10-Year Network Development Plan Every Year After Consulting the Relevant Stakeholders

Ten-Year Gas Transmission Network Development Plan for the 2016 − 2025 Period

October 2015

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 2016 - 2025 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 ...... 28

4 Set of planned gas infrastructure for the 2016 − 2025 period ...... 35 4.1 Projects to increase operational security ...... 35 4.2 Connections ...... 37 4.3 Development of interconnection points ...... 39 4.4 Projects that will be carried out by the TSO between 2016 and 2018 ...... 41

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 ...... 42 5.3 REGULATION (EU) No. 347/2013 on guidelines for trans-European energy infrastructure ...... 44 5.4 GRIP CEE ...... 46 5.5 GRIP Southern Corridor ...... 47 5.6 Placement of the TSO's development plan within the scope of PCIs ...... 47

ANNEXES ...... 49

Abbreviations ...... 67

Legal notice ...... 68

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

Preface

In the company Plinovodi d.o.o. the process of planning the Slovenian transmission network is a regular fixture that is based on national legislation and is constantly adapting to the increasingly extensive analyses and planning of the trans-European natural gas network. The situation on the gas market is changing and certain operating conditions that were once considered improbable are becoming a reality. Our work and the planning of the transmission system are adjusting to that and our central task is to stimulate the operation of the natural gas market.

The new development plan presents the central tasks and orientations of our company for the period of the next ten years. From the perspective of development of the transmission system, the foremost projects are the ones intended for the domestic gas market, the ones that ensure the optimal technical and economical operation and security, and the ones that are integrated in the development of the trans-European network.

The provision of natural gas in the country is of special importance to us. Despite the reduced natural gas consumption we are carefully researching the existing and potential users, while at the same time analysing the areas in the country where there is potential for the use of natural gas. In terms of operational security, our previous development and construction have met the very demanding standards regarding accessibility to resources and storage facilities, which means that the natural gas market in the country can develop even more efficiently. That is the desire and goal of us all.

We would like to thank everyone that participated in the process of public proceedings for their help and support in providing their suggestions and proposals during the preparation of materials for this document.

Marjan Eberlinc

General Manager

Sarah Jezernik

Deputy General Manager

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

Summary

The Slovenian gas transmission system is an energy infrastructure of national importance. It is present in 108 of the total 212 municipalities. In the Slovenian energy balance sheet, natural gas represents 10% of the primary energy consumption structure, which is one of the lowest shares in Europe. The reason for this lies in the fact that natural gas is practically never used for the production of electricity in Slovenia (the European average amounts to 28%) and represents a mere 10% share in household and other consumption (the European average amounts to 37%). Nevertheless, natural gas is the leading energy source 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. During the preparation of the Development Plan, there were 35 cases of such demand, two approvals for connection were issued and one connection contract was signed.

Regarding the purpose of the gas projects in relation to security updates, development of domestic gas market and harmonisation with international projects, the transmission system operator breaks down the planned infrastructure into 3 groups.

Group A contains 16 projects that will increase operational security. They involve loops and adjustments to the pipeline system due to settlement and other circumstances. Group B contains 40 connections and Group C contains 16 projects for the development of interconnection points with the transmission systems of neighbouring countries. These include 5 projects that have been listed as projects of common interest in the year 2013 by the European Commission.

Regarding the achieved maturity of individual projects, the TSO estimates that it will implement (construct or begin construction on) 15 pipeline projects in the three-year period of 2016 − 2018.

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

Introduction

Pursuant to the provisions of the Energy Act (EZ−1)1, the transmission system operator (TSO) is obliged 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 Ten-Year Gas Transmission Network Development Plan for the 2016 − 2025 Period (hereinafter "10- year network development plan") defines the main infrastructure for transmission that is to be built and upgraded over the next ten years for players on the market, contains all investments that have already been decided, identifies new investments that have to be carried out within the next three years and provides 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 LNG re-gasification facilities. It has also researched the initiatives received during consultations and taken them into account.

1 Official Gazette of the Republic of Slovenia, No. 17/2014 5

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 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 3 April and 4 May 2015, 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 remarks, suggestions or additions to the draft. During the public consultation process, which lasted for one month, it has received two responses.

One municipality expressed an interest in connecting to the gas transmission network, while one DSO expressed the wish for an additional connection point through construction of a new MRS. The TSO has researched both initiatives 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 possible 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 2015.

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 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 paths from northeastern Europe (from Russia through Slovakia and Austria towards Italy and Croatia) and bordering on Italy, where the transmission paths 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. Gas transmission network - pipeline diameter (as of 1 January 2015) Pipeline diameter up to 400mm 500mm 800mm Total Horizontal length (km) 826.1 162.3 167.0 1,155.4 Percentage (%) 72 14 14 100

Table 2. Gas transmission network - high and low pressure (as of 1 January 2015) High pressure Pressure Low pressure (<16bar) Total (>16bar) 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 2015) 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 2016 - 2025 period

Figure 1. Gas transmission network in January 2015

3.2 Domestic market

3.2.1 Supply of natural gas to Slovenia and access to natural gas 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 completely stopped back in 2013.

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

Data source: Energy Agency, Important indicators for the supply of electrical energy and natural gas for the year 2013 with projection by the end of 20142.

Figure 2. Sources of natural gas supply to Slovenia

Through the Ceršak interconnection point, the TSO can supply all Slovenian customers, regardless of their location. The suppliers can therefore provide a competitive supply that is not subjected to possible bottlenecks on the transmission network.

Figure 3. Natural gas import routes to Slovenia

3.2.2 Existing supply of transmission capacity as of 1 January 2015

Through the border metering and regulation stations the Slovenian gas transmission system is connected to the gas transmission system of neighbouring countries - Austria, Croatia, Italy - and is therefore an integral part of the European gas transmission system.

Data on transmission capacity of the gas transmission network is presented in the so-called relevant points that are shown in Figure 4 and confirmed by the Energy Agency. Four relevant points for the publication of data are cross-border interconnection points, while the fifth relevant point is aggregate information on the combined exit/transmission for users in the Republic of Slovenia.

2 When the Development Plan was being prepared, the updated data was not yet available. The data was refreshed in June 2015 for all countries and is available on the following website: https://ec.europa.eu/energy/sites/ener/files/documents/CountryDatasheets_June2015.pdf 9

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

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

Table 4 presents data on the capacity of relevant points as of 1 January 2015, the total contractually leased capacities and the utilisation for different periods.

Table 4. Capacity of the gas transmission system at relevant points3

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

million million % % % kWh/day kWh/day Ceršak - 76.5 48.1 65.8 138.413 94.286 entry (27 1 2014) (year 2014) (Dec 2014) Rogatec - 90.5 54.8 71.6 67.925 50.733 exit (28 10 2014) (year 2014) (Dec 2014) Šempeter - 14.4 7.2 10.9 28.195 6.388 entry (29 1 2014) (year 2014) (Dec 2014) Šempeter - 25.632 0 - - - exit Exit to the 38.9 21.6 31.3 73.056 61.618 RS (27 1 2014) (year 2014) (Dec 2014)

3 Data on capacities pertains to 1 January 2015, data on the utilisation of technical capabilities pertains to the year 2014.

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

In development of the transmission system, the TSO must ensure that the transmission capacity follows the demand for transmission capacity on the domestic market, the demand for cross-border transmission capacity and the requirements for ensuring a secure supply of natural gas.

Pursuant to Regulation (EC) No. 715/2009, the European TSOs must enable users the use of transmission capacity at entry points to the system separately and independently of the capacity occupancy at all exit points out of the system (as per the so-called system of entry-exit points). As a technical prerequisite for commercial marketing and capacity booking after this method, each TSO is required to ensure that its transmission system does not include bottlenecks that would prevent users from making free booking combinations of entry and exit capacities.

Physical transmission of natural gas towards Italy

After the end of the investment cycle and the beginning of operation of the parallel pipeline from the Austrian border to Vodice and along with the additional compressor unit Kidričevo being installed at the beginning of 2015, the TSO now has larger transmission capacities at its disposal at the cross- border interconnection points Ceršak and Rogatec. The cross-border interconnection point Šempeter also allows for physical transmission of natural gas towards Italy, which was first carried out at the beginning of 2015.

Infrastructure standard 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.

Based on the analysis of prospective infrastructure projects, the TSO has estimated that the infrastructure standard N-1 will range between 95.7% and 85% in the next five 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 such manner that the system will reach the required level of 100%.

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

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

As the transmission system operator, the company Plinovodi d.o.o. will be able to meet the requirements of the infrastructure criterion N-1 in the long term by:

1. increasing the transmission capacities from Italy through handover point Gorica/Šempeter in coordination with the Italian system operator and implementing the required upgrades in the domestic transmission system (BMCS Šempeter, CS Ajdovščina) 2. an additional connection of the Slovenian transmission system with neighbouring systems that could be realised within the Hungary connection project, Croatia connection project or one of the liquefied natural gas projects.

The development of the infrastructure criterion N-1 will in the coming years 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.

3.2.3 Existing supply and demand for transmission capacity - territorial coverage

As of 1 January 2015, the TSO had transmission contracts concluded with 156 system users, i.e. 15 DSOs (distribution system operators) operating in 77 municipalities, 139 industrial or commercial consumers and two power stations.

