1. PLINACRO CROATIAN GAS TRANSMISSION SYSTEM OPERATOR Mladen Čavić, B. Sc. Director of Transmission Division

2. 2  Liberalization  Security of supply  Unbundling infrastructure system operators  Regulatory Agency Energy Reforms

3. 3  Legislative Framework – TPA, Tariff system  Energy subject – TSO = legally unbundled  Technical and technological preconditions- construction of infrastructure Gas Transmission

4. 4 Gas Market – harmonization with EU directives Legal Framework  Transmission of natural gas is defined as energy activity  Transmission of gas is a public service  The price of gas transmission service is regulated and set in accordance with the tariff system  The licence (issued by HERA) is required for the gas transmission activity

5. 5 Plinacro Ltd Croatian Gas Transmittion Company  Defined as Croatian TSO (Gas Transmission System Operator) by Gas Market Act - next 30 years  Plinacro established by unbundling of gas transmission activity from INA Plc  100% state-owned company  In charge of natural gas transmission; maintenance, managing and supervision of the entire gas transmission system and its development and construction

6. 6 ZAGREB 50 bar do 2002 50 bar > 2002 75 bar 63 bar Key: KARLOVAC Technical data - 2002 1,641 km of pipelines 137 MRSs DC/SCADA 2.95 Bcm of gas transported max. capacity 560.000 m³/h Plan of Development and Modernization of the Gas Transmission System in the Republic of Croatia  first investment cycle 2002 – 2006  second investment cycle 2007 - 2011 UGS OKOLI

7. 7 LUČKO KUTINA KARLOVAC ZAGREB S. BROD PULA BELIŠĆE OSIJEK BELI MANASTIR 50 bar do 2002 50 bar > 2002 75 bar 63 bar Key: Technical data - 2007 2,085 km of pipelines 19 entry point 151 exit point DC - new SCADA, CS system 3.1 Bcm of gas transported max. capacity 860.000 m³/h I. Investment phase 2002-2006 Planned: 210 million € 520 km of pipelines 17 exit points new SCADA + DC headquarters Development of the gas transmission system and gasification of the parts of the Republic of Croatia – Istra, Primorje and Gorski kotar Kutina-Sl. Brod Zagreb Istok-Kutina Pula-Karlovac Lučko-Ivanja Reka Belišće-Osijek Bolman-Beli Manastir Goals Increased reliability of pipeline system and security of gas supply

8. 8 VODNJAN UMAG KUKULJANOVO OMIŠALJ BOSILJEVO SPLIT PLOČE ZABOK LUČKO SLOBODNICA D. MIHOLJAC DRAVASZERDAHELY ROGATEC B. BROD NOVA KAPELA POŽEGA DOBROVAC OMANOVAC SV. IVAN ŽABNO BJELOVAR KUTINA GOSPIĆ ZADAR JOSIPDOL KARLOVAC BENKOVAC KNIN ZAGREB S. BROD PULA BELIŠĆE OSIJEK BELI MANASTIR 50 bar do 2002 50 bar > 2002 75 bar 63 bar Key: Technical data - 2011 3,081 km of pipelines 19 entry point 178 exit point 2 interconnections (import routes) 4.5 Bcm of gas to be transported max. capacity 1.200.000 m³/h II. Investment phase 2007-2011 Planned: 996 km of pipelines 24 MRS 443 mil. €Planned: 996 km of pipelines 24 MRS 443 mil. € Goals: Increased reliability of pipeline system and security of gas supply Development of the gas transmission system and gasification of the parts of the Republic of Croatia – Lika and Dalmatia Opening of new import supply route Dravaszerdahely-D. Miholjac Kutina-Dobrovac Kukuljanovo-Urinj-Omišalj Slobodnica-Bosanski Brod Split-Ploče Rogatec-Zabok Zabok-Lučko Vodnjan-Umag Sl. Brod-D. Miholjac

9. 9 VODNJAN UMAG KUKULJANOVO OMIŠALJ BOSILJEVO SPLIT PLOČE ZABOK LUČKO SLOBODNICA D. MIHOLJAC DRAVASZERDAHELY ROGATEC B. BROD NOVA KAPELA POŽEGA DOBROVAC OMANOVAC SV. IVAN ŽABNO BJELOVAR KUTINA GOSPIĆ ZADAR JOSIPDOL KARLOVAC BENKOVAC KNIN ZAGREB S. BROD PULA BELIŠĆE OSIJEK BELI MANASTIR Connections with neighboring countries transmission systems Slovenia Bosnia and Hercegovina Hungary Italy Montenegro Interconnections SerbiaSerbia Italy BiH Hungary Slovenia Serbia Montenegro

10. 10 PLINACRO Development Projects