific equipment involved without triggering a total or partial blockage of the regasification plant. The 2nd Level is an intermediate level of emergency and can result in the total or partial blockage of the plant.


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The 3rd Level is the highest level of emergency, i.e. with the greatest severity, and results in a general blockage of the plant and the activation of the fire-fighting system. Each of the above emergency levels is activated by means of dedicated devices which detect the presence of potentially explosive atmospheres, leaks of cryogenic liquid and the presence of flames. Depending on the level of emergency, a specific sequence of logical blocks of the relevant equipment is triggered.

2.3) Objectives of the measures The operating guidelines prepared by GNL Italia contain the following objectives: to provide a classification of the emergency type in order to allow it to be

promptly identified; to promptly eliminate every cause that may compromise the safety of people and

the environment; to promptly eliminate any cause that could increase the extent of the incident or its

consequences; to provide general and specific instructions (according to the type of task being

performed within the plant) to properly deal with the emergency; to take the necessary action to maintain and restore operations, depending on the

type of emergency.

2.4) Description of planned procedures 2.4.1) Alarms

According to the severity of the emergency, different alarms are given by sounding one or more siren blasts, depending on whether it relates to a pre-alarm (1 blast), an alarm (2 blasts) or a general alarm (3 blasts).

2.4.2) Personnel The operating guidelines define the behaviour that personnel should adopt in each of three different levels of emergency identified in paragraph 2.2, particularly with regard to personnel who perform specific plant operation and management tasks.

2.4.3) Means of communication GNL Italia uses means of communication which ensure the traceability of personnel available to manage the emergency situation.

2.4.4) Available documentation The maps and technical documentation which are used to address and resolve an emergency (such as procedures for securing and restarting the plant) are available at the offices of the Panigaglia Terminal.

2.4.5) External communications

The on-call officer at GNL Italia is responsible for informing the external parties indicated below if an alarm (2nd level) or a general alarm (3rd level) is sounded.


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Alarm:

a) the Emergency Manager of Snam Rete Gas through Dispatching;

b) the Prefecture;

c) the Maritime Authority (the Officer on Guard);

d) the office responsible for police force ("Questura", Chief of Cabinet or Service Commissioner).

General Alarm:

a) the Emergency Manager of Snam Rete Gas through Dispatching;

b) the Prefecture;

c) the Maritime Authority (the Officer on Guard);

d) the office responsible for police force ("Questura");

e) the Mayor of Portovenere;

f) the Provincial Command of the Fire Department;

g) the Chairman of the Regional Council;

h) the Chairman of the Provincial Administration.

3) EMERGENCY FOR NON SCHEDULED OUT OF SERVICE

In addition to the LNG/gas spill emergencies described in the preceding paragraph, emergencies may occur due the unscheduled downtime of critical regasification equipment, resulting in a reduction in regasification capacity with respect to the scheduled quantities. Management of the reduction of regasification capacity due to such events is described in paragraph 4 of the "Scheduling of LNG Delivery and Regasification" chapter of this document.

4) INFORMATION IN RELATION TO EMERGENCIES

The Operator shall keep a record of basic information on service emergencies or unscheduled service outages, including: the type of the emergency; the date/time of the event; the description of the facilities’ component affected by the emergency; any leakage of gas/LNG recorded; the description of the event and its causes; the party requesting action (third parties, Fire Department, GNL Italia etc.). the responsibility for the emergency (Force Majeure, third parties, GNL Italia),

following an objective assessment of the emergency by the competent authorities.


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By December 31 of each year, GNL Italia shall send a summary of the service emergencies that occurred at the terminal during the previous Thermal Year to the Regulatory Authority.

Methods for Transition from Normal Regasification Code Operating Conditions to General Emergency Conditions

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METHODS FOR THE TRANSITION FROM NORMAL OPERATING CONDITIONS TO GENERAL EMERGENCY CONDITIONS

1) GAS EMERGENCY PROCEDURES ................................................................................................... 2

1.1) EMERGENCY PROCEDURE IN THE EVENT OF ADVERSE WEATHER CONDITIONS ............................................ 2 1.2) EMERGENCY PROCEDURE IN THE EVENT OF INTERRUPTION/REDUCTION OF GAS SUPPLY ............................ 2

Methods for Transition from Normal Regasification Code Operating Conditions to General Emergency Conditions

