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					Regasification Code                                                                                          Financial guarantees and insurance



FINANCIAL GUARANTEES AND INSURANCE

1)      FINANCIAL GUARANTEES RELATING TO THE CORE CONTINUOUS REGASIFICATION
        SERVICE .......................................................................................................................................................... 2
     1.1) FINANCIAL GUARANTEES COVERING OBLIGATIONS RELATED TO ALLOCATION .............................................. 2
     1.2) FINANCIAL GUARANTEES COVERING OBLIGATIONS RELATED TO SERVICE PROVISION ................................... 3
     1.3) FINANCIAL GUARANTEES COVERING FAILURE TO SIGN THE REGASIFICATION AGREEMENT ........................... 3
2)      FINANCIAL GUARANTEES RELATING TO THE CORE SPOT REGASIFICATION SERVICE 4
     2.1) FINANCIAL GUARANTEES COVERING OBLIGATIONS RELATED TO THE ALLOCATION OF SPOT REGASIFICATION
     CAPACITY AND SERVICE PROVISION ........................................................................................................................ 4

3)      INSURANCE POLICIES ............................................................................................................................... 5
     3.1) POLICIES TAKEN OUT BY THE REGASIFICATION COMPANY ............................................................................ 5
     3.2) POLICIES TAKEN OUT BY THE USER ............................................................................................................... 5




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Regasification Code                                              Financial guarantees and insurance



1)    FINANCIAL GUARANTEES                  RELATED        TO     THE    CORE      CONTINUOUS
      REGASIFICATION SERVICE

1.1) Financial guarantees covering obligations related to allocation
     The following elements are required to guarantee the payment of obligations as a result
     of subscription to the Regasification Agreement (commitment fee associated with the
     volume of LNG unloaded, variable charges for the energy associated with the regasified
     volumes and transportation capacity charges for the introduction of the regasified
     volumes into the transmission network):

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

      or failing that:

      - the financial guarantee referred to in letter b) below

      a) Any Party interested in subscribing to a Regasification Agreement, the text of which is
      available on the GNL Italia website, must possess a credit rating issued by a leading
      international organization, of at least:

      Baa3 if issued by Moody's Investor Services;

      or

      BBB- if issued by Standard & Poor's Corporation.

      and is required to provide GNL Italia with the relevant certificate issued by one of the
      aforementioned agencies as evidence of the assigned rating, and to communicate any
      changes to that rating.

      Where the requirement referred to in letter a) above is satisfied by the parent company,
      the requesting party, pursuant to Article 2362 of the Civil Code, shall submit to GNL
      Italia a letter of guarantee issued by the parent company expressing the commitment by
      the parent company to meet any payment obligations to 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.

      b) In the event that the above criteria cannot be met, the requesting party must provide
      an appropriate first demand bank guarantee issued by an Italian bank or an Italian
      branch of a foreign bank, for an amount equal to one third of the maximum annual
      commitment fee (calculated as the sum of the commitment fee associated with the
      volume of LNG unloaded) recorded in the Regasification Agreement. The text of the
      bank guarantee is provided in Annex 7/B.

      In the event that GNL Italia should decide to enforce the bank guarantee in part or in
      full, the User must immediately proceed to replenish the guarantee, under penalty of
      application of the measures laid down in the chapter entitled "Liabilities of the Parties".

      The User is required to adjust the guarantee referred to in letter b) or the parent
      company guarantee referred to in letter a) above in cases where, as a result of allocations


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      made for the Thermal Year in progress and/or capacity exchanges made during the
      Thermal Year, the monthly value of the fee varies by at least 20% of the fee due for the
      allocation at the start of Thermal Year, with the exception of cases where the
      aforementioned guarantee is greater than or equal to the fee due for the remainder of the
      Thermal Year: in the event of a decrease in value, the User is entitled to adjust the
      guarantee referred to in letter b) accordingly.

      The adjustment of the bank or parent company guarantee according to the terms
      specified is a mandatory prerequisite for the following:

      1. the allocation of regasification capacity for the Thermal Year in progress, in
        accordance with the chapter entitled "Allocation of regasification capacity", paragraph
        5;

      2. the capacity transactions referred to in the chapter entitled "Regasification capacity
        transactions".

1.2) Financial guarantees covering obligations related to service provision
     Each of the parties to the Regasification Agreement must also provide a first demand
     bank guarantee issued by an Italian bank or by an Italian branch of a foreign bank,
     covering obligations related to service provision for an amount equal to 3% of the
     maximum annual commitment fee (calculated as the sum of the commitment fee
     associated with the volume of LNG unloaded) of the Regasification Agreement. The text
     of the bank guarantee is provided in Annex 7/C.

