Ten-Year Development Plan for the Transport Network of Energie S.R.L.

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1 Ten-Year Development Plan for the Transport Network of Energie S.R.L. 31 March 2015

2 TABLE OF CONTENTS INTRODUCTION... 3 REGIONAL TRANSPORT NETWORK OF ENERGIE SRL... 3 PROGRAMMING TOOLS... 3 OBJECTIVES OF THE DEVELOPMENT PLAN... 3 EXISTING REGIONAL TRANSPORT NETWORK... 5 PLANNED INTERVENTIONS... 7 CERVINIA CHATILLON NATURAL GAS TRANSPORT PIPELINE... 7 EXTENSION OF MURIALDO CALIZZANO BARDINETO NATURAL GAS TRANSPORT PIPELINE EXTENSION OF EX CARTIERA BORMIDA (MURIALDO) BARDINETO GAS TRANSPORT PIPELINE EXTENSION OF BAGNASCO (CN) MASSIMINO (SV) GAS TRANSPORT PIPELINE UNDER STUDY INTERVENTIONS SALBERTRAND-NOVALESA NATURAL GAS TRANSPORT PIPELINE EXTENSION OF VALSESIA NATURAL GAS TRANSPORT PIPELINE INTERVENTION DESIGN PHASE ENVIRONMENTAL MITIGATION INTERVENTIONS FINANCIAL STRUCTURE... 38

3 INTRODUCTION This plan is prepared pursuant to the Decree of the Italian Ministry of Economic Development of 27 February 2013 that lays down, pursuant to Article 16 of Italian Legislative Decree No. 93/11, the methods according to which natural gas transport network Providers operating in the national territory should draw up the ten-year natural gas transport network development plan. REGIONAL TRANSPORT NETWORK OF ENERGIE SRL Energie S.r.l. is a privately held company operating in the natural gas industry for more than 20 years. In particular, it is one of the few companies in Italy, along with Snam Rete Gas, authorized for the development and management of natural gas transport networks (pursuant to Italian Legislative Decree of 23 May 2000, following the recognition of its infrastructures such as gas pipelines for regional transport, pursuant to the Italian Ministerial Decree of 29 September 2005 by the Italian Ministry of Economic Development, with communication no of 6 February 2007). Energie S.r.l. owns and operates two natural gas pipelines in Piedmont and Liguria, in the provinces of Cuneo and Savona for a length of 62 km. PROGRAMMING TOOLS The company Energie S.r.l., authorized for the development of natural gas transport networks, sets itself to make natural gas available the in large areas currently not served, through the construction of new transport pipelines, according to the main territorial and energetic planning tools. It also proposes itself to directly serve the existing district heating plants and encourage the development of new ones with capacity/flow rate adapted to local needs. OBJECTIVES OF THE DEVELOPMENT PLAN The works proposed provide technical and functional characteristics such as to permit an adequate use over the long-term that meets the current and future needs of the area concerned. The objectives that the pipeline in question wants to achieve more significantly are: environmental improvement; increase of the territory competitiveness; development of the area; upgrading and completion of energy infrastructure. The other achievable objectives can be divided into direct and indirect.

4 The direct objectives are represented by the applications made possible by the availability of natural gas at the users, the indirect objectives are represented by those benefits deriving from the applications themselves, and that are therefore a consequence. The direct potential objectives are the following: construction of local gas distribution networks, both in the municipalities located along the main axis and in the municipalities located on the sides, to allow using natural gas for both residential and productive purposes; construction of district heating networks, if their technical and economic feasibility is assessed; implementation of natural gas-powered vehicles The indirect objectives can be identified in the following points. Benefits to the individual: - Lower cost of natural gas compared to conventional fuels (diesel, LPG gas, Btz) with increase of the economic competitiveness of local businesses; - Enhancement of the real estate property for the presence of an essential service; - Quality, convenience and continuity of heating service in respect of fuels transported by road; - single fuel for both heating and for cooking purposes; - use for residential, hotel or production use; - access to a Public Regulated Service and at conditions guaranteed to all users. Benefits for the territory: - reduction of heavy vehicle traffic for fuels transport, with consequent pollution reduction and road traffic improvement; - significant reduction of pollutants from heating (CO, NOx, SOx, particulate matter); - increase of heating plants safety due to the modification of existing systems (gas cylinders, diesel tanks, LPG gas tanks); - Increased security caused by renewal of internal systems for transition to the new fuel; - motor for the competitive development of local activities deriving from the resources invested in the creation of the main infrastructure and in the infrastructure that will derive from it; - resident population possibility of growth due to the presence of an essential service during the winter at a cost which is competitive with urban areas; - greater use of accommodations for tourism due to the higher quality, convenience and affordability. Benefits for the Nation: - replacement of currently used fuels with natural gas results in a significant reduction of pollutant emissions, participating in this way to achieve the objectives set by the Kyoto Protocol.

