SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

For the month of ~~July~~November, 2006

Commission File Number: 333-132076

GAS NATURAL SDG, S.A.

(Translation of Registrant’s Name into English)

Av. Portal de L’Angel, 20-22

08002 Barcelona, Spain

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file

annual reports under cover Form 20-F or Form 40-F:

Form 20-F x Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes ¨ No x

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes ¨ No x

Indicate by check mark whether by furnishing the information

contained in this Form, the Registrant is also thereby furnishing the information to the

Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes ¨ No x

If “Yes” is marked, indicate below the file number assigned to the registrant

in connection with Rule 12g3-2(b): N/A

LOGO

~~GAS~~This ~~NATURAL~~presentation –of ~~first~~the ~~half~~3rd ~~results~~Quarter 2006 results was made in Spanish and simultaneously translated to the audience in English by an interpreter. This is a transcript of the simultaneous translation. As a result of such simultaneous translation, this transcript may contain certain errors and/or omissions as a result of either (i) the simultaneous translation and/or (ii) the transcript process, for which Gas Natural SDG, S.A. is not responsible.

~~Transcription~~GAS ofNATURAL ~~interpreters’~~– ~~voices~~9M ~~during~~2006 ~~the presentation in Spanish~~

~~The~~Gas ~~presentation~~Natural of3Q ~~the~~2006 2Qpresentation. ~~results~~Transcription of ~~2006~~interpreters’ ~~was~~voices ~~made~~ in ~~Spanish and simultaneously translated to the audience in~~ English ~~by an interpreter~~. ~~This is a~~ transcript of the simultaneous translation. As a result of such simultaneous translation this transcript may contain certain errors and/or omissions as a result of either (i) the simultaneous translation and/or (ii) the transcript process, for which Gas Natural SDG, S.A. is not responsible.

Luis Calvo (Head Investor Relations) . ~~Good~~Welcome ~~morning, welcome~~ to the presentation of ~~results of~~ the ~~first~~third ~~half~~quarter ofresults ~~2006~~ of ~~GAS~~the ~~NATURAL~~year 2006. We have ~~our CEO,~~ Mr . Rafael Villaseca here, ~~and~~the weCEO, ~~have~~ the ~~Managing~~ Director-General ~~for~~of ~~Strategy and~~ Development, Mr. Antonio Basolas and the Financial Director, Mr . Carlos Alvarez Fernández, CFO. So without any further ado, I will ~~pass~~give the floor to ~~our~~the ~~CEO~~presenter. I would like to apologise first because of a technical hitch we have had. We cannot show the slides on the screen, but of course, there will be a webcast that will allow people to follow the presentation. So, I will give the floor now to Mr. Rafael Villaseca.

Rafael Villaseca (CEO). Good morning, ~~thank~~ladies ~~you~~and ~~very~~gentlemen. ~~much~~I ~~for~~must ~~being~~apologise ~~here~~also ~~physically~~because ~~and~~I ~~through~~have ~~the~~a ~~wireless~~sore ~~connections~~throat. ~~This~~I ~~is another~~might ~~opportunity~~be wecoughing, ~~have to give~~ you ~~our~~see, ~~results~~during ~~for first half of 06 which has been very positive in accordance with~~ the presentation ~~line~~so ~~that~~I weapologise ~~set ourselves a year ago and which is~~ in ~~the strategic plan~~advance. AsDue ~~a summary, we can say that our main lines of action continue~~ to ~~produce notable strengthening of our position throughout~~ the ~~competitive~~technical ~~chain~~problem, ofwell, ~~our~~you ~~gas~~have ~~business. As~~ a ~~result~~hard copy of ~~all~~the ~~this,~~presentation ~~our~~so ~~ebitda has grown almost 30% in this first six-month period and we got 934 million euros and~~ that is ~~based~~you oncan ~~four~~follow ~~areas~~my ~~that we will look at in detail later~~words.

~~The~~On page ~~first~~2, ~~one~~you iswill find the upagenda ~~mid-stream~~of ~~businesses.~~the Wecontents ~~are~~of ~~working~~this ~~in integrated projects~~presentation. ItWe ~~is one~~will ofstart with our ~~important~~ strategic ~~areas~~plan, ~~and~~ the ~~use of our fleet. Secondly~~highlights, we ~~have~~will ~~got~~analyze athe ~~lot~~results of ~~growth in~~ the ~~electric~~first ~~business~~nine ~~with~~months ~~growth~~ of ~~nearly 140% in Spain. Thirdly,~~ the ~~business~~year in2006 ~~the gas~~ and ~~electricity wholesale area and~~ then ~~in distribution where~~ we ~~continue~~will todraw ~~grow~~a ~~and~~number ~~be profitable and now we have got – we have nearly 10.4 million gas customer connections at the end~~ of ~~this first half of 06~~conclusions. ~~If we are going to go into greater detail with our results as regards~~ ~~our businesses – upstream businesses – I have to~~

Let me now move on to page 4. We are clearly satisfied with our strategic plan and the objectives that we first set for the year. Our strategy relies on four basic pillars: the strategic plan 2004-2008 is based on the flexibility and diversification of the supply of gas, secondly, on the development of the electricity business, gas-based of course, leadership in gas distribution in Spain and Latin America and fourth, the leadership in multi-product offer in Spain. These four strategies lead to four different targets:

~~underscore~~This ~~that~~presentation ~~our~~of ~~integrated~~the ~~project~~3rd ~~position~~Quarter ~~continues~~2006 toresults bewas ~~satisfactory.~~made ~~The~~in ~~Gassi~~Spanish ~~Touil~~and ~~project~~simultaneously istranslated ~~advancing~~to ~~with~~the ~~drilling.~~audience ~~The~~in ~~drilling~~English ~~activity recently~~by ~~started~~an ~~and~~interpreter. weThis ~~have~~is ~~incorporated~~a transcript of the Elsimultaneous ~~Andalus~~translation. ~~LNG~~As ~~SPA~~a ~~Company~~result ~~for~~of ~~the~~such ~~construction~~simultaneous translation, this transcript may contain certain errors and/or ~~operation~~omissions ofas ~~the~~a ~~Arzew~~result ~~LNG~~of ~~plant.~~either ~~And~~(i) ~~also~~the wesimultaneous ~~have~~translation ~~developed~~and/or (ii) the ~~trading~~transcript ~~company~~process, for ~~all~~which ~~this~~Gas ~~project~~Natural ~~that~~SDG, weS.A. ~~exploit~~is ~~jointly~~not ~~with Repsol~~responsible.

LOGO

In leadership ~~Nigeria~~in weLNG ~~are~~and ~~developing~~position in the ~~process~~upstream business reaching an installed capacity in combined-cycle plants of 4,800 megawatts, 13 million customers and two contracts per customer. These are the ~~agreement~~objectives and the figures that we ~~signed~~are ~~with~~going ~~the~~to ~~Nigerian~~show ~~authorities~~you aare ~~few~~well ~~months~~within ~~ago~~along these lines. SoIn other words, we ~~continue~~are onin ~~along~~the ~~that~~right ~~road~~direction ~~and~~in weorder ~~are~~to ~~on target~~meet our targets.

AsWe ~~regards~~move ~~the~~on ~~mid-stream~~to ~~business,~~page weno. ~~continue~~5 tonow. ~~move~~You ~~ahead~~will ~~well~~find ~~and~~that wethe ~~have~~first ~~had~~strategy anis ~~excellent~~the ~~development~~one addressed to achieving flexibility and diversification of the ~~business~~gas ofsupply. ~~fleet~~We ~~transport~~are obvious ~~with~~leaders ~~97%~~of ~~percentage~~the ofvalue ~~utilisation.~~chain ~~That~~and isin anwhich ~~excellent~~we ~~result~~want ~~and~~to ~~confirms~~increase ~~the~~our ~~positiveness~~position ofobviously. And in the upstream business, ofGassi ~~liquid~~Touil ~~gas~~continues ~~transport~~to ~~which~~move on. Gas Natural LNG is the company that has ~~strengthened~~been ~~through~~set up to build the ~~alliance~~liquefaction ~~with~~plant ~~Repsol,~~in ~~through~~Nigeria and in the ~~joint~~next ~~company~~months we ~~have~~will ~~created~~give you more specific information on that project.

As ~~regards~~to ~~our~~the ~~business~~midstream and value-added transport, the use of our ~~electricity~~fleet ~~business~~is ~~which~~very efficient, wereaching ~~will~~utilisation ~~talk~~levels ~~about~~of ~~again~~97% ~~later,~~and we ~~have~~manage toover ~~say~~one ~~that~~million ~~our~~cubic ~~production~~metres ~~has~~in ~~almost~~capacity ~~increased~~in byour 2methane plants.4 ~~times~~And, ~~from~~we ~~4057~~have plans to ~~9609~~ ~~GWh.~~build Inyet ~~the~~another ~~production,~~one ~~the~~for ~~increase~~2009 isand ~~140%~~we ~~almost~~have ~~with~~recently entered into a ~~growth~~tender offor the ~~installed~~construction ~~capacity~~of ~~new~~a maximum ~~combined~~of ~~cycle~~11 ~~plant~~more inmethane ~~Cartagena~~ships. ~~together~~As ~~with~~to athe ~~very~~supply ~~very~~we ~~competitive~~have ~~provisioning~~continued ~~which~~with ~~has~~our ~~allowed~~policy us to bebetter ~~efficient,~~enhance ~~profitable~~the ~~and~~diversification. ~~have~~And then the flexibility gives us a ~~production~~ very good position in terms of ~~hours~~a ~~which~~right ismix ~~very~~between ~~significant~~FOB and CIF contracts.

WeAs ~~have~~to ~~reached~~the asecond ~~production~~part ~~rate~~ of 9%our instrategic ~~Spain~~plan, ~~market~~development ~~share~~of ~~which~~the iselectricity ~~very near our 10% objective by 2008. So~~business, we are ~~continuing~~satisfied ~~along~~to ~~the~~report ~~road~~ that we ~~had~~are ~~set~~becoming ~~ourselves~~a ~~and~~key ~~our~~player, ~~electric~~relevant ~~strategy~~player, ~~is positive and good. To~~ in the ~~extent~~generation ~~that~~business ~~you~~in ~~can~~Spain. ~~see~~This onwas ~~the~~in ~~graph~~a ~~that~~strategic I– ama ~~showing~~very ~~you~~good ~~now~~strategic decision. ~~For~~We ~~instance,~~started onto ~~the~~build ~~left,~~our ~~you~~first ~~see~~plant ~~the position of our company~~ in ~~terms~~2002 ofand ~~generation~~right ofnow ~~electricity~~we ~~through~~have ~~combined~~2800 ~~cycle~~megawatts ~~plants~~of isinstalled ~~the~~capacity ~~leader~~and ~~with~~370, ~~30%~~3,000 ~~and~~(inaudible) ~~well~~in ~~ahead~~terms of ~~our~~wind ~~competitors.~~and cogeneration ~~The first competitor has only 24%~~power. ~~And~~We we have amultiplied ~~very~~the ~~high~~market ~~efficiency. For instance, hours of operation~~ – ~~GAS NATURAL~~we ishave ~~number~~grown 1the ~~with~~market 3share,~~321~~ ~~hours~~9% in ~~first~~the ~~semester,~~ordinary ~~six-monthly~~Spanish ~~period~~market. ~~Quite~~The ~~near~~objective ~~the second competitor and quite ahead~~ of the ~~other~~strategic ~~competitors.~~plan Sowas ~~this~~to ~~situation~~reach is10%, ~~interesting~~so ~~from~~we ~~the~~are ~~point~~well offocused ~~view~~to ofreach ~~quantity~~that ~~but~~target ~~also~~and isthe ~~profitable –~~profitability weresults ~~will~~fall ~~see~~well ~~how~~within ~~profitable~~the ~~this~~ranges ~~operation~~that iswe had defined. ~~And~~As to

weThis ~~can~~presentation ~~see~~of ~~that we can be optimistic about~~ the ~~future~~3rd ~~because~~Quarter ~~the~~2006 ~~Ministry~~results ~~for~~was ~~Industry~~made ~~recently~~in ~~announced~~Spanish ~~that~~and insimultaneously ~~view~~translated ofto the ~~provisions~~audience ~~for~~in ~~the~~English ~~future,~~by ~~the estimates~~an ~~for~~interpreter. ~~the~~This ~~future,~~is ~~the~~a ~~installed~~transcript ~~capacity~~ of ~~combined~~the ~~cycle~~simultaneous ~~plants~~translation. ~~should~~As ~~increase~~a ~~43%~~result byof ~~2011.~~such ~~So our position~~simultaneous translation, ~~our~~this ~~expertise~~transcript ~~based~~may oncontain ~~the~~certain ~~projects~~errors ~~that we have~~ and/or ~~that~~omissions ~~are~~as ~~going~~a ~~on,~~result ~~make~~of useither ~~optimistic~~(i) ~~about~~ the ~~future~~simultaneous oftranslation ~~our~~and/or ~~electric business.~~(ii) ~~We have to underline too that we are now executing~~ the ~~Plana~~transcript ~~del~~process, ~~Vent~~for ~~project~~which inGas ~~Tarragona~~Natural ~~and~~SDG, ~~the~~S.A. ~~combined~~is ~~cycle~~not ~~plant in Malaga~~responsible.

