As the natural gas transmission system operator, we provide long-term capacities for domes-tic energy market and through transmission capacities at the in-terconnection points with neigh-bouring transmission systems for transit transmission routes. By constantly developing and up-grading the transmission system, we enable system users to access natural gas sources and storage facilities through various trans-mission routes, thus promoting a competitive market and greater quality and reliability of gas sup-ply. We are actively monitoring the developments in the field of renewable gases, such as hydro-gen and synthetic methane, and we encourage innovations, relat-ed to the company's activity.

THE COMPANY PLINOVODI TODAY

We are passionate in bringing people and energy together.

When performing the activities of the transmission system operator, we take care of the following:• Safe, efficient and reliable man-

agement, operation and mainte-nance of the transmission system, development of the transmission system taking into account the needs of system users at home and in the European Union (EU), as well as security and reliability requirements;

• Providing information to the public, and in particular to the system us-ers, on access to the transmission system and to the neighbouring operators for the safe and efficient operation of connected systems;

• Promoting use of gas;• Organisation and operation of the

natural gas balancing market and calculation of the balancing of de-viations of natural gas consump-tion and transmission;

• Establishing and monitoring ca-pacity management and conges-tion management mechanisms.

QUALITYThe company Plinovodi remains a reliable business partner, which was confirmed by the Bisnode Certificate of credit rating Plati-num Class AAA.

Plinovodi d.o.o. operates a man-datory state economic public service and acts as an independ-ent transmission system opera-tor for natural gas. The company respects the principles of corpo-rate governance, is a signatory to the Slovenian Guidelines of Corporate Integrity, the Charter of Diversity and the Commitment to Respect for Human Rights in Business. We communicate with the company's authorities and all other stakeholders with due diligence.

VISIONA growing gas infrastructure pillar connected with the environment and integrated into the interna-tional space, providing efficient energy solutions for people's needs.

MISSIONWe provide energy transmis-sion and opportunities for ener-gy supply. We are committed to reliability, safety and expertise, and strive for technological and social advancement. We create space for synergy between peo-ple, industry and environment.

Ownership: one shareholder, 100% ownership share of the company Plinhold d.o.o.

FACES OF THE PLINOVODI

Deputy General ManagerM.Sc. Sarah Jezernik BSc in E.

The successful operation of the company is a reflection of the great awareness of the employees, who contin-ue to work diligently under current circumstances. The period of trials has shown that the people are truly the greatest capital of a company. Team work, responsible and professional conduct are just few adjectives that can describe the work of employees who feel a sense of belonging to their company. We build on this and co-create our successful path. By overcoming obstacles and challenges, we will draw the energy for the coming years, which will be marked by the transition and devel-opment of sustainable energy.

We have lived through a period marked by the situation of today. By acting quickly and establishing efficient operation under new conditions, we have managed to ensure the smooth operation of the transmission gas infrastructure. Ensuring a safe, uninter-rupted and reliable operation of the transmission system will con-tinue to be our priority. With the help of long-term upgrading of our knowledge in the field of the gas market and the experience gained last year, we will focus our activities on projects to decar-bonise the gas system and connect the energy actors, who will play a key role in the transition to a carbon-free society.

General ManagerMarjan EberlincBSc in Mech. Eng.

Assistant Director General for Technical AffairsDr. Franc CimermanBSc in Mech. Eng.

Manager of Technical SectionM.Sc. Oton GortnarBSc in Mech. Eng.

Head of Maintenance DepartmentMilan AmeršekBSc in Mech. Eng.

Head of Measurement DepartmentDr. Bogdan BlagojevičBSc in Mech. Eng.

Adviser to the General ManagerM.Sc. Klemen FerjančičBSc in Mech. Eng.

Internal Control AdvisorM.Sc. Polona Pergar GuzajBSc in E.

Assistant Manager of Technical SectionSamo PopekBSc in Mech. Eng.

Head of Technological Service DepartmentMarko KogovšekBSc in Mech. Eng.

Head of Transport DepartmentMarko ŠirovnikBSc in Mech. Eng.

Head of Investment DepartmentZoran CrnjakBSc Civ. Eng.

