Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Co-financed by the European Union European Energy Programme for Recovery Trans-European Energy Network

TEN-YEAR GAS TRANSMISSION NETWORK DEVELOPMENT PLAN FOR THE 2017 – 2026 PERIOD

December 2016

Plinovodi d.o.o, Cesta Ljubljanske brigade 11b, PO box 3720, 1001 Ljubljana; Tel.: +386 (0)1 582 07 00 Fax: +386 (0) 1 582 07 01; Email: [email protected]; VAT Reg No: SI31378285 Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

TABLE OF CONTENTS

Preface ...... 3

Summary ...... 4

Introduction ...... 5

1 Definitions ...... 6

2 Consultations ...... 6 2.1 TSO's consultations with stakeholders ...... 6 2.2 Activities of the Energy Agency in relation to network development ...... 6

3 Supply and demand for transmission capacity of Slovenian natural gas transmission system……………………..7 3.1 Current situation ...... 7 3.2 Domestic market ...... 8 3.3 Cross-border transmission capacity and booking ...... 27

4 Set of planned gas infrastructure for the 2017 – 2026 period ...... 34 4.1 Projects to increase operational security ...... 34 4.2 Connections ...... 36 4.3 Development of interconnection points ...... 38 4.4 Projects in preparation and planning in the 2017 – 2019 period ...... 40

5 European dimension of natural gas supply ...... 42 5.1 Development of exchanges with other countries...... 42 5.2 Supply of natural gas to EU countries and access to natural gas sources ...... 43 5.3 REGULATION (EU) No. 347/2013 on guidelines for trans-European energy infrastructure ...... 44 5.4 ENTSOG ...... 47

ANNEXES ...... 50

Abbreviations ...... 69

Legal notice ...... 70

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Preface

Before you is already the ninth Gas Transmission Network Development Plan for the ten-year period. As usual, it was developed in a coordinated ENTSOG process of two regional development plans and the trans-European development document.

The Development Plan meets the requirements of the legislation, while in no way ignoring the national and European gas market. This market is becoming more and more dynamic and the amounts of gas are once again growing optimistically. These are the very characteristics that the development of gas transmission system (including the domestic system) pursues in the presented document. The concern for safe, reliable and economical operation has been reconnected to the process of planning. All planned investments have been carefully considered and sorted by priority, and the timeline for realisation has been set.

We look forward to cooperating with you in the realisation of the plan's contents, i.e. shaping the gas transmission system and therefore the gas market.

Marjan Eberlinc

General Manager

Sarah Jezernik

Deputy General Manager

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Summary

The Slovenian gas transmission system is part of the energy infrastructure of national importance that is present in 108 of the total 212 Slovenian municipalities. In the energy balance sheet of the Republic of Slovenia for the year 2015 it was estimated that in the final energy consumption structure the share of petroleum products will stand out with 47.3%, followed by electricity with 22.9%, renewable energy sources with 14.3%, natural gas with 9.7%, heat wtih 3.9%, solid fuels with 1.0% and industrial waste with 0.9%. Despite the fact that actual values are slightly higher than the estimates, in the primary energy consumption structure natural gas has one of the lowest shares in Europe with 10%. In Slovenia, natural gas is practically never used for the production of electricity (the European average amounts to 25%) and represents a mere 10% share in household and other consumption (the European average amounts to 37%). Nevertheless, natural gas is the leading energy product in Slovenian industry with a 33% share, which is similar to the European average.

The transmission system operator (TSO) measures the demand for natural gas transmission in the domestic energy market based on queries, approvals issued and connection contracts concluded with distribution system operators (DSO), industrial users and electricity producers. In 2015, there were 41 cases of such demand, 12 approvals for connection were issued and 9 connection contracts were signed.

Regarding the purpose of the gas projects in relation to security updates, development of domestic gas market and harmonisation with international projects, the TSO breaks down the planned infrastructure into 3 groups. Group A contains 18 projects to increase operational security, i.e. loops and adjustments to the pipeline system due to settlement and other circumstances. Group B contains 45 connections. Group C contains 17 projects for the development of interconnection points with the transmission systems of neighbouring countries, which include 4 projects that have been listed as projects of common interest in November 2015 by the European Commission. Regarding the achieved maturity of individual projects, the TSO estimates that it will implement (construct or begin construction on) 23 pipeline projects in the three-year period of 2017 − 2019.

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Introduction As the TSO in the Republic of Slovenia, the company Plinovodi is obliged in accordance with the provisions of the Energy Act (EZ-1)1 to adopt and submit for confirmation to the Energy Agency a 10- year network development plan every year after consulting the relevant stakeholders. The plan must be based on the existing and expected supply and demand and include efficient measures in order to guarantee the adequacy of the system and the security of supply.

The purpose of the Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period (hereinafter: Development Plan) is to:

 determine the main infrastructure for transmission that is to be built and upgraded over the next years for players on the market,  contain all the investments that have already been decided and identify new investments that have to be carried out within the next three years,  provide a time frame for all investment projects.

When preparing the 10-year network development plan, the TSO has formed reasonable assumptions on the development of production, consumption within the domestic energy market and exchanges with other countries. It has taken into account the investment plans for regional networks and EU-wide networks as well as investments for the natural gas storage facilities and liquefied natural gas (LNG) re-gasification facilities.

1 Official Gazette of RS, Nos. 17/2014, 81/2015 5

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

1 Definitions

Unless the meaning of an expression is otherwise defined in an individual section of the 10-year network development plan, the expressions and units of measurement used have the same meaning as defined in the applicable legislation.

2 Consultations

2.1 TSO's consultations with stakeholders

Between 1 February and 1 March 2016, the TSO published a draft of the 10-year network development plan on its website. Within the public consultation procedure, it has invited all interested public representatives to present comments, suggestions or additions to the draft. During the public consultation process, which lasted for one month, it has received 13 responses. It has researched all of the responses, taken them into account and explained the reasoning to the interested public. All neighbouring TSOs have also been notified of the 10-year network development plan draft beforehand, but there have been no concrete suggestions or remarks regarding the document.

2.2 Activities of the Energy Agency in relation to network development

The Energy Agency carried out a consultation procedure with all actual and potential system users by publishing the 10-year network development plan on its website and inviting them to submit their remarks. The consultation procedure was concluded on 15 July 2016.

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

3 Supply and demand for transmission capacity of Slovenian natural gas transmission system

3.1 Current situation In terms of flows of natural gas in Europe, the geographic position of Slovenia is fairly favourable. It is in close proximity to the transmission routes from northeastern Europe (from Russia through Slovakia and Austria towards Italy and Croatia) and bordering on Italy, where the transmission routes from the Mediterranean Basin and northern Europe converge.

The Slovenian gas transmission system comprises 1,155km of pipelines, the compressor stations in Kidričevo and Ajdovščina and 245 metering and regulation stations or other stations. At key points, the gas transmission system is equipped with devices through which the system can be controlled and maintained. The remote control and monitoring functions are carried out by means of an information and telemetry system.

Table 1. Main infrastructure – gas transmission pipelines by pipeline diameter and other facilities and equipment

Infrastructure Status as of 1 January 2016

Gas network Total 1,155km Pipelines with a diameter of 800mm 167km Pipelines with a diameter of 500mm 162km Pipelines with a diameter of 400mm 197km Other pipelines of smaller diameters 629km Facilities and Compressor stations, total power CS Kidričevo 10.5MW, CS Ajdovščina equipment 9MW Cross-border stations Ceršak, Rogatec, Šempeter pri Gorici

Table 2. Gas transmission network – high and low pressure (as of 1 January 2016) Low pressure (<16 High pressure (>16 Pressure Total bar) bar) Horizontal length (km) 209.1 946.3 1,155.4 Percentage (%) 18 82 100

The gas transmission system connects most of the industrial and urban centres in Slovenia, with the exception of Slovenian Istria, Bela Krajina and part of Inner and Lower Carniola.

The gas transmission system is controlled and monitored 24 hours a day from the dispatch centre that is also connected to the dispatch centres of transmission systems operators of other countries bordered by the transmission system, as well as to distribution network opereators and major consumers of natural gas. A major part of the existing gas transmission network is older than 30 years.

Table 3. Gas transmission network - age structure (as of 1 January 2016) less than 10 between 10 and between 20 and more than 30 Age years 20 years 30 years years Horizontal length (km) 206.1 27.7 287.7 633.9 Percentage (%) 18 2 25 55

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Figure 1. Gas transmission network in January 2016

3.2 Domestic market

3.2.1 Supply of natural gas to Slovenia and access to natural gas sources

Due to the lack of own sources, the supply of natural gas to the Slovenian market depends entirely on imports. Russia remains the main supply source for Slovenia, with the purchases from the trading hub in Austria and storage facilities in the region coming close in terms of quantity. The supply from Algeria has stopped completely back in 2013.

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

14000 Data source: Energy Agency, Important indicators 12000 for the supply of electrical energy and natural gas for the year 20152. 10000

8000

GWh 6000

4000

2000

0 2010 2011 2012 2013 2014 Russia Algeria Austria Italy Other

Figure 2. Sources of natural gas supply to Slovenia

100% 90% Through the interconnection point 80% Ceršak, the TSO can supply all 70% Slovenian consumers, regardless of 60% their location. The suppliers can 50% therefore provide a competitive 40% supply for all consumers where this is 30% not restricted by an interconnection 20% point or a possible bottleneck on the 10% natural gas transmission network. 0% 2009 2010 2011 2012 2013 2014

Interconnection point Šempeter PovezovalnaInterconnection točka pointCeršak Ceršak Povezovalna točka Šempeter

Figure 3. Natural gas import routes to Slovenia

3.2.2 Slovenian Energy Concept - orientations

The Slovenian Energy Concept (Energetski koncept Slovenije – EKS) is in preparation. In accordance with the Energy Act (EZ-1, Official Gazette of RS, Nos. 17/2014 and 81/2015) and the projection of economic, environmental and social development of the country and along with the adopted national commitments, particularly those related to energy and climate, it will provide a basis for identifying ways for their achievement in the future. The consultation document presented by the Ministry of Infrastructure (MoI) at the beginning of the consultation process in May 20153 outlines the key elements for directing Slovenia's transition into a low-carbon society, to which RS has already agreed in the past when adopting national commitments within international obligations.

As an energy product, compared to the European average, natural gas has a much more modest representation in the national energy balance sheet, with the exception of industrial consumers sector.

2 https://www.agen-rs.si/documents/10926/38909/Pomembnej%C5%A1i-kazalniki-na-podro%C4%8Dju-oskrbe-z-elektri%C4%8Dno-energijo-in- zemeljskim-plinom-v-letu-2015/afeebc2c-927d-40d5-bc30-ee56cd96230 3 http://www.energetika-portal.si/dokumenti/strateski-razvojni-dokumenti/energetski-koncept-slovenije/posvetovalni-proces-eks/ 9

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

From responses to the material that the MoI has prepared on the subject of EKS so far and from this year's discussions on energy sources4 it can be summarised that natural gas will keep playing an important role in the energy sector in the future. In the discussions, natural gas has been recognised as a key low-carbon energy product that is important for district heating systems as well as individual energy systems. In order to achieve the national objectives of greenhouse gas emissions5 it will have to replace coal in district heating systems in at least the next five years and gradually replace fuel oil as well. Natural gas plays a special role in transport in two directives6,7 that describe it as an alternative fuel to fossil fuels in transport. In accordance with the aforementioned directive, a national strategy8 for the required infrastructure should already be prepared in the current year.

Development of the transmission system is crucial and directed towards expanding the networks and establishing more efficient connections with distribution systems and the neighbouring transmission systems in the region. There is no doubt that the national energy-climate goals can only be achieved through the efficient use of several energy products, therefore combining the functions of their transmission systems and distribution systems or district heating systems. A higher degree of gasification in the country would contribute to this goal. The TSO is striving to develop and upgrade the system to increase the level of diversification, i.e. obtaining new sources through new routes, including the LNG (liquefied natural gas) terminals and access to natural gas storage facilities.

3.2.3 Existing supply of transmission capacity as of 1 January 2016

The TSO publishes the data on transmission capacity of the gas transmission network for relevant points that are shown in Figure 4 and confirmed by the Energy Agency. Five relevant points are displayed, four of which are cross-border interconnection points and relevant points for the publication of data, while the fifth relevant point is aggregate information on the combined exit/transmission for users in the Republic of Slovenia.

4 http://www.energetika-portal.si/fileadmin/dokumenti/publikacije/eks/posvetovanje_delavnice/izvlecki_komentarjev_jun_2016.pdf 5 http://www.energetika-portal.si/dokumenti/strateski-razvojni-dokumenti/operativni-program-ukrepov-zmanjsanja-emisij-tpg/ 6 DIRECTIVE 2012/33/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 21 November 2012 amending Council Directive 1999/32/EC as regards the sulphur content of marine fuels 7 DIRECTIVE 2014/94/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 22 October 2014 on the deployment of alternative fuels infrastructure 8 http://www.mop.gov.si/fileadmin/mop.gov.si/pageuploads/javna_narocila/2016/studija_potrebnih_dodatnih_ukrepih/Obrazec_3_projektna_nalo ga.pdf 10

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

M1 area M2 area M3 area M4 area

Figure 4. Schematic map of the gas transmission system with relevant points

Table 4 presents the data on the capacity of relevant points as of 1 January 2016, the total contractually leased capacities and the utilisation for different periods.

Table 4. Capacity of the gas transmission system at relevant points 9

Average Maximum Total Maximum daily monthly monthly Technical contractually utilisation of Relevant point utilisation of utilisation of capacity leased technical technical technical capacity capacity capacity capacity

million kWh/day million kWh/day % % % Ceršak - 138.983 92.778 67.3 (11.12.2015) 38.9 (year '15) 61.8 (Dec 2015) entry

Rogatec- exit 68.205 43.793 79.3 (7.12.2015) 44.3 (year '15) 78.1 (Dec 2015)

Šempeter- entry 28.261 4.342 7.5 (7.4.2015) 4.1 (year '15) 5.9 (Jan 2015)

Šempeter- exit 25.692 0.000 32.8 (12.08.2015) 2.4 (year '15) 14.2 (Sep 2015)

Exit to the RS 73.348 62.076 58.8 (09.02.2015) 33.4 (year '15) 49.7 (Feb 2015)

By monitoring the demand for additional capacity on the domestic gas market and the demand for cross-border transmission capacity and in accordance with the requirements for ensuring a secure supply of natural gas, the TSO is obliged to develop the transmission system to ensure all of this.

Pursuant to Regulation (EC) No. 715/2009, the TSO must provide system users their separate use of transmission capacity at all entry and exit points to the system (as per the so-called system of entry-

9 Data on capacities pertains to 1 January 2016, data on the utilisation of technical capabilities pertains to the year 2015.