      The User is required to adjust this guarantee in cases where, as the result of allocations
      made for the Thermal Year in progress and/or capacity exchanges made during the
      Thermal Year, the monthly value of the fee varies by at least 20% of the fee due for the
      allocation at the start of Thermal Year, with the exception of cases where the
      aforementioned guarantee is greater than or equal to the fee due for the remainder of the
      Thermal Year: in the event of a decrease in value, the User is entitled to adjust the
      guarantee accordingly.

      The adjustment of the guarantee according to the terms specified is a mandatory
      prerequisite for the following:

      1. the allocation of regasification capacity for the Thermal Year in progress, in
         accordance with the chapter entitled "Allocation of regasification capacity",
         paragraph 5;

      2. the capacity transactions referred to in the chapter entitled "Regasification capacity
         transactions".

      In the event that GNL Italia should decide to enforce the bank guarantee in part or in
      full, the User must immediately proceed to replenish the guarantee, under penalty of
      application of the measures laid down in the chapter entitled "Liabilities of the Parties".

1.3) Financial guarantees covering failure to sign the regasification agreement
     In accordance with the provisions of paragraph 2.2.1 and 2.3.1 of the chapter entitled
     "Allocation of regasification capacity", as security against payment of the penalty for


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      failure to sign the Regasification Agreement for the capacity commitments indicated, the
      applicant must submit a first demand bank guarantee issued by an Italian bank or an
      Italian branch of a foreign bank for an amount equal to the maximum penalty payable.
      The text of the bank guarantee is provided in Annex 7/D.


2)    FINANCIAL GUARANTEES RELATED TO THE CORE SPOT REGASIFICATION
      SERVICE

2.1) Financial guarantees covering obligations related to the allocation of spot
     regasification capacity and service provision
     The following elements are required to guarantee the payment of obligations as a result
     of subscription to the Spot Regasification Agreement (commitment fee associated with
     the volume of LNG unloaded, variable charges for the energy associated with the
     regasified volumes and transportation capacity charges for the introduction of the
     regasified volumes into the transmission network):

       a credit rating, as described in paragraph 1.1, letter a) above.

          In cases where the rating is assigned to the parent company of the requesting party
          (pursuant to Article 2362 of the Civil Code), the text of the letter of guarantee signed
          by the parent company is provided in Annex 7/E.

      or failing that by the provision of:

       an appropriate first demand bank guarantee issued by an Italian bank or an Italian
        branch of a foreign bank, the amount of which is sufficient to cover one third of the
        commitment fee (covering obligations related to the allocation of spot regasification
        capacity) and 3% of the committed fee (covering obligations related to service
        provision); the commitment fee is calculated based on the expected volume of LNG
        associated with the spot regasification capacity request. The text of the bank
        guarantee is provided in Annex 7/F.

      In view of the possibility of allocating additional spot unloading slots to the same party
      and subject to the provision of a guarantee for payment obligations related to the
      allocation of regasification capacity and service provision, the party in question has the
      right to:

       confirm the assigned credit rating, as indicated in paragraph 1.1 a) above.

          In cases where the rating is assigned to the parent company of the requesting party
          (pursuant to Article 2362 of the Civil Code), the text of the letter of guarantee signed
          by the parent company is provided in Annex 7/G.

      or failing that:

       provide a first demand bank guarantee – valid for at least 6 months from the
        scheduled spot unloading date for which the allocation is required - issued by an
        Italian bank or an Italian branch of a foreign bank, the amount of which is sufficient
        to cover one third of the maximum commitment fee (covering obligations related to


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         the allocation of spot regasification capacity) and 3% of the maximum commitment
         fee (covering obligations related to service provision), calculated based on the
         unloading volumes associated with the spot regasification capacity assigned to the
         requestor but which have not been used, including the unloading in question. The
         text of the bank guarantee is provided in Annex 7/H.


3)    INSURANCE POLICIES

3.1) Policies taken out by the Regasification Company
     The insurance policies taken out by the Operator in relation to the Panigaglia Terminal
     provide cover for a number of risks, including:

       fire, natural disasters, acts of terrorism and sabotage;
       damage to third parties resulting from the performance of business activities.

3.2) 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;
       pollution

      during the performance of the User's own activities.




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