LOGO

~~As regards~~ the ~~optimisation~~third ofobjective, ~~our~~to ~~portfolio~~strengthen ~~both in~~ the ~~electric~~leadership ~~industry~~in ~~and~~ the ~~industrial~~distribution ~~gas~~business ~~sector~~– wein ~~have continued with~~ the ~~policy~~gas ofdistribution ~~reducing our exposure to wholesale trading of electricity which has gone down from 4~~business.4 ~~terawatts~~Well, ~~hour~~we toare ~~0.6.~~also ~~The reason~~on ~~is well known. The position of trading in terms of~~ the ~~regulation~~right ~~is impossible and this repositioning has helped us to increase our profitability in that business segment~~path.

AsWe ~~regards~~have increased our ~~policy~~yield ~~for~~in ~~gas,~~the last 12 months and in the last years we have toachieved ~~underline~~an ~~our~~average ~~success~~of inover 600,000 customers a year. As to the ~~restructuring~~EBITDA, the annual accumulated average is 15% since 2003 in our ~~portfolio~~distribution business. ~~Our~~So, ~~portfolio~~we ~~has~~have ~~had~~solid agrowth, very ~~slight~~reasonable ~~descent~~and ~~but~~growing itprofitability ~~has~~in ~~approached~~the ~~restructuring~~core ~~successfully~~business of our activity. Finally, in terms of ~~adequate~~leadership in the multi-product marketing ~~profitability~~strategy, ~~for~~one year ago, more or less, we set our ~~customers~~objective. ~~bearing~~Of incourse, ~~mind~~this ~~developments~~was insecondary to the ~~price~~objective of ~~gas~~profitability. inOn the ~~world~~basis inof ~~recent~~reducing ~~months.~~the Weelectrical ~~come~~portfolio ~~from~~in ~~discounts~~the ofliberalised ~~nearly~~market ~~11%~~due to 1%the ~~now.~~very Sodifficult ~~with~~situation aof ~~minimum~~the Spanish ~~cost~~market inwhich ~~terms~~continues ofto ~~market~~(inaudible ~~share~~……) we… ~~have~~the ~~been~~regulated ~~able~~market toand ~~get~~makes ~~our~~it ~~portfolio~~very difficult for free market to ~~reach~~ exist. So, for the ~~limits~~sake of our profitability ~~that~~we have reduced the ~~market~~portfolio ~~demands~~of ~~and~~residential atcustomers ~~world~~20%. ~~level~~However, (inaudible) we have increased and weenhanced ~~are~~our ~~satisfied~~maintenance ~~because~~contractor wepolicy. ~~have~~The ~~achieved~~current ~~our~~number ~~target~~of ~~after~~contracts 12is ~~months~~1.5 million.

AsWe have continued to grow ~~regards~~(inaudible) ~~the~~in ~~distribution~~our ~~business~~commercial wepolicy, ~~have~~but of course, subject to ~~say~~the ~~that~~profitability of our activities. On page 9, as you see, the ~~growth~~environment is ~~sound~~very ~~and~~complicated ~~constant~~in atterms ~~this~~of ~~time.~~volatility Asof the price of gas, as you can see, on the left hand side of the graph – with respect to the Spanish market – it has been quite difficult. However, I think that we have ~~more~~really ~~than~~reacted 10very positively by implementing a number of policies.~~4 million~~ ~~customer~~By ~~connections~~mid last year this has proven to be very efficient both in terms of electricity and gas. Our gas portfolio has increased its profitability and the ~~world,~~same 5applies to the restructuring of the electrical activities.3m ~~are~~And the same applies to gas supply and power generation. We have been to manage the market situation both in ~~Spain~~the gas and power generation market to achieve an integrated management which has yielded great profits. So, we are well in the ~~growth~~right direction to meet our goals, our target in ~~Spain~~terms of annual EBITDA, in the first nine months of ~~continues~~this year, the 2.5 Inbillion ~~Latin~~EBITDA ~~America~~for we2008 ~~got~~continues ~~4.8 million~~to ~~customer~~be ~~connections~~our target and itthe ~~Italy~~target of 10% annual growth has amply been exceeded because we ~~have~~are ~~reached~~moving ~~300~~at 15,~~000~~ at an annual 15% rate of growth. So, this is all very positive, obviously.

So, growth in terms of that continues in terms of ebitda are the same. Our ebitda as compared to last year has grown by 13% and we have 615 million euros. So we continue along the lines of the past few quarters. In terms of the most relevant figures of our

~~results,~~This ~~financial~~presentation ~~results,~~of ~~you~~the ~~can~~3rd ~~see~~Quarter ~~them~~2006 onresults ~~this~~was ~~graph,~~made in Spanish and wesimultaneously ~~have~~translated to ~~underline~~ the ~~net~~audience ~~sales~~in ~~which~~English ~~have~~by ~~grown~~an ~~more~~interpreter. ~~than~~This ~~40%~~is as a ~~result~~transcript of ~~not~~the ~~only~~simultaneous ~~the activity~~translation. As a result of ~~our~~such ~~company~~simultaneous translation, ~~but~~this ~~also~~transcript ~~the~~may ~~gas~~contain ~~prices~~certain inerrors ~~the~~and/or ~~world.~~omissions Asas a result, ~~ebitda~~of ~~has~~either ~~grown~~(i) bythe ~~28.5%~~simultaneous astranslation ~~regards~~and/or (ii) the ~~same~~transcript ~~period~~process, infor ~~the~~which ~~previous~~Gas ~~year~~Natural SDG, S.A. is not responsible.

LOGO

The ~~main~~ ~~lines~~next ~~here~~objective ~~are~~is ~~electricity~~to ~~business,~~maintain ~~the~~our ~~gas~~strategic ~~supply~~plan ~~business~~2004-2008. Our unique position in ~~Spain~~gas ~~and~~procurement remains to be a key competitive advantage. We have become one of the ~~gas~~key ~~business~~players in ~~Spain~~electricity ~~and~~generation ~~Latin~~in ~~America~~Spain. ~~Net~~Our ~~profit~~regulated ~~has~~distribution ~~grown~~business ~~24%~~continues ~~and~~to ~~the~~yield ~~difference~~solid ~~between~~growth ~~the~~in ~~net~~Latin ~~profit~~America and ~~ebitda~~in isSpain ~~influenced~~and bywe have restructured our ~~participation~~portfolio inof gas ~~Enagás~~and ~~which~~electricity ~~has~~supply ~~decreased~~ to 6optimise results.5% inThe ~~June~~final ~~this~~results ~~year.~~of ~~This~~all ~~investment~~this ~~and~~is the ~~phenomenon~~26% ofincrease ~~not~~in ~~consolidating~~the ~~this~~EBITDA last year ~~justifies~~ and ~~explains~~22% ~~this~~increase ~~difference~~in ~~between~~net ~~the~~revenues. ~~29%~~These ~~growth~~are ofvery ~~ebitda~~positive ~~and~~figures ~~the~~indeed ~~24%~~which ~~net~~confirm ~~result~~the orrelevancy ~~net~~of ~~profit~~our strategy.

InLet’s ~~terms~~talk ofabout ~~our~~the ~~investments,~~figures ~~investments~~in ~~have~~detail ~~gone~~now. ~~down~~Net byprofit ~~35%~~for ~~compared~~this toyear for the ~~last~~first nine months of the year. ~~This~~has isalready ~~mainly~~reached 650 million euros which represents an increase of 22.3% over the ~~result~~first nine months of 2005. The growth, of the ~~decrease~~EBITDA is 26% boosted by electricity and the gas supply business in ~~growth~~Spain. As to Latin America, gas distribution has reached 280 million and the EBITDA has grown 27%. All of which has generated a cash flow which has grown 40% as a result of ordinary activities and I think this clearly reflects the strength and the very good health of our economic growth. Finally, Gas Natural recently restructured its internal organisation to adapt it to the growing liberalisation of the ~~Cartagena~~gas ~~plant~~market ~~which~~in ~~was~~Spain. ~~finished~~Over ~~last~~87% ~~year~~of the sales of gas in Spain did take place in the liberalised market. SoAnd ~~there~~at isthe same time we wanted to manage the gas distribution in Latin America in a ~~slight~~differentiated ~~adjustment~~manner. ~~there~~In ~~although~~terms of the EBITDA and its breakdown, the maximum growth has been achieved in the ~~second~~electrical ~~six-monthly~~activities, ~~period~~they ~~things~~have ~~will~~doubled ~~balance~~due ~~out~~to ~~again~~the fact that the electrical business in Spain has allowed EBITDA to grow 165% as a result of the good management of supply and procurement and the commissioning of the combined cycle plant in Cartagena.

AsThe ~~regards~~wholesale ~~our~~and ~~financial~~the ~~structure,~~retail gas webusiness ~~have~~has toalso ~~underline~~grown ~~our~~144.1% ~~very~~thanks ~~solid~~to ~~capital~~the ~~structure,~~liberalising ~~our~~measures ~~ebitda~~adopted ~~covers interests~~ by ~~almost~~the ~~seven~~market ~~times~~ and the ~~debt~~cost ~~doesn’t~~policy ~~reach~~that ~~two~~has ~~times~~been ~~ebitda.~~adopted Onwhich ~~the~~has ~~30th~~allowed ofus ~~June~~considerable weshare ~~had~~of ~~debt~~the ~~lower~~gas ~~than~~business ~~last year~~in ~~because~~Spain. ~~results~~All ~~that~~of Iwhich ~~have~~has ~~referred~~produced tothis ~~previously~~growth ~~are results that are accredited~~ in ~~cash~~ 144%. ~~They~~The ~~are~~upstream ~~not~~and ~~estimates.~~midstream ~~They~~business ~~are, well these results have grown but ebitda~~ has grown ~~almost 30~~11%, sothanks to the ~~impact~~greater onusage ~~cash~~of ~~has~~the ~~been~~fleet ~~quite direct~~ and sothe ~~we have~~optimisation ~~reduced our debt. Our debt, gross debt is 7,500 but more than half~~ of ~~that, 4,200 are undrawn. Our real debt, our actual debt at~~ the ~~end~~dollar ofexchange ~~this six-monthly period is 3,340 million euros~~rate.

If we look at ebitda more in detail, the growth, as we have said, is 28.5% and we have got electricity which has grown 144% in Spain, 244% actually in Spain. The wholesale and retail business has grown by 121% so gas has allowed us to, ebitda to grow by 40% and then the distribution business which has grown by 12.6%.

InThis ~~Spain~~presentation ~~growth~~of ~~has~~the ~~concentrated~~3rd onQuarter ~~the~~2006 ~~electricity~~results ~~business~~was ~~because~~made ~~from~~in ~~144~~Spanish and ~~244~~simultaneously –translated ~~well~~to ~~out~~the ofaudience ~~those~~in ~~244% is~~English ~~the~~by ~~electricity~~an ~~business~~interpreter. inThis ~~Spain~~is ~~and~~a transcript of the ~~wholesale~~simultaneous ~~and~~translation. ~~retail~~As ~~businesses~~a ~~are~~result ~~very~~of ~~important~~such ~~here~~simultaneous translation, ~~and~~this ~~the~~transcript ~~up-midstream~~may ~~businesses~~contain ~~have~~certain ~~changed~~errors byand/or ~~16%~~omissions as a result of ~~the~~either ~~good~~(i) ~~progress~~the ofsimultaneous ~~the~~translation ~~gas~~and/or ~~pipeline~~(ii) ~~which~~the istranscript ~~better~~process, ~~than~~for ~~last~~which ~~year~~Gas ~~and~~Natural ~~the~~SDG, ~~use of~~S.A. ~~the~~is ~~fleet~~not responsible.

LOGO

~~And,~~ As into ~~terms~~the ofgas distribution is, ~~16.2%~~which iscontinues ~~leveraged~~to ~~with~~be ~~the~~our ~~growth~~core ~~in Latin America. However~~business, ~~the~~this ~~growth~~has ~~results~~grown innearly ~~Spain have reached 6~~12% ~~although~~ wethanks ~~have~~ to ~~say that in~~ the ~~second~~very ~~six-monthly~~strong ~~period~~growth ~~they~~in ~~are~~Latin ~~compared~~America, ~~with 10~~27%. ~~for~~In Italy, ~~last year~~24%.