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period exit points). To ensure successful operation of the entry-exit points system, the TSO must provide appropriate technical conditions such as the elimination of bottlenecks on the transmission system in order to enable suitable marketing and booking of capacity under this method and to allow the booking of capacity at entry and exit points in various combinations.

Physical transmission of natural gas towards Italy

Physical cross-border transmission of natural gas in the direciton of Italy was first realised in February 2015. The infrastructural prerequisite for this was the completion of the investment cycle and the commissioning of the parallel pipeline from the Austrian border to Vodice, as well as the installation of an additional compressor unit in Kidričevo. All of these additions to the transmission system have been completed by the end of 2014 and have allowed the TSO to increase transmission capacity at cross- border interconnection points Ceršak and Rogatec at the beginning of 2015, as well as allowing for physical transmission of natural gas towards Italy at cross-border interconnection point Šempeter.

With the introduction of transmission capacity booking via the auction platform PRISMA and the implementation of virtual point in Slovenia, we have noticed increased interest in cross-border transmission towards Italy. The amount of transmitted quantities and the frequency of cross-border transmission towards Italy is manifested through commercial interdependence of the gas markets of Austria, Slovenia and Italy. So in 2015, the bookings of transmission capacity on the auction platform were mostly realised on a daily basis (the »day-ahead« service) and the transmitted quantities reflected the bookings.

Infrastructure standard and compliance with Regulation 984/2013

The Regulation 994/2010 of the European Parliament and the Council introduces the so-called "infrastructure criterion N-1" stipulating for the subject geographic area that in the event of interruption on an individual largest gas infrastructure there must be sufficient technical capacity available to meet the entire daily demand for gas, even in cases of exceptionally high demand (peak consumption).

By 3 December 2014, Member States were obliged to adopt and implement measures to meet the infrastructure criterion N-1. When preparing the Regulation 994/2010, The European Commission has taken into account that the circumstances in Slovenia are rather specific compared to other Member States. Slovenia has no natural gas storage facilities or liquefied natural gas plants and in addition to that, the Slovenian transmission system is connected to foreign transmission systems in only three handover points. For these reasons, Slovenia (along with Luxembourg and Sweden) is an exception and therefore not obliged to meet the criterion N-1. This exception applies as long as Slovenia maintains at least two interconnectors with other Member States, at least two different supply sources and no natural gas storage facilities or liquefied natural gas plants. Under Regulation 994/2010 of the European Parliament and the Council, Slovenia is obliged to submit a report to the European Commission by 3 December 2018 describing the circumstances regarding infrastructure criterion N-1. On the basis of that report and as long as the conditions for exemption continue to be fulfilled, the European Commission may decide to extend the validity of the exception.

When calculating the infrastructure standard, unlike the calculations in previous years, only the firm transmission capacities were taken into account as technical capacities of cross-border interconnection

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

points, without taking into account the possible specific measures of the transmission system operator to provide additional interruptible transmission capacity in the event that supply security is threatened. The estimations of value increments of infrastructure criterion N-1 also depend on the estimated growth of the peak load of the system. In the estimation of the development of peak load of the Slovenian transmission system it was taken into consideration that the peak load will increase in the coming years due to the growth of wide consumption.

Based on the analysis of prospective infrastructure projects, the TSO has estimated that the infrastructure standard N-1 will range between 57.4% and 56.3% in the next three years. In the long term, the TSO estimates that it can ensure the development of infrastructure standard N-1 for the Slovenian transmission system in a manner that will allow the system to reach the required level of 100%.

140,0

115,2 114,0 120,0 111,4 110,3 112,9 111,8 110,7 109,6

100,0

80,0 57,4 56,8 56,3 60,0

40,0

20,0

0,0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Figure 5. Estimation of infrastructure criterion N-1 development for the Slovenian transmission system

As the TSO, the company Plinovodi will be able to meet the requirements of the infrastructure criterion N-1 in the long term by:

1. establishing entry capacities and therefore enabling pyhsical flow from the direction of Croatia via the cross-border interconnection point Rogatec (planned in 2019); 2. an additional connection of the Slovenian transmission system to neighbouring systems that could be realised within the Hungary connection project (planned in 2021).

The development of the infrastructure criterion N-1 in the coming years will also be strongly influenced by the development of the peak load of the system, which the criterion defines as "the entire daily demand for gas on a day of exceptionally high demand for gas". In the estimation of the influence of peak load development on the infrastructure criterion N-1 it was taken into consideration that the peak load of the system will increase in the coming years due to the growth of the wide consumption peak. The development of peak load in Slovenia will also depend on the booking of transmission capacities for gas power stations.

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Pursuant to Article 7 of Regulation (EU) 994/2010 of the European Parliament and of the Council concerning measures to safeguard security of gas supply, the TSOs must implement a procedure for enabling bi-directional capacity or for exemption from the obligation of enabling bi-directional capacity for each cross-border interconnection between Member States:

1. Enabling bi-directional capacity at cross-border interconnection Šempeter/Gorica

With the successful completion of the investment cycle on 1 January 2015 the TSO Plinovodi enabled bi-directional capacity at cross-border interconnection Šempeter/Gorica where bi- directional booking of transmission capacity and bi-directional operation of the transmission system was already taking place in 2015.

2. Exemption for reverse flow capacity for cross-border interconnection Murfeld/Ceršak

The TSO Plinovodi obtained the exemption from obligation of enabling bi-directional capacity at the cross-border interconnection Murfeld/Ceršak in accordance with the 4th paragraph of Article 7 of the Regulation without restrictions. Article 7 of the Regulation defines the repeat process for »enabling reverse flow capacity or exemption« on the basis of Risk assessment for security of supply, which is carried out every 2 years in accordance with Article 9 of the Regulation. The latest Risk assessment by the Slovenian competent authority for security of supply that was carried out in 2014 in both Austria and Slovenia has so far not indicated the need for enabling bi-directional capacity at the cross-border interconnection Murfeld/Ceršak.

3. Exemption for reverse flow capacity for cross-border interconnection Rogatec

Based on the Risk assessment for security of supply, the TSO Plinovodi submitted the application for exemption from the obligation of enabling bi-directional capacity with the possibility of reverse flow from Croatia to Slovenia in 2014 and obtained the exemption for cross-border interconnection Rogatec until 31 December 2016.

The risk assessment has taken into account that reverse flow capacity at cross-border interconnection Rogatec could affect the infrastructure standard of the Slovenian gas transmission system, but not before the Croatian transmission system is upgraded with compressor capacities for transmission of gas to cross-border interconnection Rogatec and for ensuring the necessary pressure conditions at this interconnection point, which would according to the time frame for the upgrade of Croatian transmission system be possible at the end of 2018 at the earliest.

The technical solution to provide bi-directional capacity with reverse flow in Rogatec depends on the size of the requested transmission capacity. The most basic scenario would require an upgrade of the border metering and regulation station in Rogatec on the part of Slovenian TSO and an upgrade of the transmission system with compressor capacities on the part of Croatian operator.

In the company Plinovodi we actively participate in all activities in the region related to the development of new or existing transmission directions. For the existing transmission direction Austria- Slovenia-Croatia, an analysis and technical design was carried out in 2014 to establish bi-directional capacities in the direction Rogatec-Ceršak (Transmission pipeline M1 Ceršak-Rogatec and M1/1 Ceršak- Rogatec, Enabling bi-directional capacities with reverse flow). Further activities for enabling bi- directional flows are also integrated into the development plan of the company Plinovodi, which

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

envisages upgrades of the transmission system at border metering and regulation station Rogatec, compressor station in Kidričevo and border metering and regulation station Ceršak.

3.2.4 Supply and demand for transmission capacity – territorial coverage

As of 1 January 2016, the TSO had transmission contracts concluded with 156 system users, namely 14 DSOs operating in 78 municipalities, 140 industrial or commercial consumers and two power stations.

Figure 6. Regional availability of the gas transmission network

Slovenia has 78 municipalities with a distribution network. The TSO estimates that when considering the distance from the existing transmission network and potential consumption there are 71 more municipalities where it would be economically viable to implement a connection. In addition to households, for which the DSO would construct a network in densely populated locations, the other critical factor to decide whether to connect a local community to the transmission network is the transition of other industrial and commercial users to natural gas (schools, kindergartens, hotels, hospitals, stores, crafts and the like). The connection projects are divided into municipalities that could connect through existing MRSs, municipalities to which it would be necessary to construct a connection pipeline and a new MRS and municipalities whose connection depends on a previously constructed longer system pipeline.

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Table 5. Regional availability of the gas transmission network and local communities with potential connections Local communities with potential connections and infrastructure required

Statistical region Municipalities with DSOs New constructions: New constructions: Use of longer system connection pipelines existing MRS pipelines, connection and MRSs pipelines and MRSs 1 Pomurska Beltinci, Gornja Radgona, Apače, Črenšovci, Lendava, Ljutomer, UM Križevci, Moravske Murska Sobota, Odranci, toplice, Puconci, Radenci, Turnišče, Razkrižje, Tišina, Velika Dobrovnik Polana, Veržej

2 Koroška Dravograd, Mežica, Muta, Mislinja Muta, Vuzenica, Prevalje, Ravne na Radlje ob Dravi Koroškem, UM Slovenj Gradec 3 Podravska Hoče – Slivnica, UM Maribor, Starše* Dornava, Gorišnica, Lenart Miklavž na Dravskem polju, Markovci, Duplek, Ormož, UM Ptuj, Rače – Hajdina, Kidričevo, Fram, Ruše, Slovenska Majšperk, Pesnica, Bistrica, Središče ob Dravi, Oplotnica, Videm, Šentilj Selnica ob Dravi*

4 Savinjska UM Celje, Laško, Polzela, Braslovče, Šmartno ob Prebold, Radeče, Rogaška Paki, Kozje, Ljubno, Slatina, Rogatec, Slovenske Nazarje, Mozirje, Konjice, Šentjur, Štore, Podčetrtek, Šmarje pri Šoštanj, UM Velenje, Jelšah, Vransko Vojnik, Zreče, Žalec

5 Zasavska Hrastnik, Zagorje ob Savi Trbovlje 6 Spodnje− Brežice, Krško, Sevnica posavska 7 Osrednje- Brezovica, Dobrova – Polhov Borovnica, Horjul, Grosuplje, Ivančna slovenska Gradec, Dol pri Ljubljani, Lukovica, Moravče gorica, Velike Lašče Domžale, Ig, Kamnik, Komenda, Litija, UM Ljubljana, Logatec, Log – Dragomer, Medvode, Mengeš, Škofljica, Trzin, Vodice, Vrhnika 8 Notranjsko− Cerknica, Ilirska kraška Bistrica, Pivka, Postojna 9 Gorenjska Bled, Cerklje na Kranjska Gora Žiri Gorenjskem, Jesenice, UM Kranj, Naklo, Gorje, Radovljica, Šenčur, Škofja Loka, Tržič, Žirovnica 10 Goriška Ajdovščina, Nova Gorica, Miren – Kanal Idrija* Šempeter – Vrtojba, Vipava Kostanjevica, Renče – Vogrsko 11 Obalno−kraška Hrpelje – Kozina, Ankaran, UM Koper*, Izola, Piran, Sežana 12 Jugovzhodna UM Novo mesto Dolenjske Šentjernej, Škocjan Kočevje Ribnica, Slovenija Toplice, Sodražica, Črnomelj, Straža Metlika, Semič, Trebnje, Mirna Total Existing situation: 78 Possible increase in gas transmission network coverage for 71 municipalities with a potentially connectable municipalities distribution network * the municipality already has a chosen DSO.

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

3.2.5 Role of natural gas in Slovenia and Europe

40% The Slovenian energy market is 35% significantly different from the EU-28 30% average in three out of five elements, 25% namely: natural gas, renewable 20% sources and nuclear heat. The share of 15% natural gas in primary energy in the 10% EU-28 countries is 2.3 times higher 5% than in Slovenia, while the shares of 0% Trdna Solid gorivafuels Oil Naftniproducts Zemeljski Natural gasplin Jedrska Nuclear toplota heat ObnovljiviRenewable viri sources renewable sources and nuclear heat proizvodi are significantly higher in Slovenia.

EvropskaEU-28 unija 28 SlovenijaSlovenia Data source: http://ec.europa.eu/eurostat/web/e Figure 7. Primary energy in EU-28 and Slovenia in 2013 nergy/data/main-tables

45% In Slovenia, the highest share was 40% reached in 2009 - 14.5% and it has been dropping ever since. Slovenia is 35% a country with one of the lowest 30% shares of natural gas in its energy 25% balance sheet. The share is 13 20% percent lower than the established average of the EU-28 Member States. 15% Data source: 10% http://ec.europa.eu/eurostat/web/e 5% nergy/data/main-tables

ES SE

DE CZ

AT CY

HU NO EU28 Figure 8. The share of natural gas in primary energy in EU countries (data for 2013, refreshed in 2015)

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Non-energy consumption Energy sector Solid fuels 1% OVE+NIO 0% Supplied heat 9% 4% 4% Oil products Other 10% consumption Industry 11% 23%

Households 26% Electricity Natural gas Traffic 44% 29% 39%

Figure 9. Energy consumption by sector (2015) Figure 10. Energy sources in industry (2015) in in Slovenia (Data source: RS energy balance sheet Slovenia (Data source: RS energy balance sheet 2015) 2015)

Natural gas Solid fuels 8% 0% Solid fuels Oil products 12% 16% Natural gas 9% OVE+NIO 43%

Electricity Oil products 24% 80% Supplied heat 8%

Figure 11. Non-energy consumption (2015) in Figure 12. Energy sources in households (2015) Slovenia (Data source: RS energy balance sheet in Slovenia (Data source: RS energy balance sheet 2015) 2015)

In the year 2015, the largest share of energy consumption was in traffic. Industry and households represent an important segment of energy consumption as well. These three sectors have consumed nearly 90% of all energy, with the remaining 10% in other consumption, non-energy consumption and the energy sector. In Slovenian industry in 2015, natural gas represented 67% of fossil fuels consumption (fossil fuels being solid fuels, oil products and natural gas). One of the most suitable uses for natural gas lies in households, since it is easy to use, safe, as well as ecologically flawless and competitive. There are several reasons for its small share (9%) in Slovenia, the relatively small geographic coverage (77 municipalities out of 212) being one of them. In comparison with 2015, the energy distribution by sector in Slovenia in the year 2005 was: industry 33% (last year 23%), traffic 30% (last year 39%), households 23% (last year 26%), other consumption 10% (last year 11%), non-energy consumption 4% (last year 1%).

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

According to the RS energy balance sheet, the final energy consumption in 250.000 the year 2015 amounted to 195,133TJ, 200.000 which is 10.1% lower than ten years ago (2005): 150.000  reduced by 37% in industry, 100.000  increased by 19% in traffic, 2005  reduced by 1% in households, 50.000  increased by 1% in other 2015

0 consumption,

 reduced by 81% in non-energy

consumption; one of the biggest

Total

Other Other

Traffic energy

- reasons is the decommissioning of

Industry the methanol plant in Lendava.