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

Table 5. Main infrastructure − situation as of 1 January 2015

Infrastructure Situation as of 1 January 2015

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 equipment Compressor stations, total power CS Kidričevo 10.5MW, CS Ajdovščina 9MW Cross-border stations Ceršak, Rogatec, Šempeter pri Gorici Junction stations Rogatec, Podlog, Trojane, Vodice

Figure 6. Regional availability of the gas transmission network (grey areas represent municipalities with DSOs, green areas represent municipalities with potential connections)

Slovenia has 77 municipalities with a distribution network. The TSO estimates that when considering the distance from the existing transmission network and potential consumption there are 70 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 2016 - 2025 period

Table 6. Existing regional availability of the gas transmission network and local communities with potential connections

Local communities with potential connections and infrastructure required

New Number of Percentage construction Municipalities with New potentially of Statistical region s: longer DSOs constructions: connectable connectable Use of system connection households households existing MRS pipelines, pipelines and connection MRSs pipelines and MRSs 1 Pomurska Beltinci, Gornja Apače, 4,875 52% Radgona, Lendava, Črenšovci, Ljutomer, UM Murska Križevci, Sobota, Odranci, Moravske Radenci, Turnišče, toplice, Dobrovnik Puconci, Razkrižje, Tišina, Velika Polana, Veržej 2 Koroška Dravograd, Mežica, Mislinja Muta, 2,930 52% Muta , Prevalje, Vuzenica, Ravne na Koroškem, Radlje ob UM Slovenj Gradec Dravi 3 Podravska Hoče – Slivnica, UM Starše4 Dornava, Lenart 7,198 32% Maribor, Miklavž na Gorišnica, Dravskem polju, Markovci, Ormož, UM Ptuj, Duplek, Rače – Fram, Ruše, Hajdina, Slovenska Bistrica, Kidričevo, Središče ob Dravi, Pesnica, Šentilj Oplotnica, Videm, Selnica ob Dravi5 4 Savinjska UM Celje, Laško, Braslovče, 2,842 23% Polzela, Prebold, Šmartno ob Radeče, Rogaška Paki, Kozje, Slatina, Rogatec, Ljubno, Slovenske Konjice, Nazarje, Šentjur, Štore, UM Mozirje, Velenje, Vojnik, Podčetrtek, Zreče, Žalec Šmarje pri Jelšah, Vransko 5 Zasavska Hrastnik, Zagorje ob Trbovlje 2,024 28% Savi 6 Spodnje− Brežice, Krško, posavska Sevnica 7 Osrednje- Brezovica, Dobrova – Borovnica, Grosuplje, 7,149 36% slovenska Polhov Gradec, Dol Horjul, Ivančna pri Ljubljani, Lukovica, gorica, Domžale, Ig6, Moravče Trebnje Kamnik, Komenda, Litija, UM Ljubljana, Logatec, Log – Dragomer, Medvode, Mengeš, Škofljica, Trzin, Vodice, Vrhnika 8 Notranjsko− Cerknica, 6,546 42% kraška Ilirska Bistrica,

4 The municipality already has a chosen DSO 5 The municipality already has a chosen DSO 6 The Ig municipality does not have a distribution network 14

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

Local communities with potential connections and infrastructure required

11 Obalno− Herpelje – 20,386 59% kraška Kozina, Ankaran, UM Koper7, Izola, Piran, Sežana 12 Jugovzhodna UM Novo mesto Dolenjske Šentjernej, Kočevje 11,037 44% Slovenija Toplice, Škocjan Ribnica, Straža Sodražica, Velike Lašče Črnomelj, Metlika, Semič Total Existing situation: 77 Possible increase in gas transmission network 72,184 44% municipalities with a coverage for 70 potentially connectable distribution network municipalities

7 The municipality already has a chosen DSO 15

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

3.2.4 Market analysis - the role of natural gas in Slovenia and Europe

The Slovenian energy market is significantly different from the EU-28 average in three out of five elements, namely: natural gas, renewable sources and nuclear heat. The share of natural gas in primary energy in the EU-28 countries is 2.3 times higher than in Slovenia, while the shares of renewable sources and nuclear heat are significantly higher in Slovenia.

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

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

Figure 8. The share of natural gas in primary energy in EU-28 (2013)

Figure 9. Energy consumption by sector in Figure 10. Energy sources in industry in Slovenia Slovenia (2014 forecast) (2014 forecast)

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

Figure 11. Non-energy consumption in Slovenia Figure 12. Energy sources in households in (2014 forecast) Slovenia (2014 forecast)

The largest share of energy consumption in the year 2014 was in traffic, followed by industry and households. These three sectors have consumed 90% of all energy, with the remaining 10% in other consumption, non-energy consumption and the energy sector. In Slovenian industry in 2014, natural gas represented a 75% share in consumption of fossil fuels (fossil fuels being solid fuels, oil products and natural gas). However, this share is most likely higher, since 4% of supplied heat is partially produced from natural gas. One of the most suitable uses for natural gas lies in households. It is easy to use, safe, as well as ecologically flawless and competitive. There are several reasons for its small share (10%) in Slovenia, the relatively small geographic coverage (77 municipalities out of 212) being one of them. For comparison, let us take a look at the situation on our energy market ten years ago. In the year 2005, the energy distribution by sector in Slovenia was: industry 33% (last year 25%), traffic 30% (last year 40%), households 23% (last year 25%), other consumption 10% (last year 9%), non-energy consumption 4% (last year 0.8%).

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

In the year 2014, the final energy consumption amounted to 199,308TJ, which is 8.4% lower than ten years ago (2005):  reduced by 32% in industry,  increased by 25% in traffic,  reduced by 1% in households,  reduced by 15% in other consumption; most likely due to austerity measures,  reduced by 82% in non-energy consumption; one of the biggest reasons is the decommissioning of the methanol plant in Lendava.

Figure 13. Energy consumption in 2005 and 2014

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

Figure 14. The share of natural gas among the energy sources in industry (2013)

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

Figure 15. The share of natural gas among the energy sources in households (2013)

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

In the year 2013, the consumption of natural gas in conventional thermal power stations still amounted to 545GWh, but in the year 2014 it dropped to a mere 39.5GWh. Data source: http://ec.europa.eu/eurostat/web/ene rgy/data/main-tables

Figure 16. The share of natural gas among the energy sources in conventional power stations (2013)

3.2.5 Natural gas consumption in the country in the 2007 - 2014 period

The past consumption of natural gas represents one of the indicators used to forecast the booking of transmission capacity. In the past year, we have seen a large drop in consumption of natural gas in the electricity production sector, which can be attributed mostly 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 last three years, which suggests that the economic conditions have settled down somewhat. In the other consumption segment the consumption of natural gas is still trending downwards, 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. Regardless of the annual volume of natural gas used, for the TSO the key is the booking capacity on the level of daily consumption that is required for the transmission of natural gas to supply the network users, which remains at about the same level in the event of peak loads.

Table 7. Natural gas consumption in Slovenia in the 2007 - 2014 period (million kWh/year)

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

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

Figure 17. Natural gas consumption in Slovenia in the 2007 - 2014 period (million kWh/year)

3.2.6 Demand and anticipated supply

3.2.6.1 Queries Queries include the initial activities of potential users of transmission capacities for connection and connections that the TSO recorded as current and for which no connection approval had been issued by 1 January 2015. 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.

Table 8. Queries

Planned start of # Project name Purpose operations B2 MRS Godovič Connection of DSO in the municipality of Idrija 2018 B3 MRS Dekani Connection of DSO in the municipalities of Koper, Izola, Piran, After 2018 Sežana, Divača and Herpelje − Kozina; new construction MRS MRS Koper Dekani, MRS Koper, MRS Sežana, MRS Kozina, MRS Izola, MRS MRS Sežana Lucija; connection with the M6 pipeline to the M3 pipeline MRS Kozina MRS Izola MRS Lucija B4 R297B Šenčur − Cerklje Connection of DSO in the municipality of Cerklje nd B5 R45 Novo mesto – Bela Connection of 3 municipalities in the region of Bela Krajina nd Krajina (southeastern Slovenia) B6 R52 Kleče – TOŠ Connection of a thermal power station nd B7 R25A/1 Trojane – Hrastnik Connection of a power station nd B8 CNG Connection of CNG filling stations 2016 - 2020 B10 MRS Marjeta Connection of DSO in the municipality of Starše 2018 B11 MRS Trbovlje Connection of DSO 2016 B12 Borovnica Connection of municipality and industry 2021 B14 Supply to users (MRS Miklavž, Connection of new users with mobile systems and adjustment 2016-2018 MRS Golnik, MRS Šmartno ob of existing connection points Paki, MRS Braslovče, MRS Pernica); other connection projects B15 MRS Celje General Hospital Displacement of MRS and distribution upgrade nd

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

B16 MRS Verovškova Capacity increase nd B17 MRS Termo - Knauf Insulation Capacity increase of industrial consumer 2017

B18 MRS Kranj Stražišče Connection of cogeneration in industry nd B19 MRS MTT Tabor Connection of industrial consumer nd B20 MRS Novo mesto Adjustment to the demand characteristics of the user nd B21 MRS Opekarna Novo mesto Connection of industrial consumer nd B22 Supply of Šoštanj industrial Connection of new industrial consumers nd zone B23 MRS Pragersko Connection of DSO for Gaj settlement nd B24 MS IUV Vrhnika Connection of DSO nd B25 MRS Rogatec Connection of DSO nd B26 MRS Pesnica Connection of DSO 2018 B27 MRS Šmarje pri Jelšah Connection of DSO 2017 B28 P142 Oplotnica municipality Connection of DSO nd B29 M1/1 Majšperk municipality Connection of DSO nd B30 R15 Videm municipality Connection of DSO nd B31 R15 Kidričevo municipality Connection of DSO nd B32 R15 Sveti Tomaž Connection of DSO nd municipality B33 MRS Štore Adjustment to the demand characteristics of the user nd B34 MRS Žalec Capacity increase nd B35 MRS Laško Capacity increase of the city network nd B36 MRS Komenda Connection of DSO nd B37 Črenšovci municipality Connection of DSO nd B38 Velika Polana municipality Connection of DSO nd B40 MRS Šobec Connection of DSO 2016

3.2.6.2 Connection approvals Table 9 includes three projects for users of transmission capacities who were issued approvals for the change of consumption characteristics before 1 January 2015 and their 2-year validity has not expired yet and connection contracts have not been concluded with them yet.