5 EXISTING REGIONAL TRANSPORT NETWORK The existing regional natural gas transport network includes two different branches in Val Tanaro and Val Mongia, in the municipality of Cuneo; a short branche of the Val Tanaro pipeline is situated in Liguria in Val Bormida. The total length of the network is 63 km ca. The point of interconnection with SNAM national network consists of two REMI cabins situated in the municipality of Ceva, for the Val Mongia pipeline, and in the municipality of Nucetto, for the Val Tanaro pipeline. The towns crossed by this existing pipeline are 13: Bagnasco, Garessio, Nucetto, Priola, Perlo, Battifollo, Lisio, Scagnello, Viola, Sale delle Langhe, Ceva, Mombasiglio in the province of Cuneo and Murialdo in the province of Savona. The town of Mombasiglio is interested by Energie s transport network from the month of November Below a summery table with technical data of the existing pipeline is listed. REMI Municipality Region Material Diameter (mm) Length (m) TOT (m) Val Tanaro Nucetto (CN) Val Mongia Ceva (CN) Bagnasco Piemonte Steel DN Garessio Piemonte Steel Various 7651 Nucetto Piemonte Steel Various 2710 Priola Piemonte Steel DN Perlo Piemonte Steel DN Murialdo Liguria Steel DN Battifollo Piemonte Steel DN Lisio Piemonte Steel DN Scagnello Piemonte Steel DN Viola Piemonte Steel Various 6948 Sale Piemonte Steel DN Ceva Piemonte Steel Various 9649 Mombasiglio Piemonte PEAD DN Congestions or criticalities haven t been found for the existing network, so upgrade or maintenance interventions haven t been planned yet. Below the total planimetry of the network:

6

7 PLANNED INTERVENTIONS CHATILLON CERVINIA NATURAL GAS TRANSPORT PIPELINE The work in question is composed of a main third class pipeline with DN 200 (8") nominal diameter at 12 bar pressure, meters long which starts from the SNAM RETE GAS point of interconnection in Chatillon, continues along the valley floor through the municipalities of Antey Saint Andrè up in Breuil Cervinia in the municipality of Valtournenche to serve the future district heating plant. The pipeline installation place, due to the morphology of the area, will be performed on regional roads, municipality roads and private land. The main objective of this project is to make natural gas available in an area not currently served through the construction of a new transport pipeline that from a measurement station of the SNAM network in Chatillon, arrives at the gates of the town of Breuil Cervinia. The existing regional natural gas pipeline, owned by Snam Rete Gas, which passes through Chatillon, is featured by technical characteristics largely sufficient to allow the new branch without causing any impact on the current and future service. The work proposed has technical and functional characteristics such as to meet the current and future needs of the area concerned. The work is in the public interest and will be designed, financed and managed by Energie S.r.l., thus not burdening the budgets of the public administrations concerned by the infrastructure, but ensuring a gradual process of economic development for the area. The examination of the interactions between work and planning tools in the territory affected by the natural gas pipeline in question was carried out taking into account the provisions of territorial planning, urban planning and environmental protection tools at national and regional level. The analysis aims to verify the consistency among the current legislation, the planning-programming tools and the proposed work: the territorial and urban planning tools define the areas in which there are constraints of urban and environmental planning which may, at different levels, affect the project. The legislation considered acts on three hierarchical levels: national, regional (provincial) and local. The pipeline in question, designed for the transport of natural gas, will be constituted by a system of ducts, formed by steel tubes connected by welding (line) that is the main element of the transport system included in the project, and a series of plants that, in addition to ensuring the operation of the facility, implement the pipeline intersection in accordance with local regulations. Characteristics of the fluid transported: Natural gas with a density of about 0.72 kg/m³; Maximum design pressure 12 bar. Main Line: Pipeline category: third class Nominal diameter: DN 200 Design pressure: 12 bar DP Maximum operating pressure: 12 bar MOP Municipalities involved in the natural gas supply: Antey St. André, Valtournanche. Overall Length: meters Pipeline plants and points: no. 1 first stage gas pressure reduction station;

