TEN-YEAR GAS TRANSMISSION NETWORK DEVELOPMENT PLAN FOR THE 2018 2027 PERIOD

 
TEN-YEAR GAS TRANSMISSION NETWORK DEVELOPMENT PLAN FOR THE 2018 2027 PERIOD
TEN-YEAR GAS TRANSMISSION NETWORK
DEVELOPMENT PLAN FOR THE 2018 − 2027 PERIOD

                                           September 2017

 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: info@plinovodi.si; VAT Reg No: SI31378285
TEN-YEAR GAS TRANSMISSION NETWORK DEVELOPMENT PLAN FOR THE 2018 2027 PERIOD
Ten-Year Gas Transmission Network Development Plan for the 2018 - 2027 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 and natural gas supply ...... 7
    3.1         Current situation of the natural gas transmission system ..................................................................................................... 7
    3.2         Domestic market ................................................................................................................................................................... 8
        3.2.1           Supply of natural gas to Slovenia and access to natural gas sources ..................................................................... 8
        3.2.2           Slovenian Energy Concept − orientations ............................................................................................................... 9
        3.2.3           Existing supply of transmission capacity as of 1 January 2017 ............................................................................. 10
        3.2.4           Infrastructure standard and compliance with Regulation 994/2010/EU ............................................................. 12
        3.2.5           Supply and demand for transmission capacity – territorial coverage .................................................................. 15
        3.2.6           Comparison of the role of natural gas in Slovenia and Europe ............................................................................ 17
        3.2.7           Natural gas consumption in the country in the 2008 – 2016 period .................................................................... 20
        3.2.8           Demand and anticipated supply of transmission capacity ................................................................................... 21
        3.2.9           Forecast of natural gas consumption and booking of transmission capacity for the 2018 – 2027 period ........... 24
    3.3         Cross-border transmission capacity and booking ................................................................................................................ 26
        3.3.1           Demand for booking at cross-border interconnection points .............................................................................. 27
        3.3.2           Booking of transmission capacity at cross-border interconnection points in 2016 .............................................. 28
        3.3.3           Booking forecast and estimates ........................................................................................................................... 31

4       Set of planned gas infrastructure for the 2018 − 2027 period ........................................................................................ 34
    4.1         Projects to increase operational security............................................................................................................................. 34
        4.1.1           "Management Centre" project ............................................................................................................................. 36
    4.2         Connection projects ............................................................................................................................................................. 38
    4.3         Development of interconnection points with the neighbouring transmission systems ....................................................... 41
    4.4         Projects in preparation and planning in the 2018 − 2020 period and projects in implementation ..................................... 45
    4.5         Assessment of options for the increase of energy efficiency ............................................................................................... 47

5       European dimension of natural gas supply .................................................................................................................... 50
    5.1         Development of exchanges with other countries ................................................................................................................ 50
    5.2         Supply of natural gas to EU countries and access to natural gas sources ........................................................................... 51
    5.3         REGULATION (EU) No. 347/2013 on guidelines for trans-European energy infrastructure ................................................. 52
        5.3.1           PCI 2015 list .......................................................................................................................................................... 53
    5.4         ENTSOG ............................................................................................................................................................................... 54
        5.4.1           TYNDP ................................................................................................................................................................... 55
        5.4.2           GRIP CEE and GRIP Southern Corridor .................................................................................................................. 56

ANNEXES ............................................................................................................................................................................... 57

Abbreviations ........................................................................................................................................................................ 77

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TEN-YEAR GAS TRANSMISSION NETWORK DEVELOPMENT PLAN FOR THE 2018 2027 PERIOD
Ten-Year Gas Transmission Network Development Plan for the 2018 - 2027 Period

Preface
This is the material of the tenth Gas Transmission Network Development Plan for the ten-year period,
for the 2018 – 2027 period. It was developed in coordination with the European Network of
Transmission System Operators for Gas (ENTSOG) and in the process of two regional development
plans. Moreover, we are considering the development of neighbouring transmission systems and
neighbouring gas markets, we pay special attention to the domestic gas market, the development of
natural gas consumption in the country, and thus the necessary development of the transmission
system. Moreover, we are continuing with the in-depth analyses of natural gas consumption in the
future.

The gas market is becoming more and more dynamic and insecure, natural gas flows in the
transmission system and the natural gas consumption show growth, while the directions of natural gas
flows have become increasingly unpredictable. We have recently used the term "dynamic market" only
to describe the growing number of transmission contracts concluded for periods that began to shorten,
and now this concept has expanded to all areas of our operations. The vibrancy of the market affects
the scope of our work, business operations, and the planning of what the transmission system needs for
its operation.

The concern for reliable, safe and economical operation of the transmission system is at the forefront
and properly covered in this document. We have analysed the presented projects, prioritised them and
determined their implementation time line, using the prescribed procedures and tools. Our guiding
principles were our assessments of the role and opportunities of natural gas as an environmentally-
friendly energy product at the national level and in individual areas of the country.

Marjan Eberlinc
General Manager

Sarah Jezernik
Deputy General Manager

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TEN-YEAR GAS TRANSMISSION NETWORK DEVELOPMENT PLAN FOR THE 2018 2027 PERIOD
Ten-Year Gas Transmission Network Development Plan for the 2018 - 2027 Period

Summary
The Slovenian gas transmission system is part of the energy infrastructure of national importance that
is present in 108 of the total 212 Slovenian municipalities. In the energy balance sheet of the Republic
of Slovenia for the year 2016 it was estimated that in the final energy consumption structure the share
of petroleum products will stand out with 46.5%, followed by electricity with 22.5%, renewable energy
sources with 13.8%, natural gas with 12.1%, heat with 3.7%, industrial waste with 0.8% and solid fuels
with 0.7%. As an energy product, compared to the European average, natural gas has a much more
modest representation in the national energy balance sheet, with the exception of industrial
consumers sector.