Compliance OfficerM.Sc. Dejan KoletnikBSc in Mech. Eng.

Manager of Economic SectionMatjaž Sušnik, MBABSc in E.

Head of Commercial and Regulation DepartmentJošt ŠtrukeljMBA, BSc in E.

Head of Accounting DepartmentAnita KirnBSc in E.

Head of Finance and Controlling DepartmentJani ŠetincBSc in E.

Head of Law OfficeM.Sc. Tina GaličBSc in I.

Plinovodi d.o.o.Cesta Ljubljanske brigade 11b,P.O.Box 3720, 1001 Ljubljana, SlovenijaPhone: +386 1 58 20 700Fax: +386 1 58 20 701, www.plinovodi.si/en/Publisher: Plinovodi

The Slovenian gas transmission system consists of almost 1,178 km of pipelines, two compressor sta-tions in Kidričevo and Ajdovščina, and 250 metering and regulation stations or other stations. Gas transmission system connects most of the industrial and urban centres in Slovenia, with the ex-ception of the Obalno-kraška re-gion, Bela Krajina, and a part of Inner and Lower Carniola.

GAS PIPELINE INFRASTRUCTURE

TotalPipelines with a diameter of 800 mm Pipelines with a diameter of 500 mm Pipelines with a diameter of 400 mm Other pipelines of smaller diameters

Compressor stations, total power Cross-border stations

Status as of 1 Jan. 2021

1.178 km167 km162 km198 km651 km

CS Kidričevo 10,5 MW, CS Ajdovščina 9 MWCeršak, Rogatec, Šempeter pri Gorici

Infrastructure

Gas network

Facilities and equipment

161 domestic users are connect-ed to the transmission system, namely:• 147 industrial or commercial

users,• 2 power plants and • 12 distribution system operators

(DSO).

Distribution system operators in Slovenia supply gas to 82 munic-ipalities.

THE COMPANY PLINOVODI TOMORROWAccording to the company Plinovodi, the expansion of gas pipeline networks with gasification and connections is possible in more than 60 municipalities in Slovenia.

Rateče

Vodice

Kalce

Jelšane

Ceršak

Kidričevo

Rogatec

GornjaRadgona

Pince

Trojane

Ravne na Koroškem

Velenje

Trbovlje

Sevnica

Kočevje

Ajdovščina

Ilirska Bistrica

Postojna

Koper

Nova Gorica

Lendava

OrmožPtujKranjska Gora

Bled

Jesenice

Kranj

LJUBLJANA

Slovenj Gradec

Celje

Novo mesto

Maribor

Murska Sobota

R29

R29 M4

M2/1

M1 M1/1

R15

R31R38

M3

R24

M2

M2/1

R25D

Existing compressor stationsExisting pipelinesMunicipalities with DSOsMunicipalities with potential connections

Source: GIS database Plinovodi d.o.o. / November 2020

MAJOR PROJECTSTO INCREASE OPERATIONAL RELIABILITY, DEVELOP INTERCONNECTION POINTS, AND EXPAND THE TRANSMISSION SYSTEM

THE M5-R51 VODICE – TE-TOL TRANSMISSION PIPELINEWith the construction of the Vodice - TE-TOL transmis-sion pipeline in year 2021, company will connect a new TE-TOL gas steam unit at the location in Ljubljana. To-tal length of new transmission pipeline will be 18 km, of which a little more than 5 km will be in the municipality of Vodice, and the rest in the area of the Municipality of Ljubljana. New transmission connection will provide Lju-bljana with cleaner air, even higher security of gas sup-ply and the possibility of additional connections in the area of the Municipality of Ljubljana and beyond.

MANAGEMENT CENTRECompany approached to the project of im-plementing the Management Centre in the newly built facility in order to meet the strict-er requirements to ensure safe and reliable operation, as well as ensure long-term de-velopment of both remote-control systems and business information systems. The facil-ity will meet the latest requirements for relia-bility of electricity supply and requirements for electromagnetic, fire and flood protection of equipment. The spatial planning will also take into account the possibility of longer operation of the Management Centre in the conditions of full isolation of operating per-sonnel in the event of the epidemics. In the future, the Management Centre will gain in importance also due to the introduction of new technologies and the functionality of the natural gas transmission system.