Households Households

Non consumption consumption

Figure 13. Energy consumption in 2005 and 2015

50% Slovenia is comparable to other EU-28 45% countries only when it comes to the 40% consumption of natural gas in industry. 35% The reduction in energy consumption in 30% the last ten years affected all energy 25% sources, so natural gas retained a 20% relatively high share. 15% 10% Data source: 5% http://ec.europa.eu/eurostat/web/ene rgy/data/main-tables

ES SE

RS PL

DE CZ

AT CY

HU NO EU28 Figure 14. Share of natural gas among the energy sources in industry (data for 2013, refreshed in 2015)

80% Increasing the share of natural gas consumption in households is a lengthy 70% process. In Slovenia, the biggest 60% competitors are renewable energy 50% sources (mainly wood biomass in various forms) and electricity for heat pumps. 40% 30% Data source: http://ec.europa.eu/eurostat/web/ene 20% rgy/data/main-tables 10%

ES SE

PL RS

DE CZ

AT CY

HU NO EU28 Figure 15. Share of natural gas among the energy sources in households (data for 2013, refreshed in 2015)

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

In the year 2013, the consumption of 100% natural gas in conventional thermal 90% power stations still amounted to 80% 545GWh, but in the year 2014 it dropped 70% to a mere 39.5GWh. 60% Data source: 50% http://ec.europa.eu/eurostat/web/ene 40% rgy/data/main-tables 30% 20% 10%

ES SE

PL RS

NL CZ

AT CY

HU NO EU28 Figure 16. Share of natural gas among the energy sources in conventional power stations (data for 2013, refreshed in 2015)

3.2.6 Natural gas consumption in the country in the 2007 – 2015 period

The past consumption of natural gas represents one of the indicators used to forecast the booking of transmission capacity. In the year 2014, we have seen a large drop in consumption of natural gas in the electricity production sector, which can mostly be attributed to the drop in coal prices on the world markets and the resulting relatively higher price of natural gas. The consumption of natural gas in the industrial sector has stabilised in the period from 2012 to 2014, which suggests that the economic conditions have settled down somewhat, and in 2015 there has been an increase in natural gas consumption in the industry segment of about 6%. In the other consumption segment, the TSO has been noticing a decline in natural gas consumption until 2014, which the TSO attributes mostly to installation of efficient facade insulations, new energy-efficient windows and other structural elements that contribute to lower consumption of energy products for heating, as well as extremely mild winters, but in 2015 an increase in natural gas consumption has been noticed in the other consumption segment as well, approximately 13%. Therefore, a total increase of about 9% has been recorded in the consumption of natural gas quantities in 2015. Regardless of the annual volume of natural gas consumed, from the TSO's perspective, the key is the capacity booked on the level of daily consumption, required for the transmission of natural gas to supply the network users, which remains at about the same level during peak loads.

Table 6. Natural gas consumption in Slovenia in the 2007 – 2015 period (million kWh/year)

Sector 2007 2008 2009 2010 2011 2012 2013 2014 2015 Industry 7,423 7,166 6,269 6,611 5,073 4,774 4,774 4,774 5,064 Other 4,240 3,930 3,781 3,845 3,973 3,813 3,546 3,311 3,767 consumption Electricity 246 331 758 705 566 619 545 43 38 Total 11,908 11,428 10,808 11,161 9,612 9,206 8,864 8,127 8,869

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

14.000

12.000

10.000

8.000 ElektrikaElectricity 6.000

miokWh OstalaOther poraba consumption IndustrijaIndustry 4.000

2.000

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 Year

Figure 17. Natural gas consumption in Slovenia in the 2007 – 2015 period (million kWh/year)

3.2.7 Demand and anticipated supply

3.2.7.1 Connection contracts Table 7 includes the projects for the future users of transmission capacity who have concluded a connection contract with the TSO and are envisaged for implementation in the coming period.

Table 7. Connection contracts

# Project name Purpose Planned start of operations

MRS TE-TOL; B1 M5 Vodice - Jarše, R51 Jarše − Connection of thermal energy plant after 2018 TE−TOL MRS Godovič; B2 Connection of DSO in the municipality of Idrija 2018 R38 Kalce - Godovič

B9 MRS Lendava/Petišovci Connection to the production of natural gas 2016/2017

3.2.7.2 Connection approvals

Table 8 includes projects for users of transmission capacities who were issued connection approvals and their 2-year validity has not expired yet and connection contracts have not been concluded with them yet. Also displayed are the projects for which the users have submitted the application for approval and are in the phase of issuing the connection approval.

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Table 8. Connection approvals

# Project name Purpose Planned start of operations

B17 MRS Termo - Knauf Insulation Capacity increase for industrial consumer 2018

B12 MRS Golnik Connection of DSO 2016/2017

B11 MRS Nasipi Trbovlje Connection of user and DSO 2017

Adjustment to the demand characteristics of the B13 MRS Brestanica nd power station (first and second stage)

B39 MRS Svilanit Connection of DSO nd

B15 MRS Impol Adjustment to the demand characteristics of the 2016 (2026) user (Zreče loop) B16 CNG MS Celje Connection of CNG filling station 2017

B18 MRS Miklavž na Dravskem polju Connection of DSO 2017

B45 MRS IC Hoče* Connection of DSO nd * the TSO has received the application for connection approval in November 2016.

3.2.7.3 Queries Queries include the initial activities of our company, potential users and existing users of transmission capacities for connections that the TSO recorded as current. This group also includes the previous activities of potential users for which a connection approval had been issued, but has expired for various reasons and, hence, no connection contract has been concluded, yet the TSO still considers them as possible customers. For the following projects, the TSO considers that the potential or existing users have expressed interest for connections.

Table 9. Queries # Project name Purpose Planned start of operations

B40 MRS Šobec Connection of DSO and/or user 2017 Connection of DSO and industrial B19 MRS Bela 2017 users B20 MRS Halda Connection of industrial users 2017 Connection of DSO and industrial B21 MRS Desni Breg 2017 users Connection of DSO in the municipalities of Sežana, Hrpelje- MRS Sežana, MRS Kozina, MRS Dekani, B3 Kozina, Koper, Izola, Piran; 2020 MRS Koper, MRS Izola, MRS Lucija connection with the system pipeline M6 B25 MRS Rogatec Connection of DSO 2017/2018 MRS Cerklje; Connection of DSO in the municipality B4 nd R297B Šenčur − Cerklje of Cerklje MRS TTPP; B5 Connection of thermal power station nd R25A/1 Trojane - TTPP Connection of DSO and industrial B7 MRS Cerknica nd users Connection of users with CNG filling B8 CNG MS/MRS 2017 - 2026 stations Connection of new users with mobile Supply to users (Table 5) and other B14 systems and adjustment of existing 2017 - 2026 connection projects connection points 22

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

B27 MRS Šmarje pri Jelšah Connection of DSO 2017 B37 MRS Lukovica Connection of DSO nd B29 MRS Braslovče Connection of DSO nd B42 MRS Horjul Connection of DSO nd Connection of municipality Škocjan B43 MRS Škocjan/Šentjernej 2017 and Šentjernej Adjustment to the demand B44 MS Kandija nd characteristics of the consumer Adjustment to the demand B23 MS Primorje CGM nd characteristics of the consumer Connection of DSO for industrial B24 MS Labore nd consumer Connection of DSO in the municipality B10 MRS Marjeta nd of Starše B26 MRS Pesnica Connection of DSO nd Connection of new industrial B22 MRS Šoštanj nd consumers Adjustment to the demand B33 MRS Štore nd characteristics of the user B30 MRS Videm Connection of DSO nd B31 MRS Kidričevo Connection of DSO nd B32 MRS Sveti Tomaž Connection of DSO nd * in addition to the station, each MS/MRS also includes a pipeline connecting the station to the transmission pipeline.

3.2.7.4 Potential connections Potential connections are projects that the TSO estimates will need to be carried out considering the expected development of the transmission system, distribution systems and users' needs for connections to the transmission system in the next ten-year period, but the interest for connection has not yet been expressed by existing or potential users, or has ceased.

Table 10. Potential connections # Project name Purpose Planned start of operations

Connection of DSO in the municipality B34 MRS Grosuplje* of Grosuplje; connection with the nd system pipeline M5 MRS Semič nd Connection of DSO; connection with B41 MRS Metlika nd the system pipeline R45 MRS Črnomelj nd B28 MRS Oplotnica* Connection of DSO nd MRS TOŠ; B6 Connection of thermal energy plant nd R52 Kleče – TOŠ* B36 MRS Komenda Connection of DSO nd B35 MRS Škofljica/Ig* Connection of DSO nd B38 MRS Brezovica/Log Dragomer* Connection of DSO nd * within the consultation procedure, the TSO received a response from the DSO and/or municipality that they do not currently envisage additional connections.

3.2.7.5 Deployment of alternative fuels infrastructure

The purposes of Directive 2014/94/EU on the deployment of alternative fuels infrastructure are minimising the dependence on oil and mitigating the environmental impact of transport, and it opens up new opportunities for natural gas in road and maritime transport.

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

The natural gas transmission system with the requisite development can represent an important support infrastructure for transport, which is why we are co-developing the national framework in the direction where natural gas in transport is first attributed adequate relevance due to its positive role that is already proving in many cases of good practice to reduce emissions of particulate matter and to a lesser extent CO2, and afterwards, that it also becomes interesting for users, if necessary with the help of suitable financial incentives.

3.2.8 Forecast of natural gas consumption and booking of transmission capacity for the 2017 – 2026 period

The forecast of the booking of transmission capacity is based on:  the coucluded contracts for the connection to the natural gas transmission system and transmission contracts,  the demands received from existing and potential network users,  past experiences with network users and implementation of TSO's activities in terms of new connections,  forecasts for the construction of power facilities,  estimated transition of system users to the increasingly higher use of short-term transmission capacity,  prepared estimates of transmission capacity booking from the Requirement to issue consent to the regulatory framework, tariff items for network charges and tariff items for other services for the regulative period from 1 January 2016 to 31 December 2018.

The forecast for the booking of transmission capacity for electricity production is provided in Table 11 and is based on the following assumptions:

 it takes into account the existing contractual booking of the Šoštanj TPP,  the booking of the Brestanica TPP is assessed at the level of the 2015 booking,  the start of first-stage operations of the TE-TOL gas thermal plant is planned in accordance with the contract.

Table 11. Forecast for the booking of transmission capacity for electricity production (in million kWh/day) 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Šoštanj TPP 6.301 6.301 6.301 6.301 6.301 6.301 6.301 6.301 6.301 6.301 Brestanica TPP 0.534 0.641 0.641 0.641 0.641 0.641 0.641 0.641 0.641 0.641 TE-TOL, stage 1 7.156 7.156 7.156 7.156 7.156 7.156 7.156 7.156 Total 6.835 6.942 14.098 14.098 14.098 14.098 14.098 14.098 14.098 14.098

Table 12 provides an overview of the total planned booking of transmission capacity until 2026. The forecast indicates an increase in the booking of transmission capacity, which is in line with the company's development plans and the construction of additional transmission capacities.

Table 12. Forecast for the booking of transmission capacity - total (in million kWh/day) Sector 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Industry 22.680 22.226 22.395 22.619 22.846 23.074 23.305 23.538 23.773 24.011 Other consumption 32.960 26.690 25.988 26.248 26.511 26.776 27.044 27.314 27.587 27.863

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Electricity 6.835 6.942 14.098 14.098 14.098 14.098 14.098 14.098 14.098 14.098 Total 62.076 55.858 62.481 62.965 63.454 63.947 64.446 64.949 65.458 65.972

40 ElektrikaElectricity 30 OstalaOther poraba consumption Industry

million million kWh/day Industrija 20

0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Year

Figure 18. Estimate of the booking of transmission capacity for the 2017 – 2026 period

When preparing forecasts for the future booking of transmission capacity, the TSO uses different sources. Due to increased dynamics and an evolving natural gas market, the TSO underlines that long- term forecasts, i.e. forecasts exceeding 3 years are in fact indicative forecasts that depend on various factors that cannot be directly influenced by the TSO. The most reliable source of forecasts used by the TSO are the agreements and contracts that have already been signed. The TSO has observed a trend of short-term booking of transmission capacity, as network users tend to use short-term services more and more frequently. The increasing liquidity and liberalisation of the natural gas market along with the occupancy of transmission capacities in alternative directions for the transmission of natural gas have contributed to an increasing demand for transmission capacity, primarily for the needs of cross-border transmission. The demand received constitutes an important source for the preparation of forecasts, but is very limited in terms of duration. When preparing forecasts, the TSO also monitors the development of the domestic and foreign energy markets and the plans for the construction of power facilities.

The TSO has prepared a forecast of natural gas consumption on the domestic gas market in the next ten years, which is presented in Table 13.

Table 13. Forecast of natural gas consumption on the domestic gas market (in million kWh/year)

Sector 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Industry 5,076 5,052 5,103 5,154 5,205 5,257 5,310 5,363 5,417 5,471 Other 3,776 3,920 3,998 4,118 4,151 4,184 4,218 4,251 4,285 4,320 consumption Electricity 38 53 2,136 2,136 2,136 2,136 2,136 2,136 2,136 2,136 Total 8,891 9,025 11,237 11,408 11,492 11,577 11,663 11,750 11,838 11,926

In preparing forecasts for future use of natural gas, in addition to other elements the TSO also takes into account the individual forecasts of stakeholders on the natural gas market and the general

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period forecasts of natural gas market development and economic growth. The forecasts have also taken into account the energy efficiency measures, but the TSO estimates that their impact will be superseded by the increased use of the energy product itself. In the year 2015, the length of constructed distribution pipelines has increased by 2.2% compared to 2014, resulting in a minimal increase of consumers, but nonetheless, household consumption in 2015 has increased by 9% compared to 2014.

3.2.9 Information systems to support the functionality of carrying out prognoses

After the public consultation on the appointment of a draftsman for prognoses of takeovers of gas network users that are not measured daily, the Energy Agency has in October 2015 determined that the natural gas transmission system operator, the company Plinovodi, is the most suitable draftsman for prognoses in the balancing area of the Republic of Slovenia. In the public proceedings phase, the TSO has agreed with the qualification and reasons of the Energy Agency, but specifically pointed out that while it already has a suitable monitoring and infrastructural information system in the balancing area, its functionality is limited to the natural gas transmission system, therefore the existing information systems of the TSO would have to be suitably upgraded to cover the functionality of a draftsman for prognoses. The activities of a draftsman for prognoses of consumptions that are not measured daily are currently the domain of DSOs and a uniform methodology has not yet been established in Slovenia. In the function of draftsman for prognoses, the TSO will therefore first have to cooperate with DSOs to prepare and coordinate a uniform methodology for prognostication of takeovers that are not mesured daily, for implementation of standard load profiles and for carrying out subsequent allocations, which would be approved by the competent authority. Based on the adopted methodology, the TSO will then upgrade his information systems accordingly and expand the level of treatment in the following areas: 1. developing an application for prognostication and processing of information based on the adopted uniform methodology, 2. establishing a system for communication and stable and reliable exchange of information/records with DSOs.