The transmission system operator (TSO) measures the demand for natural gas transmission in the
domestic energy market based on queries, approvals issued and connection contracts concluded with
distribution system operators (DSO), industrial users and electricity producers. In 2016, there were
54 queries, 7 approvals for connection were issued and 4 connection contracts were concluded.

Regarding the purpose of the gas projects in relation to security updates, development of domestic gas
market and harmonisation with international projects, the TSO breaks down the planned infrastructure
into 3 groups. Group A contains 18 projects to increase operational security, i.e. loops and adjustments
to the pipeline system due to settlement and other circumstances. Group B contains 58 connections.
Group C contains 17 projects for the development of interconnection points with the transmission
systems of neighbouring countries, which include 4 projects that have been listed as projects of
common interest in November 2015 by the European Commission. Regarding the achieved maturity of
individual projects, the TSO estimates that it will implement (construct or begin construction on)
18 pipeline projects in the three-year period of 2018 − 2020, 8 of them planned.

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TEN-YEAR GAS TRANSMISSION NETWORK DEVELOPMENT PLAN FOR THE 2018 2027 PERIOD
Ten-Year Gas Transmission Network Development Plan for the 2018 - 2027 Period

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

The purpose of the Ten-Year Gas Transmission Network Development Plan for the 2018 – 2027 Period
(hereinafter: Development Plan) is to:

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

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

1
    Official Gazette of RS, Nos. 17/2014, 81/2015
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TEN-YEAR GAS TRANSMISSION NETWORK DEVELOPMENT PLAN FOR THE 2018 2027 PERIOD
Ten-Year Gas Transmission Network Development Plan for the 2018 - 2027 Period

1 Definitions
Unless the meaning of an expression is otherwise defined in an individual section of the 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 6 April and 1 May 2017, the TSO published a draft of the development plan on its website.
Within the public consultation procedure, it has invited all interested public representatives to present
comments, suggestions or additions to the draft. During the public consultation process, which lasted
for one month, it has received 4 responses. It has researched all of the responses, taken them into
account and explained the reasoning to the interested public. All neighbouring TSOs have also been
notified of the development plan draft beforehand, and we have received 2 responses.

2.2 Activities of the Energy Agency in relation to network development

The Energy Agency carried out a consultation procedure with all actual and potential system users by
publishing the development plan on its website and inviting them to submit their remarks. The
consultation procedure was concluded on 10 July 2017.

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TEN-YEAR GAS TRANSMISSION NETWORK DEVELOPMENT PLAN FOR THE 2018 2027 PERIOD
Ten-Year Gas Transmission Network Development Plan for the 2018 - 2027 Period

3 Supply and demand for transmission capacity of Slovenian
  natural gas transmission system and natural gas supply
3.1 Current situation of the natural gas transmission system
In terms of flows of natural gas in Europe, the geographic position of Slovenia is fairly favourable. It is
in close proximity to the transmission routes from north eastern Europe (from Russia through Slovakia
and Austria towards Italy and Croatia) and bordering on Italy, where the transmission routes from the
Mediterranean Basin and northern Europe converge. Moreover, the Slovenian system is in the vicinity of
the existent and newly planned LNG terminals in the Adriatic Sea.

The Slovenian gas transmission system comprises 1,156km of pipelines, two compressor stations in
Kidričevo and Ajdovščina, and 245 metering and regulation stations or other stations. At key points,
the gas transmission system is equipped with devices through which the system can be controlled and
maintained. The remote control and monitoring functions are carried out by means of an information
and telemetry system.

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

                      Infrastructure                                       Status as of 1 January 2017

Gas network                Total                                                             1,156km
                           Pipelines with a diameter of                                         167km
                           800mm
                           Pipelines with a diameter of                                         162km
                           500mm
                           Pipelines with a diameter of                                         197km
                           400mm
                           Other pipelines of smaller                                           629km
                           diameters
Facilities and             Compressor stations, total            CS Kidričevo 10.5MW, CS Ajdovščina 9MW
equipment                  power
                           Cross-border stations                 Ceršak, Rogatec, Šempeter pri Gorici

Table 2. Gas transmission network – high and low pressure (as of 1 January 2017)
                           Low pressure (16
        Pressure                                                           Total
                                  bar)                   bar)
 Horizontal length (km)          210.9                  944.9             1,155.8
Percentage (%)                         18                          82                     100

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

The gas transmission system is controlled and monitored from the dispatch centre that is connected to
the dispatch centres of transmission systems operators of neighbouring countries, as well as to
distribution network operators and major consumers of natural gas.

A major part of the existing gas transmission network is older than 30 years.

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TEN-YEAR GAS TRANSMISSION NETWORK DEVELOPMENT PLAN FOR THE 2018 2027 PERIOD
Ten-Year Gas Transmission Network Development Plan for the 2018 - 2027 Period

Table 3. Gas transmission network − age structure (as of 1 January 2017)
                           less than 10    between 10 and      between 20 and                    more than 30
          Age
                               years           20 years            30 years                         years
 Horizontal length (km)        204.9             16.6               235.8                           698.5
Percentage (%)                   18                      2                       20                     60

Figure 1. Gas transmission network in January 2017

The Slovenian natural gas transmission system began its operations in 1978, and was then gradually
expanded and upgraded. In 2014, the last major investment cycle was completed with the construction
of a pipeline from the Austrian border at Ceršak to Vodice near Ljubljana. In addition to providing
additional necessary transmission capacities, the safety and reliability of the transmission system
operation were improved. With regular inspections and regular maintenance work, the company
Plinovodi d.o.o. as a transmission system operator ensures safe and reliable operation of the
transmission system. The status of transmission pipelines is regularly monitored by supervising pipeline
routes, by performing internal inspections of gas pipes, by using various methods of external gas
pipeline inspection, and by constantly monitoring the operational parameters via the central control
system. With the cathodic protection system, transmission pipelines are protected against the
development of corrosion damage. Based on preventive inspections and maintenance work, we
estimate that the gas infrastructure is in very good operating condition; so far, we have not had any
major operational problems that could not have been managed in the framework of the planned
maintenance interventions.