8 no. 15 intersection points. Given the structure of the area to serve, the following aspects were considered prevailing for the choice of the route: Operational safety Environmental impact of the works when they will be completed Passage on public land Minimization of the execution times of the work Accessibility of the site Minimizing the impact on traffic Restrictions issued by local authorities The weighting of the selection criteria set out a route that extends almost in its entirety along alternative routes such as trails, private land and municipal roads, despite the presence of a "north-south" communication arterial road (Regional Road 46) between the towns of Valtournenche and Chatillon; this following the directions of the Road-safety sector of Valle d'aosta Region, which has impeded an earlier version of the route which stated for about 15 kilometres along the road above. The proposed route therefore allows to exploit as much as possible the municipal roads, mainly in the area of Chatillon and Antey Saint André, moving away from these to pass for some sections on paths listed in the cadastre register and privately owned land. The design and sizing of the pipeline according to the criteria of UNI EN and and Italian Ministerial Decree 17/04/08 regarding technical, safety, accessibility of the structure and constraint regulations compared to other networks or buildings, has not been affected in any way by the particular complexity of the route. The natural gas pipeline starts (by means of a pressure reducing station) from the connection with the current regional natural gas transport pipeline of the company SNAM s.p.a. which passes through the residential center of Chatillon; the length of the pipeline that will develop in this municipality will be about 7137 m; the section passing through the municipality of Antey S.Andrè amounts to 8032 m and the length of the final section that affects the municipality of Valtournenche, arriving to the village of Breuil, is about m for a total of meters. Project Information Sheet: COMPANY INFORMATION Company Type of company Website GENERAL INFORMATION Shareholders Project Name Project Type Energie S.r.l. Regional Transport None Chatillon- Breuil Cervinia natural gas transport pipeline Regional Transport Pipelines Project Description New Regional Natural Gas Transport Pipeline for Valtournenche natural gas supply Costs (Whole life; indicative values) (*)

9 Project Geographic Localisation Project Localisation/Interconnection point TECHNICAL DATA Transport o Natural Gas Pipelines Length 26 km o Natural Gas Pipelines 200 mm Diameter o Compression Stations Power 0 MW o New Entry/Exit points Sm 3 /g kwh/g Capacity o Expected yearly volume (Sm 3 /a) LNG Terminals None o Send-Out o Yearly capacity Storage None o Working Gas o Flow Rate o Injection capacity PROJECT STATUS Final Investment Decision Yes Project Phase o Construction No, preliminary phase to the execution o Engineering and Permits Yes o Planned/Under Study Yes Planned operation start date Beginning 2017 PROJECT BENEFITS Diversification of supplies Additional flows Flow reversal Other Providing natural gas to the territory serving domestic, industrial and commercial users. We have considered new distribution networks and the new district heating central in Cervinia

10 Town Inhabitants Housing units Families Antey-Saint-Andrè Valtournenche Total Potential beneficiary towns, not directly crossed by the planned infrastructure: Torgnon La Magdeleine Chamois Total POLLEIN PILA COURMAYEUR LA THUILE NATURAL GAS TRANSPORT PIPELINE The work in question is composed of: a main DN 250 pipeline which starts from the Redelivery Point (PDR) of Snam Rete Gas in Saint-Bénin (Pollein) and ends with a regulation station in the area of Courmayeur; a secondary DN 150 pipeline branching to Pila; a secondary DN 250 pipeline branching to La Thuile; The pipeline installation place, due to the morphology of the area, will be performed on regional roads, municipality roads and private land. The main objective of this project is to make natural gas available in an area not currently served, through the construction of a new natural gas transport pipeline. The existing regional pipeline, owned by Snam Rete Gas, which ends in the area of Saint-Bénin (Pollein), is featured by technical characteristics largely sufficient to allow the new branch without causing any impact on the current and future service. The work proposed has technical and functional characteristics such as to meet the current and future needs of the area concerned. The pipeline in question, designed for the transport of natural gas, will be constituted by a system of ducts, formed by steel tubes connected by welding (line) that represents the main element of the transportation system in the project, and by a series of installations that, in addition to ensuring the operation of the facility, implement the pipeline intersection in accordance with local regulations in force. The typological drawings of the work under design are included in the Annexes. Characteristics of the fluid transported: natural gas with a density of about 0.72 kg/m³; maximum design pressure 12 bar. Main line and branches: Main Line: Pollein - Courmayeur in DN 250 (10"), DP 12 bar. Branches: Gressan - Pila DN 150 (6"), DP 5 bar; Pré-Saint-Didier - La Thuile in DN 250 (10"), DP 12 bar. Pipeline plants: no. 2 first stage pressure stations;