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1) GAS EMERGENCY PROCEDURES

1.1) Emergency procedure in the event of adverse weather conditions In order to define the terms and conditions of activities to be carried out and the responsible parties, if adverse weather conditions occur that can lead to gas supply shortages in the transport network during the winter, the "Technical Committee for emergencies and gas system monitoring" (hereinafter the "Committee"), established in accordance with the Decree of 26 September 2001, has prepared the procedure ("Emergency procedure in the event of natural gas supply shortages as a result of adverse weather conditions"), as amended, approved by Ministerial Decree, in order to establish the rules for dispatching in emergency situations and the related security requirements. 1.2) Emergency procedure in the event of interruption/reduction of gas supply

Under the provisions of Article 8.7 of the Legislative Decree, the Committee shall also prepare the procedure that identifies the terms and conditions of the measures to be taken and the responsible parties in the event of the interruption/reduction of gas supply to the national system and shall submit it for approval to the Ministry for Trade and Industry – in accordance with Article 8.4 of the Decree of 26 September 2001 – for adoption, so as to establish the rules for dispatching in emergency situations and the related security requirements. Pursuant the Decree of the Minister of the Economic Development of 13 September 2013, the Emergency Plan of the decree of 19 April 2013, paragraph 4.2.3 envisages the use of LNG terminals whose capacity is not entirely allocated for the LNG storage to provide the Peak Shaving Service. Pursuant the Decree issued by the Minister of Economic Development on 18 October 2013, GNL Italia can make available to the Network Balancing Manager the LNG storage service for the Peak Shaving Service mentioned in Chapter 3 and for this purpose shall publish a procedure for the selection of users seeking to inject one or more LNG loads in the storage tanks for the purposes mentioned above.

Regasification Code Amendment of the Regasification Code

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AMENDMENT OF THE REGASIFICATION CODE

1) GENERAL PRINCIPLES ............................................................................................................................ 2

2) REGASIFICATION CODE CHANGE REQUESTS ................................................................................ 2

2.1) AUTHORISED PARTIES ............................................................................................................................. 2 2.2) SUBMITTING A CHANGE REQUEST ........................................................................................................... 2

2.2.1) Admissibility Requirements ........................................................................................................... 2 2.2.2) Declaration of admissibility ........................................................................................................ 3

3) PROPOSED AMENDMENTS TO THE REGASIFICATION CODE .................................................... 4

3.1) PREPARATION OF THE AMENDMENT PROPOSAL ....................................................................................... 4 3.1.1) Content of the amendment proposal ............................................................................................ 4

3.2) CONSULTATION ON THE AMENDMENT PROPOSAL .................................................................................... 4 3.3) TRANSMISSION OF THE AMENDMENT PROPOSAL TO THE REGULATORY AUTHORITY ............................... 5

4) COMMUNICATION .................................................................................................................................... 5


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1) GENERAL PRINCIPLES The procedure for amendment of the Regasification Code, defined in accordance with the provisions of the Authority's Resolution ARG/gas No. 55/09, aims to prepare and manage document amendment proposals due to: changes to the regulatory framework; changed technical and market conditions; material errors in the text of the document; with the aim of making the operation of the Panigaglia Terminal increasingly efficient in the light of the experience gained in the services offered.

The amendment proposals are prepared by GNL Italia, published for consultation with interested parties and are then forwarded to the Regulatory Authority together with the opinion of the Consultation Committee, in order to verify compliance with the criteria for drawing up the Regasification Code and with the general objectives relating to the access and use of LNG regasification plants. Amendment proposals may also be prepared by GNL Italia as the result of change requests received from authorised parties according to the procedure described below.

2) REGASIFICATION CODE CHANGE REQUESTS

2.1) Authorised parties Parties authorised to submit Regasification Code change requests are: a) Users, either individually or collectively;

b) transport and storage companies and trade associations of distribution companies, limited to the areas of the Code which impact them directly. 2.2) Submitting a change request

Pursuant to the ARG/gas No. 55/09 resolution, change requests may be submitted to GNL Italia at any time during the Thermal Year. Change requests must include a description of the main elements of the required change on the basis of which GNL Italia, if the proposed change is accepted, shall draft a proposed amendment of the Regasification Code.