3.2 Domestic market

 3.2.1 Supply of natural gas to Slovenia and access to natural gas sources
Due to the lack of own sources, the supply of natural gas to the Slovenian market depends entirely on
imports. The supply of natural gas to Slovenia takes place from Russia and individual hubs of the
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TEN-YEAR GAS TRANSMISSION NETWORK DEVELOPMENT PLAN FOR THE 2018 2027 PERIOD
Ten-Year Gas Transmission Network Development Plan for the 2018 - 2027 Period

European gas market. From Austria, natural gas flows via the Ceršak entry point, and from Italy, via
the Šempeter entry point. Natural gas, located in the trading hubs of the European market, is been
pumped out both in Europe, as well as in North Africa and Russia.

           18000                                                                                  Data source:
           16000                                                                                  Energy      Agency,    Important
                                                                                                  indicators for the supply of
           14000
                                                                                                  electrical energy and natural gas
           12000                                                                                  for the year 20162.
           10000
     GWh

           8000
           6000
           4000
           2000
              0
               2012                 2013             2014              2015            2016

                           Russia     Algeria   Austria      Italy   Other

Figure 2. Sources of natural gas supply to Slovenia

    100%
                                                                                                  Through the interconnection
                                                                                                  point Ceršak, the TSO can supply
    90%
                                                                                                  all     Slovenian      consumers,
    80%
                                                                                                  regardless of their location. This
    70%                                                                                           is also reflected in the positive
    60%                                                                                           trend of increasing the share of
    50%                                                                                           supply via the Ceršak point in
    40%                                                                                           Figure 3. The suppliers can
    30%                                                                                           therefore provide a competitive
                                                                                                  supply for all consumers where
    20%
                                                                                                  this is not restricted by an
    10%
                                                                                                  interconnection point or a
     0%
                                                                                                  possible bottleneck on the
                   2012             2013             2014               2015             2016
                                                                                                  natural      gas      transmission
                    Povezovalna     točka
                      Interconnection       Ceršak
                                      point Ceršak          Povezovalna
                                                             Interconnectiontočka   Šempeter
                                                                             point Šempeter
                                                                                                  network.
Figure 3. Natural gas import routes to Slovenia

    3.2.2 Slovenian Energy Concept − orientations

The Slovenian Energy Concept (Energetski koncept Slovenije – EKS) is in preparation. In accordance
with the Energy Act (EZ-1, Official Gazette of RS, Nos. 17/2014 and 81/2015) and the projection of
economic, environmental and social development of the country and along with the adopted national
commitments, particularly those related to energy and climate, it will provide a basis for identifying
ways for their achievement in the future.

2
  https://www.agen-rs.si/documents/10926/38909/Pomembnej%C5%A1i-kazalniki-na-podro%C4%8Dju-oskrbe-z-elektri%C4%8Dno-energijo-in-
zemeljskim-plinom-v-letu-2016/82f7747a-e5a4-4955-9db7-3113e6ee067d
                                                                                                                                          9
TEN-YEAR GAS TRANSMISSION NETWORK DEVELOPMENT PLAN FOR THE 2018 2027 PERIOD
Ten-Year Gas Transmission Network Development Plan for the 2018 - 2027 Period

The consultation document presented by the Ministry of Infrastructure (MoI) at the beginning of the
consultation process in May 20153 outlines the key elements for directing Slovenia's transition into a
low-carbon society, to which RS has already agreed in the past when adopting national commitments
within international obligations.

As an energy product, compared to the European average, natural gas has a much more modest
representation in the national energy balance sheet, with the exception of industrial consumers sector.
From responses to the material that the MoI has prepared on the subject of EKS so far and from last
year's discussions on energy sources 4 it can be summarised that natural gas will keep playing an
important role in the energy sector in the future. In the discussions, natural gas has been recognised as
an important energy product that is important for district heating systems and for individual energy
systems. Natural gas is classified as low carbon fuel, since it produces a negligible amount of dust
particles and substantially fewer emissions (CO, NOx, etc.) than in fuel oil, gasoline and diesel,
petroleum gas and biomass5. In order to achieve the national objectives of greenhouse gas emissions6 it
will have to replace coal in district heating systems in at least the next five years and gradually
replace fuel oil as well. Natural gas plays a special role in transport in two directives 7,8 that describe it
as an alternative fuel to fossil fuels in transport. In accordance with the aforementioned directive, a
national strategy9 for the required infrastructure should already be prepared in the current year.

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

    3.2.3 Existing supply of transmission capacity as of 1 January 2017

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

3
    http://www.energetika-portal.si/dokumenti/strateski-razvojni-dokumenti/energetski-koncept-slovenije/posvetovalni-proces-eks/
4
    http://www.energetika-portal.si/fileadmin/dokumenti/publikacije/eks/posvetovanje_delavnice/izvlecki_komentarjev_jun_2016.pdf
5
    http://www.giz-dzp.si/zemeljski-plin/okoljske-prednosti/
6
    http://www.energetika-portal.si/dokumenti/strateski-razvojni-dokumenti/operativni-program-ukrepov-zmanjsanja-emisij-tpg/
7
  DIRECTIVE 2012/33/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 21 November 2012 amending Council Directive 1999/32/EC as
regards the sulphur content of marine fuels
8
    DIRECTIVE 2014/94/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 22 October 2014 on the deployment of alternative fuels
9
 http://www.mop.gov.si/fileadmin/mop.gov.si/pageuploads/javna_narocila/2016/studija_potrebnih_dodatnih_ukrepih/Obrazec_3_projektna_nalo
ga.pdf
                                                                                                                                    10
Ten-Year Gas Transmission Network Development Plan for the 2018 - 2027 Period

             relevant point
             compressor st.

              M1 area
              M2 area
              M3 area
              M4 area

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

Table 4 presents data on the capacity of the relevant points as of 1 January 2017, the total
contractually booked capacity and utilisation for different periods.

