CGNI Financial and ESG Update

6 In the short to mid term, natural gas is expected to play a major role as transition fuel; GasNet's grid can take on a significant role when replacing other fossil fuels As a result, natural gas consumption is expected to remain high at approx. 100 TWh in 2030 (versus 99TWh in 2021) despite efficiency gains across all sectors. This is driven by: ☐ ☐ ◉ Residential: Individual gas heating is expected to remain a key pillar of heat supply with heat pumps primarily deployed in new dwellings or to replace higher emitting fuels (projected decrease of less than 0.2m connection points and around 5TWh natural gas consumption driven by efficiency gains due to refurbishment by 2030) Industry: Coal based heating processes are expected to be converted to run on natural gas and later shift to hydrogen, esp. in the steel and chemical sectors (volumes of around 30TWh in 2030 despite efficiency gains) Transport Lower carbon intensive fuels like BioLNG/CNG are expected to partly decarbonize heavy duty transport (around 2TWh vs. 1TWh gaseous fuel consumption in 2021 Power: In the short to medium term the level of gaseous fuels is expected to remain constant (around 13TWh of natural gas in 2030) the EU taxonomy recognizes new natural gas power plants built before 2030 as 'transitional energy source', if they are used to replace more emissions heavy fossil fuel s such as oil and coal District heating Coal fired CHPs (accounting for approx. 60% of residential heat delivered in district heating 2021) are expected to be replaced by natural gas CHPs by 2033 (increase of over 15 TWh natural gas consumption vs. 2021) 6 gasnet.cz 37

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