11 Municipalities involved in the natural gas supply: Pollein, Pila, Courmayeur, Gressan, Pré Saint Didier, La Thuile At the Redelivery Point (PDR) in the area of Saint-Bénin (Pollein) arrives a Snam pipeline with the following characteristics: first-class pipeline (pipelines for maximum operating pressure over 24 bar), DN = 450 mm, maximum pressure upstream the redelivery point equal to 64 bar, and mechanical strength of the pipeline equal to 75 bar. The main line (Pollein - Courmayeur), following the instructions provided by UNI 9165 and the Italian Ministerial Decree 17/04/08, and based on the actual catchment area and possible future developments, has been so dimensioned: third class pipeline (pipelines for maximum operating pressure over 5 bar and less than or equal to 12 bar), DN = 250 mm, maximum operating pressure of 12 bar. The branch to Pila originates from the regulation station located in Echaindail (Gressan) within the green/sporty area of the municipality of Gressan, with the following characteristics: fourth class pipeline (pipelines for maximum operating pressure greater than 1.5 bar and less than or equal to 5 bar), DN = 150, maximum operating pressure of 5 bar. Finally, at Pré-Saint-Didier in Nex area, starts the branch to La Thuile dimensioned as follows: third class pipeline, DN = 250 mm, maximum working pressure of 12 bar. The main pipeline has a length of approximately 58 km and involves the entire region of Valle D'Aosta, passing through the municipalities of Pollein, Charvensod, Gressan, Jovençan, Aymavilles, Saint-Pierre, Villeneuve, Introd, Arvier, Avise, La Salle, Morgex, Pré-Saint-Didier and La Thuile. Given the structure of the area to serve, the following aspects were considered prevailing for the choice of the route: Operational safety Environmental impact of the works when they will be completed Passage prevalently on public land Minimization of the execution times of the work Accessibility of the site Minimization of the impact on traffic Limit easement on private land The weighting of the selection criteria set out a route that is balanced between the paths along the regional road and external paths. The route of the pipeline in question is predominantly on state and municipality road with alternative routes due to an attempt to facilitate the work for the construction, so there will be sections of pipelines that cross and cut the curves of the state road linking the municipalities concerned or alternative routes always aimed at simplifying the route. Part of the route of the path runs through privately-owned land. The route has, therefore, distances mainly on black-topped roads or paved paths, which form the landscape of the common urban settlement, and stands for a small part on green areas/crops and biking trails. It rarely passes through densely populated areas; in such cases the minimum safety distances have been guaranteed and will include protection structures according to the regulations. The route of the new infrastructure starts from the connection with the Snam Rete Gas pipeline in the area of Saint-Bénin through the creation of a first stage pressure station, passing for a short path within the municipality of Pollein; then it continues along the bike path in the municipality of Charvensod for a distance of approximately 5,500 m, and within the City of Gressan (where another first stage pressure station is planned) for a total length of almost 10,000 m, in part parallel to the course of the Dora Baltea river (1,400 m) in part through different villages until it arrives at the station of Pila (8,500 m). After the branching, the route continues along the existing bike path on the right bank of the Dora Baltea up to the municipality of Aymavilles for a length of about 5 km. Subsequently, the route runs primarily

12 on the SS26 state road and for short distances on alternative paths in green areas/crops or hard topped paths, to Pré-Saint-Didier for nearly 26 km. Finally, the last section of the main pipeline and the branch to La Thuile, which are also generally placed below the roadway, are long respectively about 2,400 and 6,900 m. COMPANY INFORMATION Company Type of company Website GENERAL INFORMATION Shareholders Project Name Project Type Energie S.r.l. Regional Transport None Pollein Pila Courmayeur La Thuile Natural Gas Transport Pipeline Regional Transport Pipelines Project Description New Regional Natural Gas Transport Pipeline for Valle di Aosta natural gas supply Costs (Whole life; indicative values) (*) Project Geographic Localisation Project Localisation/Interconnection point TECHNICAL DATA Transport o Natural Gas Pipeline Length 58 km o Natural Gas Pipeline 250 mm Diameter o Compression Stations Power 0 MW o New Entry/Exit points Sm 3 /g kwh/g Capacity o Expected yearly volume 46,000,000 (Sm 3 /a) LNG Terminals None o Send-Out o o Yearly capacity Storage None