Table 4. Capacity of the gas transmission system on relevant points 10
                                                                                               Average                        Maximum
                                                       Total                    Maximum daily
                                                                                               monthly                        monthly
                              Technical                contractually            utilisation of
Relevant point                                                                                 utilisation of                 utilisation of
                              capacity                 booked                   technical
                                                                                               technical                      technical
                                                       capacity                 capacity
                                                                                               capacity                       capacity

                               million kWh/day          million kWh/day                   %                        %                  %
                                                                                80.8 (17 November
Ceršak − entry                      139.757                   93.580                                        45.5 (year '16)    61.8 (Dec. 2016)
                                                                                        2016)

                                                                                72.4 (24 December
Rogatec − exit                       68.584                   51.381                                        55.4 (year '16)    69.1 (Dec. 2016)
                                                                                        2016)

Šempeter − entry                     28.474                    4.350            47.1 (25 July 2016)         0.5 (year '16)      6.3 (Jul. 2016)

                                                                                99.1 (17 November
Šempeter − exit                      25.885                      0                                          0.7 (year '16)     6.3 (Nov. 2016)
                                                                                        2016)

                                                                                61,0 (22 December
Exit in RS                           73.761                   61.651                                        34.6 (year '16)    51.8 (Dec. 2016)
                                                                                        2016)

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

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

10
     The capacity data refer to 1 January 2017, while the technical capacity utilisation data refer to the year 2016.

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Ten-Year Gas Transmission Network Development Plan for the 2018 - 2027 Period

exit points). To ensure successful operation of the entry-exit points system, the TSO must provide
appropriate technical conditions such as the elimination of bottlenecks on the transmission system in
order to enable suitable marketing and booking of capacity under this method and to allow the booking
of capacity at entry and exit points in various combinations.

With the introduction of transmission capacity booking via the auction platform PRISMA and with the
implementation of a virtual point in Slovenia, there was greater dynamics of both the booking of
transmission at the cross-border interconnection points and the transmitted quantities.

 3.2.4 Infrastructure standard and compliance with Regulation 994/2010/EU

The Regulation (EU) 994/2010 of the European Parliament and the Council concerning measures to
safeguard security of gas supply 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/EU, 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/EU of the European Parliament and the Council, Slovenia is obliged to submit a report to the
European Commission by 3 December 2018 describing the circumstances regarding infrastructure
criterion N-1. On the basis of that report and as long as the conditions for exemption continue to be
fulfilled, the European Commission may decide to extend the validity of the exception.

When dealing with transmission capacities at cross-border interconnection points, the analysis of the
infrastructure standard was adjusted for the last Risk assessment for security of supply, prepared by
the competent authority (Energy Agency), and for the Ten-Year Network Development Plan 2018 −
2027 in the light of analyses in the previous years. When calculating the infrastructure standard, only
the firm transmission capacities were taken into account as technical capacities of cross-border
interconnection points, without taking into account the possible specific measures of the transmission
system operator to provide additional interruptible transmission capacity in the event that supply
security is threatened. The technical capacities of the subject cross-border interconnection points are
defined on the basis of flow-pressure calculations of the transmission system, taking into account the
technical capacities of all the transmission system components included in the transmission (gas
pipelines, metering and regulation stations, and the two compressor stations), as well as the
operational characteristics and operational boundary conditions of the transmission system as a whole.

The estimations of value increments of infrastructure criterion N-1, inter alia, also depend on the
estimated growth of the peak load of the system. In the estimation of the development of peak load of
the Slovenian transmission system it was taken into consideration that the peak load will increase in
the coming years due to the growth of wide consumption.

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Ten-Year Gas Transmission Network Development Plan for the 2018 - 2027 Period

Based on the analysis of prospective infrastructure projects, the TSO has estimated that the
infrastructure standard N-1 will range between 57.4% and 56.8% in the next two years. In the long
term, the TSO estimates that it can ensure the development of infrastructure standard N-1 for the
Slovenian transmission system in a manner that will allow the system to reach the required level of
100%.

 140,0

                               112,5            116,3    115,2     114,0     112,9
 120,0                                 111,4                                           111,8    110,7     109,6

 100,0

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

  40,0

  20,0

   0,0
              2017     2018    2019    2020     2021      2022      2023     2024      2025      2026      2027

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

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

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

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

Pursuant to Article 7 of Regulation 994/2010/EU, the TSOs must implement a procedure for enabling
bi-directional capacity or for exemption from the obligation of enabling bi-directional capacity for
each cross-border interconnection between Member States:

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

         With the successful completion of the investment cycle on 1 January 2015 the TSO Plinovodi
         enabled bi-directional capacity at cross-border interconnection Šempeter/Gorica where bi-

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Ten-Year Gas Transmission Network Development Plan for the 2018 - 2027 Period

       directional booking of transmission capacity and bi-directional operation of the transmission
       system was taking place in 2015 and 2016.

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

       The TSO Plinovodi obtained the exemption from obligation of enabling bi-directional capacity
       at the cross-border interconnection Murfeld/Ceršak in accordance with the 4th paragraph of
       Article 7 of the Regulation 994/2010/EU without restrictions. Article 7 of the Regulation
       994/2010/EU defines the repeat process for "enabling reverse flow capacity or exemption" on
       the basis of Risk assessment for security of supply, which is carried out every 2 years in
       accordance with Article 9 of the Regulation 994/2010/EU. The latest Risk assessment by the
       Slovenian competent authority for security of supply that was carried out in 2014 in both
       Austria and Slovenia has so far not indicated the need for enabling bi-directional capacity at
       the cross-border interconnection Murfeld/Ceršak.

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

       Based on the Risk assessment for security of supply, the TSO Plinovodi submitted the
       application for exemption from the obligation of enabling bi-directional capacity with the
       possibility of reverse flow from Croatia to Slovenia in 2016. It obtained the exemption for
       cross-border interconnection Rogatec until 31 December 2018.

