Media trip to Novy Urengoy & Yuzhno-Russkoe gas field28-31 March 2011

Secure gas supply for Europe –Nord Stream on track to supply Europe with cleaner energy >

Agenda >

2

Project Overview1

Construction Update2

Environmental Protection3

1. Project well on track >

3

Safe Energy Infrastructure for Europe >

Nord Stream

> Two parallel offshore pipelines of 1,224 km (transport capacity 55 bcm per year)

> A direct and fixed link between Russia’s vast proven gas reserves and the European Union

> An additional route complementing existing network and other planned pipelines

> Infrastructure project ‘of European interest’ within the framework of the EU’s TEN-E guidelines

Gas transported by Nord Stream can

> Provide 26 million European households with electricity and heating fuel

> Make a substantial contribution to EU climate protection goals

> Reach consumers already in late 2011

4

Nord Stream AG –a strong European-Russian consortium >

5

Shareholders Committee

Managing Director

Supervisory Level

Management Level

Technical Director

Project Director

Financial Director

51% 15.5% 9%

Communications Director

15.5% 9%

Meeting the growing need for natural gas imports in the EU >

6

Domestic production Existing imports Additional import requirements Nord Stream

Import gapΣ 198 bcm

630 bcm

2030

536 bcm

2008

Growing EU import needs

Decreasing European production

216

55

143

320

112

320

Source: IEA, World Energy Outlook, November 2010

The EU will need 159-198 bcm of additional gas imports by 2030

Natural gas – the key fuel for growth >

7Source: EWEA, 2010

> Emits 50% less CO2 than coal

> Is flexible in use and the first choice for new electricity production in Europe

> Is an abundant and secure energy source

> Makes a substantial contribution to achieving the European Union’s 20:20:20 climate goals

Natural gas enjoys growingpopularity as a fuel because it

Natural gas 49%Wind

39%

Waste 1%Other <1%

Biomass 1%Hydro 2%

New electricity generating capacity EU, 2000-2009

“Natural gas is the only necessary bridge technology towards the age of renewable energy“

- Greenpeace, position paper on natural gas, 25 August, 2010

Photovoltaic 8%

Additional pipeline transport capacities needed >

8

Skanled(suspended)

Nord Stream (55 bcm/a)

Turkey-Greece-Interconnector(11-12 bcm/a)

Nabucco(31 bcm/a)

Galsi(8 bcm/a)

Transmed(+ 7 bcm/a)

Medgaz(8 bcm/a)

South Stream(63 bcm/a)

Pipelines put in operation since 2008

Pipelines under construction

Planned pipelines

Source: European Commission, Priority Interconnection Plan 2007; Nord Stream

Trans Adriatic Pipeline(10 bcm/a)

White Stream(32 bcm/a)

ITGI / IGI Poseidon

(8-10 bcm/a)

Baltic Pipe(5 bcm/a)

Nord Stream’s onshore connections to the European network – OPAL & NEL >

9

Munich

Stuttgart

Duesseldorf

Nuremberg

Dresden

Hanover

Cologne

Amsterdam

Prague

Frankfurt/OderMagdeburg

SchwerinHamburg

Bremen

Berlin

Leipzig

OP

ALNEL

NO

RD

STR

EA

M

Lubmin beiGreifswald

Frankfurt/Main

BBL

INTER-CONNECTOR

Bunde

TRANSGAS

YAMAL

WAGHaiming

TEN

P

ErfurtSTEGAL

JAGAL

MIDAL

MID

AL

WEDAL

RHG

ER

M

Ludwigshafen

MEGALNorth

Passau

MEGALSouth

Aachen

Transit pipelines

Lippe

Rysum

Rehden

Rueckersdorf

Mallnow

Reckrod

Olbernhau

Pipelines under construction

Brussels

Zeebrugge

London

Bacton

Paris

Nancy

Project players – a true European endeavour >

10

5

6

43

2

1

2

1

4

Italy

France

UK

Denmark

Germany

Russia

Sweden

Finland

Netherlands

Switzerland

Norway

1

2

6

5 4

3

1

24

36

5

7

2

Nord Stream & ShareholdersNord Stream AGOAO GazpromGDF SUEZ S.A.

