Snam Rete Gas PLAN FOR THE IMPLEMENTATION OF NEW CAPACITY AND FOR DEVELOPMENT OF THE TRANSPORTATION NETWORK Document prepared by Snam Rete Gas S.p.A. for compliance with the Delibera 137/02 of the Autorità per l’energia elettrica e il gas. September 1st, 2004 1 Foreword Snam Rete Gas S.p.A. publishes the plan for the implementation of new capacity and the development of its transportation network, prepared on the basis of currently available information and on the basis of relationships with its own clients, securing transparency and impartiality among users in conformity with provisions of Directive no. 98/30/EC of the European Parliament and of Law Decree no. 164/2000. The present document has been prepared in compliance with the article 4 subsection 1 letter b, of Delibera no. 137/02 of the Autorità per l’energia elettrica e il gas. The projects that figure in the programme result from studies carried out by Snam Rete Gas on the basis of its own forecasts of capacity requirements. The infrastructure development plans included in this document are not binding for Snam Rete Gas that, therefore, reserves the right to modify them every time that new elements, such as for example evolutions of market requisites different from the current hypotheses, require it, as provided for in article 4 subsection 2 of Delibera no. 120/01 of the Autorità per l’energia elettrica e il gas. 2 Index 1 PLANNED INFRASTRUCTURES 1.1 Complete Programme 1.2 Transportation on the National Network 1.3 Transportation on the Regional Network 1.4 Main projects 2 PLAN OF CAPACITIES 2.1 Entry Points interconnected with foreign pipelines 2.2 Exit Points interconnected with foreign pipelines 2.3 Methodology for calculating capacities 2.4 Operational constraints and boundary conditions used for simulations 2.5 Interruptible capacities 2.6 Simulation Programs 3 ATTACHMENTS 3 1 PLANNED INFRASTRUCTURES 4 1 PLANNED INFRASTRUCTURES 1.1 Complete programme The plan for implementation of new capacity and for development of the transportation network includes projects whose construction is under way and those whose start is scheduled in future years, within the next four-year term. The planned investments after 2004 are the result of analysis and evaluations based on the information available at this moment. The implementation of these investments depends from the presence of appropriate conditions and, in any case, their planning is subjected to annual revisions that could introduce significant changes. In particular, it’s indicated the project relating to Dorsale Adriatica, that is conditioned on the commitments of capacity utilization at the entry point of the LNG terminal of Brindisi. Furthermore Snam Rete Gas has planned to put out some sections of natural gas pipelines and some plants, which, in total, haven’t significant impact on the reliability of the network of natural gas pipelines, or on the availability of transportation capacity. The development projects have been evaluated on the basis of transportation scenarios that reflect forecasts of consumptions of natural gas in Italy, relationships with subjects interested in starting-up new off-take points and those with users who use capacity in the inlet and outlet points. These projects represent approximately 80% of the plan and are characterised by the presence of significant works that will make it possible in the near future to inject quantities of gas onto the Italian network from the main pipelines supplying the Country. The remaining 20% of the plan includes different types of interventions including those aimed preserving existing infrastructures. Preservation projects have been identified on the basis of information available on the status of existing pipelines. Works relating to Transportation on the National Network represent approximately 70% of the plan, the remaining 30% concerns the Regional Network. 5 In total the Snam Rete Gas plan provides for development of the network of gas pipelines from the 30,120 km operating at the end of 2003, to the 33,200 km at the completion of the planned projects. Similarly, the increase of installed capacity in the Compressor stations is forecast in the plan from the current 625 MW (37 compressor units in 11 stations), up to approximately 820 MW in the four-year term (nine new units, included the two units installed in Minerbio station under way of acquisition). A further increase of approximately 80 MW (six new units installed in two new stations) is planned in the following years. 