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

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

In the company Plinovodi we actively participate in all activities in the region related to the
development of new or existing transmission directions. For the existing transmission direction Austria
− Slovenia − Croatia, an analysis and technical design was performed to establish bi-directional
capacities in the direction Rogatec − Ceršak (the project of the conceptual solution "Transmission
pipeline M1 Ceršak − Rogatec and M1/1 Ceršak − Rogatec, Enabling bi-directional capacities with
reverse flow", manufactured by IBE d.d., January 2015). In 2017, the increased capacity for the cross-
border interconnection Murfeld/Ceršak is performed in cooperation with the Austrian transmission
system operator Gas Connect Austria, via an auction of bi-directional capacities. Other activities for
enabling bi-directional flows are also included in the development plan of the company Plinovodi,
where the upgrades of the transmission system at the border metering and control station Rogatec, at
the compressor station in Kidričevo, and at the border metering and control station Ceršak are
planned.

We are just awaiting the publication of the new European Regulation 994/2010/EU concerning
measures to safeguard security of gas supply, which builds on the substance in the preparation of the

                                                                                                                     14
Ten-Year Gas Transmission Network Development Plan for the 2018 - 2027 Period

Risk assessment, as well as in the field of implementation of preventive measures and measures in the
event of an emergency. The requirements of the new regulation will be taken into account in the
preparation of the following Risk assessment and Acts for securing the supply of natural gas.

 3.2.5 Supply and demand for transmission capacity – territorial coverage

As of 1 January 2017, the TSO had transmission contracts concluded with 147 system users, namely
14 DSOs operating in 81 municipalities, 131 industrial or commercial consumers and two power
stations.

Figure 6. Regional availability of the gas transmission network

The connection to natural gas can be performed in 81 Slovenian municipalities, which have an
operating gas network and in which 14 distribution system operators provide natural gas supply.

Based on the assessment of the potential of natural gas consumption, the distance of the municipality
from the transmission system, the estimation of the value of the connection implementation, and the
informative calculation of economic viability, the TSO estimates that there are 68 more municipalities
where the implementation of the connection is reasonable.

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.

                                                                                                                     15
Ten-Year Gas Transmission Network Development Plan for the 2018 - 2027 Period

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

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

2       Koroška          Dravograd, Mežica, Muta,                           Mislinja                    Muta, Vuzenica,
                         Prevalje, Ravne na                                                             Radlje ob Dravi
                         Koroškem, UM Slovenj
                         Gradec
3       Podravska        Hoče – Slivnica, UM Maribor,                       Dornava, Gorišnica,         Lenart
                         Miklavž na Dravskem polju,                         Markovci, Duplek,
                         Ormož, UM Ptuj, Rače –                             Hajdina, Kidričevo,
                         Fram, Ruše, Slovenska                              Majšperk, Pesnica,
                         Bistrica, Selnica ob Dravi,                        Oplotnica, Videm
                         Središče ob Dravi, Starše,
                         Šentilj
4       Savinjska        UM Celje, Laško, Polzela,                          Braslovče, Šmartno ob
                         Prebold, Radeče, Rogaška                           Paki, Kozje, Ljubno,
                         Slatina, Rogatec**,                                Nazarje, Mozirje,
                         Slovenske Konjice, Šentjur,                        Podčetrtek, Šmarje pri
                         Štore, Šoštanj, UM Velenje,                        Jelšah, Vransko
                         Vojnik, Zreče, Žalec

5       Zasavska         Hrastnik, Zagorje ob Savi         Trbovlje
6       Spodnje-         Brežice, Krško, Sevnica
        posavska
7       Osrednje-        Brezovica, Dobrova – Polhov                        Borovnica, Horjul,          Grosuplje, Ivančna
        slovenska        Gradec, Dol pri Ljubljani,                         Lukovica, Moravče           gorica, Velike Lašče
                         Domžale, Ig, Kamnik,
                         Komenda, Litija, UM
                         Ljubljana, Logatec, Log –
                         Dragomer, Medvode,
                         Mengeš, Škofljica, Trzin,
                         Vodice, Vrhnika
8       Notranjsko-                                                                                     Cerknica, Ilirska
        kraška                                                                                          Bistrica, Pivka,
                                                                                                        Postojna
9       Gorenjska        Bled, Cerklje na                                   Kranjska Gora               Žiri
                         Gorenjskem, Jesenice, UM
                         Kranj, Naklo, Gorje,
                         Radovljica, Šenčur, Škofja
                         Loka, Tržič, Žirovnica
10      Goriška          Ajdovščina, Nova Gorica,          Miren –          Kanal                       Idrija*
                         Šempeter – Vrtojba, Vipava        Kostanjevica,
                                                           Renče –
                                                           Vogrsko
11      Obalno-kraška    Sežana**                                                                       Hrpelje – Kozina,
                                                                                                        Ankaran, UM Koper*,
                                                                                                        Izola, Piran
12      Jugovzhodna      UM Novo mesto                     Dolenjske        Šentjernej, Škocjan         Kočevje, Ribnica,
        Slovenija                                          Toplice,                                     Sodražica, Črnomelj,
                                                           Straža                                       Metlika, Semič,
                                                                                                        Trebnje, Mirna
Total                    Existing situation: 81            Possible increase in gas transmission network coverage for 68
                         municipalities with a             potentially connectable municipalities
                         distribution network
*The municipality already has a chosen DSO.
**DSO is connected to the system in the neighbouring country.
                                                                                                                                  16
Ten-Year Gas Transmission Network Development Plan for the 2018 - 2027 Period

 3.2.6 Comparison of the role of natural gas in Slovenia and Europe

 40%                                                                                      The Slovenian energy market is
 35%
                                                                                          significantly different from the EU-28
                                                                                          average in three out of five elements,
 30%                                                                                      namely: natural gas, renewable
 25%                                                                                      sources, and nuclear heat. The share
 20%                                                                                      of natural gas in primary energy in the
                                                                                          EU-28 countries is 2.3-times higher
 15%
                                                                                          than in Slovenia, while the shares of
 10%                                                                                      renewable sources and nuclear heat
  5%                                                                                      are significantly higher in Slovenia.
  0%
        Trdna
       Solid   goriva Oil products
             fuels         Naftni      Zemeljski
                                      Natural gasplin Nuclear
                                                      Jedrska heat
                                                              toplota Obnovljivisources
                                                                    Renewable     viri
                          proizvodi                                                       Data source:
                                                                                          http://ec.europa.eu/eurostat/web/e
                           Evropska
                             EU-28 unija 28         Slovenija
                                                      Slovenia
                                                                                          nergy/data/main-tables
Figure 7. Primary energy in EU-28 and Slovenia in 2014