InThe ~~terms~~quarterly evolution of our ~~investments~~EBITDA wepending ~~have~~closing the accounts for this quarter, of course, allows to ~~once~~predict ~~again~~that the forecast for the ~~insist~~year ~~our~~will ~~material~~be ~~investments~~quite ~~are~~accurate. ~~practically~~There ~~just~~are ~~below~~no ~~last~~reasons ~~year,~~to ~~very~~believe ~~just~~that ~~below~~the ~~and~~trend ~~they~~is ~~concentrate~~going onto ~~electricity~~be reversed. ~~The~~So, ~~reason~~we isthink ~~very~~that ~~clear~~we will continue to move along the predicted figures. ~~Last~~As ~~year,~~to investment in ~~that~~tangible ~~six-monthly~~and ~~period~~intangible assets, wethey ~~had~~have reduced slightly over last year for two reasons, mainly: the ~~end~~reduction, ofconsiderable reduction, in the investment in ~~the~~electricity. ~~combined~~Last ~~cycle~~year we were really at ~~Arrúbal~~ ~~and~~the ~~also~~peak of our generation thanks to the ~~important~~commissioning of the combined cycle ~~project~~plant in Cartagena. But, ~~Both~~of ~~are~~course, ~~finished~~we ~~now~~invested ~~and~~in ~~now~~projects that will have to be commissioned shortly. Then, we have also reduced the ~~project~~investment in ~~Plana~~Latin ~~del~~America ~~Vent~~in ~~hasn’t~~the ~~got~~distribution business due to the ~~same~~slowdown ~~capacity~~in orour distribution activities in Mexico. We are waiting for the ~~same~~Mexican ~~volume~~government ofto ~~investment~~define its policy. We have high expectations, especially with respect to Mexico DF and hopefully we hope that this slowdown will not take place in future years. These are the ~~Malaga~~two ~~project~~main isreasons ~~just~~for ~~starting~~the reduction in upinvestment. SoAs ~~that~~a ~~justifies~~result of the situation, there has been considerable cash flow generated and this ~~difference~~has ~~which~~really put us in ~~the~~a ~~second~~very ~~six-monthly~~solid ~~period~~strong ~~will~~position bewith ~~balanced~~low ~~out~~leverage ratios, as you can see in this chart and this is already a trend that has been repeated in the last three quarters.

InWe ~~terms~~move ofon now to analyze the different businesses. With respect to the distribution business, it says the ~~difference~~gas indecreased ~~distribution~~14.5% infor ~~Latin~~a ~~America~~number ~~has~~of toreasons. doFirst, ~~with~~the liberalisation of the ~~situation~~market inreduces ~~Mexico~~sales, tariff sales. WeAnd ~~are~~this ~~slowing~~year ~~down~~the ~~our~~climate ~~investments~~has ~~while~~been wevery ~~wait~~benign. ~~for~~This ~~the~~has ~~new~~affected ~~policy~~domestic market sales, lowered sales of ~~the~~gas ~~government~~to conventional power plants. All Soof ~~all~~which ~~told~~has decreased tariff sales 14%. However, ~~these~~the ~~investments~~distribution ~~are~~business ~~focused~~TPA, aswhich is like the ~~norm~~tariff inpaid for the use of our ~~company~~installations, onhas ~~electricity and~~increased ~~distribution~~8.5%. As to growth, we continue to grow in terms of ~~gas~~points of supply. The current number is 310,000.

We now will analyse our results in ebitda terms. We have to say that the distribution business in Spain, regulated activities have grown by 4.2% in volume. This 4.2% includes the reduction of 8.4 in tariff sales as a result of liberalisation, continued liberalisation of the process and an increase of almost 8% of the toll tariff business. So, in Spain the total growth has been 4.2%? but the connections, supply points have reached almost 5.3 million with growth of 6.3%. The ebitda has increased, as I said, by 6.2% but

ifThis wepresentation ~~charge,~~of ~~compare~~the 3rd Quarter 2006 results was made in Spanish and simultaneously translated to the ~~second~~audience ~~quarter~~in ~~with~~English by an interpreter. This is a transcript of the ~~second~~simultaneous ~~quarter~~translation. As a result of such simultaneous translation, this transcript may contain certain errors and/or omissions as a result of either (i) the ~~increase~~simultaneous ~~was~~translation ~~actually~~and/or ~~10%~~(ii) the transcript process, for which Gas Natural SDG, S.A. is not responsible.

LOGO

InAs ~~terms~~of September 30th, we have 5.3 million points of ~~investment~~supply itall ~~has~~over ~~increased~~Spain byrepresenting 146.2% ~~and~~growth ~~for~~over last ~~all~~year. ~~those~~Due ~~reasons~~to wethe ~~are~~smaller ~~convinced~~consumption it is to be expected that the ~~progress~~remuneration as a result of ~~the~~these ~~business~~sales will ~~continue~~be ~~along~~reduced. For these reasons, the ~~lines~~EBITDA ~~that~~of wethe ~~have been~~distribution ~~seeing~~business in ~~these~~Spain ~~past~~has ~~quarters~~grown nearly 6%.

InIf ~~terms~~you oflook at the ~~distribution~~next ~~business in Latin America~~chart, asthe ~~you~~distribution ~~can~~business ~~see,~~ in ~~the graph on the left~~Italy, weEBITDA ~~have~~has ~~had~~grown ahere ~~growth of our activity of 3.4~~27%. ~~which~~No, weI ~~will~~am ~~detail~~sorry, inmy amistake, ~~minute~~I ~~and~~was ~~growth~~on ofthe ~~connections~~wrong ~~of 4~~page.7, weIn ~~are~~Latin ~~getting~~America, Latin ~~near~~America ~~5 million~~EBITDA ~~connection points. Ebitda~~ has grown ~~by 31~~27%. ~~and~~If if we ~~discount~~deduct the ~~parity~~exchange ~~problem~~rate, ofin ~~currencies~~fact, ~~this~~the ~~has~~final ~~been a~~ growth. ~~The growth~~will inbe ~~ebitda~~21% inwhich ~~Latin America~~ is quite positive. ~~and~~26 million inGWh ~~Brazil~~is the volume and inthe ~~Colombia,~~number ~~especially~~of inpoints ~~Brazil,~~of issupply ~~very~~was ~~strong~~4.9 million with ~~ebitda~~ growth ofrate ~~53%,~~ in ~~Argentina,~~terms weof number ~~have~~of tocustomers ~~say~~is ~~that~~189,000. ~~the~~If ~~growth~~we ~~has~~break ~~grown~~it ~~36%~~down ~~and~~by wecountries, ~~detect~~Brazil ancontinues ~~increase~~to ofgrow ~~activity~~strongly. WeEBITDA ~~know, you~~in ~~know,~~Brazil ~~that~~has ~~the~~grown ~~president~~41%, of116.7 million ~~the~~and ~~republic~~sales ~~signed~~are anevolving ~~order~~very topositively ~~close~~growing ~~the~~at ~~restructuring~~an ~~period~~annual of10% ~~the~~rate. ~~tariff~~Argentina ~~regime~~has ~~and~~grown we6.6%. In ~~are~~Colombia, ~~waiting~~turnover ~~for~~has ~~this~~grown ~~to apply~~20%. ~~Colombia~~6% ~~has strong~~ growth ~~and~~in ~~we are very satisfied~~EBITDA. InAnd Mexico, ~~in spite of~~ the ~~increase~~EBITDA ~~of ebitda,~~in ~~which~~Mexico has grown ~~by 13~~6%, wedespite ~~are~~the ~~waiting~~drop ~~especially~~ in ~~the~~unit DFconsumption. ~~area~~As ~~for~~a result of the ~~gasification~~redefinition ~~policy~~of topriorities bein ~~specified~~the ~~and~~energy ~~applied.~~market ~~The~~in ~~authorities~~Mexico ~~have~~but ~~considered~~as ~~this~~a toresult beof the ~~most~~growth in ~~interesting~~TPA ~~alternative~~ and ~~also~~the ~~prices~~good ~~for~~operational ~~domestic supply which have caused serious problems for customers~~efficiency, ~~even~~our ~~the~~EBITDA ~~policy~~in ofMexico ~~subsidies~~has bygrown ~~the former government~~9%.

In Italy, ~~there~~EBITDA has ~~been~~grown a24% ~~decrease~~and ofgas ~~sales~~distribution ~~mainly because~~has decreased in terms of avolume, ~~very~~7% ~~much~~due ~~warmer~~to ~~winter~~the ~~but~~climatic ~~customer~~conditions. ~~connections~~But ~~have~~despite ~~increased~~the byreduction ~~14%~~in ~~and~~the wesales ~~got~~of ~~300~~gas,~~000~~ ~~connections~~the innumber ~~Italy.~~of ~~The~~points ~~ebitda,~~of assupply ahas ~~result~~gone ofup ~~this,~~12%. ~~and~~And the ~~application~~EBITDA ofhas ~~our~~grown ~~business~~24%. ~~models~~So, indespite ~~gas~~the ~~distribution~~adverse ~~that~~climate, wejust ~~have~~by ~~consolidated~~implementing ~~in Spain~~the practice and ~~Latin~~the know-how ~~America~~of the company, ~~has~~we ~~grown~~have byimproved 13the EBITDA.~~4%.~~

As(In ~~regards~~Spanish) our electric business, one of the greatest growth we have had throughout the whole of the year and we hope that this continues to be so in the next few quarters. As you can see on the left, production has increased by 120% almost 10% in our combined cycle in Puerto Rico, 143% in Spain. This includes, these global figures include the small

…Thanks to the commissioning of the Cartagena plant and the good procurement policy and also thanks to the high level of the pool prices, so we believe that it was a good strategy to combine gas and electricity. As you can see in these figures, all of which took place in an environment of strong efficiency of our electrical activities because installed

~~percentage~~This inpresentation ~~cogeneration~~of inthe ~~Spain.~~3rd ~~There~~Quarter ~~has~~2006 ~~been~~results ~~growth~~was made in ~~combined~~Spanish ~~cycle~~and ~~electricity~~simultaneously ortranslated ~~energy~~to the audience in ~~which~~English ~~growth~~by ~~has~~an ~~been~~interpreter. ~~144%~~This asis ~~you~~a ~~saw~~transcript inof the ~~Cartagena project~~simultaneous ~~because~~translation. As a result of ~~the~~such ~~greater~~simultaneous translation, ~~power~~this ~~and~~transcript ~~the~~may ~~excellent~~contain ~~supply~~certain ~~that~~errors ~~can~~and/or ~~compete~~omissions inas ~~terms~~a result of ~~very~~either ~~great~~(i) ~~efficiency~~the simultaneous translation and/or ~~production~~(ii) the transcript process, for which Gas Natural SDG, S.A. is not responsible.

LOGO

In capacity ~~Spain~~today weis ~~are~~around ~~managing 20~~28% ~~units~~ of ~~production~~the intotal aelectricity ~~special~~generated ~~regime~~and ~~area.~~of ~~The~~which ~~ebitda~~28% ~~reached~~is ~~161 million~~natural ~~euros with a growth of 144%~~gas. ~~Of that growth~~So, ~~Puerto~~we ~~Rico~~are ~~was~~leaders ~~8.5 but~~ in ~~Spain of~~ the ~~244~~Spanish ~~figure~~market ~~for~~through ~~the reasons that I have explained – new installed capacity,~~gas ~~excellent supply and the rehabilitation of our commercial policy with the portfolio restructuring~~generation.

~~Our~~We upshould ~~and~~also ~~midstream~~say ~~businesses,~~that Itaking ~~have~~into toaccount ~~say~~the ~~once again~~forecast of the Ministry for 2011, ~~that~~43% of the ~~new~~installed ~~contract~~capacity ~~with~~will ~~Algeria~~correspond ~~for~~to ~~supply~~combined cycle. ~~makes~~And ~~the~~I ~~pipeline~~would also like to say, ~~the~~as ~~gasoline~~you ~~more~~can ~~profitable~~see ~~and~~on the ~~degree~~right of ~~efficiency~~the ~~and~~graph, that the ~~use~~operation of ~~the~~our ~~fleet~~combined ascycles is still having a ~~result~~leading position in Spain. We have 5,000 hours of ~~our~~operation. ~~alliance~~Our ~~with~~closest ~~Repsol~~competitor is much, has ~~given~~a usmuch anlower position. ~~efficiency~~So, ~~rate~~we ~~97%~~are the leaders in electrical generation in Spain through gas and ~~our~~we ~~ebitda has~~have ~~gone~~always upbelieved byin ~~16.2%~~this aspolicy aand ~~result~~we ofwere ~~all~~pioneers in this policy and now we are reaping what we have sown.