THE M6 AJDOVŠCINA – LUCIJA TRANSMISSION PIPELINEThe Ajdovščina - Lucija transmission pipeline is planned in the area of the Obalno-kraška – south-west region in the length of 68.9 km from the Ajdovščina Compres-sor Station to Lucija and includes a branch to Sežana. The purpose of the investment is the gasification of the Obalno-kraška region, with the possibility of connection to the Italian and Croatian transmission pipeline systems, which would improve the reliability of supply and ensure the development and expansion of the gas transmission network throughout Slovenia.

PROJECTS OF COMMON INTEREST2019The main purpose of the EU Regulation No. 347/2013, ac-cording to which the project has been granted a status of the PCI, is to facilitate and ac-celerate the implementation of projects of strategic impor-tance in the energy sector. PCI status can be granted to pro-jects that make an important contribution to creation of in-ternal energy market, securi-ty of supply, and construction of strategic priority corridors with the cross-border impact.

Projects of the company Plinovodi d.o.o. are included in the PCI 2019 list in the context of two project groups, namely:

Connection projects between Hun-gary (HU), Slovenia (SI), and Italy (IT).The connection between Hungary and Slovenia (HU-SI) will enable the estab-lishment of gas flows between Italy and Hungary through Slovenia and thus a direct connection of three gas markets, access to Hungarian underground storage facilities, access of Hungarian suppliers to western gas markets and liquefied natural gas sources (LNG) in Italy and the North Adriatic, as well as increasing the security of supply in Slo-venia and improving the infrastructure standard N-1.

Connection projects between Croatia (HR), Slovenia (SI), and Austria (AU).The group of projects in the corridor from Croatia through Slovenia to Aus-tria will include the upgrade of capacity of existing transmission systems with an emphasis on establishing return flows between the systems.

Pursuant to the Commission Delegated Regulation (EU) 2020/389 of 31 October 2019 amending Regulation (EU) No 347/2013 of the European Par-liament and of the Council, adopted the fourth list of 101 key PCI energy infrastructure pro-jects to help Europe achieve its energy and climate objectives. The PCI 2019 list comprises 51 projects in the field of electricity, 18 in the field of gas, 16 in the field of electricity motorways, five in the field of oil, six in the field of smart grids, and five in the field of CO2 capture and storage networks. The fourth list of key energy infrastructure projects is valid until the end of the year 2021 or until the adop-tion of a new list of key energy infrastructure projects.

MAJOR PROJECTS TO INCREASE OPERATIONAL RELIABILITY, DEVELOP INTERCONNECTION POINTS, AND EXPAND THE TRANSMISSION SYSTEM

Rateče

Vodice

Kalce

Jelšane

Ceršak

Kidričevo

Rogatec

GornjaRadgona

Pince

Trojane

Ravne na Koroškem

Velenje

Trbovlje

Sevnica

Kočevje

Ajdovščina

Ilirska Bistrica

Postojna

Koper

Nova Gorica

Lendava

OrmožPtujKranjska Gora

Bled

Jesenice

Kranj

LJUBLJANA

Slovenj Gradec

Celje

Novo mesto

Maribor

Murska Sobota

Existing compressor stationsPlanned compresson stationsExisting pipelines Other planned pipelines Project to increase gas transmission networkProject to increase gas transmission network

Nadgradnjainterkonekcije

Ceršak

Nadgradnjainterkonekcije

Rogatec

KP Kidričevo2. etaparazširitve

R15/1Pince - Lendava

- Kidričevo

M9BKidričevo- VodiceKP Vodice II

KP Vodice I na M9B

M10 Vodice-Rateče

M3/1a Šempeter - AjdovščinaM3/1b Ajdovščina - Kalce

M3/1c Kalce - Vodice

M8Kalce

- Jelšane

Rekonstrukcija M3

KP Ajdovščina1. in 2. etapa

razširitveM6

Ajdovščina-Lucija

R67 Dragonja - Izola

M9ALendava - Kidričevo

Source: GIS database Plinovodi d.o.o. / November 2020

THE COMPANY PLINOVODI ENABLES

We provide transmission ca-pacity booking, which ensures the use of the transmission gas system to transfer the agreed amount of gas at the agreed time.