 40%                                                                                      In Slovenia, the highest share was
                                                                                          reached in 2009 − 14.5% and it has
 35%                                                                                      been dropping ever since. In the
 30%
                                                                                          primary      energy     consumption
                                                                                          structure in Slovenia, natural gas
 25%                                                                                      represents a 9% share, while the
                                                                                          average value for the EU countries is
 20%
                                                                                          21%.
 15%

 10%
                                                                                          Data source:
                                                                                          http://ec.europa.eu/eurostat/web/e
  5%                                                                                      nergy/data/main-tables
  0%
         DE

         AT

         DK

         AL
         HU

         HR

         ES
         NL

         EE
          IT

         NO

         EL
          IE

         SK

         PT
         CZ
         PL

         CY
         RO

         RS

          SI

         SE
          FI
         UK
         LT

         BE
         LV

       EU28

         LU

         BG
         FR

         MK

         ME
         MT

Figure 8. The share of natural gas in primary energy in EU
countries (data for 2014, refreshed in 2016)

                                                                                                                                   17
Ten-Year Gas Transmission Network Development Plan for the 2018 - 2027 Period

    Non-energy               Energy sector
   consumption                    0%                                                 RES      Solid fuels
                                                                                                               Oil products
        1%                                                              Heat         10%          3%
                                                                                                                    7%
                    Other                                                4%
                 consumption           Industry
                     11%                 25%
  Households
     24%
                                                                           Electricity                        Natural gas
                                        Traffic                               41%                                35%
                                         39%

Figure 9. Energy consumption by sector (2016)                   Figure 10. Energy sources in industry (2016) in
in Slovenia (Data source: RS energy balance sheet               Slovenia (Data source: RS energy balance sheet
2016)                                                           2016)

                                                                                Solid fuels
                                                                                    0%                  Oil products
                                        Solid fuels                                                          13%
                                            12%                                                                        Natural gas
                                                                                                                          10%
               Natural gas                                                     RES
                  12%                                                          45%

                                                                                                                 Electricity
                                                                                                                    24%
                             Oil products
                                  76%                                                            Heat
                                                                                                  8%

Figure 11. Non-energy consumption (2016) in                     Figure 12. Energy sources in households (2016)
Slovenia (Data source: RS energy balance sheet                  in Slovenia (Data source: RS energy balance sheet
2016)                                                           2016)

In the year 2016, the largest share of energy consumption was in traffic. Industry and households
represent an important segment of energy consumption as well. These three sectors have consumed
nearly 89% of all energy, with the remaining 11% in other consumption, non-energy consumption and
the energy sector. In Slovenian industry in 2016, natural gas represented 35% of consumption. One of
the most suitable uses for natural gas lies in households, since it is easy to use, safe, as well as the
most environmentally friendly and competitive. There are several reasons for its small share (10%) in
Slovenia, the relatively small geographic coverage
In comparison with 2016, the energy distribution by sector in Slovenia in the year 2006 was: industry
25% (last year 33%), traffic 39% (last year 30%), households 24% (last year 23%), other consumption 11%
(last year 10%), non-energy consumption 1% (last year 4%).

                                                                                                                               18
Ten-Year Gas Transmission Network Development Plan for the 2018 - 2027 Period

300.000
                                                                                            According to the RS energy balance
                                                                                            sheet, the final energy consumption in
250.000                                                                                     the year 2016 amounted to 198,294TJ,
                                                                                            which is 26.3% lower than ten years ago
200.000
                                                                                            (2006):
150.000                                                                                      reduced by 33.7% in industry,
                                                                                             increased by 17.3% in traffic,
100.000                                                                             2006     reduced by 4% in households,
 50.000                                                                             2016     increased     by 68.7% in other
                                                                                                consumption,
       0                                                                                     reduced by 79.4% in non-energy
                      Traffic
           Industry

                                Households

                                                                           Total
                                             consumption

                                                             consumption
                                                   Other

                                                              Non-energy
                                                                                                consumption; one of the biggest
                                                                                                reasons is the decommissioning of
                                                                                                the methanol plant in Lendava.

Figure 13. Energy consumption in 2006 and 2016

                                                                                            Slovenia is comparable to other EU-28
                                                                                            countries when it comes to the
 50%                                                                                        consumption of natural gas in industry
 45%                                                                                        (with a 32% share). The reduction in
 40%
                                                                                            energy consumption in the last ten years
                                                                                            affected all energy sources, so natural
 35%
                                                                                            gas retained a relatively high share.
 30%
 25%                                                                                        Data source:
 20%                                                                                        http://ec.europa.eu/eurostat/web/ene
 15%                                                                                        rgy/data/main-tables
 10%
  5%
  0%
         AT

         AL
         ES

         DE

         DK

         HR

         EE
         NL
         CZ

         HU

          IT

         PL
         SK

         PT

         EL

         NO

         CY
         SE
         RO

         TR

          SI

          IE

         RS
         FR

          FI
         LU

         BE

       EU28

         UK
         BG

         LT

         LV

         MK

         ME
         MT

Figure 14. Share of natural gas among the energy sources in
industry (data for 2014, refreshed in 2016)

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

 20%

 10%

  0%
         DE

         AT

         DK

         AL
         HU

         ES

         HR
         NL

         CZ

          IE

         EE
         SK

          IT

         PL

         PT

         EL

         SE
         NO

         CY
         RO

          SI
         BE

         FR

         LV

         RS
         UK

         LU

         LT

          FI
       EU28

         BG

         MK

         ME
         MT

Figure 15. Share of natural gas among the energy sources in
households (data for 2014, refreshed in 2016)