Table 9. Connection approvals

Level of Planned # Project name Purpose treatment start of 1 January 2015 operations B13 MRS Brestanica Stage 1 Adjustment to the demand characteristics of the power Conceptual 2016 station designs Stage 2 Adjustment to the demand characteristics of the power Conceptual 2020 station designs

B9 MRS Lendava/Petišovci Connection to the production of natural gas User is the 2016 investor of the project B39 MRS Svilanit Connection of DSO nd

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

3.2.6.3 Connection contracts Table 10 includes the project for the future user of transmission capacity who has concluded a connection contract with the TSO before 1 January 2015.

Table 10. Connection contracts

Level of Planned # Project name Purpose treatment start of 1 January 2015 operations B1 M5 Vodice - Jarše, R51 Jarše − Connection of thermal energy plant Partial BP pursuant to TE−TOL acquired for the most of the connection route and all contract facilities 2018

3.2.6.4 Presentation of Directive 2014/94/EU on the deployment of alternative fuels infrastructure

Directive 2014/94/EU on the deployment of alternative fuels infrastructure opens up new opportunities for natural gas in road and maritime transport.

The Directive 2014/94/EU defines alternative fuels as fuels or power sources which serve at least partly as a substitute for fossil oil sources in the energy supply to transport and have the potential to contribute to its decarbonisation and enhance the enviromental performance of the transport sector. The Directive includes natural gas in gaseous form (compressed natural gas - CNG) and liquefied form (liquefied natural gas - LGN) among alternative fuels.

The purposes of the Directive are minimising the dependence on oil and mitigating the environmental impact of transport. Both can be achieved by increasing the share of natural gas in both forms (CNG and LNG) in the supply of vehicles and vessels in transport. The Directive requires all Member States to adopt a national policy framework in order to develop the market in relation to alternative fuels in the transport sector and establish the appropriate infrastructure. The framework must be in accordance with the applicable EU environmental and climate legislation, contain the elements prescribed by the Directive and consider the interests of regional and local bodies and relevant stakeholders, all in such manner that the necessary measures to achieve the objectives of the Directive are consistent and coordinated. As a Member State, the Republic of Slovenia has to officially notify the Commission about its national policy framework by 18 November 2016.

3.2.7 Forecast of natural gas consumption and booking of transmission capacity for the 2016 - 2025 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 transmission system operator's activities in terms of new connections,  forecasts for the construction of power facilities.

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

Taking into account the planned increase in the booking of transmission capacity, Table 12 provides a forecast of transmission capacity booking in industry and other consumption.

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 annex to the connection contract.

Table 11. Forecast for the booking of transmission capacity for electricity production (in million kWh/day) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 0.534 0.641 0.641 0.641 0.641 0.641 0.641 0.641 0.641 TE-TOL, stage 1 3.631 7.156 7.156 7.156 7.156 7.156 7.156 7.156 Total 6.835 6.835 10.573 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 2025. 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Industry 21.787 22.001 22.321 22.428 22.428 22.428 22.428 22.428 22.428 22.428 Other consumption 33.428 33.749 34.069 34.176 34.176 34.176 34.176 34.176 34.283 34.283 Electricity 6.835 6.835 10.573 14.098 14.098 14.098 14.098 14.098 14.098 14.098 Total 62.051 62.585 66.964 70.702 70.702 70.702 70.702 70.702 70.808 70.808

Figure 18. Estimate of the booking of transmission capacity for the 2016 - 2025 period

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 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 4 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Industry 4,785 4,849 4,849 4,838 4,838 4,838 4,827 4,827 4,827 4,827 Other 4,155 4,155 4,197 4,208 4,219 4,208 4,208 4,219 4,219 4,229 consumption Electricity 758 790 1,474 2,136 2,136 2,136 2,136 2,136 2,136 2,136 Total 9,697 9,794 10,520 11,182 11,193 11,182 11,171 11,182 11,182 11,193

3.2.8 Forecast of natural gas consumption for the production of electricity in the ENTSOE and ENTSOG development plans

The information about the Slovenian gas market is also included in the ENTSOG 10-year development plan (TYNDP 2015). Two consumer segments are crucial for the 2015 - 2035 period: power stations and all other end users. Because of this, we have coordinated the forecasts for this period with ELES d.o.o. (the electricity transmission network system operator), who coordinates its planning of the electrical power transmission system within the ENTSOE framework. The coordinated scenarios apply to the period up to 2025, while the visions apply until 2030 and represent the bridge to 2050.

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

Table 14. ENTSOE 2014 - 2025 scenarios

Scenarios Electricity production Specifics in consumption Bottom up planning approach; maintaining the existing level of reliability of supply, considering only those Scenario A investments in new production units (and abandonment The peaks in January and July are Conservative scenario* of old units) that are in construction and/or seen as growing confirmed by the TSOs; the Lf forecast is based on the assessment of normal climatic conditions Bottom up planning approach; based on the market signals for investment initiatives; includes the Scenario B development described in Scenario A, as well as the Same as Scenario A Best prediction* future power stations that are not only a prediction of producers and are considered reasonable Top-down planning approach; assuming achievement of environmental goals and building of renewable sources The peaks in January and July are The EU scenario arising from the EU climate change policy or the greater, as in Scenarios A and B equivalent plans of Member States * named after the basic characteristics

The development of electricity consumption at the level of final energy consumption is estimated in three scenarios.

Table 15. The ELES development ratings for the consumption of ELES electricity in the 2012 - 2022 period

Scenarij Description

High (H) High (H) development rating is based on previous model development ratings for final energy consumption, DNDP (distribution network development plan) forecasts for final energy consumption and surveys of direct consumers on the transmission network; this rating represents a positive outlook on further development and is the most suitable basis for the planning of network development

Medium (M) Medium (M) rating is based on the expected economic development in 2013 and 2014 and gradual recovery in 2015 (the relation of past development and current situation)

Low (L) Low (L) stagnant rating is based on the expected economic development in the coming years and regressive rating of past development of electricity consumption; the expected growth rates after 2015 remain modest

Source: Development strategy for the electrical power system of the Republic of Slovenia – Transmission network development plan in the Republic of Slovenia 2013 – 2022, December 2012

Table 16. ENTSOE 2030 - 2035 visions

Visions Economy and market Demand Electricity production Networks

Vision 1 Governments have no No real incentive to Going in the direction of national Mainly unchanged money to strengthen increase efficiency in all policies rather than EU policy; from the current Slow the existing energy sectors (e.g. public opposition to nuclear power situation; CCS (Carbon progress * policy; CO2 prices cogeneration); growth in stations (because of Fukushima); Capture and Storage) remain at the level demand for electricity is less money for modernisation of infrastructure not where coal has an low existing coal TPPs results in gas TPP realistic advantage over gas having an important role as back-up capacities

Vision 2 Same as Vision 1 Breakthrough in Reduced need for back-up Becoming bi- implementation of capacities, no technology holding an directional and better Money efficient technologies**, advantage; maintaining existing controlled makes the increased consumption capacities and adjusting them to world go in transport, growth in demand will be cheaper; CCS round * demand for electricity infrastructure receiving EU financial higher than in Vision 1 support for demonstration projects

Vision 3 More favourable than Widely used efficient National/government energy Expected growth of in Visions 1 and 2, technologies**, high schemes that follow the smart networks for Green countries have the consumption in decarbonisation goals for 2050; the flexible adaptation to 25

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

transformati money to strengthen transport, efficient use need for back-up gas capacities is price preferences and on * the existing policies; does not compensate for very high due to renewable energy the balancing of

CO2 prices favour the the increased demand; sources (wind, solar); the public renewable energy

use of gas above coal the daily peak increases opposition to nuclear power stations sources in response to is increased, lack of preparation for availability of supply financial investments in this segment

Vision 4 Same as in Vision 3; Growth in demand for National/government energy Accelerated growth of

also in regards to CO2 electricity somewhat schemes that follow the smart networks for Green prices, gas even higher than in Vision 3; decarbonisation goals for 2050; the flexible adaptation to revolution * eliminates the base- countries offer subsidies need for back-up gas capacities due balancing, peak load from coal; for the use of new to renewable energy sources (wind, management and two- countries with a high technologies solar) lower than in Vision 3 as a way flows; quantity of gas become result of construction of HPPs in infrastructure for CCS net exporters of Scandinavia, the Alps and Pyrenees; networks receiving EU electricity no technology holds an advantage subsidies over others so they compete without specific subsidies

* named after the basic characteristics

** micro-cogeneration, heat pumps When preparing data for the forecast of natural gas consumption in power stations in the specific case of Slovenia, the ELES scenarios need to be transformed to ENTSOG, as shown by the correlation table below.