The system user ensures the implementation of the gas trans-mission by concluding an ap-propriate transmission contract, namely:• At the exit points in the Repub-

lic of Slovenia in the usual way, with paper documentation, or electronically via the NUS web portal (Network User Services);

• At the cross-border intercon-nection points on the basis of a successfully conducted auc-tion, via the online booking plat-form PRISMA.

The user can conclude a trans-mission contract with the purpose of booking transmission capacity on the transmission system for different periods (daily, monthly and annually, at the cross-border points also a quarterly booking).

Upon prior registration, with which a gas market participant becomes a member of a virtual point, we en-able transactions with gas quanti-ties within the Republic of Slovenia.

Balancing market The electronic trading platform, as a special virtual point service, enables the transmission system operator and balancing group leaders to provide services re-

garding balancing of deviations. The forecasting party portal was developed on the basis of a methodology for forecasting the non-daily metering of takeovers of gas network users, which as-signs a load profile to a non-daily consumption point and provides gas suppliers with more accurate information on the consumption of their customers on a daily basis.

Our end users are distribution system operators, major industrial users and electricity producers.

Virtual Point (VP)

In the future, decarbonisation of the gas system will be based on the replacement of natural gas with renewable gases such as biomethane, synthetic methane, and “green” hydrogen.

Biomethane is obtained by the gasification of wood biomass or from the biogas produced by the decomposition of organic matter (slurry, crop residues and plant ma-terial, municipal sewage in sewage treatment plants, etc.) under anaer-obic conditions in fermenters.

Synthetic methane is produced by the CO2 or CO methanation of

hydrogen in catalytic or biologi-cal methanation reactors.

An important advantage of replac-ing natural gas with biomethane and synthetic methane is the fact that they are identical in compo-sition to natural gas and can be completely replaced; the only thing that is necessary is to switch from the whole pipeline system to the customer's installations, how-ever, remains the same.

As a result, the costs of switch-ing to renewable energy sources for society as a whole are signifi-cantly lower than for other ways of achieving a climate-neutral society.

Hydrogen can be obtained by electrolysis of water, where surplus electricity from renewable energy sources (RES) can be used, and in smaller quantities by the gasifica-tion of organic materials.

Hydrogen transport infrastructure across Europe

GAS IS OUR FUTURE

Source: Extending the European Hydrogen Backbone, Euro-pean Hydrogen Backbone initiative. Guidehouse, 2021.

Repurposed existing pipeline New pipelines

The company is already focusing on future operations and the transfer of new energy and gas technologies to the Slovenian market.

NATURAL GASAN IMPORTANT PART OF THE SOLUTION TOWARDS DECARBONISING THE SOCIETY

Natural gas is the purest fuel of fossil origin and is the product of the de-composition of organic matter. It is a mixture of various gases, most of which is methane CH4 (up to 99%), but also ethane, propane, butane, admixtures of heavier hydrocarbons, nitrogen, and carbon dioxide. Natu-ral gas is a fossil fuel with the lowest CO2 emissions during combustion and is versatile and energy efficient.

Natural gas is transported in gase-ous state through gas pipelines or liquefied (LNG) by special transport ships, and less often liquefied in rail and road transport in thermally insu-lated tanks.

The supply of gas to Slovenia takes place mainly from Russia and indi-vidual European hubs. From Austria, gas flows via the Ceršak entry point,

and from Italy, via the Šempeter entry point. Natural gas, located in the trad-ing hubs of the European market and transmitted to us, is of the European, North African and Russian origin.

Advantages of natural gas:• Natural gas is considered the

cleanest fossil fuel with a low car-bon footprint and a negligible amount of dust particles during combustion.

• Modern gas appliances enable high-energy efficiency, and good interconnections provide a relia-ble supply.

• It is versatile in the industry, in households or consumer goods, for the production of heat and electricity, in cogeneration, and as a fuel in transport (compressed natural gas CNG and liquefied nat-ural gas LNG).