                                                                                                                                           19
Ten-Year Gas Transmission Network Development Plan for the 2018 - 2027 Period

 100%                                                                In the year 2013, the consumption of
  90%
                                                                     natural gas in conventional thermal
                                                                     power stations in Slovenia amounted to
  80%
                                                                     7,674.7GWh, but in the year 2014 it
  70%                                                                dropped to 788.3GWh (90% drop).
  60%
  50%                                                                Data source:
  40%                                                                http://ec.europa.eu/eurostat/web/ene
  30%                                                                rgy/data/main-tables
  20%
  10%
   0%
           AT

           HR

           AL
           HU

           DE

           DK

           EE
           ES
            IE

            IT

           PT

           EL
           NL
           NO

           RO

           CZ

            SI

           CY
           SK

           PL
           SE

           RS
           FR
           LU

           LT

            FI
           LV

           BE

           BG
           UK

         EU28

           MK

           ME
           MT
Figure 16. Share of natural gas among the energy sources in
conventional power stations (data for 2014, refreshed in 2016)

 3.2.7 Natural gas consumption in the country in the 2008 – 2016 period

The past consumption of natural gas represents one of the indicators used to forecast the booking of
transmission capacity. In the year 2014, we have seen a large drop in consumption of natural gas,
especially in the electricity production sector. The consumption of natural gas in the industrial sector
has stabilised in the period from 2012 to 2014, which suggests that the economic conditions have
settled down somewhat, and in 2015 there has been an increase in natural gas consumption in the
industry segment of about 6%, and then in 2016 the additional 2.5%. In the other consumption segment,
the TSO has been noticing a decline in natural gas consumption until 2014, which the TSO attributes
mostly to installation of efficient facade insulations, new energy-efficient windows and other
structural elements that contribute to lower consumption of energy products for heating, as well as
extremely mild winters, but in 2015 an increase in natural gas consumption has been noticed in the
other consumption segment as well, approximately 13%, and the additional 7.5% in 2016. Therefore, a
total increase of about 4.5% has been recorded in the consumption of natural gas quantities in 2016 in
comparison with the year 2015, and as much as 14% in comparison with the year 2014. Regardless of
the annual volume of natural gas consumed, from the TSO's perspective, the key is the capacity booked
on the level of daily consumption, required for the transmission of natural gas to supply the network
users, which remains at about the same level during peak loads.

Table 6. Natural gas consumption in Slovenia in the 2008 – 2016 period (million kWh/year)

    Sector       2008       2009      2010      2011        2012       2013         2014        2015       2016
 Industry        7,166      6,269    6,611      5,073      4,774       4,774        4,774      5,064       5,187
 Other
                 3,930      3,781    3,845      3,973      3,813       3,546        3,311      3,767       4,058
 consumption
 Electricity      331        758      705        566         619        545           43         38         30
 Total          11,427     10,808    11,161     9,612      9,206       8,865        8,128      8,869       9,275

                                                                                                                    20
Ten-Year Gas Transmission Network Development Plan for the 2018 - 2027 Period

                             12.000

                             10.000

                              8.000

                   mio kWh    6.000

                              4.000

                              2.000

                                 0
                                  2008   2009     2010        2011       2012     2013      2014     2015       2016

                                                                         Year
                                                 Industrija
                                                   Industry          Ostala
                                                                       Otherporaba
                                                                             cons.       Elektrika
                                                                                           Electricity

Figure 17. Natural gas consumption in Slovenia in the 2008 – 2016 period (million kWh/year)

 3.2.8 Demand and anticipated supply of transmission capacity

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

Table 7. Connection contracts

 #                 Project name                                         Purpose                             Planned start of operations

       MRS TE-TOL;
 B1    M5 Vodice − Jarše, R51 Jarše −           Connection of thermal energy plant                                     2020
       TE-TOL
       MRS Godovič;
 B2                                             Connection of DSO in the municipality of Idrija                        2018
       R38 Kalce − Godovič

 B9    MRS Lendava/Petišovci                    Connection to the production of natural gas                            2019

 B15   MRS Impol                                Adjustment to the demand characteristics of the                        2021
                                                user

 B17   MRS Knauf                                Capacity increase for industrial consumer                              2018

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

                                                                                                                                     21
Ten-Year Gas Transmission Network Development Plan for the 2018 - 2027 Period

Table 8. Connection approvals

  #                 Project name                                   Purpose                       Planned start of operations

 B11    MRS Nasipi Trbovlje                  Connection of user and DSO                                      2019

 B12    MRS Golnik                           Connection of DSO                                            2017/2018

                                             Adjustment to the demand characteristics of the
 B13    MRS Brestanica                                                                                    2018/2019
                                             power station (stage one)

 B16    CNG MS Celje                         Connection of CNG filling station                               2018

 B18    MRS Miklavž na Dravskem polju        Connection of DSO                                               2018

        MRS IZ Hoče;
 B45                                         Connection of DSO                                               2018
        R13c Miklavž − Hoče

 B25    MRS Rogatec ŠP                       Connection of DSO                                            2017/2018

 B40    MRS Šobec                            Connection of DSO and/or user                                2017/2018

 B46    MRS Verovškova                       Connection of DSO                                            2017/2018

3.2.8.3 Queries
Queries include the initial activities of our company, potential users and existing users of transmission
capacities for connections that the TSO recorded as current and were addressed as queries in 2016.
This group also includes the previous activities of potential users for which a connection approval had
been issued, but has expired for various reasons and, hence, no connection contract has been
concluded, yet the TSO still considers them as possible customers. For the following projects, the TSO
considers that the potential or existing users have expressed interest for connections.