AsRegarding ~~regards~~ the ~~wholesale~~activities ~~and~~of ~~retail~~up ~~business~~and midstream, weEBITDA ~~have~~has ~~explained~~increased ~~the~~by ~~reasons~~11%. ~~are~~Our ~~mainly~~gas ~~adjusting~~pipe ~~our portfolio~~is ofbeing ~~customers~~less toused ~~the~~for ~~real~~several ~~situation~~reasons ofbut this is offset by an increased use of the ~~market~~tanker fleet. ~~This~~The ~~has~~Gassi ~~taken~~Touil ~~its~~project ~~time~~is still underway, ~~practically~~of ~~one~~course. ~~year~~And, ~~and~~in weMay ~~are~~last ~~satisfied~~year ~~with~~we ~~the~~created ~~consequences;~~a ~~and~~company ~~that~~which ~~led~~is going to anbe ~~increase~~developing of the ~~ebitda~~liquefaction ofplant. ~~121%~~And ~~with~~in aItaly, ~~reduction~~we inhave ~~discounts,~~two anregasification ~~increase~~projects. ofAnd the corresponding ~~profitability~~authorities ofare ~~this~~going ~~customer~~to ~~portfolio~~make the corresponding decisions very soon.

AsRegarding ~~regards~~our ~~conclusions:~~wholesale ~~well~~and Iretail ~~can~~business, ~~tell~~our ~~you~~EBITDA ~~that~~has weincreased ~~think~~by ~~that~~144%, ~~this~~no less ~~first~~as ~~six-month~~a ~~period~~consequence ~~shows~~of ~~clearly~~the ~~that GAS~~reorganisation ~~NATURAL~~of ~~has~~our ~~strengthened~~commercial ~~its~~policy. ~~position~~This instarted ~~whole~~a ~~value~~year ~~chain~~ago ofas ~~gas.~~a ~~Strengthened~~result inof ~~integrated~~the ~~projects~~liberalisation ~~which~~of ~~are~~the ~~progressing~~market ~~very~~and ~~well~~of ~~and~~the weneed ~~have~~to ~~got~~transfer ~~another~~to ~~one~~the inmarket ~~Nigeria~~the ~~that~~new weprices ~~are~~of ~~studying.~~energy, ~~Our~~particularly ~~entry~~of ~~into~~gas which the ~~electric~~world ~~sector~~ is using ~~confirmed~~at present. It isThis ~~very~~policy ~~significant.~~has Webeen ~~are~~very afruitful ~~relevant~~because ~~product.~~it Wehas ~~are~~managed 9%to ~~and~~optimise weour ~~have~~gas ~~financial~~portfolio ~~results~~which ~~that~~still ~~are~~has very ~~significant.~~high ~~Our~~market ~~customer~~share. ~~portfolio~~In ina ~~gas~~market ~~and~~which ~~electricity~~ is ~~optimised~~advancing ~~and~~towards weliberalisation. ~~got~~Over ~~very~~87% ~~high~~of ~~levels~~sales ~~and we are~~ in aSpain ~~very~~this ~~competitive~~year ~~position.~~correspond ~~And finally, distribution continues~~ to ~~grow~~the ~~solidly~~fully ~~and~~liberalised ~~profitably~~market. ~~And~~This ~~all~~is, ~~this has allowed us an increase~~ of ~~ebitda~~course, ofin ~~29%~~contrast ~~and~~with ~~net~~what ~~income~~is ~~increase~~happening ofwith ~~24%~~the ~~and~~electrical ~~this~~market. ~~has meant real cash~~

Regarding the conclusions, we want to remain efficient and efficacious in the management of the whole of the gas chain from the up and midstream business to the distribution and supply. And, we want to achieve in this way the objectives which were

~~generation.~~This ~~So,~~presentation ~~our~~of ~~figures~~the ~~allow~~3rd usQuarter to2006 ~~face~~results was made in Spanish and simultaneously translated to the ~~rest~~audience in English by an interpreter. This is a transcript of the ~~year~~simultaneous ~~with~~translation. ~~quite~~As a ~~lot~~result of ~~confidence~~such ~~and~~simultaneous translation, ~~also~~this wetranscript ~~can~~may ~~see~~contain ~~that~~certain ~~our~~errors ~~strategies~~and/or ~~are~~omissions ~~achieving~~as ~~the results~~a ~~that~~result weof ~~want.~~either ~~So,~~(i) ~~these~~the ~~are~~simultaneous ~~the~~translation ~~conclusions~~and/or of(ii) the ~~six-month~~transcript ~~period~~process, for ~~GAS~~which ~~NATURAL~~Gas Natural SDG, S.A. is not responsible.

LOGO

I included ~~have~~in ~~to tell you about~~ our ~~takeover~~strategic ~~bid~~plan ~~for~~until ~~Endesa~~2008. ~~Very briefly,~~We ~~since the last meeting there have been no – there~~ are nostill ~~news~~going ~~items~~ to ~~give~~work ~~you. Apart from what you probably read~~ in ~~the~~integrated ~~press~~projects, wedeveloping ~~don’t have anything more to say. We are just waiting because in 24/48 hours, the National Commission for Energy will finally resolve~~ and ~~say~~optimising ~~what~~ the ~~situation~~management isof ~~going~~our toliquefied ~~be – whether there is going to be a second takeover bid or not~~gas fleet. ~~We don’t have much more to say but we at your disposal for whatever questions you have.~~

~~Luis~~We ~~Calvo. Next, we~~ are still going to ~~have~~work in the ~~question~~electrical ~~and~~business ~~answer~~through ~~session.~~the Wegeneration, ~~are~~through ~~going~~gas, tooptimising ~~start~~our ~~with~~commercial ~~the~~portfolio ~~questions~~of ~~from~~gas ~~the~~and electricity ~~room~~through –our wepowerful ~~will continue~~brand –and ~~from~~our powerful organisation and sustaining solid and profitable growth of the ~~floor~~distribution –business and ~~then~~all weof this will ~~have~~be ~~the~~done ~~questions~~ in ~~Spanish~~a healthy way, ~~conference~~that ~~call~~is, ~~questions~~through incash ~~Spanish~~generation ~~and~~which will make it possible for us to tackle the future projects which might come in ~~English~~our ~~and~~way. ~~then~~This wewas ~~will~~the ~~finish~~presentation ~~with~~of the ~~questions~~results ~~that~~for wethe ~~will~~third ~~get~~quarter ~~through~~and ~~the~~I ~~web~~would ~~page.~~be Somore wethan ~~will~~willing ~~start~~to ~~with questions~~answer inany ~~the~~questions ~~room~~you ~~here~~may have.

~~Alejandro~~Luis ~~Vigil~~Calvo ~~from Citigroup.~~

… I ~~have~~will ~~three~~start ~~questions.~~with ~~One~~the ofquestions ~~them~~from ~~is about~~ the ~~price~~floor here ofand ~~your~~then ~~takeover~~we ~~bid.~~will Inanswer ~~view~~the ofquestions on the ~~results~~telephone ofand ~~Endesa~~finally, ~~and~~we will answer the ~~increase~~questions inwhich ~~their~~come ~~objectives~~to ~~and~~us ~~the~~through ~~market~~our ~~still~~web ~~think~~page. ~~that~~So, ~~your~~we ~~offer~~will isstart ~~very~~with ~~low.~~the ~~Can~~questions ~~you~~from ~~tell~~the usfloor ~~anything~~here. ~~about~~Yes, ~~this?~~ Alejandro.

~~Secondly,~~Alejandro ~~about~~Vigil ~~your~~from ~~marketing~~Citigroup ~~strategy because the sector is discussing whether this business is profitable or not. You have reduced your portfolio a lot. I want to know about this.~~

~~And~~I am Alejandro Vigil and I have three questions. One of them relates to the ~~third~~situation ~~question~~of ~~about~~Endesa, ~~Algeria~~once the E.ON offer has materialised – what is ~~there~~the ~~any~~position ~~news~~of ~~about~~Gas Natural regarding this offer, and regarding the ~~tax~~law ~~regime~~suit –in the ~~changes~~commercial court in ~~Algeria~~Madrid? ~~and~~Could ~~how~~you make comments on this? isAnd the second question relates to the levels of investments you which are having vis-à-vis your plan to 2008. You mention that you are, what you have scheduled and I presume that you are going to ~~affect~~accelerate this in the near future. And regarding the generation market, you are having good results, and this relates to probably your view about the regulatory market. What can you say about this?

~~Rafael~~Regarding ~~Villaseca.~~the ~~I’ll answer your~~ first question, ~~first.~~it ~~Regarding~~seems ~~our~~that ~~position~~the ~~everyone~~regulatory ~~knows~~issues ~~that~~relating ~~our~~to ~~takeover bid~~the ~~was~~counter ~~launched~~bid ~~almost~~are anow ~~year~~going ~~ago~~to onbe ~~September 5th~~resolved. ~~last~~There ~~year.~~is ~~Our~~still ~~position~~a ~~hasn’t~~few ~~changed~~legal ~~dramatically.~~matters Sooutstanding, ~~when the time comes that~~ we are ~~finally~~still

~~allowed~~This topresentation ~~talk~~of to the ~~shareholders,~~3rd ~~the~~Quarter ~~Board~~2006 ofresults ~~Directors~~was ofmade ~~GAS~~in ~~NATURAL~~Spanish ~~will~~and ~~determine~~simultaneously ~~whether~~translated ~~we are going~~ to ~~reconsider~~the ~~our~~audience ~~offer~~in orEnglish ~~whether~~by wean ~~are going~~interpreter. toThis ~~withdraw~~is ~~it.~~a Wetranscript ~~said~~of ~~this~~the ~~some~~simultaneous ~~time ago~~translation. ~~Obviously,~~As ~~we made our initial offer almost~~ a ~~year~~result ~~ago~~of ~~and~~such ~~with~~simultaneous translation, ~~everything~~this ~~that~~transcript ~~has~~may ~~happened~~contain wecertain ~~will~~errors ~~probably~~and/or ~~have~~omissions toas ~~review~~a itresult ~~but~~of weeither ~~will~~(i) ~~see what happens at~~ the ~~Board.~~simultaneous Wetranslation ~~are~~and/or ~~very~~(ii) ~~much aware that~~ the ~~market~~transcript ~~has~~process, ~~changed~~for ~~and~~which weGas ~~are~~Natural ~~willing~~SDG, toS.A. ~~consider~~is itnot responsible.

LOGO

As waiting ~~far~~to assee ~~the~~what ~~market,~~framework ~~well~~is wegoing ~~will~~to ~~have~~be implemented in which Gas Natural can decide what to ~~look~~do. atWe ~~the~~are ~~different~~at ~~scenarios~~a standstill, Iwe ~~think~~are ~~that requires~~in a ~~very~~deadlock ~~in-depth~~because ~~analysis~~of the ~~and~~situation ~~when~~of the Endesa administrators. There is not much we can ~~talk~~do toat ~~our~~present ~~shareholders,~~and ~~until~~therefore ~~now~~ we are ~~forbidden~~waiting to ~~talk~~see what the new developments are going to ~~our~~be ~~shareholders~~and when things become clarified, ~~the~~our ~~company~~board of directors will ~~decide~~make ~~what~~the tomost doappropriate decisions ~~because~~depending ~~our~~on ~~goal~~when ~~obviously~~things become clarified. There is, ~~you~~not ~~know,~~much more we can say. We are waiting for the proceedings to ~~succeed~~finish ~~with~~and ~~our~~we ~~takeover~~are ~~bid~~waiting for the lawsuit started by the Endesa administrators to be resolved.