1

3

4

5

6

BASF SE/Wintershall Holding GmbHE.ON Ruhrgas AGN.V. Nederlandse Gasunie

EUPECPort of Sassnitz-MukranPort of Kotka

Logistics

3

1

2 54 Port of Hanko

Port of SlitePort of Karlskrona6

SaipemAllseasVan OordBoskalis-TidewayRohde Nielsen

5

67

Construction*

8

95

7

9

6

8

2

1

4

5

7

9

6

8

5

6

43

2

1

1

2

6

5 4

3

1

2

3

5 41

2

3

5 4

* Selection of contractors **Sumitomo is headquartered in Tokyo, Japan

Gazprom Marketing and Trading Ltd, UKDONG Energy A/S

Nord Stream Gas Purchasers31

2 54

GDF SUEZ S. A. WINGAS GmbH & Co. KGE.ON Ruhrgas AG

Pipes & Materials*EUROPIPEOMKSumitomo**PetrolValves

1

2

3

4

Operations*TechnipStatoilSiemensIMPaC

10

11

12

13

FOGASGS TÜV

Marin MätteknikRambøllDoF

1

23

PeterGazERMDNV

4

56

7

8

1210

13

11

SaipemAllseasVan OordBoskalis-TidewayRohde Nielsen

5

67

Construction*

8

9

Pipes & Materials*EUROPIPEOMKSumitomo**PetrolValves

1

2

3

4

2

Nord Stream & ShareholdersNord Stream AGOAO GazpromGDF SUEZ S.A.

1

3

4

5

6

BASF SE/Wintershall Holding GmbHE.ON Ruhrgas AGN.V. Nederlandse Gasunie

EUPECPort of Sassnitz-MukranPort of Kotka

Logistics

3

1

2 54 Port of Hanko

Port of SlitePort of Karlskrona6

Gazprom Marketing and Trading Ltd, UKDONG Energy A/S

Nord Stream Gas Purchasers31

2 54

GDF SUEZ S. A. WINGAS GmbH & Co. KGE.ON Ruhrgas AG

FOGASGS TÜV

PeterGazERMDNV

4

56

Environmental Studies, Quality Management & Safety*7

8

Italy

France

UK

Denmark

Germany

Russia

Sweden

Finland

Netherlands

Switzerland

Norway

5

6

43

2

1

2

1

4

1

2

6

5 4

3

1

24

36

5

7

1

2

3

5 4

1210

13

11

Operations*TechnipStatoilSiemensIMPaC

10

11

12

13

11

Financing secured >

Phase I financing:successfully concluded in 2010

− Debt requirement of 3.9 billion euros− 26 banks participating− More than 60 percent oversubscribed

Nord Stream – a solid investment

Phase II financing:completed beginning 2011

− Debt requirement of 2.5 billion euros− 24 banks participating− More than 60 percent oversubscribed

Over 1,100 km of the first pipeline laid until date >

12

KP1195

KP675

KP297

KP7.5

KP350

2010 April

May

June

July

Aug.

Sep.

Oct.

Nov.

Dec.

2011 Jan.

Feb.

March

April

Castoro

Sei (C

6)

Solitaire

Castoro

Dieci(C

10)

* KP = Kilometre Point

KP451

Realisation of Nord Stream on schedule >

Nord Stream will soon be ready to contribute to the EU’s energy security and to meeting its climate change goals

>Nord Stream is key infrastructure which will help the EU’s energy security for at least 50 years

>Nord Stream is a safe and environmentally-friendly pipeline, constructed according to stringent international and national requirements

>Nord Stream is a long-term benchmark project for EU-Russia cooperation

>Nord Stream is on budget and on schedule to start transporting gas directly to the European Union in late 2011