2.2.1) Admissibility Requirements

In order to be declared admissible by GNL Italia, each change request must:

a) be submitted by a party that is authorised as set out in paragraph 2.1 above; b) be accompanied by information regarding the requesting party (company,

registered office, etc.) and at least one contact person (name, telephone number, fax number, email, etc.) who can be contacted in relation to the change request in question;


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c) indicate the reasons why the applicant believes that the change should be accepted, and if the request is submitted by the parties defined in paragraph 2.1 b), provide information that proves their direct involvement in the topic of the change request;

d) include any relevant documentation (analysis, reports, etc.) to support the request. 2.2.2) Declaration of admissibility

GNL Italia must check the compliance of the change request to the requirements set out in paragraph 2.2.1. If one or more of these requirements have not been met, within the third working day after the receipt of the change request, GNL Italia must inform the requesting party of the inadmissibility of the request, indicating which elements are not compliant. The requesting party is entitled to submit a new change request including the additional elements required. The change request is considered admissible if the Operator does not comment on it within 3 working days of receipt. 2.3) GNL Italia must analyse and evaluate the change request based on the following criteria: a) consistency of the changes with the regulatory framework and with the principles

of the Regasification Code; b) how the changes will contribute to the improvement of the functions of the

Regasification Code; c) operational implications for the LNG regasification activity, also in terms of

technical complexity, time to compliance and estimated cost. During the evaluation phase, GNL Italia may ask the requesting party to provide additional information and/or clarification. If the evaluation is successful, by the end of the 20th day following receipt of the change request set out in paragraph 2.2, GNL Italia shall publish the change request on its web portal and shall draft a proposed amendment to the Regasification Code in accordance with paragraph 3 below. By the same deadline, if GNL Italia decides to not submit the change request for consultation, it shall provide it to the Authority, along with an explanation as to why the Operator decided to not submit it for consultation, and at the same time informing the requesting party. Likewise, if within 20 days of receipt of a change request, GNL Italia receives further change requests, the Operator reserves the right to make such requests available to the Regulatory Authority and to ask the Authority to define a suitable timeframe for starting the respective consultation periods.


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3) PROPOSED AMENDMENTS TO THE REGASIFICATION CODE

3.1) Preparation of the amendment proposal With regard to proposals prepared in response to the change requests, pursuant to Resolution ARG/gas No 55/09, GNL Italia may prepare amendment proposals to the Regasification Code at any time during the Thermal Year or within the terms described in paragraph 2 above. In the event of compliance with decrees, resolutions or other measures issued by the competent authorities, GNL Italia shall prepare the relevant amendment proposal within 15 days of the date of issue of the measure or within the timeframe specifically indicated by the competent authority.

3.1.1) Content of the amendment proposal

The amendment proposal shall consist of one or more changes to the text of one or more chapters of the Regasification Code. Each amendment proposal must be accompanied by: a brief description of the nature of the proposed amendment, stating the reasons

why GNL Italia believes that the amendment proposal should be adopted; any supporting documentation (analyses, reports, etc.); the corresponding change request, if the proposal has been prepared in response

to a request submitted as per paragraph 2 above. 3.2) Consultation on the amendment proposal

In order to consult interested parties, GNL Italia shall publish the amendment proposal on its web portal. Pursuant to Resolution ARG/gas 55/09, the consultation period shall last: 45 days from the date of publication, or 30 days from the date of publication or, if the amendment proposal is prepared in

compliance with decrees, resolutions or other measures issued by the competent authorities, a different specific timeline.

At the same time as the publication, the Operator shall indicate the closing date of the consultation period in accordance with the terms described above. For transmission to the Regulatory Authority in accordance with paragraph 3.3 below, the Consultation Committee and any other interested parties that are not part of the Committee, may make their views and observations known to GNL Italia by the closing date of the consultation period. In the light of the comments and/or additional findings made during the consultation period or as a result of its own assessments, GNL Italia may make changes to the amendment proposal.


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3.3) Transmission of the amendment proposal to the Regulatory Authority

To verify compliance, GNL Italia must submit the amendment proposal to the Authority together with:

the accompanying documentation described in paragraph 3.1; the opinion of the Consultation Committee, received within the consultation phase; comments received from interested parties who are not members of the Consultation Committee, received within the consultation phase; changes made to the amendment proposal as a result of the consultation process, as well as the reasons for such changes; additional issues raised during the consultation that GNL Italia has decided to not adopt and the reasons for such decisions.