Table 17. ENTSOG and ELES scenarios correlation table

2013 2014 2015 2016 2020 2020 2030 2030 2030

ENTSOG / SCB SCB SCB SCB SC2020 SCB 2030V1 2030V2 2030V3 ENTSOE

Correlation ↕ ↕ ↕ ↕ ↕ ↕ ↕ ↕ ↕

ELES M M M M M M L M H

3.2.8.1 Results of the natural gas consumption forecast model for gas thermal power stations The analysis shows that, in the period up to 2020, natural gas for the production of electricity in scenarios that end in Vision 1 and partially 2 is slowly and cautiously asserting itself in the production of electrical energy.

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

The production sources considered for natural gas consumption are  ŠTPP: 84MW whole period,  TTPP: 282MW onwards from 2020,  BTPP: 291MW until 2020 and 388 MW until end of period,  TE-TOL: 117MW onwards from 2020. Due to substitutions in the event of failure of intermittent renewable energy sources, the scenarios are Figure 19. Forecast of natural gas consumption in power not calculated for daily booking or stations - Vision 1 only the high scenario is considered.

3.2.8.2 Results of the natural gas consumption forecast model for other consumers and all transmission system users Other consumers are industry, the remaining commercial consumers, households and traffic. Within ENTSOG, two global scenarios are prepared for the forecast: green and grey.

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

The green scenario is characterised by favourable economic and financial conditions, low energy prices and high CO2 prices, high demand for electricity and low consumption of carbon fuels in heating. The grey scenario is the opposite of green, described by unfavourable economic and financial conditions, high energy prices and low CO2 prices, low demand for electricity and high consumption of carbon fuels in heating.

Figure 20. Forecast of consumption and daily bookings of other consumers

In the sum of scenarios and visions for all consumers with the highest annual consumption, the consumption is 85% to 140% higher than in scenarios and visions for the lowest annual consumption. In the combination of scenarios and visions with the highest daily bookings, the bookings are 2% to 19% higher than the daily bookings as per lowest scenarios and visions.

Figure 21. Forecast of consumption and daily bookings of all consumers

3.3 Cross-border transmission capacity and booking

The Slovenian transmission pipeline system is connected with the transmission pipeline systems of the neighbouring countries via cross-border interconnection points that are managed by various TSOs. The existing cross-border interconnections 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.

By introducing the method of booking transmission capacity according to the entry-exit point model, the interested system users have been provided with a separate and independent booking of transmission capacity at each cross-border interconnection point. By booking both the cross-border entry point to the Slovenian gas transmission system as well as the cross-border exit point, the interested system users can carry 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 28

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period 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, in accordance with the Commission Regulation (EU) No. 984/2013.

Table 18. 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 No 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

For the purposes of carrying out cross-border transmission of natural gas, it is required to book a suitable combination of transmission capacity at cross-border interconnection points. The TSO keeps the interested public informed of all necessary information and the available transmission capacity of the transmission system via its homepage and the ENTSOG transparency platform. In recent years, the TSO received increased demand at cross-border points predominantly for the booking of transmission capacity in the direction of Croatia. The TSO finds that the number of bookings of transmission capacity depends primarily on changing conditions on the neighbouring natural gas markets.

A look at the situation in the region reveals that alternative natural gas transmission routes in the direction of Italy, Croatia and Hungary are relatively occupied or too expensive, the standardised and simplified procedures of booking of transmission capacity via auctions allow the natural gas traders to quickly respond to to price changes on invidivual markets, resulting in the desire of natural gas suppliers for greater flexibility and diversified supply of natural gas. Upon lower domestic production of natural gas in Croatia, the TSO can in the next period also expect increased demand for transmission capacity in order to implement cross-border natural gas transmission.

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

3.3.2 Booking of transmission capacity at cross-border interconnection points in 2014

The TSO has concluded several contracts for transmission at cross-border interconnection points with transmission system users. The contracts for firm and interruptible transmission capacity have been concluded for different periods pursuant to available capacity and demand received.

In the year 2014, the most occupied and utilised transmission direction was from Austria, between Ceršak and Rogatec, and on to Croatia, where more and more short-term contracts for the booking of transmission capacity are being concluded in addition to long-term contracts. Due to commercial reasons, the east supply direction via Austria is very interesting, for all domestic as well as foreign system users, whereby the trend of short-term bookings for the peak load periods of the system is growing. In 2014, the demand for transmission capacity in Rogatec relating to cross-border transmission to Croatia has surpassed the available technical transmission capacity of the Slovenian transmission system. By finishing the backbone of the transmission system to Vodice, upgrading the Kidričevo compressor station and upgrading the border metering and control station in Rogatec, the TSO has at the beginning of 2015 provided additional transmission capacity for cross-border transmission to Croatia, which will eliminate or at least alleviate the problem of contractual congestion at this interconnection point in 2015.

Figure 22. Transmission capacity at the Ceršak and Rogatec interconnection points in 2014

In the year 2014, the booking of capacity for transmission from Italy to Slovenia has been relatively low, while in 2015 the TSO expects gradual booking of capacity for cross-border transmission in the opposite direction, from Slovenia to Italy.

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

Figure 23. Transmission capacity at the Šempeter cross-border interconnection point in 2014

Figure 24 shows how the maximum physically transmitted natural gas quantities ranged within the available technical capacity at cross-border interconnection points in the last 6 years.

By upgrading the transmission system, the TSO has in recent years been addressing the most pressing problem of physical congestion in the transmission direction from Austria to Slovenia at the Ceršak cross-border interconnection point. Figure 24 reveals that with the construction of the parallel M1/1 Ceršak-Rogatec pipeline 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 the Ceršak interconnection point was additionally increased with the construction of the parallel M2/1 pipeline from Rogaška Slatina to Podlog and in 2013 a 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 Figure 24, an increased peak load in 2013 and 2014 can also be observed at the Rogatec cross-border interconnection point, where a state of contractual congestion occurred in 2013. Because of this, the TSO increased the technical capacity for transmission from Slovenia to Croatia at the end of 2014 by upgrading the compressor station in Kidričevo and the border metering and control station in Rogatec.

Figure 24. Maximum daily and monthly occupancy at cross-border interconnection points

3.3.3 Booking forecast and estimates

Given the development of the Slovenian gas transmission system, the implementation of European legislation that standardised and simplified the booking of transmission capacity by the principles of auctioning via the online booking platform PRISMA, the development of the neighbouring gas transmission systems and the occupancy of alternative transmission directions to the neighbouring natural gas markets, the TSO can expect a high level of transmission capacity occupancy in the next period at the cross-border interconnection points with Croatia and Austria.

The TSO estimates that the level of occupancy of interconnection points will persist after 2016 as well, when the long-term transmission contract expire. This assessment can be supported mainly with the following facts:  the natural gas traders strive for maximum diversification of supply sources,  standardised and simplified booking of transmission capacity and access to strategic gas storage facilities, and

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

 with the implementation of the third energy package, the TSO expects an increase in liquidity of the Slovenian natural gas market.

Table 19 presents an estimate of transmission capacity booking for the needs of cross-border natural gas transmission from 2016 - 2015.

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. The booking of transmission capacity for the needs of domestic users has been estimated as combined booking at exit points in the Rebublic of Slovenia. By switching to the system of entry-exit points in 2013, it is no longer possible to break down the bookings at cross-border entry points into those booked for the purposes of domestic market supply and those booked for the purposes of cross-border transmission.

Table 19. Forecast and estimate of transmission capacity booking for domestic network users and cross-border transmission (in million kWh/day)

Entry-exit points 2016 2017 2018 2019 - 2025 Ceršak entry 122.489 133.500 137.772 138.413 – 152.297 Šempeter pri Novi 7.455 7.455 12.282 13.350 Gorici entry Rogatec entry 2.563 2.563 2.563 2.563 Total entry 132.507 143.518 152.617 154.326 – 168.210 Ceršak exit - - - - Šempeter pri Novi 12.816 19.224 25.632 25.632 Gorici exit Rogatec exit 64.187 64.187 64.187 64.187 Slovenia exit 62.083 62.585 66.964 70.702 – 70.808 Total exit 139.086 145.996 156.782 160.520 – 160.627

Table 20. Forecast and estimate of transmission capacity booking for domestic users in the 2016 - 2025 period (in million kWh/day)

Slovenia 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 exit Total 62.051 62.585 66.964 70.702 70.702 70.702 70.702 70.702 70.808 70.808 exit

By upgrading the transmission system, the TSO responded to the increased interest in transmission capacity from the east supply direction via the Ceršak cross-border relevant point. After completing the new backbone of the system with the construction of parallel pipelines from Ceršak to Vodice (M1/1, M2/1) and stage 1 of the compressor station extension in Kidričevo, the capacity of the Slovenian transmission system in 2015 at the Ceršak cross-border relevant point achieved and slightly exceeded the transmission capacity of the Austrian transmission system (Table 21). With the additional capacity of the Slovenian transmission system, it is also possible to supply the planned 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 Šempeter border metering and control station, the TSO also provided the possibility of bi-directional operations and exit transmission capacity at the Šempeter cross-borded interconnection point (Table 19).