The upgrading of information systems will be particularly challenging in their start-up phase with establishing all communications and the necessary coordination to ensure stable flow and quality of input data. For the purpose of timely and professional activities of draftsman for prognoses, the TSO will work with the Energy Agency as the competent authority in the appointment of the draftsman for prognoses to also coordinate the corresponding time frames for: 1. the development and coordination of the uniform methodology for prognostication of takeovers that are not measured daily (2016), 2. the period for upgrading and launching the applications and ensuring the quality of input data (envisaged in 2016 and 2017), 3. the trial period for operation of information systems and communications, and validation of results (envisaged in 2017 and 2018).

The estimation of required resources to develop the functionality and operation of the draftsman for prognoses will be possible after the phase of development of the uniform methodology in 2016, since both the content and the scope of activities depend on the solutions determined by the methodology. Establishing the activities of the draftsman for prognoses within the TSO also represents the optimal solution regarding the dimensions of the Slovenian market, the existing position of the TSO and its technical foundation for the development of required solutions.

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

3.3 Cross-border transmission capacity and booking

The Slovenian gas transmission system is connected with the gas transmission systems of the neighbouring countries via cross-border interconnection points that are managed by various TSOs. The cross-border interconnection points of the Slovenian TSO with the neighbouring transmission systems are made with:

 the Austrian TSO, Gas Connect Austria, at the Ceršak cross-border interconnection point,  the Italian TSO, Snam Rete Gas, at the Šempeter cross-border interconnection point, and  the Croatian TSO, Plinacro, at the Rogatec cross-border interconnection point.

For the purpose of cross-border trading and transmission, the capacity needs to be booked at the respective cross-border points and in the corresponding direction. The booking of transmission capacity is carried out according to the entry-exit point model, where the system users have been provided with a separate and independent booking of transmission capacity at each cross-border interconnection point. In this manner, the system user carries out cross-border transmission of natural gas from the territory of another country via the Slovenian territory to a third country, which facilitates and promotes the establishment and operations of the Community's internal market. As of 1 November 2014, the booking of transmission capacity at the cross-border interconnection points is carried out via the joint online booking platform PRISMA by the principles of auctioning and for the capacity booking products in accordance with the Commission Regulation (EU) No. 984/2013.

Table 14. Existing and potential cross-border trading and transmission Direction Existing supply Planned supply

Austria > Croatia Yes Yes Austria > Italy Yes Yes + increase Austria > Hungary No Yes(2) Italy > Austria Yes(1) Yes(1) Italy > Croatia Yes Yes Italy > Hungary No Yes(2) Croatia > Austria Yes(1) Yes(1 or 3) Croatia > Italy Yes(1) Yes(1 or 3) Croatia > Hungary No Yes(2 + 3) Hungary > Italy No Yes(2) Hungary > Austria No Yes(1 + 2) Hungary > Croatia No Yes(2)

> direction of gas flow (1) interruptible upstream transmission capacity (not physical tranmsission) (2) conditional transmission − if the interconnector between Slovenia and Hungary is realised (3) conditional transmission − if pipeline interconnections with projects in Croatia and/or IAP project are realised

3.3.1 Demand for booking at cross-border interconnection points

The requirement for carrying out cross-border transmission of natural gas is to book a suitable combination of transmission capacity at cross-border interconnection points. The TSO keeps the interested public informed of the available transmission capacity of the transmission system via its homepage and the ENTSOG transparency platform. In the recent period, the TSO received increased

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period demand at cross-border points predominantly for the booking of transmission capacity in the direction of Croatia, and in 2015, cross-border transmission in the direction of Italy has begun to develop as well. The TSO finds that the number of bookings of transmission capacity depends primarily on changing conditions on the neighbouring natural gas markets. In addition to the situation on neighbouring natural gas markets, the implementation of the virtual point and trading platform in Slovenia is also affecting short-term bookings of transmission capacity. Members of the trading platform are carrying out daily transmission capacity bookings for transmission of purchased natural gas to neighbouring gas markets.

Possible alternative natural gas transmission routes in the direction of Italy, Croatia and Hungary are either relatively occupied or their costs are less favourable. The model of entry-exit points and the possibility of booking transmission capacity via auctions on all gas markets in the region has established a standardised and simplified procedure of transmission capacity booking that allows users of the transmission system greater flexibility and responsiveness to dynamic price changes on invidivual gas markets. In the future, domestic production of natural gas is expected to decline and the demand for transmission capacity for carrying out cross-border natural gas transmissions is expected to increase.

3.3.2 Booking of transmission capacity at cross-border interconnection points in 2015

In 2015, capacity booking at cross-border interconnection points was mostly carried out through the auctioning process and exclusively via the online booking platform PRISMA. The TSO has been publishing the available firm and interruptible capacities at cross-border interconnection points on a daily basis at the booking platform and allowed the transmission system users to conclude contracts of various maturities (annual and multi-annual, quarterly, monthly, daily and intraday).

Similar to previous years, the most occupied and utilised transmission direction in 2015 was from the direction of Austria (Ceršak entry) towards Croatia (Rogatec exit), where more and more short-term contracts for the booking of transmission capacity are being concluded in addition to long-term contracts. Considering the capacity bookings at cross-border interconnection points and the share of transmitted quantities (Figure 3) in recent years, it is evident that the trend of bulk natural gas transmission and booking from the east supply direction via Austria has carried on in 2015. Due to commercial reasons, this direction is very interesting for all domestic as well as foreign system users and a trend of concluding short-term bookings for the peak load periods of the system can be observed.

Given the demonstrated interest of transmission system users for increased booking of capacities in the commercially most interesting transmission directions and the need for introduction of an entry-exit point model, the TSO has been performing intensive work to upgrade the transmission system in the past years. In the beginning of 2015, the backbone of the transmission system to Vodice was completed, the compressor station in Kidričevo was upgraded and the border metering and regulation station in Rogatec was upgraded as well. By doing this, the TSO has provided additional transmission capacity for cross-border transmission to Croatia and eliminated the bottlenecks on the transmission system and the occurrence of congestion at cross-border interconnection points.

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Figure 19. Transmission capacity at interconnection points Ceršak and Rogatec in 2015

In the year 2015, the booking of capacity for transmission from Italy to Slovenia has been relatively low and comparable to previous years. With the implementation of aforementioned upgrades on the transmission system in the beginning of 2015, bi-directional physical transmission at the cross-border point with italy – the interconnection point Šempeter – has been established as well. This resulted in a greater amount of short-term contracts (monthly, daily) concluded in 2015 and physical cross-border transmission of natural gas from the direction of Slovenia towards Italy was carried out for the first time in February 2015 accordingly.

Figure 20. Transmission capacity at cross-border interconnection point Šempeter in 2015 (entry and exit)

By upgrading the transmission system, the TSO has in recent years been increasing the available capacity at cross-border interconnection points and addressing the most pressing problem of physical congestion in the transmission direction from Austria to Slovenia at the cross-border interconnection point Ceršak. Figure 21 shows how the technical capacity and transmitted natural gas quantities ranged in the last six years at cross-border interconnection points. The figure reveals that with the construction of the parallel pipeline M1/1 from Ceršak to Rogatec, the booking of transmission capacity and the maximum daily transmitted volume both directly followed the technical capacity increase in 2012 at Ceršak. At the beginning of 2013, the technical capacity of interconnection point Ceršak was additionally increased with the construction of the parallel pipeline M2/1 from Rogaška Slatina to Podlog and in 2013 part of the additional transmission capacity was already booked; however, the additional transmission capacity at Ceršak was not fully utilised in 2013 due to relatively mild winters.

In 2015, the highest average monthly as well as the highest daily transmitted quantity at cross-border interconnection points Ceršak and Rogatec has increased in comparison to 2014. In addition to 29

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period increasing the transmitted quantities at existing cross-border interconnection points and transmission directions in 2015, the transmission system users have also utilised the new possibility of physical transmission in the direction of Italy at the cross-border interconnection point Šempeter. As shown in the figure below, the highest daily and highest average monthly transmitted quantity at this interconnection point has been higher in the direction of Italy than in the direction of Slovenia.

Highest daily transmitted quantity (GWh/d) Highest average monthly transmitted quantity (GWh/d)

entry entry

exit exit

Figure 21. Maximum daily and monthly occupancy at cross-border interconnection points

3.3.3 Booking forecast and estimates

Forecasts and estimates of transmission capacity booking are based on the available historical data, the envisaged upgrades of the transmission system in Slovenia and the region, the estimates of macro- economic indicators and the estimate of the increasing liquidity of the gas market.

The development of the Slovenian transmission system has been intense in the past period and we have achieved the adequate transmission capacity in all interconnection points. With the implementation of European legislation and adoption of new system operating instructions in 2015, we have become a part of the unified European gas market which greatly simplifies capacity allocation processes within the booking of transmission capacity. Considering the occupancy of alternative transmission directions for transmission to neighbouring natural gas markets, the TSO can expect a high level of occupancy of transmission capacity at cross-border interconnection points with Croatia and Austria in the coming period.

Table 15 presents an estimate of transmission capacity booking for the needs of cross-border natural gas transmission in the 2017-2020 period. In the case of capacity booking at interconnection points for domestic consumers, long-term contracts for the majority of total booked capacity will expire in 2017. When preparing forecasts for booking of transmission capacity for the needs of cross-border transmission, the TSO takes into account the forecasts for booking at cross-border exit points. Due to the diversification of supply sources, the simplified method of capacity booking and the increase in liquidity of the gas market, the TSO estimates that the rate of transmission capacity booking at interconnection points will be maintained even after 2017.

With the implementation of provisions of the Commission Regulation (EU) No. 984/2013 and the introduction of additional short-term transmission capacity products, including intraday in 2015, the users have the option of booking transmission capacity for shorter periods, which is being increasingly utilised by the users. The bookings presented in Table 15 are therefore only estimates, as the amount of transmission capacity booked at an individual relevant point varies on a daily basis. The presented estimates are prepared for the first day of the calendar year.

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Table 15. Forecast and estimate of transmission capacity booking for domestic network users and cross-border transmission (in million kWh/day)

Entry-exit points 2017 2018 2019 2020 Ceršak entry 92.172 97.934 97.934 97.934 Šempeter pri 4.624 1.981 1.981 1.981 Novi Gorici entry Rogatec entry 2.587 1.003 1.003 1.003 Total entry 99.383 100.918 100.918 100.918 Ceršak exit 0.000 0.000 0.000 0.000 Šempeter pri 7.681 10.241 10.241 10.241 Novi Gorici exit Rogatec exit 46.021 43.521 45.000 45.000 Slovenia exit 62.076 55.858 62.481 62.965 Total exit 113.465 108.609 117.722 118.206

In the recent period, the TSO has implemented and in 2014 completed the intensive construction of the new parallel backbone of the pipeline system from Ceršak to Vodice (M1/1, M2/1), along with carrying out stage 1 of the compressor station upgrade in Kidričevo. By doing this, the TSO responded to the increased interest in transmission capacity from the east supply direction via the cross-border interconnection point Ceršak. This resulted in technical capacity at the cross-border relevant point Ceršak reaching and slightly exceeding the transmission capacity of the Austrian transmisison system in 2015 (Table 16).

With the additional capacity of the Slovenian transmission system, it is also possible to supply the envisaged new domestic thermal power plants from the east supply direction, while any unused transmission capacity can be used for cross-border transmission of natural gas to Italy. To this end, by upgrading the border metering and regulation station Šempeter, the TSO also provided the possibility of bi-directional operations and exit transmission capacity at the cross-border interconnection point Šempeter (Table 15).

In the future, the TSO is planning further increases of transmission capacity at cross-border interconnection points, which will be achieved with the implementation of stage 2 of the extension of the compressor station in Kidričevo (project C5) and an upgrade of the compressor station in Ajdovščina (project C1), which will allow the TSO to meet the demand and further increase the transmission capacity at cross-border relevant points Ceršak and Šempeter after 2020. Table 16 only shows the development of technical capacity in the next 5-year period, since after this period, the capacity development of the Slovenian transmission system at cross-border interconnection points may already be significantly affected by the route of some of the new major pipeline projects in the region, whose capacities and time frames are not yet specified.

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Table 16. Available technical capacity of the gas transmission system (in million kWh/day)

Transmission Cross-border system 2017 2018 2019 2020 2021 2022 points operator vstop 138.983 138.983 138.983 217.686* 217.686* 258.904 Plinovodi Ceršak izstop 0 0 0 165* 165* 165* vstop 0 0 0 165 165 165 GCA Murfeld izstop 112.53 112.53 112.53 181.28 181.28 181.28 vstop 0 53 53 165** 165** 165** Plinovodi Rogatec izstop 68.205 68.205 68.205 233.205** 233.205** 233.205** vstop 53 53 218 218 218 218 Plinacro Rogatec izstop 0 0 165 165 165 165 Šempeter vstop 28.261 28.261 28.261 28.261 63.716* 63.716* Plinovodi pri Novi Gorici izstop 25.692 25.692 25.692 25.692 63.716* 63.716* vstop 21.350 21.350 21.350 21.350 21.350 21.350 Snam Rete Gas Gorizia izstop 46.970 46.970 46.970 46.970 46.970 46.970 General note The year of occurrence of available technical capacity means that operation will start during that year. Upon realisation of 3rd unit of CS Ajdovščina - project C1 (TRA-N-092) and stage 2 of extension of CS Note * Kidričevo - project C5 (TRA-N-094). Note** Upon realisation of Reconstruction of interconnection Rogatec – project C2 (TRA-N-390).

The TSO will implement the projects for increasing the available technical capacity of the natural gas transmission system in case of relevant requests and needs, and with the increase of capacity of neighbouring operators at cross-border interconnection points in agreement with the operators. This will ensure the consistency of construction of new capacities on both sides of cross-border interconnection points.

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Figure 22 shows the development of technical capacity in the next 4-year period. After this period, the capacity development of the Slovenian transmission system at cross-border interconnection points may already be significantly affected by the route of some of the new major pipeline projects in the region. In Table 15, the increased capacity and timelines after the year 2020 are therefore provided according to the currently available information and data.