Pursuant to Resolution ARG/gas 55/09, GNL Italia shall send the amendment proposal to the Authority by: the 20th day following the end of the consultation period; the 10th day following the end of the consultation period or such other deadline as

the Regulatory Authority may specify if the proposed amendment is being prepared in accordance with decrees, resolutions or other measures issued by the competent authorities.

4) COMMUNICATION The references and procedures for communication with GNL Italia are detailed on GNL Italia's website.

Regasification Code Glossary

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GLOSSARY

This glossary provides the definitions of some of the terms used often in the Regasification Code.

In most cases, the terms have a meaning specific to this subject matter. Therefore it was deemed appropriate to group them in this Annex for greater clarity and ease of reading.

Thermal Year The period that starts at 06:00 on the 1st of October and ends on the following 1st of October at 06:00.

Berthing Docking operation of an LNG Carrier at the Terminal’s pier

Boil-off Evaporation (also called regasification) of Liquefied Natural Gas.

Allocation schedule The schedule of the allocation processes set out in Chapter 5 and of the capacity transactions set out in Chapter 8 of the Regasification Code, published by GNL Italia on its website

Acceptance Window A period of 12 (twelve) consecutive hours, starting at 08:00 and ending at 20:00 (Italian time) on each Scheduled Arrival Date, during which the LNG carrier may moor at the Terminal.

Capacity at the Beginning of the

Thermal Year

The capacity of the continuous regasification service assigned for periods equal to or longer than the Thermal Year.

Capacity for the Thermal year already

commenced

The capacity of the continuous regasification service assigned for periods shorter than the Thermal Year.

Spot Capacity The capacity of the spot regasification service that is available for allocation for month M+1 as a result of the definition of the LNG delivery schedule in month M, as set out in Chapter 9(1).

Cd The daily regasification capacity of the Panigaglia Terminal, which

is 17,500 m3liq.

Network Code The document, approved by the Authority’s Resolution No. 75/03, as amended, which defines the conditions for access to the transport and dispatching services on the Snam Rete Gas methane pipeline network.

Regasification Code This document, including all its annexes, which constitute an integral and essential part of it.

Regasification Agreement

The document in which the contracting parties, i.e. Operator and Users, define the specific elements of the continuous or spot core regasification service required, in accordance with the provisions set out in the Regasification Code.


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Scheduled Arrival Date

Each calendar day on which an LNG carrier is scheduled to arrive at the Panigaglia Terminal.

Gas or Natural Gas A mixture of hydrocarbons consisting primarily of methane with smaller quantities of ethane, propane and higher hydrocarbons. The gas may also contain some inert gases, including nitrogen and carbon dioxide.

Liquefied Natural Gas (LNG)

Natural gas that has been converted to liquid state, at a temperature that is less than or equal to its boiling point and at a pressure of approximately 101.325 kPa.

Gas Day or Day A period of 24 (twenty-four) consecutive hours starting at 06:00 (Italian time) on each calendar day and ending at the same time on the next calendar day.

Wobbe Index The Higher Heating Value of the Gas per unit volume divided by the square root of its relative density under the same reference conditions.

Month A period starting at 6:00 (Italian time) on the first calendar day of a month and ending at the same time on the first day of the following calendar month.

MJ Megajoule = 1,000,000 joule (according to the SI International System of Units).

LNG Carriers or Ships The LNG carriers or tanker ships which, as set out herein, can unload LNG at the Panigaglia Terminal.

NOR Acronym for "Notice of Readiness", a written notice that the LNG carrier is ready to moor at the pier of the Terminal to unload LNG, that the Ship's Captain sends to the Operator when the LNG carrier arrives at the anchor area or PBS.

NOU Acronym for "Notice of Unloading" a written notice that the LNG carrier is ready to unload the LNG, that the Ship's Captain sends to the Operator when the LNG carrier is moored at the pier.

PBS Acronym for "Pilot Boarding Station", the Pilot Boarding Station at the port of La Spezia.

PFSP (Port Facility Security Plan)

A plan developed to ensure the safety of the port from the risk of accidents involving the LNG Carriers, their cargoes and the crews on board. The La Spezia Port Authority implemented the document under Decree No. 16/2004.