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

To further increase transmission capacity at cross-border interconnection points, the TSO is planning a stage 2 of the extension of the compressor station in Kidričevo (project C5) and an upgrade of the compressor station in Ajdovščina, through which it will be able to meet the demand and further increase the transmission capacity at Ceršak and Šempeter cross-border relevant points after 2018 (Table 20). Table 21 shows the development of technical capacity in the next 5-year period. After this period, the capacity development of the Slovenian transmission system at cross-border relevant points may already be significantly affected by the route of some of the new major pipeline projects in the region, whose capacities and time schedules are currently hard to predict with sufficient accuracy.

Table 21. Available technical capacity of the gas transmission system (in million kWh/day)

Transmission Cross-border system 2015 2016 2017 2018 2019 2020 2021 points operator entry 138.413 138.413 138.413 138.413 216.590* 216.590* 319.413* Plinovodi Ceršak exit 0 0 0 0 0 0 165.000* entry 0 0 0 0 0 181.300 181.300 GCA Murfeld exit 112.530 112.530 112.530 112.530 112.530 181.300 181.300 entry 0 0 0 0 0 0 165.000* Plinovodi Rogatec exit 67.925 67.925 67.925 67.925 67.925 67.925 232.925* entry 53.000 53.000 53.000 53.000 218.000 218.000 218.000 Plinacro Rogatec exit 0 0 0 0 165.000 165.000 165.000 Šempeter entry 28.195 28.195 28.195 28.195 63.564* 63.564* 63.564* Plinovodi pri Novi Gorici exit 25.632 25.632 25.632 25.632 63.564* 63.564* 63.564* entry 21.350 21.350 21.350 21.350 21.350 21.350 21.350 Snam Rete Gas Gorizia exit 46.970 46.970 46.970 46.970 46.970 46.970 46.970 Note * upon realisation of 3rd unit of CS Ajdovščina - project C1 (TRA-N-092) and stage 2 of CS Kidričevo extension - project C5 (TRA-N-094)

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

Figure 25 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 21, the increased capacity and timelines after the year 2019 are therefore provided according to the currently available information and data.

Figure 25. Interconnection points technical capacity, booking forecast and estimate

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

4 Set of planned gas infrastructure for the 2016 - 2025 period

In respect to the purpose of individual planned infrastructure, projects are broken down into those for increasing operational security, for connecting new natural gas consumers or changing the operational characteristics of gas infrastructure and for developing interconnection points.

Table 22. Status and level of treatment as of 1 January 2015 - summary table

Level of treatment 1 January 2015 Investments 2016 − 2025 Number FID Conceptual Building Under NSP(p) NSP designs permit construction

A Increase in operational security 16 9 2 5

B Connections 40 1 33 7 1

C Development of interconnection points 16 5 8 3

Total 72 1 47 10 15 1

4.1 Projects to increase operational security

Figure 26. Locations of projects to increase operational security

Projects to increase operational security are 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. 35

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

Table 23. 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 A2 Loop to Zreče Stage one R21AZ Konjiška vas - System loop, increase of transmission capacity and 2021 Oplotnica operational security

Increase of transmission capacity and operational nd Stage two R21AZ Oplotnica - Zreče 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 nd

A4 R51b TE−TOL Fužine/Vevče System loop; allows for connection of DSO to MOL nd

A5 R51c Kozarje − Vevče System loop nd

A6 Dravograd − Ruše - Maribor

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

Stage two Ruše - Maribor System loop nd

A7 Kalce - Godovič – Žiri − Škofja Loka

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 A10 R12A M1 - Lenart − MRS Gornja nd System loop; allows for connection of new municipalities Radgona A11 Šoštanj − Dravograd System loop nd A12 Displacement of pipeline due to an adjustment to the nd M4 section Podčetrtek requirements of third parties A13 Displacement of pipeline due to settlement modifications nd M2 section Trnovlje of MOC A14 M5 Jarše − Novo mesto System loop; allows for connection of new municipalities nd A15 System pipeline; allows for connection of new M6 Ajdovščina - Lucija After 2018 municipalities A16 Management centre Technology and construction 2018

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

4.2 Connections

Figure 27. Locations of projects for new connections

This group of projects includes 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.

Furthermore, it is planned to connect 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.

Projects to connect CNG (compressed natural gas) filling stations for powering vehicles are specific. The connection of CNG filling stations for motor vehicles (passenger and cargo vehicles) and vessels is planned in accordance with the Directive 2014/94/EU of the European Parliament and the Council on the deployment of alternative fuels infrastructure. The deployment of infrastructure is also included in the Transport Development Strategy in the Republic of Slovenia and will be further developed with the responses of the local communities within the (inter)municipal local energy concepts. The locations of filling stations will be based on the analysis of traffic flows (motorway network) and population density. The choice of location is also subject to the existing infrastructure of service stations and other conditions for connecting new consumers to the gas transmission network.

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

Table 24. Connections

Planned start of B Project name Purpose operations B1 M5 Vodice - Jarše, R51 Jarše − Connection of thermal energy plant pursuant to the 2018 TE−TOL connection contract B2 MRS Godovič Connection of DSO in the municipality of Idrija 2018 B3 MRS Dekani Connection of DSO in the municipalities of Koper, Izola, After 2018 MRS Koper Piran, Sežana, Divača and Herpelje − Kozina; connection with the M6 pipeline to the M3 pipeline MRS Sežana MRS Kozina MRS Izola MRS Lucija B4 R297B Šenčur − Cerklje Connection of DSO in the municipality of Cerklje nd B5 R45 Novo mesto – Bela Krajina Connection of 3 municipalities in the region of Bela nd Krajina (southeastern Slovenia) B6 R52 Kleče – TOŠ Connection of thermal energy plant nd B7 R25A/1 Trojane – Hrastnik Connection of power station nd B8 CNG Connections of CNG filling stations 2016 - 2020 B9 MRS Lendava/Petišovci Connection to the production of natural gas 2016 B10 MRS Marjeta Connection of DSO in the municipality of Starše 2018 B11 MRS Trbovlje Connection of DSO 2016 B12 Borovnica Connection of municipality and industry 2021 B13 MRS Brestanica stage one Adjustment to the demand characteristics of the power 2016 station MRS Brestanica stage two Adjustment to the demand characteristics of the power 2020 station B14 Supply to users (MRS Miklavž, MRS Connection of new users with mobile systems and 2016 - 2018 Golnik, MRS Šmartno ob Paki, MRS adjustment of existing connection points Braslovče, MRS Pernica); other connection projects B15 MRS Celje General Hospital Displacement of MRS and distribution upgrade nd B16 MRS Verovškova Capacity increase nd B17 MRS Termo - Knauf Insulation Capacity increase for industrial consumer 2017 B18 MRS Kranj Stražišče Connection of cogeneration in industry nd B19 MRS MTT Tabor Connection of industrial consumer nd B20 MRS Novo mesto Adjustment to the demand characteristics of the user nd B21 MRS Opekarna Novo mesto Connection of industrial consumer nd B22 Supply of Šoštanj industrial zone Connection of new industrial consumers nd B23 MRS Pragersko Connection of DSO for Gaj settlement nd B24 MS IUV Vrhnika Connection of DSO nd B25 MRS Rogatec Connection of DSO nd B26 MRS Pesnica Connection of DSO 2018 B27 MRS Šmarje pri Jelšah Connection of DSO 2017 B28 P142 Oplotnica municipality Connection of DSO nd B29 M1/1 Majšperk municipality Connection of DSO nd B30 R15 Videm municipality Connection of DSO nd B31 R15 or M1/1 Kidričevo municipality Connection of DSO nd B32 R15 Sveti Tomaž municipality Connection of DSO nd B33 MRS Štore Adjustment to the demand characteristics of the user nd B34 MRS Žalec Capacity increase nd

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

B35 MRS Laško Capacity increase of the city network nd B36 MRS Komenda Connection of DSO nd B37 Črenšovci municipality Connection of DSO nd B38 Velika Polana municipality Connection of DSO nd B39 MRS Svilanit Connection of DSO nd B40 MRS Šobec Connection of DSO 2016

4.3 Development of interconnection points

Projects to develop interconnection points with the neighbouring transmission systems are primarily intended to increase the cross-border transmission of natural gas via the Slovenian territory and at the same time provide the diversification of import gas sources and supply routes to the domestic energy market and, hence, more reliable and competitive supply. We cooperate on cross-border projects with the transmission system operators of all four neighbouring countries.

We are planning the first gas interconnection with the Hungarian transmission system operator. The project envisages the construction of a 71km pipeline and the extension of the existing compressor station in 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. 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 LNG terminal on the Island of Krk, planned in Croatia. This project is related to several other projects, including the M3/1 Šempeter - Vodice project, presented in relation to Italy, as well as the extension of the compressor station in Kidričevo with additional compressor units and the capacity increase of the existing Rogatec interconnection point and establishment of its bi-directional flow. With the Austrian transmission system operator, we are planning a capacity increase and establishment of bi-directional flow at the existing Ceršak interconnection point and the reconstruction of the existing pipeline M3 Ajdovščina - Šempeter in western Slovenia due to adjustment to the operational parameters of the Italian system. The project includes the construction of a new border station Vrtojba. 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 Ceršak interconnection point and onwards to the Austrian system.