13

2011-20122011 20122010-20111997-1999 20092006-20082005 - 2009

Feasibility Study

Pipeline design

Laying Line 1

CommissioningLine 1

Laying Line 2

Applications & PermittingEIA

Commissioning Line 2

2010

Financing Phase I & II

14

Nord Stream’s success factors >

Green logistics concept

Focus on safety & environment

Meticulous compliance &

permitting

Committed business partners

State-of-the-art technical solutions

Solid financial structure

Open dialogue & transparency

Dedicated company &

strong shareholders

Communication and transparency >

Intensive dialogue with authorities, NGOs, experts, media and public

>Some 35 public hearings

>Over 300 presentations, exhibitions and stakeholder information events and meetings

>Exchange with numerous environmental NGOs from the EU and Russia

Comprehensive project information

>Espoo Report, newsletters, brochures, website (10 languages)

> Mobile exhibition “Pipeline Information Tour”

> Systematic online response management system (2,400 inquiries handled in 2009)

15

Next steps – Highlights in 2011 >

16

Completion of construction line 1 (including hyperbaric tie-in)

Spring 2011

Start of pre-commissioning line 1 Spring 2011

First national annual Environmental Monitoring reports Spring 2011

Start of construction line 2 Spring 2011

Line 1 ready for first gas Autumn 2011

Last pipe segment delivered Autumn 2011

2. Construction Update >

17

At any time at least 30 ships are working in different parts of the Baltic Sea >

> Castoro Sei (C6)• Saipem S.p.A.

• Semi-submersible, anchor positioned vessel

• Lay rate: appr. 2.5 km/day

• Transit speed: 4 knots

• Installations: Offshore installation; construction of Russian landfall

18

> Castoro Dieci (C10)• Saipem S.p.A.

• Flat bottom, shallow draught

• Anchor positioned

• Installation of German landfall and near-shore section

> Solitaire• Allseas Group S.A.

• Dynamically positioned

• Lay rate: appr. 2.4 km/day

• Transit speed: 13 knots

• Offshore construction in the Gulf of Finland

Further specialised ships for pipe transport, surve ys, rock placement and landfall construction

Hyperbaric tie-ins complete the pipeline >

> Zone 1 and 2: will be connected in spring 2011 at a sea depth of approx. 80 metres

> Zone 2 and 3: will be connected in summer 2011 at a depth of approx. 110 metres

19

Zone 1 , Gulf of FinlandKP* 0 – KP 297, WT 34.6 mm, design pressure of 220 bar

Zone 2 , Central offshore sectionKP 297 – KP 675 , WT 30.9 mm, design pressure of 200 bar

Zone 3 , South-western sectionKP 675 – KP 1,224, WT 26.8 mm design pressure of 170 bar

* KP = Kilometre Point; WT = Wall thickness

Procedure of hyperbaric tie-ins >

> Will connect the three pipeline sections at KP 297 (Finland) and KP 675 (Sweden) – where design pressure and wall thickness changes

> Pipelines are connected in an underwaterwelding habitat in several steps:

− Cutting, and aligning of pipeline sections

− Placement of habitat over fit-up location and sealing over the pipeline end

− Pumping of water out of habitat and welding

− Testing of field joints

Example of an underwater welding habitat

Diving equipment on board >

3-Man Living Chamber

Diving Bell

Diving Bell Layout

Pre-Commissioning >

> After installation, the pipeline will undergo a series of activities which will prepare the pipeline for commercial operations

> The 5 main phases are:

• Cleaning: flooding the pipeline with treated sea water to remove any debris left during the construction

• Gauging: checking that the pipeline roundness is maintained along the route, by means of special measuring instruments (“gauging scraper”)

• Hydrotesting: ensuring the mechanical integrity of the pipeline by subjecting the pipeline to a test pressure higher than the design pressure. This test is usually performed with treated seawater

• Dewatering: removing the water used for hydrotesting

• Drying: flowing dry air into the pipeline to ensure that no water is left inside

23

Landfall Russia >

Shore pull completed in August 2011 >

24

Valves put in place in February 2011 >

23/11/2010

25

26

Landfall Germany >

Both pipeline strings pulled ashore in July 2010 >

27

Onshore connections in February 2011 >

28

29

3. Protection of the Baltic Environment >

Committed to preserving the environment >

Nord Stream

> Invested 100 mln euros into environmental studies, planning and route design

> Further 40 mln euros to be invested in a comprehensive environmental monitoring programme