Ceršak entry - technical capacity

Ceršak entry - booking forecast and estimate

Rogatec exit - technical capacity

Rogatec exit - booking forecast and estimate

Rogatec entry – technical capacity

Rogatec entry – booking forecast and estimate

Šempeter entry - technical capacity

Šempeter entry - booking forecast and estimate

Šempeter exit - technical capacity

Šempeter exit - booking forecast and estimate

Figure 22. Interconnection points technical capacity, booking forecast and estimate

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

4 Set of planned gas infrastructure for the 2017 – 2026 period

Depending on its purpose, the planned infrastructure is broken down into: projects for increasing operational security, projects for connecting new natural gas consumers or changing the operational characteristics of gas infrastructure, and projects for developing interconnection points.

Table 17. Status and level of treatment as of 1 January 2016 - summary table Level of treatment 1 January 2016

Concept Under Investments 2017 − 2026 Number FID Building ual NSP(p) NSP constru permit designs ction

A Increase in operational security 18 9 1 8 B Connections 45 1 39 4 1 C Development of interconnection points 17 4 6 7 Total 79 1 51 7 19 1

4.1 Projects to increase operational security

Figure 23. Locations of projects to increase operational security

The group of projects that allow the increase of operational security includes energy loops, displacements of pipeline sections due to specific settlement modifications and prevention of landslides. In several cases, these projects provide the possibility of connecting new municipalities.

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Table 18. Projects to increase operational security

Planned start of A Project name Purpose operations

A1 R26 section Dešen Displacement of pipeline due to a landslide 2017 Loop to Zreče Stage one: R21AZ Konjiška vas - System loop, increase of transmission capacity and 2021 Oplotnica operational security A2 Increase of transmission capacity and operational Stage two: R21AZ Oplotnica - Zreče nd security, allows for connection of new municipality Stage three: P21AZ1 Oplotnica - Increase of transmission capacity and operational nd Slovenska Bistrica security, allows for connection of new municipality A3 R51a Jarše − Sneberje System loop after 2018

A4 R51b TE−TOL Fužine/Vevče System loop, allows for connection of DSO to MOL after 2018

A5 R51c Kozarje − Vevče System loop after 2018

Dravograd − Ruše - Maribor

A6 Stage one: Dravograd - Ruše System loop; allows for connection of new municipalities nd

Stage two: Ruše - Maribor System loop nd

Kalce - Godovič – Žiri − Škofja Loka

A7 Stage one: Kalce - Godovič System loop; allows for connection of new municipalities 2018

Stage two: Godovič – Škofja Loka System loop; allows for connection of new municipalities nd

A8 Škofja Loka – Medvode - Ljubljana System loop nd

A9 Laško – Hrastnik − Radeče System loop nd R12A M1 - Lenart − MRS Gornja A10 System loop; allows for connection of new municipalities nd Radgona A11 Šoštanj − Dravograd System loop nd Displacement of pipeline due to an adjustment to the A12 M4 section Podčetrtek nd requirements of third parties Displacement of pipeline due to settlement modifications A13 M2 section Trnovlje nd of MOC M5 Vodice − Jarše − Novo mesto System loop; allows for connection of R51 Jarše – TE-TOL, Stage one: Vodice – Jarše after 2018 MRS TE-TOL A14 Stage two: Jarše – Grosuplje System loop; allows for connection of new municipalities nd Other stages: Grosuplje – Novo System loop; allows for connection of new municipalities nd mesto System pipeline; allows for connection of new A15 M6 Ajdovščina - Lucija 2020 municipalities A16 Management centre Technology and construction 2018 System pipeline; allows for connection of new A17 R45 Novo mesto – Bela Krajina nd municipalities System pipeline; increase of transmission capacity and A18 R25A/1 Trojane - Hrastnik nd operational security; connection of new users

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

4.2 Connections

Figure 24. Locations of projects for new connections

The connections group includes projects for connections of new consumers, changes to the operational characteristics at pipeline structures for existing consumers and connection of natural gas producer. These have been included in the list based on queries, connection approvals and/or connection contracts. Connection projects also include projects for connection of users establishing an infrastructure of CNG filling stations – compressed natural gas for powering vehicles.

The aforementioned projects also include the connection of a natural gas producer to the transmission pipeline system in the region of Pomurje. The producer is the holder of concession rights for the extracion of mineral resources, crude oil, natural gas and gas condensate in the area of the Mura Depression, i.e. in the gas and oil fields Dolina and Petišovci pri Lendavi. In the first year, likely in 2016, the production is already estimated at 700GWh, which represents nearly 9% of the domestic need for natural gas (2014) and, hence, an important element of a secure energy supply in the country.

Table 19. Connections

B Project name Purpose Planned start of operations MRS TE-TOL; B1 Connection of thermal energy plant after 2018 M5 Vodice - Jarše, R51 Jarše − TE−TOL MRS Godovič; Connection of DSO in the municipality of B2 2018 R38 Kalce - Godovič Idrija Connection of DSO in the municipalities of MRS Sežana, MRS Kozina, MRS Dekani, B3 Sežana, Hrpelje-Kozina, Koper, Izola, Piran; 2020 MRS Koper, MRS Izola, MRS Lucija connection with the system pipeline M6 Connection of DSO in the municipality of B4 MRS Cerklje; nd Cerklje 36

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

R297B Šenčur − Cerklje

MRS TTPP; B5 Connection of thermal power station nd R25A/1 Trojane - TTPP MRS TOŠ; B6 Connection of thermal energy plant nd R52 Kleče – TOŠ B7 MRS Cerknica Connection of DSO and industrial users nd B8 CNG MS/MRS Connection of users with CNG filling stations 2017 - 2026 B9 MRS Lendava/Petišovci Connection to the production of natural gas 2016/2017 Connection of DSO in the municipality of B10 MRS Marjeta nd Starše B11 MRS Nasipi Trbovlje Connection of user and DSO 2017 B12 MRS Golnik Connection of DSO 2016/2017 Adjustment to the demand characteristics of B13 MRS Brestanica nd the power station (stage one and two) Supply to users (Table 5) and other Connection of new users with mobile systems B14 2017 - 2026 connection projects and adjustment of existing connection points Adjustment to the demand characteristics of B15 MRS Impol 2016 (2026) the user (Zreče loop) B16 CNG MS Celje Connection of CNG filling station 2017 B17 MRS Termo - Knauf Insulation Capacity increase for industrial consumer 2018 B18 MRS Miklavž na Dravskem polju Connection of DSO 2017 B19 MRS Bela Connection of DSO and industrial users 2017 B20 MRS Halda Connection of industrial users 2017 B21 MRS Desni Breg Connection of DSO and industrial users 2017 B22 MRS Šoštanj Connection of new industrial consumers nd Adjustment to the demand characteristics of B23 MS Primorje CGM nd the consumer B24 MS Labore Connection of DSO for industrial consumer nd

B25 MRS Rogatec Connection of DSO 2017/2018 B26 MRS Pesnica Connection of DSO nd B27 MRS Šmarje pri Jelšah Connection of DSO 2017 B28 MRS Oplotnica Connection of DSO nd B29 MRS Braslovče Connection of DSO nd B30 MRS Videm Connection of DSO nd B31 MRS Kidričevo Connection of DSO nd B32 MRS Sveti Tomaž Connection of DSO nd Adjustment to the demand characteristics of B33 MRS Štore nd the user Connection of DSO in the municipality of B34 MRS Grosuplje Grosuplje; connection with the system nd pipeline M5 B35 MRS Škofljica/Ig Connection of DSO nd B36 MRS Komenda Connection of DSO nd B37 MRS Lukovica Connection of DSO nd B38 MRS Brezovica/Log Dragomer Connection of DSO nd B39 MRS Svilanit Connection of DSO nd B40 MRS Šobec Connection of DSO and/or user 2017 MRS Semič Connection of DSO; connection with the B41 MRS Metlika nd system pipeline R45 MRS Črnomelj

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

B42 MRS Horjul Connection of DSO nd Connection of municipality Škocjan and B43 MRS Škocjan/Šentjernej 2017 Šentjernej Adjustment to the demand characteristics of B44 MS Kandija nd the consumer B45 MRS IZ Hoče Connection of DSO nd * in addition to the station, each MS/MRS includes a pipeline connecting the station to the transmission pipeline.

4.3 Development of interconnection points

Projects for development of interconnection points with the neighbouring transmission systems represent an important factor for increasing the cross-border transmission of natural gas via Slovenian territory, for providing diversification of import gas sources and supply routes and for more reliable and competitive supply. The company Plinovodi actively cooperates with all four TSOs of neighbouring countries on cross-border projects.

The most attention is currently devoted to establishing a new connection point with the Hungarian TSO, to which the Slovenian transmission system is not yet connected. The interconnection with Hungary is also included on the new list of Projects of Common Interest (PCI 2015) that the European Commission considers as priority European projects. The project envisages construction of a 73km pipeline and expansion of the existing compressor station Kidričevo with additional compressor units. The purpose of this project is to connect the so-far unconnected Slovenian and Hungarian transmission systems, provide Slovenian suppliers access to Hungarian underground storage facilities and provide Hungarian suppliers access to production sources in Italy and North Adriatic. The PCI 2015 list also includes a group of projects in which the company Plinovodi is cooperating with the transmission system operators of Croatia and Austria and envisages reconstruction of interconnection Rogatec, reconstruction of interconnection Ceršak and expansion of compressor station Kidričevo.

We are also planning a new interconnection with the Croatian transmission system; the construction of a 60km pipeline M8 Jelšane - Kalce that will provide the transmission of natural gas from the possible LNG terminal on the Island of Krk in Croatia and/or the possible IAP transmission system. In western Slovenia, we also envisage a reconstruction of the existing pipeline M3 Ajdovščina - Šempeter due to adjustment to the operational parameters of the Italian transmission system. This project also includes the construction of a new border station Vrtojba. In 2015, the cross-border interconnection point Šempeter/Gorica introduced physical transmission of natural gas from the direction of Slovenia towards Italy as well. In order to provide and develop transmission capacity in the direction of Italy, the pressure parameters of the Italian transmission system will need to be observed in the folowing years. Also related to the project of transporting Croatian LNG through Slovenian territory is the construction project for the 100km pipeline M3/1 Šempeter - Vodice; in addition to providing transmission to the Italian transmission system, the pipeline will also provide transmission of the same gas to the extended interconnection point Ceršak and onwards to the Austrian system.

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Figure 25. Projects to develop interconnection points

Table 20. Development of interconnection points with neighbouring countries Planned start of C Project name Purpose operations CS Ajdovščina extension Stage one Adjustment to the operational parameters of the Italian after 2021 C1 TSO’s transmission system, reverse flow Stage two LNG North Adriatic nd Reconstruction of M3 at section CS Ajdovščina − Miren with branches Adjustment to the operational parameters of the Italian TSO’s transmission system (73.9bar) + nd C2 BMCS Vrtojba Adjustment to the operational parameters of the Italian TSO’s transmission system (100bar) nd C3 R15/1 Pince – Lendava - Kidričevo Interconnector with the Hungarian TSO after 2019 Upgrade of interconnection Ceršak Interconnector with the Austrian TSO, adjustment to the after 2019 C4 (M1/3 interconnection Ceršak) operational parameters of the Austrian TSO’s transmission system CS Kidričevo - extension stage 2 Improvement of operational parameters in M1/1 and after 2019 C5 M2/1 CS Vodice II Improvement of operational parameters in M2, M2/1, M3, nd C6 M3/1, M5, M10 C7 M3/1a Šempeter − Ajdovščina Interconnector with the Italian TSO, LNG North Adriatic 2022 C8 M3/1b Ajdovščina − Kalce Interconnector with the Italian TSO, LNG North Adriatic 2022 C9 M3/1c Kalce − Vodice Interconnector with the Italian TSO, LNG North Adriatic 2022 M8 Kalce − Jelšane Interconnector with the Croatian TSO, LNG North 2022 C10 Adriatic, as well as connection of new municipalities

C11 R67 Dragonja – Izola Interconnector with the Croatian TSO nd

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Upgrade of interconnection Rogatec Interconnector with the Croatian TSO: construction of after 2019 C12 (M1A/1 Interconnection Rogatec) cross-border pipeline and extension of BMCS Rogatec M9a Lendava − Kidričevo and CS Cross-border transmission nd C13 Kidričevo - extension stage 3

M9b Kidričevo − Vodice and CS Cross-border transmission nd C14 Vodice I C15 M10 Vodice − Rateče Cross-border transmission nd BMCS Rogatec bi-directional flow Provision of bi-directional capacities: upgrade of 2018 C16 upgrade installations in existing BMCS Rogatec for reverse flow from Croatia to Slovenia C17 M6 Interconnection Osp Interconnector with the Italian TSO nd

4.4 Projects in preparation and planning in the 2017 – 2019 period The TSO estimates to have a total of 31 projects in preparation and planning in the 2017 – 2019 period and to carry out (construct or begin construction on) 23 of those projects, while 8 will remain in planning with envisaged investments in studies, location and investment documentation in the next 3 years. Although the majority of the projects did not have a FID status as of 1 January 2016, the TSO estimates that they have achieved suitable maturity in respect to the level of treatment achieved on both sides, i.e. on the part of the TSO and on the part of the potential transmission system users.