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

Figure 28. Projects to develop interconnection points

Table 25. Development of interconnection points with neighbouring countries Planned start of C Project name Purpose operations C1 CS Ajdovščina extension Stage 1 Adjustment to the operational parameters of the Italian TSO's 2021 transmission system, reverse flow Stage 2 LNG North Adriatic nd C2 Reconstruction of M3 at section CS Ajdovščina − Miren with branches Adjustment to the operational parameters of the Italian TSO's transmission system (BMCS Vrtojba) 2021

Adjustment to the operational parameters of the Italian TSO's transmission system (pipeline) 2021

Increase of operational capacity nd

C3 R15/1 Pince – Lendava - Kidričevo Stage 1 Interconnector with the Hungarian TSO, section national 2020 border - MRS Lendava and extension of CS Kidričevo Stage 2 Section MRS Lendava – CS Kidričevo depending on the binding phase of the market analysis C4 Reconstruction of Ceršak Interconnector with the Austrian TSO, adjustment to the 2020 interconnection operational parameters of the Austrian TSO's transmission system C5 CS Kidričevo - extension stage 2 Improvement of operational parameters in M1/1 and M2/1 2020 C6 CS Vodice II Improvement of operational parameters in M2, M2/1, M3, nd 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

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

C10 M8 Kalce − Jelšane Interconnector with the Croatian TSO, LNG North Adriatic, as 2022 well as connection of new municipalities

C11 R67 Dragonja – Izola Interconnector with the Croatian TSO nd C12 Reconstruction of Rogatec Interconnector with the Croatian TSO 2020 interconnection C13 M9a Lendava − Kidričevo and CS Cross-border transmission nd Kidričevo - extension stage 3

C14 M9b Kidričevo − Vodice and CS Vodice Cross-border transmission nd I C15 M10 Vodice − Rateče Cross-border transmission nd C16 BMCS Rogatec bi-directional flow Provision of bi-directional capacities with reverse flow 2018 upgrade

4.4 Projects that will be carried out by the TSO between 2016 and 2018 The TSO estimates to carry out (construct or begin construction on) 15 projects in the 2016 − 2018 period. Although the majority of the projects did not have a FID status as of 1 January 2015, 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 26. Projects in the 2016 - 2018 period

Planned Level of treatment # Project name Purpose start of 1 January 2015 operations

A1 R26 section Dešen Displacement of pipeline due to a landslide NSP prepared 2017

A16 Management centre Technology and construction 2018

B1 M5 Vodice - Jarše, R51 Jarše − Connection of thermal energy plant Partial BP acquired pursuant to TE−TOL for most of the the 2018 route and all connection facilities contract B2 MRS Godovič Connection of DSO in the municipality of Idrija NSP prepared 2018 B8 CNG Connection of CNG filling stations Conceptual designs 2016 - 2020

B9 MRS Lendava/Petišovci Connection to the production of natural gas User is the investor 2016 of the project B10 MRS Marjeta Connection of DSO in the municipality of Starše Conceptual designs 2018

B11 MRS Trbovlje Connection of DSO Conceptual designs 2016

B13 MRS Brestanica stage one Adjustment to the demand characteristics of Conceptual designs 2016 the power station; adjustment of existing MRS B14 Supply to users (MRS Miklavž, Connection of new users with mobile systems Conceptual designs 2016 - 2018 MRS Golnik, MRS Šmartno ob and adjustment of existing connection points Paki, MRS Braslovče, MRS Pernica); other connection projects B17 MRS Termo - Knauf Insulation Capacity increase Conceptual designs 2017

B26 MRS Pesnica Connection of DSO Conceptual designs 2018

B27 MRS Šmarje pri Jelšah Connection of DSO Conceptual designs 2017

B40 MRS Šobec Connection of DSO Conceptual designs 2016

C16 BMCS Rogatec bi-directional Provision of bi-directional capacities with Conceptual designs 2018 flow upgrade reverse flow

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

5 European dimension of natural gas supply

5.1 Development of exchanges with other countries

In the past period, no major economic drive and the associated economic growth of Member States could be observed within the EU, which was reflected in lower consumption of energy and therefore lower consumption of natural gas. Besides oil, natural gas remains the most important energy source in the EU countries, representing nearly 24 percent of all primary energyi. Despite the fact that the consumption of natural gas in the EU countries reached peak consumption in the year 2010 (6,119 TWh), the consumption of natural gas is decreasing along with the reductions in consumption of all energy. To illustrate: the total energy consumption in the EU amounted to 1,666 Mtoe (million ton oil equivalent) in 2013 and 1,832 Mtoe in 2006ii. Consumption of natural gas in the energy mix in the 2002 - 2012 period (5,375 TWh) has decreased at an annual level of about 0.4 percent. In the year 2013, the consumption of natural gas in the EU amounted to 5,206 TWh.

The forecasts of natural gas consumption until 2050, based on the political commitments of the European Council of October 2014iii and defining the transition to a low-carbon society, are optimisticiv 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 be gradually reduced in the future, with its share in the balance of all energy consumed dropping from 25% in 2010 to 22% in 2030 and 18% in 2050.

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

The EU countries import 53% of their consumed energy. They 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%). The most pressing question in relation to the security of gas supply remains the strong dependence of certain countries on a single external supplier. 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. (Source: European strategy for the security of energy supply).

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 dependencev, 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 small, reaching about 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).

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

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 Russiavi. 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.

Data source: Eurogas: Statistical report 2014

Russia is the largest individual natural gas supplier to EU-28 countries. In 2013, its share has increased by three percent compared to 2012. European production (production of the EU and Norway) accounted for 55% of all EU-28 needs.

Figure 29. Sources of natural gas supply to EU-28 countries (2013)

Data source: Eurogas: Statistical report 2014

The graph shows the manner in which natural gas was imported to EU-28 countries in 2013. The year before, sea transport share was five percent higher (19%). In 2013, a substantial part of the LNG transported by ship was diverted to the Asian market due to increased demand and the resulting higher prices. Figure 30. Transport of imported natural gas for EU-28 countries (2013)

______i. Energy Policies of IEA Countries, European Union - 2014 Review, International Energy Agency (IEA), OECD/IEA, 2014 ii. Eurostat, newsrelease, 25/2015, 9 February 2015 iii. European Council, European Council (23 and 24 October 2014) – Conclusions, EUCO 169/14, Brussels, 24 October 2014 iv. EU Energy, transport and greenhouse gas emissions Trends to 2050 - Reference scenario 2013 - European Commission v. http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:52014DC0330&qid=1407855611566, COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL European Energy Security Strategy * COM/2014/0330 final * and https://ec.europa.eu/energy/sites/ener/files/documents/20140528_energy_security_study.pdf vi. https://ec.europa.eu/energy/sites/ener/files/documents/IP-14-1162_EN.pdf

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

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

The Annex to Commission Delegated Regulation (EU) No. 1391/2013 contains a list of the Union PCIs that includes a number of Slovenian projects facilitating the diversification of natural gas sources and supply routes.

Table 27. List of projects listed as PCI 2013 and candidates for the PCI 2015 list, expected to be published in November 2015.

Project PCI 2013 PCI 2015

CS Ajdovščina extension X

R15/1 Pince – Lendava - Kidričevo X X

Reconstruction of Ceršak interconnection X

CS Kidričevo - extension stage 2 X

M3/1a Šempeter − Ajdovščina X X

M3/1b Ajdovščina − Kalce X X

M3/1c Kalce − Vodice X X

M8 Kalce − Jelšane X X

Reconstruction of Rogatec interconnection X

At the moment, the European Commission is leading the procedures for the selection of projects that will attain the PCI status supposedly by the end of 2015. The procedure includes nearly all of the European TSOs, ENTSOG, the relevant ministries, national regulators and ACER. The projects in the

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

Slovenian territory are functionally related to projects of neighbouring countries and TSOs. A schematic representation of the placement of the company Plinovodi's development plan in the PCI projects is shown in Figure 32.

Regulation 347/2013 established a system for the evaluation of projects, cost analyses and investment benefits (CBA - Cost-Benefit Analysis). This method also provides the basis for the analyses evaluating Cross-Border Cost Allocation (CBCA), the procedure for which is defined in Article 12 of the Regulation 347/2013. The purpose of this procedure is a fair division of costs and benefits of cross-border investments to benefit end users, which is also one of the main purposes of Regulation 347/2013. The procedure can be initiated and completed only with sufficient maturity of the project and coordinated cooperation of all national regulators, as stipulated by 2nd and 3rd paragraph of Article 12 of the Regulation 347/2013. The practice of implementation of this procedure is also determined by the »Recommendation of the Agency for the cooperation of energy regulators, No. 07/2013 of 25 September 2013, Regarding the cross-border cost allocation requests submitted in the framework of the first union list of electricity and gas projects of common interest«. Only in this way can the PCI projects be realised or the financial support for their implementation ensured.

5.3.1 ENTSOG

The European Network of Transmission System Operators for Gas (ENTSOG) was founded on 1 December 2009, in accordance with Regulation (EC) No. 715/2009 OF THE EUROPEAN PARLIAMENT AND THE COUNCIL on conditions for access to the natural gas transmission networks and repealing Regulation (EC) No. 1775/2005. The tasks of ENTSOG are mainly: 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 d.o.o. is one of the founding members of ENTSOG. Its current membership structure is: 44 European TSOs and 3 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 and Macedonia).