13 o Working Gas o Flow Rate o Injection capacity PROJECT STATUS Final Investment Decision Yes Project Phase o Construction No o Engineering and Permits Yes, environmental impact assessment o Planned/Under Study Yes Planned operation start date 2018 PROJECT BENEFITS Diversification of supplies Additional flows Flow reversal Other Providing natural gas to the territory serving domestic, industrial and commercial users In this table not methanised towns interested by the new infrastructure are listed: Town Inhabitants Housing units Families Jovencan Introd Arvier Avise La Salle Morgex Prè-Saint-Didier La Thuile Courmayeur Total VERRES - AYAS NATURAL GAS TRANSPORT PIPELINE The work in question is composed of: a main DN 200 pipeline, which starts from the measurement station of Snam Rete Gas in Grammoni (Verrès) and ends with a regulation station in the area of Ayas, at the cemetery located at the gates of Champoluc; The pipeline installation place, due to the morphology of the area, will be performed on regional roads, municipality roads and private land. The proposed work consists of the construction of a new pipeline that, starting from the measurement station of Snam Rete Gas, located in Verrès, in the area of Grammoni, continues on the SS26 state road, then Via Duca D'Aosta, before turning in Piazzale Europa and climbing along Via Strada il Castello. Subsequently, it crosses the areas of La Balma, Rovarey and

14 Rewchon, before passing the Evançon stream clamped to the Isollaz bridge (area of Challand- Saint-Victor); then, after entering in the SS506 state road, the pipeline runs through the municipalities of Challand-Saint-Victor, Challand-Saint-Anselme, Brusson and Ayas, to finally stop at the cemetery located at the gates of of Champoluc. The main objective of this project is to make natural gas available in an area not currently served, through the construction of a new natural gas transport pipeline. The existing regional pipeline, owned by Snam Rete Gas, which has a measurement station in Grammoni area (Verrès), has technical characteristics largely sufficient to allow the new branch without causing any impact on the current and future service. The work proposed has technical and functional characteristics such as to meet the current and future needs of the area concerned. The work is in the public interest and will be designed, financed and managed by Energie S.r.l., thus not burdening the budgets of the public administrations concerned by the infrastructure, but ensuring a gradual process of economic development for the area. The pipeline in question, designed for the transport of natural gas, will be constituted by a system of ducts, formed by steel tubes connected by welding (line) that is the main element of the transport system included in the project, and a series of plants that, in addition to ensuring the operation of the facility, implement the duct intersection in accordance with local regulations. The typological drawings of the work under design are included in the Annexes. Characteristics of the fluid transported: natural gas with a density of about 0.72 kg/m³; maximum design pressure 12 bar. Line: Municipalities involved in the natural gas supply: Verrès, Challand-Saint-Victor, Challand-Saint-Anselme, Brusson, Ayas. Nominal diameter: DN 200 (8 ") Design pressure: 5 bar DP Overall Length: 27 km Pipeline plants: no. 1 first stage pressure reduction station; At the measurement station in Grammoni area (Verrès) arrives a Snam pipeline with the following characteristics: first class pipeline (pipelines for maximum operating pressure over 24 bar), DN = 450 mm, maximum pressure upstream the redelivery point equal to 64 bar, and mechanical strength of the pipeline equal to 75 bar. The pipeline (Verrès - Ayas), following the provisions provided by UNI 9165 and the Italian Ministerial Decree 17/04/08, and based on the actual catchment area and possible future developments, has been so dimensioned: fourth class pipeline (pipelines for maximum operating pressure greater than 1.5 bar and less than or equal to 5 bar), DN = 200 mm, maximum operating pressure of 5 bar. The main pipeline has a length of about 27 km and involves the Valle D'Aosta region, through the municipalities of Verrès, Challand-Saint-Victor, Challand-Saint-Anselme, Brusson, Ayas. Given the structure of the area to serve, the following aspects were considered prevailing for the choice of the route: Operational safety Environmental impact of the works when they will be completed Passage prevalently on public land Minimization of the execution times of the work