Table 21. Projects planned in the 2017 – 2019 period

Level of Planned # Project name Purpose treatment 1 start of January 2016 operations

Loop to Zreče A2 Stage one R21AZ Konjiška vas System loop, increase of transmission capacity NSP prepared 2021 - Oplotnica and operational security A3 R51a Jarše − Sneberje System loop NSP prepared after 2018 System loop, allows for connection of DSO to A4 R51b TE−TOL Fužine/Vevče NSP prepared after 2018 MOL M5 Vodice − Jarše − Novo mesto

A14 System loop; allows for connection of new Conceptual Stage two: Jarše – Grosuplje nd municipalities designs

MRS Sežana, MRS Kozina, MRS Connection of DSO in the municipalities of B3 Dekani, MRS Koper, MRS Izola, Sežana, Hrpelje-Kozina, Koper, Izola, Piran; NSP prepared 2020 MRS Lucija connection with the system pipeline M6

Reconstruction of M3 at section CS Ajdovščina − Miren with branches C2 Adjustment to the operational parameters of the Italian TSO’s transmission NSP prepared nd system (73.9bar) + BMCS Vrtojba R15/1 Pince – Lendava - Interconnector with the Hungarian TSO NSP(p) after 2019 C3 Kidričevo Reconstruction of Interconnector with the Croatian TSO: C12 interconnection Rogatec (M1A/1 construction of cross-border pipeline and NSP(p) after 2019 Interconnection Rogatec) extension of BMCS Rogatec

Table 22. Projects in preparation in the 2017 – 2019 period

Planned Level of treatment start of # Project name Purpose 1 January 2016 operation s A1 R26 section Dešen Displacement of pipeline due to a landslide NSP prepared 2017

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

A5 R51C Kozarje − Vevče System loop NSP(p) after 2018 R38 Kalce - Godovič System loop; allows for connection of new NSP prepared 2018 A7 municipalities M5 Vodice − Jarše − Novo mesto A14 System loop; allows for connection of R51 Jarše after 2018 Stage one: Vodice – Jarše BP acquired – TE-TOL, MRS TE-TOL System pipeline; allows for connection of new NSP prepared 2020 A15 M6 Ajdovščina - Lucija municipalities A16 Management centre Technology and construction Conceptual designs 2018 MRS TE-TOL; BP acquired after 2018 B1 M5 Vodice - Jarše, R51 Jarše − Connection of thermal energy plant TE−TOL MRS Godovič; Connection of DSO in the municipality of Idrija NSP prepared 2018 B2 R38 Kalce - Godovič 2017 - B8 CNG MS/MRS Connection of users with CNG filling stations Conceptual designs 2026 MRS Lendava/Petišovci Connection to the production of natural gas User is the investor 2016/2017 B9 of the project B11 MRS Nasipi Trbovlje Connection of user and DSO Conceptual designs 2017 Supply to users (Table 5) and Connection of new users with mobile systems Conceptual designs 2017-2026 B14 other connection projects and adjustment of existing connection points

B16 CNG MS Celje Connection of CNG filling station Conceptual designs 2017

B17 MRS Termo - Knauf Insulation Capacity increase for industrial consumer Conceptual designs 2018 MRS Miklavž na Dravskem B18 Connection of DSO Conceptual designs 2017 polju

B19 MRS Bela Connection of DSO and industrial users Conceptual designs 2017

B20 MRS Halda Connection of industrial users Conceptual designs 2017

B21 MRS Desni Breg Connection of DSO and industrial users Conceptual designs 2017

B25 MRS Rogatec Connection of DSO Conceptual designs 2017/2018

B27 MRS Šmarje pri Jelšah Connection of DSO Conceptual designs 2017

B40 MRS Šobec Connection of DSO and/or user Conceptual designs 2017 Connection of municipality Škocjan and B43 MRS Škocjan/Šentjernej Conceptual designs 2017 Šentjernej BMCS Rogatec bi-directional Provision of bi-directional capacities with C16 Conceptual designs 2018 flow upgrade reverse flow

4.4.1 Optical connections between Management Centre and significant facilities on the natural gas transmission system

In view of the trends and the development of communication technologies, the company Plinovodi is also considering the possibilities of establishing an optical connections system between the Management Centre in Ljubljana and the significant facilities on the natural gas transmission system. From the perspective of ensuring safe and reliable operation of the natural gas transmission system, the optical connections would allow for transmission of a greater extent of data and visualisation of status of transmission system facilities. Depending on the available technologies related to the optical network, it would also be possible to implement control over third party interventions near the transmission pipelines. In the first phase, we intend to establish an optical connection between the Management Centre and the hub at metering and regulation station Vodice, replacing part of the existing communications line at a section of the route with an optical connection in the process.

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

5 European dimension of natural gas supply

In 2015, the European Commission took an integral approach to energy policy. Within the context of the Energy Union Package, it published the Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy (COM(2015) 80 final), declaring 5 key dimensions of operation:  energy security, solidarity and trust,  a fully-integrated internal energy market,  energy efficiency as a contribution to the moderation of energy demand,  decarbonisation of the economy, and  an energy union for research, innovation and competitiveness.

At the end of 2015, the European Commission published the first report on the state of the Energy Union (COM(2015) 572 final). Among other things, the report stresses the importance of the energy infrastructure for the operation of the integrated internal energy market. In this regard, the importance lies in connections between Member States to provide access to energy from various sources and routes. Suitable infrastructure connections are also essential for ensuring adequate energy security. The European Commission urges the Member States to devote special attention to the projects of common interest specified in the second list of projects of common interest. The Commission also points out the need to improve the integration of national natural gas markets on a regional level.

5.1 Development of exchanges with other countries After four consecutive years of decline in natural gas consumption in Europe, the latest Eurogas10 estimates specify a 7% increase in natural gas consumption in the EU in 2015 compared to 2014. Particularly in the first half of 2015, consumption was 9% higher than in the same period of the previous year.

The increase in demand for natural gas can mainly be attributed to the seasonal and annual variable weather conditions. The last two years have been unusually warm (2014 was a record warm year for certain EU countries), while 2015 was close to the average. Considering the changing weather conditions, natural gas is particularly relevant for heating and cooling, since it has the capacity to provide high and varying amounts of energy in households.

In addition to climate conditions, the higher consumption of natural gas was also influenced by other factors, e.g. when hydroelectric energy production decreased in Germany and Italy natural gas filled the gap in the energy supply. The demand for natural gas for the production of electricity has increased in some of the EU countries (e.g. France with increased demand in industry and Austria with increased use of CHP/cogeneration), but low coal prices continued to have significant impact on the demand for natural gas. Once the European economy recovered somewhat, there was a slight increase in demand for natural gas in the industrial sector as well.

The forecasts of natural gas consumption until 2050, based on the political commitments of the European Council of October 201411 and defining the transition to a low-carbon society, are optimistic12 in respect to the 2020 - 2035 period. The adopted commitments set out a 40% reduction in greenhouse gas emissions in the EU from 2020 to 2030. According to these commitments, the consumption of natural gas will gradually decrease in the future, with its share in the balance sheet of all consumed energy dropping from 25% in 2010 to 22% in 2030 and 18% in 2050.

10 http://www.eurogas.org/uploads/media/Eurogas_Press_Release_-_Gas_supply_in_2015_responds_to_increased_consumer_demand.pdf 11 Energy Policies of IEA Countries, European Union - 2014 Review, International Energy Agency (IEA), OECD/IEA, 2014 12 Eurostat, newsrelease, 25/2015, 9. 2. 2015 42

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

5.2 Supply of natural gas to EU countries and access to natural gas sources

More than half of the energy for the supply of EU countries is imported. The EU countries are dependent on imports of crude oil (nearly 90%) and natural gas (66%) and to a lesser extent solid fuels (42%) and nuclear fuels (40%). In relation to the security of energy supply, the issue of strong dependence of certain countries on a single external supplier remains. It is particularly problematic where natural gas and electric energy are concerned. As many as 6 Member States in the EU depend on Russia as the sole supplier of the entire gas import volume and in three of these countries natural gas accounts for more than one quarter of their total energy needs. In the year 2013, the energy supply from Russia represented 39% of the natural gas imports in the EU or 27% of the gas consumption in the EU. Russia has exported 71% of its gas to Europe, most of it to Germany and Italy. The security of energy supply to the EU must also be addressed within the increasing demand for energy worldwide. This demand is supposed to increase by 27% in the next 15 years, which will result in substantial changes regarding energy supply and trade flows. (Source: European strategy for the security of energy supply13)

In the past period, especially in the year 2014, the natural gas market was characterised by concern about potential interruptions of Russian natural gas supply, particularly through Ukraine. The European Council of March 2014 called the European Commission to conduct an in-depth study on energy security and to present a plan on how to reduce the energy dependence14, as the EU imports nearly 70% of the natural gas it requires. This imported share is estimated to remain the same until 2020, increasing somewhat after this period and reaching between 3,800 and 4,000 TWh from 2025 to 2030. In the year 2013, 39% of gas was imported from the Russian Federation, 33% from Norway and 22% from North Africa (Algeria, Libya). Other sources are minor, reaching approximately 4%. The imports of liquefied natural gas have even reached 22% of all gas consumed in 2010, but dropping back to 15% due to lower prices on the Asia-Pacific gas market. The role of liquefied natural gas as the main potential source for diversification will be maintained if not increased in the following years. The new supply of liquefied natural gas from North America, Australia, Qatar and new sites in East Africa will likely increase the size and liquidity of global liquefied natural gas markets. Among other projects of this type, the first liquefication plant on the East Coast of the United States should be mentioned. Its planned start of operations is between 2015 and 2017 and its planned capacity is approximately 270 TWh/year. The possibilities for increased production can also be found in Norway (up to 1,300 TWh/year in 2018 from the current 1,200 TWh/year) and North Africa, as well as the Mediterranean region (potentially large volumes of unexplored or untapped hydrocarbon resources and the advantage of geographical proximity).

In accordance with the request of the European Council, the European Commission has in collaboration with the Gas Coordination Group (consisting of ENTSOG and national authorities responsible for providing secure supply to individual EU countries) collected the required data to analyse how ready the EU is for a possible reduction in the influx of natural gas due to political disagreements between Ukraine and Russia15. These stress tests have captured several scenarios, which assumed complete suspension of the supply of Russian gas from the Russian Federation and Ukraine for the period of one to six months in winter 2014/2015. The analysis has shown that the natural gas supply in the Slovenian region is not directly threatened in the analysed cases, mainly due to possible access to other gas sources.

13 http://eur-lex.europa.eu/legal-content/SL/TXT/PDF/?uri=CELEX:52014DC0330&from=EN 14 European Council, European Council (23. and 24. 10. 2014) – Conclusions, EUCO 169/14, Brussels, 24. 10. 2014 15 EU Energy, transport and greenhouse gas emissions Trends to 2050 - Reference scenario 2013 - European Commission 43

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Algeria Qatar 8% 5% Russia is the largest individual natural gas supplier to EU-28 EU production countries. In 2014, its share 34% remains the same as in 2013 Russia 27% (27%). European production (production of the EU and Norway) accounted for 55% of all EU-28 needs.

Norway and Data source: other sources Eurogas: Statistical report 2015 26%

Figure 26. Sources of natural gas supply to EU-28 countries (2014)

The graph shows the manner in LNG transport by ship which natural gas was imported 15% to EU-28 countries in 2014. The year before, sea transport share was one percent higher (16%). In 2014, a substantial part of the Pipelines LNG transported by ship was 85% diverted to the Asian market due to increased demand and the resulting higher prices.

Data source: Eurogas: Statistical report 2015

Figure 27. Transport of imported natural gas for EU-28 countries (2014)

5.3 REGULATION (EU) No. 347/2013 on guidelines for trans-European energy infrastructure With the Regulation (EU) No. 347/2013, the European Commission has set out the priority corridors and areas important for the development of an integrated energy network. The Regulation affects the fields of spatial planning, environmental impact assessments (cross-border included) and public consultation procedures. It also provides the so-called priority corridors and criteria for designating Projects of Common Interest (PCI). The Regulation defines priority corridors and areas of trans- European energy network infrastructure. The Republic of Slovenia and its gas infrastructure is ranked in this Regulation under the following priority corridors:

 North-South gas interconnections in Central Eastern and Southeastern Europe („NSI East Gas“): regional gas interconnections between the Baltic Sea region, the Adriatic and Aegean Seas and the Black Sea for extension and enhanced security of gas supply routes. Member States concerned are: Austria, Bulgaria, Cyprus, Czech Republic, Germany, Greece, Hungary, Italy, Poland, Romania, Slovakia and Slovenia;

 Southern Gas Corridor („SGC“): transmission of gas from the Caspian Basin, Central Asia, the Middle East and Eastern Mediterranean Basin to the EU to enchance diversification of gas supply. 44

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Member States concerned are: Austria, Bulgaria, Czech Republic, Cyprus, France, Germany, Hungary, Greece, Italy, Poland, Romania, Slovakia and Slovenia.

5.3.1 PCI 2015 list

On 18 November 2015, the European Commission adopted a new list of 195 key energy infrastructure projects that will make it easier for Europe to achieve the energy and climate goals (C(2015) 8052 final). It is an updated list of projects of common interest that was adopted in October 2013 as an annex to Commission Delegated Regulation (EU) No. 1391/2013. The new list has 59 less projects than the 2013 list, mostly due to an increased focus on bottlenecks on the European scale and a new method of selecting projects. The PCI 2015 list comprises 108 projects in the field of electricity, 77 in the field of gas, 7 in the field of oil and 3 projects in the field of smart networks. The balance between projects in the field of electricity and gas was also achieved due to a clear definition of priority projects in the regional context.

The Projects of Common Interest will allow for gradual upgrading of the Energy Union through integration of the energy markets in Europe, diversification of energy sources and transport routes. They will contribute to the elimination of the energy isolation of some of the Member States. In addition, the Projects of Common Interest will increase the volume of renewable energy sources in the network and therefore contribute to the reduction of carbon emissions.

The Projects of Common interest are subject to certain advantages:  enhanced transparency and public consultation;  simplified authorisation procedures (the binding time limit is three and a half years);  better, quicker and simplified environmental assessment;  a single national authority operating as a „one-stop“ point for authorisation procedures;  improved regulatory treatment with allocation of costs based on net benefit and regulatory incentives;  possibility of financial aid under the Connecting Europe Facility (CEF) in the form of grants and innovative financial instruments.

In order for a project to be included in the list, it must be proven that the project brings significant benefits for at least two Member States. In addition, it must contribute to market integration and enhance competition, as well as increase the security of energy supply and reduce carbon dioxide emissions.

Table 23. List of projects that were included in the PCI 2013 list and projects included in the new PCI 2015 list

Project PCI 2013 PCI 2015 M3/1a Šempeter − Ajdovščina X M3/1b Ajdovščina − Kalce X M3/1c Kalce − Vodice X M8 Kalce − Jelšane X R15/1 Pince – Lendava - Kidričevo X X Upgrade of interconnection Rogatec X Upgrade of interconnection Ceršak X CS Kidričevo - extension stage 2 X

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

The above projects are included in the PCI 2015 list in the context of two project groups, namely:

6.23 Interconnection Hungary – Slovenia (Nagykanizsa — Tornyiszentmiklós (HU) — Lendava (SI) – Kidričevo)

6.26 The group Croatia – Slovenia – Austria via Rogatec, which includes the following projects:

 6.26.1 Interconnection Croatia – Slovenia (Lučko — Zabok — Rogatec) (CRO)  6.26.2 CS Kidričevo, extension stage 2 (SI)  6.26.3 Compressor stations on the Croatian gas transmission system (CRO)  6.26.4 GCA 2014/04 Murfeld (AT)  6.26.5 Upgrade of interconnection Ceršak/Murfeld (SI)  6.26.6 Upgrade of interconnection Rogatec (SI)

Figure 28. Schematic map of the placement of the company Plinovodi's development plan in the PCI projects

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

5.3.2 TEN-E and CEF

For the purpose of encouraging investments in projects of common interest in the field of trans- European energy networks, the European Commission has on the basis of public tenders TEN-E (Trans- European Energy Networks) and CEF-E (Connecting Europe Facility) granted the company Plinovodi EU financial aid to prepare studies for the planned transmission pipelines. The projects supported with EU funds are specified in Table 24.