Figure 31. ENTSOG members 45

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

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. The network codes prepared by ENTSOG based on an invitation of the European Commission will establish the rules and regulations of the single European market and the rules and regulations of the operations and development of natural gas transmission systems. ENTSOG has already prepared a network code for transmission capacity allocation and a network code for balancing. The procedure is initiated with a request made by the European Commission to the Agency for the Cooperation of Energy Regulators (ACER) to submit framework guidelines. Based on these guidelines, ENTSOG prepares a network code that becomes legally binding upon approval by the European Commission.

5.3.2 TYNDP 2015

The central purpose and objective of the European Ten Year Network Development Plan (TYNDP) is to provide a consistent overview of trans-European infrastructure and detect potential gaps in future investments. TYNDP aims to cover a wider dynamics of the European gas market in relation to supply potential, market integration and security of supply.

In the year 2014, the 4th edition of the European TYNDP for a period of 21 years (2015-2035) was prepared and published on 16 March 2015. This is the first TYNDP prepared in accordance with the combined third energy package and new TEN-E regulations. 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, which however also include the projects that have no significant impact on the development of the European gas system. 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-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.

5.4 GRIP CEE

Within ENTSOG, the transmission system operators publish a Gas Regional Investment Plan (GRIP), which forms the basis for the adoption of decisions regarding investment. The preparation of GRIP documents complies 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). 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. The latest edition of the GRIP CEE document (2014 - 2023) was published on 19 May 2014.

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

5.5 GRIP Southern Corridor

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 edition of the GRIP Southern Corridor document (2014 - 2023) was published on 4 June 2014.

The beginning of preparation of new GRIP documents for the 2016 - 2025 period is planned in 2015 and the documents are expected to be finished and published at the end of 2016.

5.6 Placement of the TSO's Development Plan within the scope of PCIs

In the last investment cycle, the TSO Plinovodi has been gradually increasing the system's transmission capacity by upgrading the backbone of the pipeline system and increasing the compression strength. Based on these acquisitions and by further upgrading the system, the TSO will be able to keep on adapting to the development of transmission capacity needs and investment decisions made by domestic system users and following the cross-border transmission needs of domestic and foreign users. The TSO therefore actively follows and takes part in major projects involving international gas interconnections, including PCIs (Projects of Common Interest), which will be reconsidered in the context of their second selection at the end of 2015 by the European Commission. Geostrategically, the Slovenian transmission system acts as a crossroads for the transmission of natural gas from east to west and from east to Southeastern Europe, which has proved to be a competitive edge of the Slovenian transmission system compared to other transmission systems in the region. Some interconnections planned within the scope of PCIs can relate both to the capacity of the transmission system that was upgraded at the end of 2014 as well as to the planning of completely new pipelines and compressor stations in Slovenia. Based on the demand for transmission capacity, 2 main directions for the cross-border transmission of natural gas can be identified in the last period. By building the backbone of the M2/1 pipeline system to Vodice and upgrading the compressor station in Kidričevo, the transmission capacity in the currently commercially most interesting direction from Slovenia to Croatia was increased at the end of 2014, thereby providing cross-border exit capacity in the direction fom Slovenia to Italy. Further development of the Slovenian transmission system in transmission directions towards Croatia and Italy is also closely related to the investment decisions adopted in the neighbouring countries. Communication with the neighbouring TSOs and promoters of infrastructure PCIs has therefore proved to be of key importance, along with the inclusion of these projects in ENTSOG TYNDP and GRIP development plans. Four transmission directions should be highlighted: 1. Transmission direction towards Croatia (joint initiative and the cluster of PCIs in the direction of Austria - Slovenia - Croatia in conjunction with PCI 6.6), 2. Transmission direction towards Italy (in conjunction with PCI 6.7), 3. Transmission direction towards Hungary, where the Republic of Slovenia does not have a connection yet (in conjunction with PCI 6.23), 4. Transmission direction towards Croatia (the cluster of projects related to the liquefied natural gas terminal project on the Island of Krk (PCI 6.5.3 and PCI 6.7).

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

Figure 32. 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 2016 - 2025 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 2016 - 2025 period

Annex 1

Transmission network and distribution networks by region and municipality

Figure 33. 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 2016 - 2025 period

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

Figure 34. 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 2016 - 2025 period

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

Figure 35. 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 2016 - 2025 period

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

Figure 36. 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 KP Velenje Štore Adriaplin Velenje KP Velenje Vojnik Adriaplin Zreče Mestni plinovodi Žalec Mestni plinovodi

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

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

Figure 37. 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 38. 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 Sevnica Javno podjetje plinovod Sevnica

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

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

Figure 39. 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 KP Vrhnika

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

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

Figure 40. 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 2016 - 2025 period

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

Figure 41. Gorenjska region

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

Bled Adriaplin Bohinj, Gorenja vas – Poljane, Gorje, Cerklje na Petrol Jezersko, Kranjska Gora, Preddvor, Gorenjskem Železniki, Žiri Jesenice JEKO−IN Kranj Domplan Naklo Domplan Radovljica Petrol Šenčur Domplan Petrol Škofja Loka Loška komunala Tržič Petrol Žirovnica Plinstal

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

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

Figure 42. 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 2016 - 2025 period

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

Figure 43. 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 2016 - 2025 period

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

Figure 44. 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 2016 - 2025 period

Annex 2

A – Increase in operational security

B - Connections

C - Development of interconnection points

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

ANNEX 2

Status Level of Planned Listed in PCI # Project name Purpose Technical 1 January treatment start of ENTSOG common characteristics 2015 1 January operations TYNDP European 2015 2015 with interest label A - INCREASE IN OPERATIONAL SECURITY New construction, L = Displacement of pipeline NSP A1 R26 section Dešen 2.4km, D = 100mm, DP Non-FID 2017 due to a landslide prepared = 50bar A2 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 = 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 nd Sneberje prepared = 30bar, JS Jarše System loop, allows for New construction, L = R51b TE−TOL A4 connection of DSO to 4.5km, D = 300mm, DP Non-FID NSP(p) nd Fužine/Vevče MOL = 30bar, MRS Dobrunje New construction, L = R51c Kozarje − A5 System loop 15km, D = 300mm, DP Non-FID NSP(p) nd Vevče = 30bar, MRS Kozarje A6 Dravograd − Ruše - Maribor

System loop; allows for New construction, L = Stage one Conceptual connection of new 45km, D = 250mm, DP Non-FID nd Dravograd - Ruše designs municipalities = 50bar New construction, L = Stage two Ruše - System loop 10km, D = 250mm, DP nd Maribor = 50bar A7 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 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 = A8 Medvode - System loop 15km, D = 200mm, DP Non-FID

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 2016 - 2025 period

System loop; allows for New construction, L = M5 Jarše − Novo Conceptual A14 connection of new 66km, D = 400mm, DP Non-FID nd mesto designs municipalities = 70bar A15

New construction, L = System pipeline; allows TRA-N-107 M6 Ajdovščina – 68.9km, D = 250, 200 NSP After 2018 for connection of new Non-FID and Lucija and 100mm, DP = 70 prepared municipalities TRA-N-365 and 25bar

Management Technology and A16 2018 centre construction

ANNEX 2 Status Level of Planned Listed in PCI # Project name Purpose Technical 1 January treatmen start of ENTSOG common characteristics 2015 t operations TYNDP European 1 2015 with interest January label 2015 B - CONNECTIONS

New construction M5 section Vodice−Jarše, L Partial BP = 16km, D = 400mm, acquired Pursuant to M5 Vodice - DP = 50bar, R51 section FID for most Connection of thermal the 2018 B1 Jarše, R51 Jarše−TE−TOL L = connection of the TRA-F-105 energy plant connection Jarše − TE−TOL 2.8km, D = 250mm, DP contract route and contract = 50bar, MRS TE−TOL, all capacity: 13.97GWh/d facilities (1.32 million Sm3/day) New construction MRS Connection of DSO in the Godovič, capacity: NSP B2 MRS Godovič Query 2018 municipality of Idrija 1.52GWh/d (0.144 prepared million Sm3/d) MRS Dekani Connection of DSO in the

MRS Koper municipalities of Koper, New construction MRS B3 Izola, Piran, Sežana, TRA-N-107 MRS Sežana Dekani, MRS Koper, NSP Divača and Herpelje − Query After 2018 and MRS Sežana, MRS prepared MRS Kozina Kozina; connection with TRA-N-365 Kozina, MRS Izola, MRS the M6 pipeline to the M3 MRS Izola Lucija pipeline MRS Lucija New construction, L = 2.9km, D = 200mm, DP R297B Šenčur − Connection of DSO in the NSP B4 = 50bar, MRS Cerklje, Query nd Cerklje municipality of Cerklje prepared capacity 2.54GWh/d (0.240 million Sm3/d) New construction, L = 39km, D = 400mm, DP Connection of 3 = 50bar, MRS Črnomelj, R45 Novo mesto municipalities in the NSP B5 MRS Metlika, MRS Query nd – Bela Krajina region of Bela Krajina prepared Semič Capacity (southeastern Slovenia) 3.15GWh/d (0.298 million Sm3/d) New construction, L = 5.1km, D = 250mm, DP Connection of thermal B6 R52 Kleče – TOŠ = 70bar, MRS TOŠ, Query NSP(p) nd energy plant capacity 6.99GWh/d (0.660 million Sm3/d)

