Snam Rete Gas PLAN FOR THE IMPLEMENTATION OF NEW CAPACITY AND FOR DEVELOPMENT OF THE TRANSPORTATION NETWORK Document prepared by Snam Rete Gas S.p.A. for compliance with the Delibera 137/02 of the Autorità per l’energia elettrica e il gas. September 1st, 2005 Foreword Snam Rete Gas S.p.A. publishes the plan for the implementation of new capacity and the development of its transportation network, prepared on the basis of currently available information and on the basis of relationships with its own clients, securing transparency and impartiality among users in conformity with provisions of Directive no. 98/30/EC of the European Parliament and of Law Decree no. 164/2000. The present document has been prepared in compliance with the article 4 subsection 1 letter b, of Delibera no. 137/02 of the Autorità per l’energia elettrica e il gas. The projects that figure in the programme result from studies carried out by Snam Rete Gas on the basis of its own forecasts of capacity requirements. The infrastructure development plans included in this document are not binding for Snam Rete Gas that, therefore, reserves the right to modify them every time that new elements, such as for example evolutions of market requisites different from the current hypotheses, require it. 2 Index 1 PLANNED INFRASTRUCTURES 1.1 Complete Programme 1.2 Transportation on the National Network 1.3 Transportation on the Regional Network 1.4 Main projects 2 PLAN OF CAPACITIES 2.1 Entry Points interconnected with foreign pipelines 2.2 Exit Points interconnected with foreign pipelines 2.3 Methodology for calculating capacities 2.4 Operational constraints and boundary conditions used for simulations 2.5 Interruptible capacities 2.6 Simulation Programs 3 ATTACHMENTS 3 1 PLANNED INFRASTRUCTURES 4 1 PLANNED INFRASTRUCTURES 1.1 Complete programme The plan for implementation of new capacity and for development of the transportation network includes projects whose construction is under way and those whose start is scheduled in future years, within the next four-year term. The planned investments after 2005 are the result of analyses and evaluations based on the information available at this moment. The implementation of these investments depends from the presence of appropriate conditions and, in any case, their planning is subjected to annual revisions that could introduce significant changes. Furthermore Snam Rete Gas has planned to put out some sections of natural gas pipelines and some plants, which, in total, haven’t significant impact on the reliability of the network of natural gas pipelines, or on the availability of transportation capacity. The development projects have been evaluated on the basis of transportation scenarios that reflect forecasts of consumptions of natural gas in Italy, relationships with subjects interested in starting-up new off-take points and those with users who use capacity in the inlet and outlet points. These projects represent approximately 80% of the plan and are characterised by the presence of significant works that will make it possible in the near future to inject quantities of gas onto the Italian network from the main pipelines supplying the Country. The remaining 20% of the plan includes different types of interventions including those aimed at preserving existing infrastructures. Preservation projects have been identified on the basis of available information on the status of existing pipelines. Works relating to Transportation on the National Network represent approximately 70% of the plan, the remaining 30% concerns the Regional Network. In total the Snam Rete Gas plan provides for development of the network of gas pipelines from the 30,545 km operating at the end of 2004, to the 33,400 km at the completion of the planned projects. Similarly, the increase of installed capacity in the Compressor stations is forecast in the plan from the current 625 MW (37 compressor units in 11 stations), up to approximately 899 MW in the four-year term (fifteen new units, included the two units installed in Minerbio station under way of acquisition and six new units installed in two new stations). 