Table 24. List of projects with approved EU financial aid Tender TEN-E TEN-E TEN-E TEN-E CEF-E Project 2010 2011 2012 2013 2014 R15/1 Pince - Lendava - Kidričevo   M10 Vodice - Rateče   M3 - reconstruction   M3/1 Vodice - Kalce - Ajdovščina - Miren  M9 Lendava - Kidričevo  M9b Kidričevo - Vodice  M6 Ajdovščina - Lucija  M8 Kalce - Jelšane  CS Vodice II 

5.4 ENTSOG The establishment of the European Network of Transmission System Operators for Gas (ENTSOG) was provided for by Regulation (EC) No. 715/2009. ENTSOG was founded on 1 December 2009 with the objective of accomplishing the following tasks: to facilitate the formation and operations of a single European internal market and cross-border trading in natural gas as well as to ensure optimal management, coordinated operation and technical evolution of the European natural gas transmission system by preparing and proposing adequate network codes. The company Plinovodi is one of the founding members of ENTSOG. Its current membership structure is: 45 European TSOs and 2 associated partners (from Member States that are currently still operating under the suspension of the requirements deriving from Regulation No. 715/2009) from 26 EU Member States and 4 observers from Europe (Norway, Switzerland, Ukraine, Macedonia). The central task of ENTSOG is to prepare network codes, the EU ten-year development plan, the »Winter Outlook« and »Summer Outlook« reports, to inform the interested public, bring together TSOs and cooperate in the preparation of 3-year regional investments plans within the EU.

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Figure 29. ENTSOG members

5.4.1 TYNDP

One of the central objectives of the TYNDP (Ten Year Network Development Plan) is to provide an overview of trans-European infrastructure, thereby detecting potential gaps in future investments. The European 10-year development plan aims to cover a wider dynamics of the European gas market in relation to supply potential, market integration and security of supply.

ENTSOG publishes the 10-year development plans on its website: http://www.entsog.eu/publications/tyndp. In accordance with the requirements of Regulation (EC) No. 715/2009, the TYNDP is prepared every two years.

When preparing the European TYNDP, the company Plinovodi has been cooperating with ENTSOG since the preparation of the first plan in 2010, so the projects of the Slovenian TSO are summarised in the European TYNDP and coordinated with the national 10-year development plans. The TSO guarantees that the European TYNDP includes all projects that are listed in the national 10-year development plan and that can be qualified as affecting the European gas infrastructure. When preparing the national 10- 48

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period year development plan, the TSO always ensures that the forecasts of estimated transmitted quantities and booked transmission capacities are coordinated. With the coordination of the development plans, the transparency and impartiality in development of gas transmission infrastructure can therefore be assured.

In the beginning of 2016, the preparation of the 5th edition of the European TYNDP for a period of 20 years (2017-2037) has begun and is expected to be published in early 2017.

5.4.2 GRIP CEE and GRIP Southern Corridor

In accordance with the requirement for the promotion and establishment of regional cooperation as laid down in Directive 2009/74/EC OF THE EUROPEAN PARLIAMENT AND THE COUNCIL of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC (Article 7) and Regulation (EC) No. 715/2009 OF THE EUROPEAN PARLIAMENT AND THE COUNCIL of 13 July 2009 on conditions for access to the natural gas transmission networks and repealing Regulation (EC) No. 1775/2005 (Article 12), the TSOs within ENTSOG publish a Gas Regional Investment Plan (GRIP) every two years, which forms the basis for the adoption of decisions regarding investment. As the Slovenian TSO, the company Plinovodi takes part in the preparation of two GRIP documents, namely GRIP Southern Corridor and GRIP Central Eastern Europe (CEE).

GRIP CEE is prepared in cooperation with TSOs from the following countries: Austria, Bulgaria, Croatia, Czech Republic, Germany, Hungary, Poland, Romania, Slovakia and Slovenia.

GRIP Southern Corridor is prepared in cooperation with TSOs from Greece, Italy, Austria, Bulgaria, Croatia, Hungary, Romania, Slovakia and Slovenia, and GRIP Central Eastern Europe is prepared in cooperation with Austria, Germany, Croatia, Bulgaria, Hungary, Poland, Romania, Slovakia and Slovenia.

The latest editions of GRIP documents were published in 2014, while the preparation of new GRIP documents for the 2016 – 2025 period began in early 2016 and is expected to be completed with publication at the end of 2016.

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

ANNEXES

ANNEX 1 Availability of the transmission network and distribution networks by region and municipality

ANNEX 2 Technical characteristics of the planned transmission infrastructure

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Annex 1

Availability of the transmission network and distribution networks by region and municipality

Figure 30. Pomurje region

Municipalities with a Municipalities without a transmission Municipalities with DSO transmission system without system DSO

Beltinci Petrol Črenšovci, Križevci, Razkrižje, Apače, Cankova, Gornji Petrovci, Grad, Dobrovnik Petrol Velika Polana, Veržej Hodoš/Hodos, Kobilje, Kuzma, Moravske Toplice, Puconci, Rogašovci, Sveti Jurij, Gornja Radgona Petrol Šalovci, Tišina Lendava/Lendva Mestni plinovodi Ljutomer Mestni plinovodi Murska Sobota Mestni plinovodi Odranci Petrol Radenci Mestni plinovodi Turnišče Petrol

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Availability of the transmission network and distribution networks by region and municipality

Figure 31. Koroška region

Municipalities with a transmission Municipalities without a transmission Municipalities with DSO system without DSO system

Dravograd Petrol Energetika Črna na Koroškem, Mislinja, Podvelka, Mežica Petrol Energetika Radlje ob Dravi, Ribnica na Pohorju, Vuzenica Muta Petrol Energetika Prevalje Petrol Energetika Ravne na Koroškem Petrol Energetika Slovenj Gradec JKP Slovenj Gradec

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Availability of the transmission network and distribution networks by region and municipality

Figure 32. Podravje region

Municipalities with a Municipalities without a transmission Municipalities with DSO transmission system without system DSO

Hoče − Slivnica Plinarna MB Dornava, Hajdina, Juršinci, Benedikt, Cerkvenjak, Cirkulane, Maribor Plinarna MB Kidričevo, Majšperk, Oplotnica, Destrnik, Duplek, Gorišnica, Kungota, Pesnica, Sveti Tomaž, Starše Lenart, Lovrenc na Pohorju, Makole, Miklavž na Dravskem Plinarna MB polju Markovci, Poljčane, Podlehnik, Selnica ob Dravi, Sveta Ana, Sveta Trojica v Slov. Ormož Mestni plinovodi goricah, Sveti Andraž v Slov. goricah, Ptuj Adriaplin Sveti Jurij v Slovenskih goricah, Trnovska Rače – Fram Plinarna MB vas, Videm, Zavrč, Žetale Ruše Plinarna MB Slovenska Bistrica Petrol Središče ob Dravi Mestni plinovodi Šentilj Plinarna MB

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Availability of the transmission network and distribution networks by region and municipality

Figure 33. Savinjska region

Municipalities with a transmission Municipalities without a transmission Municipalities with DSO system without DSO system

Celje Energetika Celje Braslovče, Kozje, Podčetrtek, Bistrica ob Sotli, Dobje, Dobrna, Gornji Laško Adriaplin Šmarje pri Jelšah, Šmartno ob Paki, Grad, Ljubno, Luče, Mozirje, Nazarje, Tabor, Vransko Rečica ob Savinji, Solčava, Vitanje Polzela Mestni plinovodi Prebold Mestni plinovodi Radeče Adriaplin Rogaška Slatina Adriaplin Rogatec Petrol Slovenske Konjice Petrol Šentjur Adriaplin Šoštanj CS Velenje Štore Adriaplin Velenje CS Velenje Vojnik Adriaplin Zreče Mestni plinovodi Žalec Mestni plinovodi

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Availability of the transmission network and distribution networks by region and municipality

Figure 34. Zasavska region

Municipalities with a transmission Municipalities without a transmission Municipalities with DSO system without DSO system

Hrastnik Mestni plinovodi Trbovlje Zagorje ob Savi Adriaplin

Availability of the transmission network and distribution networks by region and municipality

Figure 35. Spodnje−posavska region

Municipalities with a transmission Municipalities without a transmission Municipalities with DSO system without DSO system

Brežice Adriaplin Kostanjevica na Krki Krško Adriaplin

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Sevnica Javno podjetje plinovod Sevnica Availability of the transmission network and distribution networks by region and municipality

Figure 36. Osrednjeslovenska region

Municipalities with a Municipalities without a transmission Municipalities with DSO transmission system without system DSO

Brezovica Energetika Ljubljana Horjul, Lukovica, Moravče Borovnica, Dobrepolje, Grosuplje, Dobrova – Polhov Energetika Ljubljana Ivančna Gorica, Šmartno pri Litiji, Velike

Gradec Lašče

Dol pri Ljubljani Energetika Ljubljana Domžale Petrol Ig Energetika Ljubljana Kamnik Adriaplin Komenda Petrol Litija Istrabenz plini Ljubljana Energetika Ljubljana Logatec Adriaplin Log – Dragomer Energetika Ljubljana Medvode Energetika Ljubljana Mengeš Petrol Škofljica Energetika Ljubljana Trzin Petrol Vodice Petrol Vrhnika CS Vrhnika

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Availability of the transmission network and distribution networks by region and municipality

Figure 37. Notranjsko−kraška region

Municipalities with a transmission Municipalities without a transmission Municipalities with DSO system without DSO system

− − Postojna Bloke, Cerknica, Ilirska Bistrica, Loška dolina, Pivka

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Availability of the transmission network and distribution networks by region and municipality

Figure 38. Gorenjska region

Municipalities with a transmission Municipalities without a transmission Municipalities with DSO system without DSO system

Bled Adriaplin Bohinj, Gorenja vas – Poljane, Jezersko, Cerklje na Petrol Kranjska Gora, Preddvor, Železniki, Žiri Gorenjskem

Jesenice JEKO−IN

Kranj Domplan

Naklo Domplan

Gorje Adriaplin

Radovljica Petrol

Šenčur Domplan

Petrol

Škofja Loka Loška komunala

Tržič Petrol

Žirovnica Plinstal

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Availability of the transmission network and distribution networks by region and municipality

Figure 39. Goriška region

Municipalities with a transmission Municipalities without a transmission Municipalities with DSO system without DSO system

Ajdovščina Adriaplin Kanal, Miren – Kostanjevica, Renče – Bovec, Brda, Cerkno, Idrija, Kobarid, Nova Gorica Adriaplin Vogrsko Tolmin

Šempeter − Vrtojba Adriaplin Vipava Adriaplin

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Availability of the transmission network and distribution networks by region and municipality

Figure 40. Obalno−kraška region

Municipalities with a transmission Municipalities without a transmission Municipalities with DSO system without DSO system

Sežana* Petrol Divača, Hrpelje – Kozina, Izola/Isola, Koper/Capodistria** Istrabenz plini Komen, Piran/Pirano

* connected to the Italian TSO **distribution network for petroleum gas

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Availability of the transmission network and distribution networks by region and municipality

Figure 41. Jugovzhodna (SE) region

Municipalities with a transmission Municipalities without a transmission Municipalities with DSO system without DSO system

Novo mesto Istrabenz plini Straža, Škocjan, Šmarješke Toplice Črnomelj, Dolenjske Toplice, Kočevje, Kostel, Loški Potok, Metlika, Mirna, Mirna

Peč, Mokronog – Trebelno, Osilnica, Ribnica, Semič, Sodražica, Šentjernej, Šentrupert, Trebnje, Žužemberk

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Annex 2

A – Increase in operational security

B - Connections

C - Development of interconnection points

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

ANNEX 2

Status Level of Planned Listed in PCI # Project name Purpose Technical 1 January treatment start of ENTSOG common characteristics 2016 1 January operations TYNDP European 2016 2017 with interest label A - INCREASE IN OPERATIONAL SECURITY New construction, L = R26 Section Displacement of pipeline NSP A1 2.4km, D = 100mm, DP Non-FID 2017 Dešen due to a landslide prepared = 50bar Loop to Zreče

Stage one R21AZ System loop, increase of New construction, L = NSP Konjiška vas - transmission capacity 7km, D = 150mm, DP = Non-FID 2021 prepared Oplotnica and operational security 50bar Increase of transmission capacity and operational New construction, L = A2 Stage two R21AZ security, allows for 5.3km, D = 150mm, DP nd Oplotnica - Zreče connection of new = 50bar municipality Increase of transmission Stage three capacity and operational New construction, L = P21AZ1 Oplotnica security, allows for 8.9km, D = 150mm, DP nd - Slovenska connection of new = 50bar Bistrica municipality New construction, L = R51a Jarše − NSP A3 System loop 2.5km, D = 300mm, DP Non-FID after 2018 Sneberje prepared = 30bar, JS Jarše System loop, allows for New construction, L = R51b TE−TOL NSP A4 connection of DSO to 4.5km, D = 300mm, DP Non-FID after 2018 Fužine/Vevče prepared MOL = 30bar, MRS Dobrunje New construction, L = R51c Kozarje − 17.5km, D = 300mm, A5 System loop Non-FID NSP(p) after 2018 Vevče DP = 30bar, MRS Kozarje Dravograd − Ruše - Maribor

System loop; allows for New construction, L = Stage one Conceptual connection of new 45km, D = 250mm, DP Non-FID nd A6 Dravograd - Ruše designs municipalities = 50bar New construction, L = Stage two Ruše - System loop 10km, D = 250mm, DP nd Maribor = 50bar Kalce - Godovič – Žiri − Škofja Loka

System loop; allows for New construction, L = Stage one Kalce - NSP connection of new 11km, D = 150mm, DP Non-FID 2018 Godovič prepared A7 municipalities = 70bar Stage two System loop; allows for New construction, L = Conceptual Godovič - Žiri - connection of new 29km, D = 150mm, DP nd designs Škofja Loka municipalities = 70bar Škofja Loka - New construction, L = Conceptual A8 Medvode - System loop 15km, D = 200mm, DP Non-FID designs Ljubljana = 50bar New construction, L = Laško – Hrastnik − Conceptual A9 System loop 22km, D = 200mm, DP Non-FID nd Radeče designs = 50bar R12A M1 - Lenart System loop; allows for New construction, L = Conceptual A10 − MRS Gornja connection of new 30km, D = 250mm, DP Non-FID nd designs Radgona municipalities = 70bar New construction, L = Šoštanj − Conceptual A11 System loop 24km, D = 200mm, DP Non-FID nd Dravograd designs = 70bar Displacement of pipeline New construction, L = M4 section due to an adjustment to Conceptual A12 4km, D = 400mm, DP = Non-FID nd Podčetrtek the requirements of third designs 50bar parties Displacement of pipeline New construction, L = M2 section Conceptual A13 due to settlement 2km, D = 400mm, DP = Non-FID nd Trnovlje designs modifications of MOC 70bar