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

B19    MRS Bela                                                                                           2021
                                             Connection of DSO and industrial users;
B20    MRS Halda                             connection with the system pipeline point                    2021
                                             A18
B21    MRS Desni Breg                                                                                     2021
                                             Connection of DSO; connection with the
B47    MRS Kranjska Gora                                                                                   nd
                                             system pipeline point A18
                                             Connection of DSO in the municipalities of
       MRS Sežana, MRS Kozina, MRS
                                             Sežana, Hrpelje − Kozina, Koper, Izola,
 B3    Dekani, MRS Koper, MRS Izola, MRS                                                               after 2020
                                             Piran; connection with the system pipeline
       Lucija
                                             M6
       MRS Cerklje;                          Connection of DSO in the municipality of
 B4                                                                                                        nd
       R297B Šenčur − Cerklje                Cerklje
       MRS TTPP;
 B5                                          Connection of thermal power station                           nd
       R25A/1 Trojane − TTPP
 B7    MRS Cerknica                          Connection of DSO and industrial users                        nd
                                             Connection of users with CNG filling
 B8    CNG MS/MRS                                                                                     2018 − 2027
                                             stations
                                             Connection of new users with mobile
       Supply to users (Table 5) and other   systems and adjustment of existing
B14                                                                                                   2018 − 2027
       connection projects                   connection points
B27    MRS Šmarje pri Jelšah                 Connection of DSO                                            2018
B37    MRS Lukovica                          Connection of DSO                                             nd
B42    MRS Horjul                            Connection of DSO                                             nd
                                                                                                                             22
Ten-Year Gas Transmission Network Development Plan for the 2018 - 2027 Period

                                               Connection of municipality Škocjan and
B43     MRS Škocjan/Šentjernej                                                                                 2019
                                               Šentjernej
                                               Adjustment to the demand characteristics
B44     MS Kandija                                                                                              nd
                                               of the consumer
                                               Adjustment to the demand characteristics
B23     MS Primorje CGM                                                                                         nd
                                               of the consumer
B24     MS Labore                              Connection of DSO for industrial consumer                        nd
                                               Connection of DSO in the municipality of
B10     MRS Marjeta                                                                                             nd
                                               Starše
B26     MRS Pesnica                            Connection of DSO                                                nd
B22     MRS Šoštanj                            Connection of new industrial consumers                           nd
                                               Adjustment to the demand characteristics
B33     MRS Štore                                                                                               nd
                                               of the user
B30     MRS Videm                              Connection of DSO                                                nd
B31     MRS Kidričevo                          Connection of DSO                                                nd
B32     MRS Sveti Tomaž                        Connection of DSO                                                nd
                                               Adjustment to the demand characteristics
B46     MRS Verovškova                                                                                      2017/2018
                                               of the user
                                               Adjustment to the demand characteristics
B48     MRS Gorenje                                                                                         2017/2018
                                               of the user and connection of DSO
                                               Adjustment to the demand characteristics
B49     MRS Trbovlje                                                                                        2017/2018
                                               of the user
                                               Adjustment to the demand characteristics
B50     MRS Novo Celje                                                                                          nd
                                               of the user
                                               Adjustment to the demand characteristics
B51     MRS Krško                                                                                               nd
                                               of the user
                                               Adjustment to the demand characteristics
B52     MRS Solkan                                                                                          2017/2018
                                               of the user
B53     MRS Opekarna (Straža)                  Connection of new industrial consumers                       2017/2018
B54     MRS Podčetrtek                         Connection of users                                              nd
B55     MRS Kozje                              Connection of users                                              nd
B56     MRS Vransko                            Connection of users                                              nd
B57     MRS Borovnica                          Connection of users                                              nd
* In addition to the station, each MS/MRS also includes a pipeline connecting the station to the transmission pipeline.

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

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

                                                  Connection of DSO in the
        MRS Grosuplje, MRS Ivančna Gorica,        municipalities of Grosuplje, Ivančna
B34     MRS Trebnje, MRS Mirna Peč, MRS           Gorica, Trebnje, Mirna Peč, Mirna;                          nd
        Mirna                                     connection with the system pipeline
                                                  M5
        MRS Semič                                                                                             nd
                                                  Connection of DSO; connection with
B41     MRS Metlika                                                                                           nd
                                                  the system pipeline R45
        MRS Črnomelj                                                                                          nd
B28     MRS Oplotnica                             Connection of DSO                                           nd
        MRS TOŠ;
 B6                                               Connection of thermal energy plant                          nd
        R52 Kleče − TOŠ

                                                                                                                               23
Ten-Year Gas Transmission Network Development Plan for the 2018 - 2027 Period

B36     MRS Komenda                        Connection of DSO                                       nd
B35     MRS Škofljica/Ig                   Connection of DSO                                       nd
B38     MRS Brezovica/Log Dragomer         Connection of DSO                                       nd
B29     MRS Braslovče                      Connection of DSO                                       nd
B58     MRS Šmartno ob Paki                Connection of DSO                                       nd

3.2.8.5 Deployment of alternative fuels infrastructure

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

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

Projects within the framework of alternative fuels infrastructure are discussed in Point B8 CNG MS/MRS
(connection of users with CNG filling stations).

The national strategy for the development of alternative fuels infrastructure, dictated by the Directive
2014/94/EU, is currently under preparation and will be adopted by the Government of Republic of
Slovenia expectedly in October 2017.

    3.2.9 Forecast of natural gas consumption and booking of transmission capacity
          for the 2018 – 2027 period

The forecast of booking of transmission capacity of the system operator is a key element of the review
of future development of the natural gas market and it is based on numerous elements that the
transmission system operator includes in the preparation of the forecast, namely:

     the concluded 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 transmission system users and implementation of TSO's activities in terms of
      new connections,
     forecasts for the construction of power facilities,
     estimated transition of system users to the increasingly higher use of short-term transmission
      capacity,
     prepared estimates of transmission capacity booking from the Requirement to issue consent to the
      regulatory framework, tariff items for network charges and tariff items for other services for the
      regulative period from 1 January 2016 to 31 December 2018, and
     the estimates and forecasts that the ENTSOG prepares and uses in the preparation of the TYNDP
      (ENTSOG has included various scenarios in the methodology for the last TYNDP 2017, and the
      company Plinovodi pursued the goal of steady growth in the consumption of natural gas).

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