15 Accessibility of the site Minimization of the impact on traffic Limit easement on private land The weighting of the selection criteria set out a route that is balanced between the paths along the regional road and external paths. The route of the pipeline in question is predominantly on state and municipality road with alternative routes due to an attempt to facilitate the work for the construction, so there will be sections of pipelines that cross and cut the curves of the state road linking the municipalities concerned or alternative routes always aimed at simplifying the route. A small part of the route of the trail runs through privately owned land. It rarely passes through densely populated areas; in such cases the minimum safety distances have been guaranteed and will include protection structures according to the regulations. The route starts from the connection to the SNAM measurement station located in Verrès in Grammoni area, then it continues on the SS26 state road, then Via Duca D'Aosta, before turning in Piazzale Europa and climbing along Via Strada il Castello; then runs through the areas of La Balma, Rovarey and Rewchon, before passing the Evançon stream clamped to the Isollaz bridge (area of Challand-Saint-Victor); then, after entering on the SR45 state road, the pipeline runs through the municipalities of Challand-Saint-Victor, Challand-Saint-Anselme, Brusson and Ayas, to finally stop at the cemetery located at the gates of Champoluc. Below are listed the lengths of the route divided by municipality. MUNICIPALITY ROUTE LENGTH (m) VERRÈS 4900 CHALLAND-SAINT-VICTOR 3500 CHALLAND-SAINT-ANSELME 4200 BRUSSON 9500 AYAS 4900 TOTAL COMPANY INFORMATION Company Type of company Website GENERAL INFORMATION Shareholders Project Name Project Type Energie S.r.l. Regional Transport None Verrès Ayas Natural Gas Transport Pipeline Regional Transport Pipelines

16 Project Description Costs (Whole life; indicative values) (*) Project Geographic Localisation New Regional Natural Gas Transport Pipeline for Valle d Ayas natural gas supply Project Localisation/Interconnection point TECHNICAL DATA Transport o Natural Gas Pipelines 27 km Length o Natural Gas Pipelines 200 mm Diameter o Compression Stations 0 MW Power o New Entry/Exit points Sm3/g kwh/g Capacity o Expected yearly 18,000,000 (Sm3/a) volume LNG Terminals None o Send-Out o Yearly capacity Storage None o Working Gas o Flow Rate o Injection capacity PROJECT STATUS Final Investment Decision Yes Project Phase o Construction No o Engineering and Permits Yes, temporary suspension o Planned/Under Study Yes Planned operation start date 2018 PROJECT BENEFITS

17 Providing natural gas to the territory serving domestic, industrial and commercial users. The municipalities will be main beneficiary of the infrastructure thanks to new possilble natural gas distribution networks. All the towns are involved in the preliminary project. Town Inhabitants Housing units Families Challand-Saint-Victor Challand-Saint-Anselme Brusson Ayas Total PONT SAINT MARTIN GRESSONEY LA TRINITE NATURAL GAS TRANSPORT PIPELINE The work in question is composed of: a main DN 200 pipeline, which starts in Perruchon area (Pont Saint Martin), where it intercepts the regional transport pipeline of SNAM Rete Gas, and ends with a regulation station in Sandmatto (Gressoney La Trinité); The pipeline installation place, due to the morphology of the area, will be performed on regional roads, municipality roads and private land. The main objective of this project is to make natural gas available in an area not currently served, through the construction of a new natural gas transport pipeline. The existing regional pipeline, owned by Snam Rete Gas, which ends in the area of Saint Bénin - Pollein (Aosta), is featured by technical characteristics largely sufficient to allow the new branch without causing any impact on the current and future service. The work proposed has technical and functional characteristics such as to meet the current and future needs of the area concerned. The work is in the public interest and will be designed, financed and managed by Energie S.r.l., thus not burdening the budgets of the public administrations concerned by the infrastructure, but ensuring a gradual process of economic development for the area. The pipeline in question, designed for the transport of natural gas, will be constituted by a system of ducts, formed by steel tubes connected by welding (line) that is the main element of the transport system included in the project, and a series of plants that, in addition to ensuring the operation of the facility, implement the duct intersection in accordance with local regulations. The typological drawings of the work under design are included in the Annexes. Characteristics of the fluid transported: natural gas with a density of about 0.72 kg/m³; maximum design pressure 12 bar. Line: Municipalities involved in the natural gas supply: Pont Saint Martin, Perloz, Lillianes, Fontainemore, Issime, Gaby, Gressoney Saint Jean, Gressoney La Trinitè. Nominal diameter: DN 200 (8") Design pressure: 5 bar DP