AsRegarding ~~far~~the aswhat the ~~marketing~~Barcelona orcourt ~~retail~~said. ~~and~~Well, ~~wholesale~~it ~~business~~is ~~strategy~~a –lawsuit ~~well~~we inlaunched a few months ago because there are and the ~~deregulated~~judge ~~market~~has agreed with us. I am going to cite his very words. Apparently, itthis is ~~not~~a possible and sufficiently demonstrable fact or event. There seems to ~~sell~~have ~~over~~been ~~tariff~~some ~~prices~~use of insider information and market cartels to do with anti-monopoly laws. We have requested a series of preliminary ~~Tariff~~proceedings ~~prices~~so ~~are~~that ~~obviously~~the ~~lower~~situation ~~than~~can ~~full~~be ~~prices~~elucidated. ~~So,~~This is ~~anybody~~very ~~able~~simple. toThis ~~make~~information ~~money~~just ~~like~~has ~~this,~~to ~~I will~~ be ~~delighted~~made available to ~~find~~the ~~out~~judge ~~how~~who ~~you~~is ~~can~~going doto study it and Idecide ~~will~~whether ~~accept~~this ~~that~~use of insider information happened or not. I ~~was~~can ~~wrong~~just ~~but~~tell you what the resolution of the judge says and of course, we, well, so, I ~~don’t~~guess ~~see~~that ~~how~~this itinformation ~~can~~which bethe ~~done.~~judge ~~That~~– let’s hope that this information which the ~~reason~~judge ~~why~~has requested is going to be made available to him as soon as possible. Not ~~the~~only ~~vast~~for ~~majority~~the benefit of ~~operators~~Gas ~~are~~Natural ~~leaving~~but for all the ~~deregulated~~shareholders ~~market~~involved so that we can know whether these bad practices have existed or not. ~~Unfortunately,~~We inhave more than reasonable doubts as the ~~electrical~~judge ~~market~~has affirmed. We have these doubts and therefore we ~~are~~trust that ~~unable~~the todifferent ~~sell~~companies ~~because~~involved ~~you~~will ~~compete~~make ~~with~~available to the ~~tariffs.~~judge ~~With~~all athe ~~higher~~information ~~full~~about ~~price~~this problem, itso isthat ~~impossible~~this tomatter docan be clarified. This is a question of importance not only for the ~~case~~companies ininvolved but for the ~~gas~~whole of the ~~market~~Spanish energy sector. ~~The~~We ~~gas~~can’t ~~market~~really islive awith ~~deregulated~~this ~~market~~doubt ~~and~~that ~~there~~inside ~~are~~information nomight ~~tariffs~~have been used. WeSo, ~~can~~we ~~compete~~are ~~very~~just ~~easily.~~waiting ~~GAS~~to ~~NATURAL~~see ~~loves~~what ~~competition~~the ~~but~~judge ~~not~~has ~~against~~to ~~tariffs~~say about this.

AsRegarding ~~far~~investment, asthis ~~the~~is ~~question about Algeria~~basically, well, ~~it is true that and it is not a surprise that~~ there’s isnormally acertain ~~tendency~~time tolags, ~~protect~~but ~~natural~~the ~~resources~~problem ~~both in oil and gas. Algeria~~ is ~~not~~that anwe ~~exception~~are ~~here~~comparing ~~and~~ourselves ~~obviously~~now ~~what~~with ~~happens in Algeria seems to affect hydrocarbon prices around of~~ the ~~world~~period ~~but~~at wewhich ~~don’t think it is going to make a huge impact on our investments in Algeria. We don’t think it is going to change our position dramatically~~ there. was

Luis Calvo. Any further questions from the floor?

Good morning, I am Luis Amusategui from ZISNE CAPITAL.

IThis ~~have~~presentation aof ~~question~~the ~~regarding~~3rd ~~electricity~~Quarter ~~production~~2006 ~~and~~results awas ~~low~~made ~~factor~~in ofSpanish ~~77%,~~and ~~some~~simultaneously oftranslated ~~your~~to ~~competitors~~the ~~instead~~audience ~~of burning~~in ~~gas,~~English ~~they~~by ~~decided~~an tointerpreter. ~~sell~~This itis ~~abroad~~a ~~because~~transcript ~~they~~of ~~think~~the itsimultaneous istranslation. ~~more~~As ~~profitable~~a toresult doof itsuch ~~that~~simultaneous translation, ~~way.~~this ~~Why~~transcript ~~are~~may ~~you~~contain ~~burning~~certain soerrors ~~much~~and/or inomissions ~~your~~as ~~stations~~a ~~instead~~result of ~~sending~~either (i) the ~~gas~~simultaneous ~~somewhere~~translation ~~else~~and/or ~~where~~(ii) itthe ~~may~~transcript beprocess, ~~more~~for ~~profitable?~~which Gas Natural SDG, S.A. is not responsible.

LOGO

~~Rafael~~ highest ~~Villaseca.~~level ~~Well,~~of ~~we are convinced that~~investment, ~~as far as our marketing strategy and our generation position~~namely, ~~it is more effective to supply to~~ the ~~market~~project ~~with the exception~~ of ~~the last weeks, the results have been excellent~~Cartagena. ~~So,~~We ~~GAS~~expect ~~NATURAL which has a lot of experience with trading transactions didn’t find this an interesting option, not even from an economic point of view. I have been reminded~~ that ~~we have done some transactions of that kind, some trading transactions but,~~ as ~~you~~these ~~know,~~projects ~~GAS~~move ~~NATURAL~~along ~~knows about this possibility and obviously~~ we ~~are~~will incatch ~~the~~up ~~best~~with ~~position~~our ~~in Spain to do trading activities but we haven’t done it in a generalised way~~delay.

~~Miguel~~Regarding ~~Medina~~generation ~~from~~we ~~Deutsche~~are ~~Bank~~rather expectant. The situation is really quite difficult because we still have to solve a series of problems in order to make the market credible. And, we have to put an end to the situation which is characterising the present moment and we hope that the Ministry of Industry and the authorities will take the necessary measures to allow for certain things to be solved. For example, the market should be a transparent and objective market and of course, the market prices should be recognised when, of course, this market is brought about. And, we are waiting to see what happens in this field.

MyEnrique ~~first question~~Soldevila isBanco ~~about~~Portugues ~~your wind power activity~~Investimento. Last year you acquired a lot of wind parks to be developed. Could you tell us whether there is going to be a change in the regulation of wind power and how it is going to affect your portfolio? And about wind parks, I would like to know whether this might have an impact on your goodwill.

~~The~~I ~~second~~have ~~one~~an isadditional question about the ~~retail~~law ~~and~~suit ~~distribution activities~~ in ~~Spain~~ Barcelona. ~~Why~~Are ~~did~~ you ~~make~~asking ~~those~~for ~~provisions~~some ~~which~~cautionary ~~reduce~~measure? Do you want fines for the ~~growth~~Endesa ofadministrators ~~ebitda~~or ~~when~~do you ~~compare~~want to suspend the ~~ebit~~bid inof ~~Spain~~E.ON on Endesa?

~~And~~Well, ~~the~~all ~~third~~of ~~question~~this is ~~about~~too ~~Latin America~~premature. IfWe Iwant amto clarify something which is very important not ~~mistaken,~~only infor ~~Mexico,~~Gas ~~there~~Natural isbut aalso ~~subsidy~~for ~~which~~all ~~matures~~others that have participated in ~~September~~the orproject. ~~October~~The ~~this~~information ~~year~~we all know is very obvious. DoIt ~~you~~is ~~have~~obvious ~~any~~that ~~information~~there ~~about~~are ~~what’s~~fears, ~~going~~the tofears ~~happen~~that we expressed at the court. So, this has to ~~those~~be ~~subsidies~~elucidated ~~next~~and ~~year?~~of ~~And~~course, ~~about~~the ~~Argentina~~judge will decide what the consequences are. But, ~~why~~it is itnot possible that, ~~tariffs~~well of course, our bid was very ~~have~~carefully ~~not~~analyzed ~~increased~~and ~~yet~~then ifafter ~~the~~public ~~President~~statements ofregarding ~~Argentina~~different ~~has~~information ~~already~~and ~~authorised~~different contents, this ~~increase~~question of the bid by E.ON is not being dealt with, with the same rigour and with the same punctiliousness?? And so, we want all these doubts about

~~Rafael~~This ~~Villaseca.~~presentation ~~I will answer some~~ of the ~~questions.~~3rd WeQuarter ~~don’t~~2006 ~~know~~results ~~what’s~~was ~~going~~made toin ~~happen~~Spanish ~~with the regulation of wind power~~ and ~~renewable~~simultaneously ~~energies~~translated ~~in general. So, I would just be speculating if I gave you an answer. As far as we know, the Ministry has not made any final decisions yet regarding what’s going~~ to be the ~~future~~audience ~~taxation~~in onEnglish ~~this type~~by ofan ~~technologies~~interpreter. ~~The~~This ~~regulatory~~is ~~framework has~~ a ~~high~~transcript ~~degree~~ of ~~uncertainty~~the ~~and~~simultaneous ~~we will see what happens~~translation. As ~~far~~a asresult ~~your other question – we are not going to change our goodwill because the evolution~~ of ~~the~~such ~~business does not require that~~simultaneous ~~kind of action. As far as Latin America – in Mexico – what was the question about Mexico? Subsidies~~translation, ~~yes.~~this Wetranscript ~~are~~may ~~convinced~~contain ~~that~~certain ~~those~~errors ~~subsidies~~and/or ~~are~~omissions ~~going~~as toa beresult ~~extended.~~of ~~For~~either ~~the~~(i) ~~domestic market, Pemex has linked consumer prices to~~ the ~~Southern~~ USsimultaneous ~~prices~~translation ~~so that was why there were so many ups~~ and/or ~~downs~~(ii) ~~in prices that were very difficult to manage things domestically. Now,~~ the ~~Henry~~transcript ~~Hub position is different but at any rate what happens was that there was a great instability and that’s why those subsidies were established. We think those subsidies will continue. In our case~~process, ~~we are in a pass-through situation so there is no risk~~ for ~~us.~~which ~~But~~Gas weNatural ~~are convinced because we know the authorities from both the local parties~~SDG, we ~~know that it is their desire to complete the regasification plans for the country especially in Mexico City~~S. ~~We will see what happens~~A. ~~The changeover period~~ is ~~relatively~~not long and we will have to wait a few months to see what happens but in the meantime our decision in Mexico is that of great interest but at the same time we are going to wait and see what decisions are maderesponsible. ~~In the meantime, we have slowed down our investment programme in Mexico but we are fully convinced that everything will go back to normal.~~

LOGO

In the ~~Argentina,~~use ~~about~~of ~~three~~insider ~~months~~use ~~ago, there was a ministerial order and now the authority has~~ to ~~implement~~be itdissipated. ~~Unfortunately,~~This ~~in Argentina,~~is ~~everything~~very ~~takes~~simple. aIt ~~long~~is ~~time~~enough tofor ~~happen. We are~~ the ~~third~~two ~~company~~companies involved to ~~have~~make ~~received~~available ~~this~~to ~~ministerial~~the ~~authorisation~~judge sothe ~~we have been favoured in that regard but as you know there is a lot of bureaucracy in Argentina and things don’t~~necessary ~~happen~~information asso ~~fast as we would like them to. But we hope~~ that itthe ~~won’t~~judge becan ~~too~~decide ~~long~~what ~~when~~measures wehe ~~are~~is ~~able~~going to implement ~~this ministerial order~~.

~~Carlos~~Luis ~~J. Álvarez~~Calvo ~~(CFO). As far as distribution and retail activities, we are talking mainly about settlements with the CNE, the National Energy Commission. In a~~

Any further questions from the floor?

If this is not the case, we will pass on to the telephone. Questions made on the telephone.

Moderator

There are no questions in Spanish.

Luis Calvo

What about questions in English? Any questions in English?

Martin Young from Lehman Brothers

Good morning to you all. I just wanted to talk a bit about the Endesa offer. If you compare what Gas Natural has been saying to what E.ON has been saying, clearly, there is a lot more noise coming out of the E.ON camp than there has been coming out of the Gas Natural camp now for a considerable period of time. Are we therefore to infer from this that Gas Natural very much considers that their move for Endesa is likely to fail and therefore we have to concentrate on the stand alone strategy that was communicated back in 2004? And then in respect of that strategy, given that acquiring Endesa would have meant a radical shift in the size of the group, are we to expect a change in strategy from Gas Natural once the Endesa situation is resolved? Thank you.

Well, as regards the contents, the allegedly contents published by the mass media today. Well, this is something you should ask Mr Bernotat. We don’t have any more information so there is nothing for me to say about it.

~~conservative~~This ~~way,~~presentation weof ~~tried~~the 3rd Quarter 2006 results was made in Spanish and simultaneously translated to ~~provision~~the ~~things~~audience asin MrEnglish ~~Villaseca~~by ~~explained~~an ~~although~~interpreter. weThis ~~know~~is ~~that~~a ~~some~~transcript of the simultaneous translation. As a result of such simultaneous translation, this ~~things~~transcript ~~might~~may ~~disappear~~contain ~~before~~certain ~~the~~errors ~~end~~and/or omissions as a result of either (i) the ~~year~~ simultaneous translation and/or (ii) the transcript process, for which Gas Natural SDG, S.A. is not responsible.