New construction, L = 21.8km, D = 400mm, R25A/1 Trojane Connection of power NSP B7 DP = 70bar, MRS TTPP, Query nd TRA−N−119 – Hrastnik station prepared capacity 13.72GWh/d (1.296 million Sm3/d) Connections of CNG Large number of new Conceptu B8 CNG Query 2016 - 2020 filling stations MS constructions al designs 63

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

FID User is the MRS Lendava/ Connection to the New construction of B9 connection investor of 2016 Petišovci production of natural gas MRS contract the project Connection of DSO in the MWPB, adaptation of Conceptu B10 MRS Marjeta Query 2018 municipality of Starše MRS al designs MWPB, adaptation of Conceptu B11 MRS Trbovlje Connection of DSO Query 2016 MRS al designs New construction, L = Connection of Conceptu B12 Borovnica 6km, D = 100mm, DP = Query 2021 municipality and industry al designs 10bar, MRS Borovnica B13 MRS Brestanica

Adjustment to the MWPB, adaptation of Connection Conceptu Stage 1 demand characteristics 2016 MRS approval al designs of the power station Adjustment to the New construction of Connection Conceptu Stage 2 demand characteristics 2020 MRS approval al designs of the power station Supply to users (MRS Miklavž, MRS Golnik, Connection of new users MRS Šmartno ob New construction of with mobile systems and Conceptu B14 Paki, MRS mobile handover Query 2016 - 2018 adjustment of existing al designs Braslovče, MRS systems connection points Pernica); other connection projects MRS Celje Displacement of MRS and New construction of Conceptu B15 General Query nd distribution upgrade MRS al designs Hospital New construction of Conceptu B16 MRS Verovškova Capacity increase Query nd MRS al designs MRS Termo - MWPB, adaptation of Conceptu B17 Capacity increase Query 2017 Knauf Insulation MRS al designs MRS Kranj Connection of New construction of Conceptu B18 Query nd Stražišče cogeneration in industry MRS al designs Connection of industrial MWPB, adaptation of Conceptu B19 MRS MTT Tabor Query nd consumer MRS al designs Adjustment to the MRS Novo MWPB, adaptation of Conceptu B20 demand characteristics Query nd mesto MRS al designs of the user MRS Opekarna Connection of industrial MWPB, adaptation of Conceptu B21 Query nd Novo mesto consumer MRS al designs Supply of New construction, L = Connection of new Conceptu B22 Šoštanj 4km, D = 100mm, MRS Query nd industrial consumers al designs industrial zone Šoštanj 2 Connection of DSO for MWPB, adaptation of Conceptu B23 MRS Pragersko Query nd Gaj settlement MRS al designs MWPB, adaptation of Conceptu B24 MS IUV Vrhnika Connection of DSO Query nd MRS al designs New construction of Conceptu B25 MRS Rogatec Connection of DSO Query nd MRS al designs New construction of Conceptu B26 MRS Pesnica Connection of DSO Query 2018 MRS al designs MRS Šmarje pri New construction of Conceptu B27 Connection of DSO Query 2017 Jelšah MRS al designs P142 Oplotnica New construction of Conceptu B28 Connection of DSO Query nd municipality MRS al designs M1/1 Majšperk MWPB, adaptation of Conceptu B29 Connection of DSO Query nd municipality MRS al designs R15 Videm New construction of Conceptu B30 Connection of DSO Query nd municipality MRS al designs R15 or M1/1 New construction of Conceptu B31 Kidričevo Connection of DSO Query nd MRS al designs municipality R15 Sveti New construction of Conceptu B32 Tomaž Connection of DSO Query nd MRS al designs municipality Adjustment to the New construction, Conceptu B33 MRS Štore demand characteristics variant technical Query nd al designs of the user solutions MWPB, adaptation of Conceptu B34 MRS Žalec Capacity increase Query nd MRS al designs

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

Capacity increase of the MWPB, adaptation of Conceptu B35 MRS Laško Query nd city network MRS al designs New construction of Conceptu B36 MRS Komenda Connection of DSO Query nd MRS al designs Črenšovci New construction of Conceptu B37 Connection of DSO Query nd municipality MRS al designs Velika Polana New construction of Conceptu B38 Connection of DSO Query nd municipality MRS al designs MWPB, adaptation of Connection Conceptu B39 MRS Svilanit Connection of DSO nd MRS approval al designs New construction of Conceptu B40 MRS Šobec Connection of DSO Query 2016 MRS al designs

ANNEX 2

Status Level of Planned start Listed in PCI # Project name Purpose Technical 1 treatment of operations ENTSOG common characteristics January 1 January TYNDP European 2015 2015 2015 with interest label C - DEVELOPMENT OF INTERCONNECTION POINTS C1 CS Ajdovščina extension Adjustment to the operational parameters of One compressor unit; NSP Stage 1 the Italian TSO's Non-FID 2021 TRA−N−092 power up to 5MW prepared transmission system, reverse flow Two compressor units with total power of up Stage 2 LNG North Adriatic nd TRA−N−093 X to 20MW Connection to M3/1 C2 Reconstruction of M3 at section CS Ajdovščina − Miren with branches TRA−N−108

Adjustment to the operational parameters of New construction, Non-FID NSP(p) 2021 the Italian TSO's transmission system BMCS Vrtojba

New construction, L = 11km, D = 500mm, DP Adjustment to the operational parameters of = 100bar, initial 2021 the Italian TSO's transmission system capacity 25.40GWh/d (2.4 million Sm3/d) New construction, L = 20km, D = 500mm, DP Increase of operational capacity = 100bar, capacity nd

62.99GWh/d (5.952 million Sm3/d) C3 R15/1 Pince – Lendava - Kidričevo TRA−N−112 X

New construction, L = 11km, D = 500mm, DP Interconnector with the = 100bar, two Hungarian TSO, section compressor units with Conceptual Stage 1 national border - MRS Non-FID 2020 total power of up to designs Lendava and extension of 3.5MW, capacity CS Kidričevo 38.1GWh/d (3.6 million Sm3/d) New construction, L = depending on 62km, D = 500mm, DP the binding Section MRS Lendava – CS Stage 2 = 100bar, capacity phase of the Kidričevo 38GWh/d (3.591 market million Sm3/d) analysis Interconnector with the New construction, L = Reconstruction of Austrian TSO, adjustment 200m, D = 800mm, DP NSP C4 Ceršak to the operational = 70bar, capacity Non-FID 2020 TRA−N−389 X prepared interconnection parameters of the Austrian 181.35GWh/d (17.135 TSO's transmission system million Sm3/d) New construction, up Improvement of CS Kidričevo - to three compressor NSP C5 operational parameters in Non-FID 2020 TRA−N−094 X extension stage 2 units with total power prepared M1/1 and M2/1 of up to 30MW

Ten-Year Gas Transmission Network Development Plan for the 2016 - 2025 period

Improvement of New construction, up operational parameters in to three compressor Conceptual C6 CS Vodice II Non-FID nd TRA−N−102 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 X − Ajdovščina Adriatic 340GWh/d (32.126 million Sm3/d) New construction, L = Interconnector with the 24km, D = 1100mm, DP M3/1b Ajdovščina C8 Italian TSO, LNG North = 100bar, capacity Non-FID NSP(p) 2022 TRA−N−262 X − Kalce Adriatic 340GWh/d (32.126 million Sm3/d) New construction, L = Interconnector with the 47km, D = 1100mm, DP M3/1c Kalce − C9 Italian TSO, LNG North = 100bar, capacity Non-FID NSP(p) 2022 TRA−N−261 X Vodice 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 X 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) Reconstruction of New construction, L = Interconnector with the Conceptual C12 Rogatec 3.8km, D = 800mm, DP Non-FID 2020 TRA−N−390 X Croatian TSO designs interconnection = 100bar 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 TRA−N−098 Kidričevo - total power of up to extension stage 3 80MW, capacity 1,030GWh/d (97.397 million Sm3/d) 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 TRA−N−263 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 TRA−N−100 Rateče 1,003 GWh/d (94.823 million Sm3/d) BMCS Rogatec bi- Provision of bi-directional Reconstructions and Conceptual C16 directional flow capacities with reverse upgrades with suitable Non-FID 2018 designs upgrade flow technical parameters

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, No. 17/2014) 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 2016 − 2025 period has been prepared pursuant to the rules of the profession and based on the data acquired by Plinovodi d.o.o. in good faith. The development plan contains predictions and analyses made by Plinovodi d.o.o. 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.

iEnergy Policies of IEA Countries, European Union - 2014 Review, International Energy Agency (IEA), OECD/IEA, 2014 ii Eurostat, newsrelease, 25/2015, 9 February 2015 iii European Council, European Council (23 and 24 October 2014) – Conclusions, EUCO 169/14, Brussels, 24 October 2014 ivEU Energy, transport and greenhouse gas emissions Trends to 2050 - Reference scenario 2013 - European Commission vhttp://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:52014DC0330&qid=1407855611566, COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL European Energy Security Strategy * COM/2014/0330 final * in https://ec.europa.eu/energy/sites/ener/files/documents/20140528_energy_security_study.pdf vihttps://ec.europa.eu/energy/sites/ener/files/documents/IP-14-1162_EN.pdf

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