6 1.2 Transportation on the National Network 40% of the National Network Development Plan is composed of projects already being implemented or that will be started during 2004, while the remaining 60% are planned to start in the following years. These infrastructures are destined mainly to reinforce the importation system, and will include the completion of works dedicated to importation from Russia, to pipeline Gela – Enna and those for connection from the LNG terminal of Panigaglia and the continuation of the activities related to the development of the pipelines system from the South. It’s under consideration the implementation of a new compressor station close to the distribution node of Poggio Renatico and moreover, if the capacity commitments of the future Entry Point of Brindisi LNG terminal, became concrete, the works related to the project “Dorsale Adriatica” will start. These works will be presented in detail in paragraph 1.4. The remaining development projects are aimed at reinforcing other main national transportation pipelines and they are mainly located in the areas of Southern Piedmont and the North-East. These include works related to the Bosentino – Trento and Gagliano – Sparacollo natural gas pipeline and the developing of the connection to the storage of Collalto. Planned works for reinforcing the Mortara – Alessandria, Alessandria – Oviglio and Verona - Trento (section Vigasio - Bussolengo) natural gas pipelines have been started. In total the plan will develop the National Network from approximately 7,990 km operating at the end of 2003, to approximately 9,280 km, at completion of planned projects. The compression system will be developed from the current 625 MW, distributed over 37 compressor units, to approximately 900 MW at completion of plan, resulting from the installation of 2 new station, from the installation of new units in existing stations and from the acquisition of the Minerbio station, for a total of 15 new units with 280 MW of new compression capacity. 7 1.3 Transportation on the Regional Network 70% of the National Network Development Plan is composed of projects already being implemented or that will be started during the current year, while the remaining 30% are planned to start in the following years. These infrastructures are aimed at extending and reinforcing of the regional transportation network, for which is planned the completion of the Contursi – Battipaglia, Reinforcement of Bagnoli Connection (in Campania and Basilicata regions), Giarratana – Solarino (Sicily) and Brindisi- Arnesano (Apulia) natural gas pipelines and of the reinforcing of the connections for Abbadia Lariana (Lombardy). Moreover, have been started reinforcements in the area of Southern Piedmont (Oviglio – Ponti, Cherasco – Cuneo and Cosseria – Mallare natural gas pipelines), in Eastern Lombardy (Bergantino – San Giorgio di Mantova, Azzano Mella – Travagliato, Travagliato – Mornico al Serio, Mornico al Serio – Zanica) and in Umbria (Pietrafitta – Perugia natural gas pipeline). Moreover, have been planned, among the relevant projects, the natural gas pipelines: Lainate – Castellanza, Sergnano – Casirate (Lombardy) and Bondeno – Ferrara (Emilia Romagna). Furthermore, on the basis of relationships developed with the subjects interested in connecting their own sites to the transportation network, many connections of new thermoelectric power plants, of industrial plants and of distribution networks scattered in the eight territorial districts, have been identified. Some of these works have already started, meanwhile for the remaining ones, for which to date no defined contractual agreements exist, actual planning and implementation is subject to confirmation of interest by the requesting subjects and to the subsequent conclusion of agreements for connection. Among about 70 connections started in 2004, 7 of them concern new thermoelectric plants with power of approximately 3,600 MW. The plan consist of implementation of approximately 80 connections in total per year. Among the connections under implementation, there are also the connections included in the plan of Methanization of the South. In total the plan will develop the Regional Network of Snam Rete Gas from 22,130 Km operating at the end of 2003 to approximately 23,500 km, at the end of 2007, and an increase of approximately 300 km in the following years, with a total increase of approximately 1,700 Km. 8 1.4 Main projects To complete the description of the plan, hereinafter are indicated the most significant infrastructures. These projects represent approximately 60% of the total and they are related to the implementation of works distributed all along the Snam Rete Gas transportation network. 9 1.4.1 Additional Importation from Russia The project consists in laying approximately 190 Km of DN1200 pipeline and 43 km of DN1400 pipeline (section Camisano-Zimella), parallel to existing DN900 and DN1050 lines between Tarvisio (UD) and Zimella (VR). The planned works, 133 km of which are operating, will be completed