> Surveyed 40,000 line kilometres of the Baltic Sea in comprehensive geophysical investigations over 4 years with state-of-the-art equipment

> Concluded comprehensive EIA and environmental studies

> Cleared over 100 munitions successfully for safe routing

> Preserved cultural heritage and identified 100 wrecks in the pipeline corridor

> Will share the findings with scientists and others working on preserving and improving the Baltic Sea

30

Environmental criteria

> Minimise pipeline length

> Avoid environmentally sensitive areas and Natura 2000 sites

Socio-economic criteria

> Minimise restrictions on marine users such as fishing and shipping

> Avoid munitions, cultural heritage sites and planned and existing infrastructure

Technical criteria> Control construction time

> Optimise free spans and curves

Safest route with least environmental impact based on stringent criteria >

31Proposed route Nord Stream final route

Various route alternatives presented Final route agreed with authorities

Munitions identified along the route >

> 3,000 objects of different nature detected

> 2,000 objects visually analysed

> Over 100 munitions successfully cleared:

– 49 in the Finnish EEZ

– 7 in the Swedish EEZ

– 49 in Russian waters

– 2 explosive items in German waters

> Five chemical munitions found, will be left on the seabed, pose no risk to the pipeline and the environment

> Analysis of 100 additional soil samples show no chemical contamination of the seabed

32

Safeguarding cultural heritage >

33

Identified cultural heritage sites >

34

> Pipeline passes close to several shipwreck sites and areas of submerged landscapes

> A historic rudder from the 17th or 18th century, foundnear the island of Bornholm, was salvaged

> Six wrecks or possible wrecks have been found within50 metres of the pipeline

> An additional 13 wrecks have been identified within theanchor corridor

> Twelve shipwrecks have been discovered in the anchorcorridor, most of them were commercial ships from the18th and 19th century

> It is possible that remains of settlements and seasonalhunting stations can be found near Gotland and Öland

> In the Bay of Greifswald, pipeline traverses thehistorical ship-wreck barrier of 20 sunken ships, oneof which has been salvaged

> Remnants of a smaller cargo vessel have beendocumented and relocated

> Another wreck from the late Middle Ages/earlymodern era carrying a cargo of 65 copper plateshas been identified

Identified cultural heritage sites >

35

> A total of 17 wrecks, some of which are made of wood and some of metal, have been identified in theanchor corridor

>Two admiralty anchors from the 18th to 19th centurieshave been salvaged

Continuous Environmental Monitoring Programme >

36

> Comprehensive environmental monitoring during construction and operations phase

> Monitoring will continue for one year after the completion of the pipelines

> Thereafter, the monitoring focus will be changed from the construction to the operation of the pipelines

> Regular reporting of results to authorities of all countries involved and other stakeholders

Objectives of Environmental Monitoring >

37

> To verify that the pipeline is installed and operated in accordance with permit conditions

> To verify that the pipeline construction does not cause impacts that were not anticipated or impacts that are greater than anticipated

> To verify the findings of the national EIAs

> To monitor the recovery of the environment after construction

> To control and monitor that significant environmental disturbances will not be caused

> To provide the basis for corrective action if necessary

Monitoring of 16 scientific criteria >

38

RU FI SE DK DE

Physical and chemical environment

Water quality + + + + +Seabed sediment + + + + +Hydrography and seabed topography

+ + + + +

Onshore soil +Landscape and topography + +Air quality +Noise + + +Biological environment

Fish + + + +Birds + +Marine mammals + +Benthic flora and fauna + + + + +Terrestial flora and fauna + +Socioeconomic environment

Fisheries + +Cultural heritage + + + + +Monitoring and clearance of munitions

Conventional munitions + + + +Chemical munitions +

> Nord Stream has prepared five tailored national environmental monitoring programmes

> Monitoring and analysis of potential impact of 16 scientific criteria

> About 1,000 fixed sampling stations

> Involving 22 renowned companies with an overall investment of 40 million euros