18 Overall Length: 33 km Pipeline plants: no. 1 first stage pressure reduction station; At Perruchon area (Pont Saint Martin) arrives a Snam pipeline with the following characteristics: first class pipeline (pipelines for maximum operating pressure over 24 bar), DN = 450 mm, maximum pressure upstream the redelivery point equal to 64 bar, and mechanical strength of the pipeline equal to 75 bar. The pipeline (Pont Saint Martin Gressoney La Trinité), following the instructions provided by UNI 9165 and the Italian Ministerial Decree 17/04/08, and based on the actual catchment area and possible future developments, has been so dimensioned: fourth class pipeline (pipelines for maximum operating pressure greater than 1.5 bar and less than or equal to 5 bar), DN = 200 mm, maximum operating pressure of 5 bar. The main pipeline has a length of about 33 km and involves the Valle D'Aosta region, through the municipalities of Pont Saint Martin, Perloz, Lillianes, Fontainemore, Issime, Gaby, Gressoney Saint Jean, Gressoney La Trinité. Given the structure of the area to serve, the following aspects were considered prevailing for the choice of the route: Operational safety; Environmental impact of the works when they will be completed; Passage prevalently on public land; Minimization of the execution times of the work; Accessibility of the site; Minimization of the impact on traffic; Limit easement on private land. The weighting of the selection criteria set out a route that is balanced between the paths along the regional road and external paths. The route of the pipeline in question is predominantly on state and municipality road with alternative routes due to an attempt to facilitate the work for the construction. So there will be sections of pipelines that cross and cut the curves of the state road linking the municipalities concerned or alternative routes always aimed at simplifying the route. A small part of the route of the trail runs through privately owned land. It rarely passes through densely populated areas; in such cases the minimum safety distances have been guaranteed and will include protection structures according to the regulations. The route of the new infrastructure starts from the connection with the SNAM RETE GAS pipeline in Perruchon area, passing for a short path in the municipality of Pont Saint Martin; from Perruchon area it continues parallel to the SS26 state road- Via Circonvallazione to the intersection with Via della Resistenza, and then departs from asphalt roads for a short path and crosses the fields and the hard topped paths in Stigliano inferiore and enters on the SR44 Regional Road in Stigliano Superiore. Then, after entering on SR44 state road, the pipeline runs through the municipalities of Perloz, Lillianes, Fontainemore, Issime, Gaby, Gressoney Saint Jean and Gressoney La Trinité to stop at Sandmatto (Gressoney La Trinité). Below are the lengths of the path divided by municipality. Municipality Route Length (m) Housing Units PONT SAINT MARTIN PERLOZ LILLIANES

19 FONTAINEMORE ISSIME GABY GRESSONEY SAINT JEAN GRESSONEY LA TRINITE TOTAL COMPANY INFORMATION Company Type of company Website GENERAL INFORMATION Shareholders Project Name Project Type Energie S.r.l. Regional Transport None Pont Saint Martin- Gressoney La Trinitè Natural Gas Transport Pipeline Regional Transport Pipelines Project Description New Regional Natural Gas Transport Pipeline for Gressoney Valley natural gas supply Costs (Whole life; indicative values) (*) Project Geographic Localisation Project Localisation/Interconnection point TECHNICAL DATA Transport o Natural Gas Pipelines Length 33 km o Natural Gas Pipelines 200 mm Diameter o Compression Stations Power 0 MW o New Entry/Exit points Sm 3 /g kwh/g Capacity o Expected yearly volume 15,500,000 (Sm 3 /a) LNG Terminals None o Send-Out

20 o Yearly capacity Storage None o Working Gas o Flow Rate o Injection capacity PROJECT STATUS Final Investment Decision Yes Transport contract (*) Interconnection Contract to be Agreed Project Phase o Construction No o Engineering and Permits Yes, temporary suspension o Planned/Under Study Yes Planned operation start date 2018 PROJECT BENEFITS Other Providing natural gas to the territory serving domestic, industrial and commercial users. The municipalities will be main beneficiary of the infrastructure thanks to new possilble natural gas distribution networks. All the towns are involved in the preliminary project. Town Inhabitants Families Perloz Lillianes Fontainemore Issime Gaby Gressoney-Saint-Jean Gressoney-La-Trinité Total

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