DIRECTION OF GAS SUPPLY TO SLOVENIA AND THE NEIGHBOURING EUROPEAN HUBS

Source: GIS database Plinovodi d.o.o. / November 2020

Existing compressor stations Existing pipelines European hubs

Rateče

Vodice

Kalce

Jelšane

Ceršak

Kidričevo

Rogatec

GornjaRadgona

Pince

Trojane

Ravne na Koroškem

Velenje

Trbovlje

Sevnica

Kočevje

Ajdovščina

Ilirska Bistrica

Postojna

Koper

Nova Gorica

Lendava

OrmožPtujKranjska Gora

Bled

Jesenice

Kranj

LJUBLJANA

Slovenj Gradec

Celje

Novo mesto

Maribor

Murska Sobota

CEGH

PSV

HRVTP

THE COMPANY PLINOVODI ARE PEOPLE

IN YEAR 2017, WE RECEIVED A FULL »FAMILY-FRIENDLY COMPANY« CERTIFICATE AS AN UPGRADE TO THE BASIC CERTIFICATE, VALID AT THAT TIME.

From the year 2008 on, we are approaching the me-dia research project of the best employer the Golden Thread (Slo. Zlata nit), which measures the quality of relationships in the workplace. As part of the project, we are consistently ranked among the finalists in the category of medium-sized companies.

We constantly encourage employees to think about how to do the job better and more efficiently. We encourage them to submit innovative proposals and we reward the proposers at the end of the year.

We encourage the dissemination of information and knowledge within the company by publishing the

internal magazine Plinovodnik, which is published twice a year and whose editors and main authors of articles are employees.

As a part of the Ambassadorship project and with the help of the Intranet (the company's internal informa-tion system), we are disseminating knowledge within the company. We are aware that with a good knowl-edge of company's operations, employees become its first and most loyal promoters or ambassadors.

We will continue to strengthen our values and mis-sion in the future with our dedicated and commit-ted colleagues with plenty of knowledge about the transmission system and about the preparation and implementation of infrastructure projects.

Because we believe that socially responsible be-haviour is proof of our suc-cess, we have been sup-porting cultural, sports and educational events, as well as organisations, associations and insti-tutions in the form of sponsorships and do-nations for many years now.

THE COMPANY PLINOVODI

CO-OPERATE TO CO-CREATE

SAEE - SLOVENIAN ASSOCIATION FOR ENERGY ECONOMICSThe Association is a national branch of the International As-sociation for Energy Economics (IAEE) and a Section of the Ener-gy Industry Chamber of Slovenia.

EUROPEAN NETWORK OF TRANSMISSION SYSTEM OPERATORS FOR GASAs one of the founding mem-bers of the European Network of Transmission System Operators for Gas (ENTSOG), we are actively involved in the preparation of var-ious strategic documents, such as the following:• The TYNDP (10-year develop-

ment plan);• The Regional Investment Plan

GRIP Southern Corridor and GRIP CEE.

By participating, we contribute to the coordinated development of European transmission systems, which also ensures the inclusion of Slovenian energy infrastructure in the map of European priority corridors. An overview of the de-velopment of the European trans-mission system enables us to cre-ate better assumptions about the development of production and consumption on the Slovenian energy market.

GAS INFRASTRUCTURE EUROPEThe Association of European gas infrastructure operators.

GASNATURALLYThe Association of eight Euro-pean organisations that together form the entire value chain of the gas sector.

INTERNATIONAL GAS UNIONOne of the oldest and most widespread non-profit gas or-ganisations in the world.

ENERGY INDUSTRY CHAM-BER OF SLOVENIAThe Energy Industry Chamber of Slovenia is an independent, voluntary, interest-based, and non-profit association of legal and natural persons.

NETWORKING AT THE COMPANY

MORE ABOUT US

Plinovodi d.o.o.Cesta Ljubljanske brigade 11b, P.O.Box 3720, 1001 Ljubljana, SlovenijaPhone: +386 1 58 20 700, Fax: +386 1 58 20 701, www.plinovodi.si/en/