We acquired the national gas transmission network and other related assets, which are held by REN Gasodutos, S.A., on September 26, 2006, from the Galp group. The natural gas transmission concession comprises the transmission of high pressure natural gas activity through the network, including:

1. The reception, transmission and delivery of natural gas through the network;
2. "The construction, operation and maintenance of the national natural gas transmission network infrastructure and its connections to networks and the premises necessary for such operation;
3. The planning, development, expansion and technical management of the national natural gas transmission network and the construction of the necessary operation and facilities;
4. The maintenance of the connections between the national natural gas transmission network and the international natural gas pipelines, underground storage infrastructures and LNG terminals;
5. The planning and infrastructure of the national LNG reception, storage and regasification facilities;
6. Global technical management of the national natural gas system;
7. Management of natural gas safety reserves.

The national natural gas transmission network consists of a main trunk line and branch lines totalling 1,218 kilometers, which is divided into seven sections, and 198 kilometers of high pressure branch lines, with pipes ranging from a nominal size of 150 mm to 800 mm in diameter, of which more than half exceed 700 mm in diameter. In 2006, the national gas transmission network transported 51 TWh of LNG.The national gas transmission network includes 172 pipeline stations, which consist of 41 block valve stations, 61 junction stations, 69 gas regulating and metering systems, two gas metering systems and one custody transfer station. The national natural gas transmission network's main despatching centre is located in Bucelas (Loures) and it also has an unmanned emergency despatching centre in Pombal, which is located in a different seismic zone than the main despatching centre. There are also four operation and maintenance centers located on the grid at Sandim (Vila Nova de Gaia), Pombal, Portalegre and Bucelas (Loures).

In 2006 REN Gasodutos had 7.8 kilometers of the national natural gas system per employee. In 2006, the grid transmitted 51 TWh of natural gas.

As the construction of the national gas transmission network only commenced in 1994, it is one of the newest natural gas transmission grids in Europe and accordingly incorporates the latest technology, including cathodic corrosion protection, double safety valves, a built-in leak detection system and online simulation, supervisory control and data acquisition system, and a redundant telecommunications system in addition to a land mobile radio system.

We seek to maintain the national natural gas transmission network to the highest operational standards. To date, we have had zero incidents according to the Accumulated Performance Indicator of Non-Intentional Gas Leaking Index published by the European Gas Pipeline Incident Data Group ("EGIG"). This index measures the number of incidents per 1,000 km of exposed infrastructure per year. We inherited from Transgás membership in the EGIG, which collects and disseminates safety-related data on gas pipeline related incidents.

The natural gas market in Portugal continues to develop, and we are planning to build more infrastructure to support the expected growth in capacity demand, including connections with new power stations and a gas compressor station. All infrastructure investment is subject to the approval of DGEG.

Through REN Gasodutos we also hold a 51% stake in Gasoduto Braga-Tuy, S.A. and an 88% stake in Gasoduto Campo Maior-Leira-Braga, S.A., which we acquired from Transgás on September 26, 2006. These companies are co-owned by REN and Enagás, S.A. the Spanish natural gas transmission operator. These companies were created to share the transmission capacity on the Portuguese pipelines from Campo Maior - Lieira - Braga - Tuy while allowing the transit of natural gas through Portugal for and from the Spanish natural gas system.