5 1.2 Transportation on the National Network The infrastructures foreseen in the National Network Development Plan are destined mainly to reinforce the importation system, and will include the completion of works dedicated to importation from Russia and the continuation of the activities related to the development of the pipeline system from the South. Moreover, it has been started the project for the implementation of a new compressor station close to the distribution node of Poggio Renatico. It has been started the planning and the permits acquisition related to the projects “Rete Adriatica” and “Ulteriore potenziamento Importazioni da Sud”; the implementation phases of the latter projects will start supporting capacity requests of the commercial operators and in coherence with the legal framework, in ongoing definition, related to the application of the principles established by Italian Law August 23rd, 2004 nr.239 (Decreto Marzano). The remaining development projects are aimed at reinforcing other main national transportation pipelines and they are mainly located in the areas of Southern Piedmont and the North-East. These include works related to the Mortara – Alessandria, Alessandria – Oviglio and Verona - Trento (section Vigasio - Bussolengo) natural gas pipelines, the Bosentino – Trento and Gagliano – Sparacollo natural gas pipeline and the developing of the connection to the storage of Collalto. In total the plan will develop the National Network from approximately 8,200 km operating at the end of 2004, to approximately 9,470 km, at completion of planned projects. The compression system will be developed from the current 625 MW, distributed over 37 compressor units, to approximately 900 MW at completion of plan, resulting from the installation of 2 new station, from the installation of new units in existing stations and from the acquisition of the Minerbio station, for a total of 15 new units with 274 MW of new compression capacity. 6 1.3 Transportation on the Regional Network In the plan of extension and reinforcement of the regional transportation network is included the completion of the Bagnoli Connection (in Campania), of the Giarratana – Solarino (Sicily) natural gas pipeline and of the reinforcing of the connections for Abbadia Lariana (Lombardy). Moreover, are in progress reinforcements in the area of Southern Piedmont (Oviglio – Ponti, Cherasco – Cuneo and Cosseria – Mallare natural gas pipelines), in Eastern Lombardy (Bergantino – San Giorgio di Mantova, Azzano Mella – Travagliato, Travagliato – Mornico al Serio, Mornico al Serio – Zanica) and in Umbria (Pietrafitta – Perugia natural gas pipeline) and they have been started the natural gas pipelines: Lainate – Olgiate Olona, Sergnano – Casirate (Lombardy) and Bondeno – Ferrara (Emilia Romagna). A large number of minor works of reinforcement of the network is also planned. Furthermore, on the basis of relationships developed with the subjects interested in connecting their own sites to the transportation network, many connections of new thermoelectric power plants, of industrial plants and of distribution networks scattered in the eight territorial districts, have been identified. Some of these works have already started, meanwhile for the remaining ones, for which to date no defined contractual agreements exist, actual planning and implementation is subject to confirmation of interest by the requesting subjects and to the subsequent conclusion of agreements for connection. Among about 70 connections started in 2005, 6 of them concern new thermoelectric plants with power of approximately 3,600 MW. The plan consist of implementation of approximately 80 connections in total per year. In total the plan will develop the Regional Network of Snam Rete Gas from 22,350 Km operating at the end of 2004 to approximately 23,600 km, at the end of 2008, and an increase of approximately 300 km in the following years, with a total increase of approximately 1,600 Km. 7 1.4 Main projects To complete the description of the plan, hereinafter are indicated the most significant infrastructures. These projects represent approximately 60% of the total and they are related to the implementation of works distributed all along the Snam Rete Gas transportation network. 8 1.4.1 Reinforcement of Importation from South During the year 2002, SNAM Rete Gas launched investments necessary for implementing works to reinforce the backbone importation network consisting of: ◊ Implementation of a 3rd line (DN1200) with a total of approximately 290 km in the Enna-Montalbano, Palmi-Martirano, Campochiaro- Sulmona sections; ◊ Reinforcement of the existing stations of Messina, Tarsia, Montesano, Melizzano, Gallese, Terranuova by means of the addition of new compressor units; ◊ Adjustment of piping and auxiliary plants in the existing stations. Commissioning of these works is planned within the year 2007; they will provide 86 MSm3/day at the entry point of Mazara del Vallo and 25 MSm3/day at the entry point of Gela. 9 1.4.2 Dorsale Adriatica The project consists of reinforcing the importation lines from South by means of the implementation of a new DN1200 line about 680 km long and of a new compressor station (Sulmona) with a power of 33 MW. The route of the pipeline is placed on a new line at the eastern side of Transmed towards the Adriatic sea. The new pipeline will connect the existing Montesano – Brindisi pipeline