IT Platform IT Platform used to carry out the regasification capacity allocation processes as required by Chapter 5 of the Regasification Code. .

LNG Capacity Portal Service with a web interface for web-based management of regasification capacity transactions as set out in Chapter 8 of the Regasification Code, available on GNL Italia's website.


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Delivery Point The flange located at the connection point between the unloading manifold of the LNG carrier and the unloading arms at the Panigaglia Terminal, where the LNG is delivered by the User and collected by the Operator.

Redelivery Point Panigaglia Entry Point.

Panigaglia Entry Point

The Entry Point to the National Gas Pipeline Network at the Regasification Terminal located at Panigaglia (SP).

Higher Heating Value (HHV)

The quantity of heat, expressed in MJ, which is given off during the complete combustion of 1 Sm3 at 15 °C and an absolute pressure of 1.01325 bar, with excess air at the same temperature and pressure as the Gas, when its combustion products are returned to the initial temperature of the Gas, and when the water that formed as steam during the combustion is returned to a liquid state at the same initial temperature as the Gas.

Slots Sequence of consecutive Cds. The time period identified by one Slot includes mooring, unloading and un-mooring of an LNG Carrier at the Terminal.

Constrained Slot A slot that is linked to calendar dates.

Network Balancing Manager

The Network Balancing Manager is the major transmission company.

RN The National Gas Pipeline Network (Rete Nazionale), as defined by the Decree of the Ministry of Industry, Trade and Crafts of 22 December 2000, published in the Official Gazette of the Italian Republic General Series No. 18 of 23 January 2001, as amended.

Redelivery

Flexibility Service

Service defined in Article 12 of the TIRG that allows Users to modify their Monthly Redelivery Schedule on demand.

Peak Shaving Service Temporary LNG storage service provided by GNL Italia under Ministerial Decree of 18 October 2013.

Temporary Storage Service

Service defined in Article 12 of the TIRG that allows Users to store the delivered LNG at the Terminal.

Ship Approval Procedure

The procedure for the acceptance of LNG Carriers, agreed among operators of European terminals and published on GNL Italia's website.

Snam Rete Gas (SRG) Snam Rete Gas SpA, a transmission company that provides, on the basis of the Network Code, the transport and dispatching service through its network of methane pipelines, physically interconnected with the Panigaglia Terminal.

STOGIT Stogit SpA, a storage company that provides, on the basis of the Storage Code, the natural gas storage service.


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Regasification Terminal or Terminal

The Liquified Natural Gas storage and regasification plant located at Panigaglia (SP), including its pier and mooring facilities, the receiving systems downstream of the Delivery Point,, the storage, regasification and ancillary systems up to the Panigaglia Entry Point, that enable provision of the regasification service.

Consolidated Balancing Text (TIB)

Consolidated text approved by resolution 312/2016/R/gas of the Italian Regulatory Authority, as amended

Consolidated Regasification Service

Regulation (TIRG)

The consolidated regulation on the adoption of guarantees for free access to the liquefied natural gas regasification service as approved by the Authority’s Resolution 660/2017/R/gas as amended

TUD Unloading Window, an acronym of “Termine Ultimo di Discarica”, the time allocated for unloading, a period of 58 hours, starting from the end of the Acceptance Window. The unloading is completed when the final check-list documentation has been delivered or the unloading arms have been detached, whichever occurs last.

If GNL Italia offers the temporary LNG storage service for the Peak Shaving Service the Unloading Window lasts 82 hours during the period in which the service is provided.

UTC Acronym of “Universal Time Coordinate”: the port of La Spezia is at +1 hour (on standard time) and +2 hours (on daylight saving time)

Debtor User User for which, on the basis of the schedule of deliveries and of the monthly re-deliveries schedule of month M set out in Chapter 9, a negative estimated availability is expected for at least one day of month M, as set out in Chapter 9(3.4) of the Regasification Code.

Creditor User User for which, on the basis of the schedule of deliveries and of the monthly schedule of re-deliveries of month M set out in Chapter 9, a negative estimated availability is not expected for any day of month M, as set out in Chapter 9(3.4) of the Regasification Code.

Maximum Unloading Capacity

The maximum quantity of LNG (expressed in cubic metres) which GNL Italia can receive at the Terminal, as indicated in the documentation relating to the availability of spot unloading slots.

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