LOGO

~~Good~~Now ~~morning~~regarding our strategy. Naturally, Iwe amstill ~~Virginia~~think ~~Sanz~~that the integration of gas and electricity of both businesses is an excellent strategy but at any rate, we are immersed in a strategic plan 2004-2008. We have rolled up our sleeves to implement this plan and this plan will be implemented regardless of the fact that we perform corporate transactions. Gas Natural is convinced that we are perfectly capable of developing value for our shareholders with a stand alone strategy. And this is what we are doing, in spite of the takeover bid, and this is what we are still going to do. Complying with our strategic plan and of course, we will develop a new strategic plan which will continue the current one. So, we are serious that the integration of gas and electricity is a good idea but it is not the only idea and it need not be the key for the development of this company, as you can see from ~~Deutsche~~our ~~Bank~~results. There are of course, different horizons apart from the takeover bid which we have launched and this is what we are showing month after month and this is what we are going to be working on.

~~I’d~~Luis ~~like~~Calvo to know as far as the increase in distribution in Spain – what do you think might happen before the year end? Do you think that we are going to see growth as in the first semester or 6% growth throughout the whole year? And as far as your participation in Enagás which has come down to 6.5%, do you intend to stay at 5% as you have been required to or are you going to go down to 1% which we believe is what we should do before next year. And, should the CNE give a go-ahead to E.ON and should your takeover bid be stopped by the Supreme Court, some of the things that E.ON would have to sell – could you be interested in investing in those divestitures by E.ON?

~~Carlos~~Any J.further ~~Álvarez.~~questions ~~Well,~~in ~~the normal thing would be to increase remuneration 7%. So, we would be close to 6%, 7% - ebitda would be close to 6%, 7%.~~English?

~~Rafael~~Operator Villaseca. As far as the other two questions about Enagás. It is our duty to reach the 5% threshold before year end. Maybe an act of parliament will be passed that will limit our participation to 1%. If that should happen then we will decide which is the best policy to divest in Enagás. We haven’t decided how to do it because it is still just a possibility. So we still thinking of about 5%. As far as the hypothetical purchase of assets from Endesa, well we don’t know what’s going to happen. Everything is just mere speculation. When a decision is made regarding the takeover bid, we will decide what to do. We will do what’s best for our shareholders, obviously. But we haven’t started any negotiations or anything yet. We are just waiting to see what the new scenario is and if there are two – we have to know whether there are two competing bids or not and what’s the legal framework in order to analyse the different alternatives and choose one that is best for our shareholders.

Yes we have a question from Mr. Paul Rogers from Merrill Lynch. Mr Rogers please go ahead.

Paul Rogers from Merrill Lynch

Hi, good morning. I’ve got three questions, if I can. The first one is just on your upstream position in gas, if you can just remind me, by the end of 2008 what you expect the net change in upstream volumes to be? The second question on tax and the changes that we have seen last week. Can you tell us what impact the tax changes are going to have on you and whether there is going to be any kind of deferred tax, write-off or write back coming from tax assets and liabilities on the balance sheet? And, apologies, but I just want to revisit the M&A situation. Can you just talk about whether you have had contact

~~Luis~~This ~~Calvo.~~presentation ~~Any~~of ~~further~~the ~~questions~~3rd ~~from~~Quarter 2006 results was made in Spanish and simultaneously translated to the ~~floor?~~audience ~~Well,~~in ifEnglish ~~that~~by an interpreter. This is ~~not~~a transcript of the ~~case~~simultaneous ~~then~~translation. weAs ~~will~~a ~~now~~result ~~take~~of such simultaneous ~~questions~~translation, ~~through~~this transcript may contain certain errors and/or omissions as a result of either (i) the ~~conference~~simultaneous ~~call.~~translation ~~First~~and/or (ii) the transcript process, ~~questions~~for inwhich ~~Spanish~~Gas ~~please.~~Natural ~~Any~~SDG, ~~questions~~S.A. inis ~~Spanish?~~not responsible.

LOGO

~~Yes~~ with other parties in Iberia, namely, the Portuguese government, EDP or any other player? I ~~have~~realise aeverybody ~~question~~talks ~~from~~to Mreverybody ~~Daniel~~at ~~LaCalle~~the ~~from~~moment but I just ~~Citadel~~like ~~Investments~~some detail or confirmation. Thanks.

~~Good~~The ~~morning.~~first Iissue ~~have~~regarding ~~three~~the ~~questions~~upstream business. AsWell, ~~far~~we asthought ~~the~~to ~~timing,~~develop ~~the~~our ~~possibility~~Gassi ofTouil ~~reducing~~project ~~the~~in ~~participation~~2009. inWe had ~~Enagás~~an accident to ~~1%, when~~ do ~~you~~with ~~think~~perforation recently and this ~~law~~will ~~might~~delay bethings ~~passed?~~probably. ~~Would~~And itthere beis ~~mid-year~~no ~~2007~~doubt orthat doin ~~you~~the ~~think~~upstream itprojects, ~~might~~all beof ~~passed~~these –projects ~~that~~are ~~act~~the framework of ~~parliament~~high ~~might~~investment becosts ~~passed~~and ~~earlier~~high ~~than~~gas ~~that~~costs. AsTherefore, ~~far~~all asour upstream projects are set within the ~~profitability~~same ofpolicy. ~~combined~~We ~~cycle~~would ~~some~~like ~~companies~~to have 15% of our procurement in ~~Spain~~integrated ~~have talked~~project ~~about~~and ~~30%~~the development of all of this at present is stressing and ~~profitability~~influencing ~~below~~everything ~~9%.~~because ~~Could~~all ~~you~~oil ~~tell~~and usgas ~~which~~operations are increasing their costs in the ~~load~~upstream ~~factors~~field. ~~that~~And, ~~you~~therefore, we are working hard on all our projects on the basis, we are working with ~~regard~~landscape toof ~~combined~~an ~~cycle~~increase ~~activities~~in costs throughout the world and ~~could~~we ~~you~~are ~~compare~~also ~~yourselves~~exploring commercial opportunities. We are working very hard in order to ~~your~~maintain ~~competitors.~~the ~~And~~profitability of the ~~other~~project. ~~question~~That is ~~about investment~~our ingoal. ~~upstream~~The ~~activity~~Algerian government has changed the law. WeYes, but our project, the Gassi Touil project has some specificities which tell it apart from the legal framework because we have ~~seen~~a ~~capex~~specific ~~inflation~~case in ~~several~~Algeria. ~~projects~~We –have ~~what’s~~a ~~your~~partnership ~~investment~~with ~~plan?~~Sonatrach Dothere. ~~you~~Therefore, ~~intend~~the tovolumes ~~invest~~are ~~more~~already ~~due~~adapted to ~~this~~a ~~capex~~certain ~~inflation~~progressiveness. ~~that~~These are the gas volumes and therefore the results. As we ~~see~~still haven’t got any formal agreement or any formal information - but we trust, we believe that the fiscal regulations in Algeria have to do with the ~~rest~~old ofperforations, the ~~industry~~old orimplementations ~~are~~but ~~you~~not ~~going~~with toGassi ~~maintain your~~Touil. ~~investment~~We ~~plans~~will aslook ~~they~~at ~~are~~this ~~now~~in the following month but the basic formula already incorporated this progressivity.

~~Rafael~~Regarding ~~Villaseca.~~the ~~Well,~~contacts ~~obviously~~you wementioned, ~~will~~our ~~have~~company tohas ~~see~~not ~~what~~started ~~happens~~negotiations ~~with~~leading ~~this~~to ~~law,~~any corporate ~~with this new law~~transaction. ~~I remember~~Of ~~they~~course, ~~spoke~~this ~~about~~company adid ~~six-month~~study ~~period~~different topossibilities ~~enforce it~~ but we ~~will have to see what happens when the law is passed we will see what~~ are ~~its implications~~ not ~~only~~at ~~for~~present ~~GAS~~conceiving ~~NATURAL~~any ~~but~~corporate ~~for~~operation ~~other~~with ~~investors.~~any ~~I think we are going to have a six-month period to do something about it~~party. ~~So we have plenty of time and we will see what’s best for us.~~

As far as combined cycle, well, we are the ones with the highest utilisation factor in this industry. This, together with our excellent procurement means that we are very happy with our electrical activities. Together with the utilisation figures and ebitda figures, well, it shows that we are very well positioned.

AsThis ~~far~~presentation asof ~~upstream~~the ~~activities,~~3rd ~~not~~Quarter ~~only~~2006 ~~gas~~results ~~but~~was ~~also~~made ~~oil,~~in ~~there~~Spanish isand asimultaneously ~~trend~~translated ~~towards~~to ~~increasing~~the ~~investment.~~audience Wein ~~may increase~~English ~~our~~by ~~investment~~an ~~too~~interpreter. ~~but~~This ~~this~~is ~~should~~a ~~not~~transcript ~~affect~~of the ~~profitability~~simultaneous oftranslation. ~~our~~As ~~business~~a ~~because~~result ~~the price~~ of ~~gas~~such ~~just~~simultaneous translation, ~~like~~this ~~the~~transcript ~~price~~may ofcontain ~~oil~~certain ~~has~~errors ~~increased~~and/or ~~dramatically~~omissions soas wea ~~are~~result ~~still~~of ~~convinced~~either ~~that~~(i) the ~~decisions~~simultaneous wetranslation ~~made were right~~ and/or we(ii) ~~will~~the ~~have to~~transcript ~~see~~process, ~~what~~for ~~happens~~which ~~and~~Gas ~~then~~Natural ~~decide~~SDG, ~~whether we are going to invest more~~S.A. ~~We are fully convinced that the profitability of our plan~~ is ~~more~~not ~~than justified due to the current situation and the current prices of energy and prices of specially gas~~responsible.

LOGO

Luis Calvo. ~~Are there any further questions in Spanish.~~

~~Yes,~~We have ~~Mr. LaCalle~~two ~~There~~people iswho awant ~~follow-up~~to ~~question.~~ask ~~From~~questions ain ~~return,~~Spanish ~~from~~over athe ~~profitability point of view~~telephone, ~~what~~so iswe ~~the~~will ~~additional~~listen ~~capex level and taxation in Algeria that might lead you~~ to ~~think~~the ~~that~~first ~~it is not a good project for you~~question. ~~Have~~ ~~you identified any kind of sensitivity.~~

~~Rafael~~Operator Villaseca. No, we haven’t. We doubt that it is going to affect us. The new taxation system which is not going to affect us. Also, because of the special characteristics of the project – because we have a joint venture with Sonatrach. Now as far as capex increase I think it is going to be compensated by other factors. We have not made any final decisions yet. We are looking at how to optimise our costs but in the next few months we don’t think this is going to affect the profitability of the project in view of the increased costs in oil prices.

~~Luis~~The ~~Calvo.~~first ~~Any~~question ~~further~~will ~~questions?~~be ~~No?~~asked Noby ~~more~~Mr. ~~questions~~Daniel inLacalle ~~Spanish~~from Citadel Investments. InPlease ~~English?~~ask ~~Any~~your questions insir. ~~English?~~

~~OK,~~Daniel ~~now~~Lacalle ~~questions in English~~ from ~~the~~Citadel ~~conference~~Investments ~~call.~~

WeGood ~~have~~morning aeverybody. I wanted to ask a question ~~from~~about Mrthe upstream again. ~~Paul~~ ~~Rogers~~You ~~from~~mentioned ~~Merill~~the ~~Lynch.~~opportunities Mrin Nigeria. ~~Rogers~~ ~~please~~What golevel ~~ahead~~of ~~thank~~CAPEX are you expecting in Nigeria? We have recently seen Royal Dutch Shell said you had certain problems. They had certain problems, certain social problems in Nigeria, production problems. So what is your project and what are the opportunities you expect in Nigeria regarding investment and what quantities are we talking about?

Now, in the second place, regarding the corporate opportunities that you may be envisaging. Obviously, there is a bid on Endesa which is underway. Then, there is a series of additional opportunities but it seems that the future may be more geared towards friendly transactions and probably put on paper. What decisions is the company envisaging to improve its borrowing ratio? Are you planning to do anything to improve the status of your balance sheet or will you just carry on with your investment plan as it is?

Well, regarding your first question. In Nigeria, we are still negotiating this project so there is not much I can say about that except that this would be a very significant project of about 7 to 8 bcm a year for gas but we haven’t specified the scope, the volume or the situation. We are still negotiating but these negotiations have not finished. The negotiations in this field are normally complex ones and periods are normally long.