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

M5 Vodice - Jarše − Novo mesto

System loop; allows for Stage one: Vodice connection of R51 Jarše – New construction, L = after 2018 – Jarše Conceptual A14 TE-TOL, MRS TE-TOL 66km, D = 400mm, DP Non-FID designs System loop; allows for = 70bar Stage two: Jarše – connection of new nd Grosuplje municipalities Other stages: System loop; allows for Grosuplje – Novo connection of new nd mesto municipalities New construction, L = 45.9km, D = 250mm, System pipeline; allows DP = 70bar; M6 Ajdovščina – NSP A15 for connection of new L = 17.5km, D = Non-FID 2020 TRA-N-365 Lucija prepared municipalities 200mm, DP = 25bar; L = 5.5km, D = 100mm, DP = 70bar Management Technology and Conceptual A16 2018 centre construction designs New construction, L = 39km, D = 400mm, DP System pipeline; allows = 50bar, MRS Črnomelj, R45 Novo mesto – NSP A17 for connection of new MRS Metlika, MRS Non-FID nd Bela Krajina prepared municipalities Semič capacity 3.15GWh/d (0.298 million Sm3/d) New construction, L = System pipeline; increase 21.8km, D = 400mm, R25A/1 Trojane - of transmission capacity NSP A18 DP = 70bar, MRS TTPP, Non-FID nd Hrastnik and operational security; prepared capacity 13.72GWh/d connection of new users (1.296 million Sm3/d)

ANNEX 2 Status Level of Planned Listed in PCI # Project name Purpose Technical 1 January treatment start of ENTSOG common characteristics 2016 1 January operations TYNDP European 2016 2017 with interest label B - CONNECTIONS New construction, section M5 Vodice−Jarše, L = Partial BP MRS TE-TOL; 16km, D = 400mm, DP acquired FID Connection of thermal = 50bar, section R51 for most of B1 M5 Vodice - connection after 2018 energy plant Jarše−TE−TOL L = the route Jarše, R51 contract Jarše − TE−TOL 2.8km, D = 250mm, DP and all = 50bar, MRS TE−TOL, facilities capacity: 13.97GWh/d (1.32 million Sm3/day) New construction, MRS MRS Godovič; Connection of DSO in the Godovič, capacity: NSP B2 Query 2018 R38 Kalce - municipality of Idrija 1.52GWh/d (0.144 prepared Godovič million Sm3/d)

MRS Sežana, Connection of DSO in the MRS Kozina, municipalities of Sežana, New construction, MRS MRS Dekani, Hrpelje-Kozina, Koper, Sežana, MRS Kozina, NSP B3 Query 2020 TRA-N-365 MRS Koper, MRS Izola, Piran; connection MRS Dekani, MRS prepared Izola, MRS with the system pipeline Koper, MRS Izola, MRS Lucija M6 Lucija

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

New construction, L = MRS Cerklje; 2.9km, D = 200mm, DP Connection of DSO in the NSP B4 = 50bar, MRS Cerklje, Query nd R297B Šenčur − municipality of Cerklje prepared Cerklje capacity 2.54GWh/d (0.240 million Sm3/d)

MRS TTPP; Connection of thermal New construction of NSP B5 Query nd R25A/1 Trojane power station pipeline and MRS prepared - TTPP New construction, L = 5.1km, D = 250mm, DP MRS TOŠ; Connection of thermal NSP B6 = 70bar, MRS TOŠ, Query nd energy plant prepared R52 Kleče – TOŠ capacity 6.99GWh/d (0.660 million Sm3/d)

Connection of DSO and New construction of Conceptual B7 MRS Cerknica Query nd industrial users MRS designs

Connection of users with Large number of new Conceptual B8 CNG MS/MRS Query 2017-2026 CNG filling stations MS constructions designs FID User is the MRS Lendava/ Connection to the New construction of B9 connection investor of 2016/2017 Petišovci production of natural gas MRS contract the project Connection of DSO in the MWPB, adaptation of Conceptual B10 MRS Marjeta Query nd municipality of Starše MRS designs MRS Nasipi Connection of user and MWPB, adaptation of Connection Conceptual B11 2017 Trbovlje DSO MRS approval designs MWPB, adaptation of Connection Conceptual B12 MRS Golnik Connection of DSO 2016/2017 MRS approval designs Adjustment to the MWPB, adaptation of demand characteristics Connection Conceptual B13 MRS Brestanica MRS, new construction nd of the power station approval designs of MRS (stage one and two)

Supply to users Connection of new users (Table 5) and New construction of with mobile systems and Conceptual B14 other mobile handover Query 2017-2026 adjustment of existing designs connection connection points systems projects

Adjustment to the Connection MWPB, adaptation of Conceptual B15 MRS Impol demand characteristics approval 2016 (2026) MRS designs of the user (Zreče loop) phase Connection Connection of CNG filling Conceptual B16 CNG MS Celje MWPB approval 2017 station designs phase MWPB, adaptation of MRS Termo - Capacity increase for Connection Conceptual B17 MRS, new construction 2018 Knauf Insulation industrial consumer approval designs of MRS Connection MRS Miklavž na New construction of Conceptual B18 Connection of DSO approval 2017 Dravskem polju MRS designs phase Connection of DSO and New construction of Conceptual B19 MRS Bela Query 2017 industrial users MRS designs Connection of industrial New construction of Conceptual B20 MRS Halda Query 2017 users MRS designs Connection of DSO and New construction of Conceptual B21 MRS Desni Breg Query 2017 industrial users MRS designs New construction, L = Connection of new Conceptual B22 MRS Šoštanj 4km, D = 100mm, MRS Query nd industrial consumers designs Šoštanj 2 Adjustment to the MS Primorje demand characteristics MWPB, adaptation of Conceptual B23 CGM Query nd of the consumer MRS designs Connection of DSO for Conceptual B24 MS Labore MWPB Query nd industrial consumer designs New construction of Conceptual B25 MRS Rogatec Connection of DSO Query 2017/2018 MRS designs New construction of Conceptual B26 MRS Pesnica Connection of DSO Query nd MRS designs 65

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

MRS Šmarje pri New construction of Conceptual B27 Connection of DSO Query 2017 Jelšah MRS designs New construction of Conceptual B28 MRS Oplotnica Connection of DSO Query nd MRS designs MWPB, adaptation of Conceptual B29 MRS Braslovče Connection of DSO Query nd MRS designs New construction of Conceptual B30 MRS Videm Connection of DSO Query nd MRS designs New construction of Conceptual B31 MRS Kidričevo Connection of DSO Query nd MRS designs MRS Sveti New construction of Conceptual B32 Connection of DSO Query nd Tomaž MRS designs Adjustment to the New construction, Conceptual B33 MRS Štore demand characteristics variant technical Query nd designs of the user solutions Connection of DSO in the municipality of New construction of Conceptual B34 MRS Grosuplje Grosuplje; connection Query nd MRS designs with the system pipeline M5 New construction of Conceptual B35 MRS Škofljica/Ig Connection of DSO Query nd MRS designs New construction of Conceptual B36 MRS Komenda Connection of DSO Query nd MRS designs New construction of Conceptual B37 MRS Lukovica Connection of DSO Query nd MRS designs MRS New construction of Conceptual B38 Brezovica/Log Connection of DSO Query nd MRS designs Dragomer MWPB, adaptation of Connection Conceptual B39 MRS Svilanit Connection of DSO nd MRS approval designs New construction of Conceptual B40 MRS Šobec Connection of DSO Query 2017 MRS designs MRS Semič Connection of DSO; New construction of Conceptual B41 MRS Metlika connection with the Query nd MRS designs system pipeline R45 MRS Črnomelj New construction of Conceptual B42 MRS Horjul Connection of DSO Query nd MRS designs MRS Connection of New construction of Conceptual B43 Škocjan/Šentjer municipality Škocjan and Query 2017 MRS designs nej Šentjernej Adjustment to the New construction of Conceptual B44 MS Kandija demand characteristics Query nd MRS designs of the consumer Connection New construction of Conceptual B45 MRS IC Hoče Connection of DSO approval nd MRS and pipeline designs phase

ANNEX 2

Status Level of Planned Listed in PCI # Project name Purpose Technical 1 treatment start of ENTSOG common characteristics January 1 January operations TYNDP European 2016 2016 2017 with interest label C - DEVELOPMENT OF INTERCONNECTION POINTS CS Ajdovščina extension Adjustment to the operational parameters of One compressor unit; NSP Stage one the Italian TSO’s Non-FID after 2021 TRA−N−092 power up to 5MW prepared C1 transmission system and reverse flow Two compressor units with total power of up Stage two LNG North Adriatic nd TRA−N−093 to 20MW Connection to M3/1

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

Reconstruction of M3 at section CS Ajdovščina − Miren with branches New construction, L = 11km, D = 500mm, DP Adjustment to the operational parameters of = 73.9bar, initial NSP the Italian TSO’s transmission system (73.9bar) Non-FID nd TRA−N−108 capacity 25.40GWh/d prepared + BMCS Vrtojba (2.4 million Sm3/d), C2 BMCS Vrtojba New construction, L = 20km, D = 500mm, DP Adjustment to the operational parameters of = 100bar, capacity after 2020 the Italian TSO’s transmission system (100bar) 62.99GWh/d (5.952 million Sm3/d) New construction, L = 73km, D = 500mm, DP = 100bar, Two R15/1 Pince – Interconnector with the compressor units with C3 Lendava - Non-FID NSP(p) after 2019 TRA−N−112 X Hungarian TSO total power of up to Kidričevo 3.5MW, capacity 38.1GWh/d (3.6 million Sm3/d) Upgrade of Interconnector with the New construction, L = interconnection Austrian TSO, adjustment 200 m, D = 800mm, DP NSP C4 Ceršak (M1/3 to the operational = 70bar, capacity Non-FID after 2019 TRA−N−389 X prepared interconnection parameters of the Austrian 181.35GWh/d (17.135 Ceršak) TSO’s transmission system million Sm3/d) New construction, up Improvement of CS Kidričevo - to three compressor NSP C5 operational parameters in Non-FID after 2019 TRA−N−094 X extension stage 2 units with total power prepared M1/1 and M2/1 of up to 30MW Improvement of New construction, up operational parameters in to three compressor Conceptual C6 CS Vodice II Non-FID nd M2, M2/1, M3, M3/1, M5, units with total power designs M10 of up to 30MW New construction, L = Interconnector with the 30km, D = 1100mm, DP M3/1a Šempeter C7 Italian TSO, LNG North = 100bar, capacity Non-FID NSP(p) 2022 TRA−N−099 − Ajdovščina Adriatic 340GWh/d (32.126 million Sm3/d) New construction, L = Interconnector with the 24km, D = 1100mm, DP M3/1b Ajdovščina NSP C8 Italian TSO, LNG North = 100bar, capacity Non-FID 2022 TRA−N−262 − Kalce prepared Adriatic 340GWh/d (32.126 million Sm3/d) New construction, L = Interconnector with the 47km, D = 1100mm, DP M3/1c Kalce − NSP C9 Italian TSO, LNG North = 100bar, capacity Non-FID 2022 TRA−N−261 Vodice prepared Adriatic 340GWh/d (32.126 million Sm3/d) New construction, L = Interconnector with the 60km, D = 1200mm, DP Croatian TSO, LNG North = 100bar, MRS M8 Kalce − C10 Adriatic, as well as Postojna, MRS Pivka, Non-FID NSP(p) 2022 TRA−N−101 Jelšane connection of new MRS Ilirska Bistrica municipalities Capacity 414GWh/d (39.118 million Sm3/d) New construction L = 10km, D = 300mm, DP R67 Dragonja – Interconnector with the Conceptual C11 = 50bar, capacity Non-FID nd TRA−N−114 Izola Croatian TSO designs 5.1GWh/d (0.480 million Sm3/d) Upgrade of Interconnector with the interconnection Croatian TSO: construction New construction L = C12 Rogatec (M1A/1 of cross-border pipeline 3.8km, D = 800mm, DP Non-FID NSP(p) after 2019 TRA−N−390 X interconnection and extension of BMCS = 100bar Rogatec ) Rogatec New construction, L = 73km, D = 1200mm, DP M9a Lendava − = 100bar, up to five Kidričevo and CS compressor units with C13 Cross-border transmission Non-FID NSP(p) nd Kidričevo - total power of up to extension stage 3 80MW, capacity 1,030GWh/d (97.397 million Sm3/d)

Ten-Year Gas Transmission Network Development Plan for the 2017 – 2026 Period

New construction, L = 117km, D = 1200mm, DP = 100bar, up to M9b Kidričevo − four compressor units C14 Vodice and CS Cross-border transmission Non-FID NSP(p) nd with total power of up Vodice I to 60MW, capacity 1,030GWh/d (97.397 million Sm3/d) New construction L = 82km; D = 1400mm, DP M10 Vodice − C15 Cross-border transmission = 100bar, capacity Non-FID NSP(p) nd Rateče 1,003GWh/d (94.823 million Sm3/d) Provision of bi-directional capacities: upgrade of BMCS Rogatec bi- Reconstructions and installations in existing Conceptual C16 directional flow upgrades with suitable Non-FID 2018 BMCS Rogatec for reverse designs upgrade technical parameters flow from Croatia to Slovenia M6 New construction, Interconnector with the NSP C17 Interconnection L=1.2km; D = 600mm, Non-FID nd TRA-N-107 Italian TSO prepared Osp DP = 70bar

Desetletni razvojni načrt prenosnega plinovodnega omrežja za obdobje 2016 - 2025

Abbreviations

BMCS Border metering and control station CA Connection approval CC Connection contract CD Conceptual design CEE Central Eastern Europe CM City municipality CNG Compressed natural gas CS Compressor station D Pipeline diameter DP Design pressure DSO Distribution system operator EC European Commission ENTSOG European Network of Transmission System Operators for Gas EU European Union EZ−1 Energy Act (Official Gazette of the Republic of Slovenia, Nos. 17/2014, 81/2015) FID Final Investment Decision GRIP Gas Regional Investement Plan IAP The Ionian Adriatic Pipeline project JS Junction station L Pipeline length Lf Load factor LNG Liquefied natural gas MRS Metering and regulation station MS Metering station MSt Member State nd No data NEP National energy programme NSP National spatial plan has been adopted NSP(p) National spatial plan in preparation PCI Project of Common Interest TE−TOL Ljubljana Thermal Power and District Heating Plant TOŠ Šiška District Heating Plant TPP Thermal power plant TSO Transmission system operator TYNDP Ten−Year Network Development Plan

Desetletni razvojni načrt prenosnega plinovodnega omrežja za obdobje 2016 - 2025

Legal notice

The Ten-Year Gas Transmission Network Development Plan for the 2017 − 2026 period has been prepared pursuant to the rules of the profession and based on the data acquired by Plinovodi in good faith. The development plan contains predictions and analyses made by Plinovodi based on the data collected in this way.

The data and material contained in the Development Plan is of informative nature and has been prepared for the purposes of the said document. In the event of further use of the data and information contained in the document, it must be verified with due diligence that it is up to date and relevant.