~~Good~~This ~~morning.~~presentation ~~Can I ask a couple~~ of ~~questions~~the ~~please.~~3rd ~~Firstly,~~Quarter on2006 ~~your~~results ~~electricity~~was ~~sales~~made in ~~the~~Spanish ~~second~~and ~~half~~simultaneously oftranslated to the ~~year~~ –audience ~~can~~in ~~you~~English ~~talk~~by ~~about~~an ~~the~~interpreter. ~~impact~~This ~~that~~is ~~Iberdrola’s~~a ~~actions~~transcript ~~are~~of ~~having~~the ~~your~~simultaneous ~~achieved~~translation. ~~prices~~As ~~and~~a ~~given~~result ~~where~~of ~~the~~such ~~oil~~simultaneous translation, ~~prices~~this istranscript ~~going~~may tocontain ~~what~~certain ~~your~~errors ~~are~~and/or ~~looking~~omissions ~~like~~as ina ~~the~~result ~~second half~~ of ~~the~~either ~~year~~(i) ~~versus~~ the ~~first~~simultaneous ~~half.~~translation ~~Can~~and/or ~~you~~(ii) ~~give us a preliminary view on~~ the ~~recent~~transcript ~~NAP~~process, ~~National~~for ~~Allocation~~which ~~Plan~~Gas ~~and~~Natural ~~what~~SDG, ~~emission~~S.A. ~~rights~~is ~~you~~not ~~are~~responsible. ~~going to get for the second period of the EU?~~

LOGO

~~And~~In ~~then~~Nigeria ~~just~~there have been indeed certain problems, unfortunately. There are normally certain problems that are aassociated ~~final~~to ~~question~~some onproducing ~~Italian~~countries ~~Ebitda~~and isproducing ~~negative~~countries inhave ~~Q2,~~problems. ~~can~~Countries ~~you~~which ~~just~~are ~~confirm~~beset ~~the~~with ~~pattern~~problems. But many countries are getting a good source of ~~ebitda~~supply ~~for~~from ~~this~~Nigeria. ~~year~~We inhave ~~Italy~~had very successful relations with Nigeria for a long time and ifwe itare convinced that there is ~~going~~a possibility to behave ~~similar~~an toexcellent ~~the~~agreement ~~one~~for wea ~~saw~~new ~~last~~project ~~year?~~in that country.

~~Rafael~~Regarding ~~Villaseca.~~our Ascapacity ~~far~~for borrowing, ~~as your first question – well~~we, ~~the~~next ~~second part of the~~ year, we ~~think~~will itenter ~~going to be in line with~~ the ~~first~~last ~~semester~~lap of ~~the~~our ~~year.~~strategic Weplan ~~don’t~~and ~~think~~we ~~there~~ are ~~going~~convinced tothat beour ~~any negative~~strategic ~~impacts.~~plan It is ~~true~~very ~~that~~successful ~~during~~and ~~the~~we ~~first~~can ~~semester there have been some relevant things. First of all~~probably, ~~the~~we ~~establishment~~are ofsure athat ~~cap~~we ~~for~~can ~~the~~fulfill ~~regulated~~this ~~market~~plan and ~~secondly~~we ~~the~~will ~~actions~~probably ofcontemplate ~~operators~~new opportunities in ~~this~~order ~~market~~to ~~which~~maximise ~~once~~the ~~again~~shareholder ~~has brought about some changes~~value. ~~All~~So, ofwe ~~these~~ have ~~led~~made tothe ~~some~~commitment, ~~changes~~probably ~~and~~next ~~this~~year, ~~market~~we iscan ~~pending~~plan ~~final~~our ~~regulation.~~next ~~As you know~~horizon, ~~about~~that ais ~~year ago~~ the ~~white~~continuation ~~paper~~of onour ~~the~~2000 ~~sector~~plan ~~was published. So, both~~ because of this ~~reason~~plan ~~that~~up Ito ~~have~~2008 ~~just~~will ~~explained and also because the lack of electrical generation in Spain needs to~~ be ~~resolved~~successfully ~~with~~completed ~~combined~~and then ~~cycle,~~ we ~~are~~can ~~convinced~~embark ~~our~~on ~~results~~a innew ~~electricity~~plan ~~will~~after ~~not be negatively impacted~~that.

AsOperator far as the CO2 allocation plan, we are familiar with it, we believe that it might be favourable to us. We don’t have much more to add but the truth is that in this sector of the industry there are doubts about how exceptional government measures are going to be established with regards to emission rights which may not be free of charge. There is great controversy in the industry and not everyone is looking at the impact in the same way. GAS NATURAL has been more conservative and we have allocated to our costs, the increase in this item because we believe that emission rights are not free of charge. Other companies have not taken into account the cost of emission rights but we will see what happens with the regulation. We are convinced that there is not going to be discrimination based on the Kyoto plan if the government wants to charge us this

We will go on to the next question now. The next question is going to be asked by Jose de la Rosa from UBS.

Jose de la Rosa from UBS

Hello, good morning. I will have two questions. The first is related to a question which has already been asked which affects regulatory changes in Spain. Could you be more specific as to what you believe are the main lines regarding the changes that the new team of the Ministry of Industry and the new secretary of state of energy want to implement? And my second question is related to the previous proceedings in the court in Barcelona. Could you explain to us what is the foreseeable schedule for this legal process and I would also like you to indicate to us whether at a certain moment, especially, if that

~~emission~~This ~~rights~~presentation ~~they~~of ~~are~~the ~~not~~3rd ~~going~~Quarter 2006 results was made in Spanish and simultaneously translated to ~~discriminate~~the ~~specific~~audience ~~markets~~in English by an interpreter. ~~They~~This ~~might~~is doa transcript of the simultaneous translation. As a result of such simultaneous translation, this ~~with~~transcript ~~contaminating~~may ~~industries~~contain ~~but~~certain ~~not~~errors ~~markets.~~and/or ~~But~~omissions ~~anyway~~as a result of either (i) the ~~impact if~~simultaneous ~~anything~~translation ~~will~~and/or be(ii) ~~negligible~~the ~~because~~transcript weprocess, ~~are~~for ~~already~~which ~~allocating~~Gas ~~this~~Natural toSDG, ~~our~~S.A. ~~costs~~is not responsible.

LOGO

~~Carlos~~ schedule J.is ~~Álvarez.~~such ~~Microphone please – you have to realise~~ that ~~ebitda~~there ~~and~~may ~~margins are important here. If we look at the ebitda – the second quarter last year – it was about zero. So, both during the second and third quarters, well we expect this to~~ be ata ~~zero~~formal ~~and~~law ~~then~~suit inpresented ~~the~~after ~~winter, in~~ the ~~last~~bid ~~quarter~~by ~~it might pick up~~E.ON Inis ~~general, Italian ebitda, well it will depend on consumption levels but in general I think it should be in line with the increased activity~~executed. ~~The~~Do ~~fact~~you ~~that~~contemplate weany ~~have~~cautionary ~~more~~measure ~~end~~which ~~connections and greater margins. So, in~~may ~~accumulated~~lengthen ~~terms~~this weprocess? ~~hope we will have the same growth rates that we have had so far.~~

~~Luis~~Well, ~~Calvo~~let me tackle your second question first. IWe ~~have~~don’t ~~been~~rule ~~told~~out any decision, we haven’t made any decision yet. The question is very simple. It is important but simple. We are convinced and we fear that there ~~are~~has been use of insider information. The judge thinks that it is likely that this has happened and this is the situation. No more no ~~further~~less. We want to be ~~questions~~very –vigorous ~~any~~and ~~more~~respect ~~questions~~the work of the judge and we will see whether, from the ~~conference~~information ~~calls?~~gleaned, the judge establishes that there was a use of insider information. If this was the case, of course we will do our thing and other parties will also do what they think fit. But I think it is too early to speak about that now. And, of course, things could go fast if the affected parties, the involved parties are diligent and they make the information available to the judges as soon as possible. So, this could be done in a question of days, in a matter of days and they can probably, they can make an effort to show that we are wrong. But if they start procrastinating and if they start using legal tricks to delay the process then one might think that they are trying to hide something and because they haven’t acted in a very correct way. And if they did that, things could of course take long. But I think they should take advantage of this opportunity to leave things as clear as possible.

SoSecondly, ~~now~~there is not much I can say. We can say what we ~~are~~like ~~going~~about the regulatory framework but really the administration, the government is about to ~~read~~establish this regulation or this regulatory framework. I think you all know this. In the ~~questions~~first ~~that~~place, ~~have~~they should establish a price forming system which is objective, transparent and reliable. The current system has been harshly ~~sent~~criticised by ~~e-mail~~many of, many players in the sector and by analysts and observers and it should be modified urgently. This, I believe that the government will do this to give the market credibility and to reduce the capacity that this system has to be manipulated and of course, the current situation in which over 70% of transactions are regulated. This is not tenable because this gives rise to a deficit which is very negative because it doesn’t allow companies to compete or doesn’t penalise

First, Jose Javier Ruiz from Exane-BNP Paribas.

The first question was already answered. It has to do with trading activities. The second question is: “the changes in the Ministry of Industry, will they affect the new regulation of distribution in retail business in 2007?”

Rafael Villaseca. Well, as far as gas is concerned I don’t think there is going to be any impact on this regulation. We don’t expect to see any major changes. We have a feeling that the Ministry has suspended this until next year. We are talking about gas here, probably because they are now focused on the electrical market. But this is just mere speculation and I don’t think there are going to be any major changes.

Luis Calvo. The second question comes from Adrien Fourcade from Deutsche Bank. Should you reconsider the price of your bid on Endesa? Would you still have a credit rating commitment at least A -?

~~Rafael~~This ~~Villaseca~~presentation of the 3rd Quarter 2006 results was made in Spanish and simultaneously translated to the audience in English by an interpreter. ~~Yeah~~This is a transcript of the simultaneous translation. As a result of such simultaneous translation, this transcript may contain certain errors and/or omissions as a result of either (i) the simultaneous translation and/or (ii) the transcript process, for which Gas Natural SDG, S.A. is not responsible.

LOGO

~~Luis~~ companies ~~Calvo~~for not being efficient. ~~The~~This ~~second~~is ~~question~~very good for some companies but this is ~~from~~not ~~Raimundo~~in ~~Fernández~~line ~~from~~with ~~Credit~~what ~~Suisse~~the market should be and what European standards indicate. ~~Does~~We ~~GAS~~are ~~NATURAL~~therefore ~~have~~demanding ~~any~~that ~~strategy~~there should be a real liberalisation of the market making it possible for everybody to ~~convince~~compete ~~Endesa’s~~on ~~managers~~an ifequal ~~E.ON~~footing ~~doesn’t~~and ~~stay~~so that there this impossibility to compete in the ~~process~~free market disappears. So, we are trying to get the government to present, to bring together a real competitive market and to do away with the market obstacles which exist currently to competition. I believe that these are the ~~managers~~two large lines that the government should act upon – clarifying things and, because up to now the sector has lacked a balance and apart from the taking stock of ~~Endesa~~deficits, ~~will~~which ~~lift~~in ~~precautionary~~spite ~~measures~~of ~~over~~having a cap, one is under the ~~takeover~~impression ~~bid?~~that the tariff, we have the tariff market, deficits, caps—these are words that can be overlapped and at the end of the day they make many companies very rich. People who sell less make more money. This is really completely absurd. It makes no sense. We are convinced that the government is going to put an end to this situation, establishing open and competitive practices.

~~Rafael~~Luis ~~Villaseca.~~Calvo No, we don’t have any strategy. I am afraid we can’t understand what Endesa’s strategy is. We have our own industrial strategy which is well known to all of you. As far as our takeover bid we are fully convinced of the favourable integration of the two companies – the gas and electricity businesses. In fact, if they look at E.ON bid then they should be fully convinced at how good our bid is. As far as lifting the precautionary measures we don’t understand why they were established in the first place. I never understood why they wanted to reject our bid but anyway I think everything is clear and even though ideally this is the case I don’t what else to add.

~~Luis~~Well, ~~Calvo. The~~there ~~other~~are ~~question~~no ismore ~~also~~questions ~~related~~over to the ~~bid.~~phone, Itso ~~comes~~we ~~from~~will ~~Harry~~now ~~Couper~~proceed ~~from~~to ~~Paulson~~read ~~Europe. As far as our agreement with Iberdrola – for~~ the ~~sale~~questions ~~of Endesa’s assets. Don’t you think~~ that ~~the price that you~~ have ~~agreed~~ isbeen ~~too~~received ~~low~~ in ~~view~~our ofweb ~~the~~site. ~~recent evolution of Endesa? Are you still in touch with Iberdrola?~~

~~Rafael~~The ~~Villaseca.~~first Icomes ~~think~~from ~~there~~Antonio isCruz afrom ~~great confusion~~Banesto ~~here.~~and Werefers ~~have~~to ~~not~~the ~~agreed~~law ~~any~~suit ~~prices~~in ~~with~~the ~~Iberdrola~~Barcelona socourt. IThis ~~don’t see how you can say that it~~ is ahas ~~low~~already ~~price.~~been ~~The price will be decided by investment banks when the time comes~~answered.

~~Luis Calvo.~~ The ~~next~~second ~~question~~comes is from ~~Fernando~~Raimundo ~~Murillo~~Fernández Cuesta from ~~Ahorro Corporación~~CSFB. ~~The~~To ~~question~~what extent is ~~why~~the ~~has~~restriction ~~there~~of ~~been~~vote ~~such~~contained ain ~~dramatic~~the ~~decrease in~~bylaws ~~ebitda~~of inEndesa ~~Puerto~~an ~~Rico~~obstacle? ~~during~~What is the schedule ~~second~~for ~~quarter~~the ofpublic offering or the ~~year~~takeover bid in case that it goes one way or another?

~~Carlos~~This J.presentation ~~Álvarez.~~of Ithe ~~will~~3rd ~~answer~~Quarter ~~that~~2006 ~~question~~results ~~later~~was ~~on.~~made Iin ~~don’t~~Spanish ~~have~~and simultaneously translated to the ~~answer~~audience ~~off~~in English by an interpreter. This is a transcript of the ~~top~~simultaneous translation. As a result of mysuch simultaneous ~~head~~translation, this transcript may contain certain errors and/or omissions as a result of either (i) the simultaneous translation and/or (ii) the transcript process, for which Gas Natural SDG, S.A. is not responsible.

LOGO

~~Fernando~~Rafael ~~Murillo.~~Villaseca ~~What part of the ebitda from Argentina comes from the additional income recognised by the government but which has not been yet applied to the final prices?~~

~~Carlos~~Well, J.as ~~Álvarez.~~to ~~Well,~~the wefirst ~~have~~question. ~~seen~~The ~~conservative~~political ~~increases~~restriction ~~since~~that ~~the~~establishes ~~end~~a ofmaximum ~~last~~10% ~~year.~~of Sorepresentation myseems ~~answer~~to ~~will~~ be ~~that~~quite ~~the~~stringent ~~increase~~especially inif ~~Argentina,~~you ~~the~~want ~~increase~~to inenter ~~ebitda~~into inindustrial ~~Argentina~~partnerships iswith ~~about~~Endesa. ~~zero~~Whoever wants to acquire Endesa or ~~very~~they ~~small.~~have Soan ~~this~~industrial ~~increase~~project, iswell, ina ~~line~~number ~~with~~of ~~what~~decisions wewill ~~explained~~have ~~before~~to be made.

~~Luis~~As ~~Calvo.~~to ~~The~~the ~~last~~second ~~series~~question of– ~~questions~~what ~~comes~~was ~~from~~the ~~Alberto~~question ~~Gandolfi~~again? ~~from~~What if JPthe ~~Morgan.~~cautionary ~~First~~measures ~~question~~are –removed? ~~can~~Well, ~~you~~if ~~give~~that ushappens, anif ~~idea~~the ~~about~~court ~~what~~decides isthat they are going to beremove the ~~net~~cautionary ~~debt~~measures byand Gas Natural decides to move on – there will be an auction process, escrows, at the ~~end~~securities exchange commission. But of course this is all, you know, I am talking about predicting the ~~year?~~future. We don’t know whether that is going to happen or not.

~~Carlos~~We have J.two ~~Álvarez.~~questions Ifrom ~~believe~~Jose asJavier ~~far~~Ruiz asfrom ~~our debt on June 30th which is before dividends is paid~~Paribas. IThe ~~think~~first it is ~~going to be more in line with our forecast than last year. This is because in the second part of the year~~, ~~investments~~how income the ~~second~~CNMV ~~part~~decided ofnot ~~the year will be greater than during the first part of the year due~~ to ~~the~~proceed ~~fact~~with ~~that~~your inlaw ~~the~~suit ~~electrical~~against ~~business,~~Deutsche weBank? are going to build in Malaga. That means that we are going to make more investments in electricity. As far as distribution and retail business, those are growing trends. Investment in the second part of the year especially in the last quarter there are more investments. As far as integrated projects there is also going to be more investments.

SoConsidering ~~everything points to the fact~~ that in the ~~second~~electrical ~~part~~sector ofhas ~~the~~already ~~year,~~reached weits ~~are going~~ceiling toin ~~have more investments than during the first half of the year. In~~ terms of ~~cash~~investment, ~~generation~~where ~~we believe we are going to continue to generate cash at the same rate as during the first semester but our debt~~ will ~~probably~~they beinvest ~~higher~~next? ~~than during the first semester and more in line with last year’s debt.~~

Rafael Villaseca

I don’t think we have really reached the maximum level of combined cycle power generation. According to forecasts from the Ministry, the percentage of combined cycle generation will reach 45% of the ordinary power generation today which is just 26%. So, this will continue to grow. Obviously, we have not reached the limit yet for a number of years. Considerable investment will be necessary in Spain in new combined cycle plants to satisfy the demand.

As to the first question, well the CNMV the securities exchange commission, last March did not take on our request. Back in March, of course, there was not as much information as it is available today. We sent a number of official documents and public statements

~~Luis~~This ~~Calvo.~~presentation ~~There~~of ~~are~~the ~~two~~3rd ~~questions~~Quarter ~~that~~2006 ~~have~~results ~~already~~was ~~been~~made ~~answered.~~in ~~The~~Spanish ~~increased~~and ~~cost~~simultaneously translated to the audience in ~~Gassi~~English ~~Touil~~by ~~and~~an ~~the new~~interpreter. ~~regulation~~This onis ~~remuneration~~a ~~for~~transcript ~~gas~~of ~~distribution~~the insimultaneous ~~Spain~~translation. ~~The~~As ~~last~~a ~~question~~result ~~has~~of tosuch dosimultaneous translation, ~~with~~this ~~the~~transcript ~~sale~~may ofcontain ~~gas.~~certain ~~Could~~errors ~~you~~and/or ~~tell~~omissions usas ~~what~~a isresult ~~going~~of toeither be(i) the ~~ebitda~~simultaneous ~~margin~~translation ofand/or ~~this~~(ii) ~~activity~~the ~~during~~transcript ~~the~~process, ~~first~~for ~~semester?~~which Gas Natural SDG, S.A. is not responsible.

LOGO

~~Carlos~~ which J.were ~~Álvarez.~~not ~~The~~contained ~~margin~~in ~~for~~ the ~~sale~~March ofreport. ~~gas~~And ~~during~~ the ~~first~~second ~~half~~issue ofis ~~the~~one ~~year – margins in gas business have been the result~~ of ~~the restructuring~~jurisdiction. ofThere ~~our~~is ~~portfolio and obviously this will have~~ a ~~gradual~~sanctioning ~~effect.~~mechanism Werole ~~will~~played ~~see~~by the ~~results~~CNMV ofand the other ~~contracts~~role ~~are~~is ~~??? for~~ the ~~average~~safeguard ~~for this first half~~ of the ~~year~~new practices. ItSo, isthere ~~what~~are wetwo ~~thought~~clearly ~~before~~differentiated roles. ~~Our~~From ~~ebitda~~March ~~has~~to ~~grown~~July, as a ~~result~~considerable amount of ~~this growth~~information ~~activity.~~has ~~Obviously~~been published in the ~~impact~~media ~~will~~which behas ~~gradual~~put ~~and~~us wein ~~believe~~a ~~that~~position ~~the~~to ~~second~~submit ~~part~~all of ~~the~~this information ~~year~~to ~~will also see~~ the ~~effect~~judge ~~of increased margins~~ and ~~our~~I ~~margins~~have ~~should~~commented beon the ~~same~~opinions orof ~~even higher than those in~~ the ~~first~~judge ~~half~~a offew ~~the~~minutes ~~year~~ago.

~~Rafael~~Luis ~~Villaseca.~~Calvo ~~OK. Those are all the questions. We can now conclude this presentation. Thank you very much to all of you and have a good day.~~

~~(end~~OK, we have a number of ~~transcription)~~questions from Alberto Gandolfi from JP Morgan. First, what is the forecast for the wholesale, upstream, midstream EBITDA for next year? And second, what do you expect about the regulatory framework for the gas market?

Rafael Villaseca

Well, for the next year there will be no major changes in the regulatory framework. We predict that the framework will continue to be in place. So, in 2007 the market will follow the same patterns and the same channels.

Carlos Alvarez (CFO)

As to EBITDA, well, in the upstream and midstream businesses, it is easy to predict that 80% comes from the Maghreb gas pipe. The growth is in terms of the volume of gas transported. And the second is about the possible utilisation, the degree of utilisation of the fleet. And it is quite high and will continue to be so next year. As to the wholesale market, there is a pick-up, recovery of the market as we have seen in the figures presented and this will hopefully continue within the next months. Obviously, the margins that exist in the gas market are not going to be the same as the margins of five years ago. This will be a single digit not a double digit margin but given the new framework of international prices, I think we will continue along the same lines in terms of prices and margins.

This presentation of the 3rd Quarter 2006 results was made in Spanish and simultaneously translated to the audience in English by an interpreter. This is a transcript of the simultaneous translation. As a result of such simultaneous translation, this transcript may contain certain errors and/or omissions as a result of either (i) the simultaneous translation and/or (ii) the transcript process, for which Gas Natural SDG, S.A. is not responsible.

LOGO

Luis Calvo

OK, the next question comes from Chris Moore [from ABN AMRO.]

First question. Am I right in thinking that you are withdrawing from the residential electricity market? What is the value that you give to your customer base? Second question, what is the condition of the gasification plants in Italy in Trieste and Taranto, when will these plants be commissioned?

Rafael Villaseca

As to the first question. It is true that we are reducing our presence in the liberalised market just like all of the other players in the market because this is not really a market. It is a really a ruin, it is not interesting to buy in the free pool and having to sell at the tariffs set by the government. This is absolutely nonsensical and I am sure that whoever is selling in that market will have other reasons to do so. Most of the companies have withdrawn very clearly from the market and we will do likewise because unless the system changes it is absolutely impossible to sell electricity in the free market in Spain.

And that is a reality, it is a fact. Gas Natural is, of course, very keen on selling electricity, and we are very confident that the new regulatory framework will find a solution to these problems so, we can regain efficiency. But it makes no sense at all having to buy energy at market prices and having to sell it at bargain prices. This is yet another asymmetry of the power market. In a free market, the difference between income and expenditure is call profit or loss. But, for the companies in the regulated market it is called deficit and this is absolutely unsustainable. But, this will end, I am sure, when it becomes a free competitive market again. Of course, Gas Natural will be more than willing to operate in the market.

LOGO

As to the Italian plants, well, currently there is a debate going on in Italy about the plants that are going to be used, etc. Well, hopefully there will be a decision by the Italian government before the end of the year. We were positioned in these two plants and we hope that these projects will see the lights. Of course, I think the schedule will be the ordinary commissioning deadline – 36 to 48 months. These are the normal deadlines for commissioning for these plants.

As to the EBITDA, for next year, the policy in the retail electricity business will have an impact on the growth of the EBITDA and in the market.

Luis Calvo

OK, the final question comes from Miguel Medina from Deutsche Bank. Not one but three questions.

First question. It deals with Argentina. When will the tariffs be raised and what is the amount of receivables, in other words, the amount of money that is being recognised as revenue and is yet pending collection?

Rafael Villaseca

Well, we hope that in Argentina sometime over next year the tariffs will be raised and implemented. As to the second part of the question, the answer is around 10 million euros.

LOGO

Luis Calvo

OK, second question. The new law on hydrocarbons in Algeria, does it have any impact on EMPL?

Rafael Villaseca

On the Maghreb pipe line – no, no, none at all.

Luis Calvo

And the final question on wind power generation, there are 1,000 megawatts in development, there are a number of drafts about the new regulation on wind farms. Do you think these megawatts are feasible? According to the new regulations, will the new regulations affect the future wind farms that will be commissioned in 2007?

Rafael Villaseca

Well, I would love to answer this question but I really do not know. Hopefully, in the new framework, the new regulations will be as positive as the existing ones. I don’t know whether the new regulations will be applied retroactively. We believe that wind power will continue to be an attractive type of energy. But, of course, one of the question marks around this is the possible retroactive nature of these measures.

Luis Calvo

OK, there are no further questions, so we can now bring this Q&A session to a close. I would like now to hand it over to our CEO.

LOGO

Rafael Villaseca

Well, I have very little else to add. I would like to thank you for your presence and well, we will meet again in three months’ time.

Thank you.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	GAS NATURAL SDG, S.A.
Date: July 31, 2006	By:	/s/ Carlos J. Álvarez Fernández
Date: November 13, 2006	By:	/s/ Carlos J. Álvarez Fernández
		Name:	Carlos J. Álvarez Fernández
		Title:	Chief Financial Officer

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