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Auction Announcement Notice

Hungarian Gas Storage Ltd (hereinafter referred to as MFGT) on this day announces an auction for booking available storage capacities. The capacity auction is carried out by MFGT in line with Annex No. 1.: Auction Regulation.

 

Participating in the capacity auction shall be conditional on indicating the intent to participate before the deadline by filling in and signing the Registration Sheet and the Auction Statement annexed to the Auction Regulation, by which the participant agrees to be also bound by the rules of the Auction Regulation. Acceptance of the registration by MFGT is also conditional on the full and complete submission of the “documents  required for registration” by mail or by email, however, in the latter case, the original documents shall also be submitted together with the bid, in the absence of which the registration is rendered invalid, and thus the bid cannot be evaluated.
 
Registration
At the capacity auction, bids can be made by only those capacity bidders that are eligible for storage access and have submitted a registration of request in the required form to MFGT prior to the announcement of the auction.
Documents required for registration:
§  Duly signed Registration Datasheet (attached).
§  Duly signed Auction Statement (attached), by the signature of which the Bidder verifies its intent to participate and the acceptance of the Auction Regulation and the Natural Gas Storage Contract template.
§  Original certificate of incorporation not older than 30 days in case of business organisations registered in Hungary and abroad, and its translated copy in Hungarian or in English (certified translation is not required, in case of companies registered in Hungary the Hungarian Ministry of Justice-online version is accepted) in case of  business organisations registered abroad.
§  In case of business organisations registered in Hungary: copy of the notarised specimen signature(s) (or sample signature(s) countersigned by an attorney-at-law) of the authorised signatory (signatories) signing the bid.
§  In case of business organisations registered abroad: copy and translated English or Hungarian copy of the notarised specimen signature(s) (or sample signature(s) countersigned by an attorney-at-law) of the authorised signatory (signatories) signing the bid; or the original copy and translated English or Hungarian copy of their sample signature signed in manuscript in the presence of two witnesses, and in the latter case: a Hungarian or English copy of the signed side of a personal document belonging to the signatory (by mail or e-mail).
§  Furthermore, in the event that said documents are signed by an attorney-in-fact, a copy of the signed side of a personal document belonging to the attorney-in-fact is also required in addition to compliance with the above rules applicable to the authorised signatory acting as principal. The power of attorney shall clearly indicate that the attorney-in-fact is entitled to represent the capacity bidder during registration and/or bidding.
 
Deadline for submitting to MFGT the documents required for registration: 7th October 2015, 16:00. MFGT shall confirm the registration to the applicant.
During registration, in the event of late or incomplete delivery of documents, MFGT may require deficiency correction from the Bidder along with setting a deadline, defaulting on which may have the legal implication of invalidating the registration. In case of a valid registration, MFGT confirms the fact of registration to the Bidder by e-mail.
During registration, MFGT shall be obliged to treat data submitted to the auction in a confidential manner and will not disclose them to any third party.
 
Offered Capacities
Capacities will be offered by MFGT in bundles.
1 piece of bundle contains:
¾     1 052 534 kWh firm working gas capacity, 15 036,2 kWh/day (app. 70 days) firm injection capacity and 11 694,8 kWh/day (app. 90 days) firm withdrawal capacity
Number of bundles: 5000 pieces.
Bid period: the storage year 2015/2016
As it is known, for the sake of smooth natural gas supply in winter, Hungarian Gas Storage Ltd extended the injection period originally ending on 1st October by one month, until 6:00 on 1st November 2015, based on the conciliation with the Hungarian Energy and Public Utility Regulatory Authority, and also with regard to the 75% reduction of the storage entry point transmission capacity fee applicable as of 1st October (MEKH Decree No. 6/2015 (IX.14.)) and to Section 6.4(i) of the Grid Code . This injection motivating step was validated by the aim to increase the storage stock and to facilitate a more efficient preparation for the winter months.
According to the above, the contractual injection cycle starts at 6:00 1st April 2015, and ends at 6:00 on 1st November 2015. The contractual withdrawal cycle then starts at 6:00 1st November 2015, and ends at 6:00 on 1st April 2016.
Starting Price: the price according to the non-universal service price formula as per the Tariff Decree.
The Bid Price does not include the volume fee or the VAT.
Auction procedure:
When auctioning the capacity bundles, MFGT shall apply the method set forth in Annex No. 1.: Auction Regulation.
Registration deadline: 7th October 2015, 16:00.
Submission of Bids: duly signed bids can be submitted via as sealed envelope that is to arrive by Thursday 8th October, 13:00 specifying the following data:
Bid Price (HUF/kWh) 
Bid Quantity (number of bundles, maximum 5000 pieces)
Any Bidder is limited to submitting only one bid at one specific price.
The date of the capacity auction is Thursday 8th October, 13:00 hours, when received bids are evaluated at the MFGT’s office (1051 Budapest, Széchenyi István tér 7-8.) in the presence of a public notary pursuant to the auction regulation. Awarded bidders shall be notified by MFGT by e-mail until 17:00 hours.
 
Following the auction, MFGT and the awarded Bidder shall conclude the Natural Gas Storage Contract on the awarded quantities within 5 business days from the auction.
Auctioneer (MFGT) explicitly reserves the right to withdraw without explanation the open storage capacity Auction announced as Capacity Auction No. 2015/X, until the announcement of its results. In the event that the Auction is withdrawn, Auctioneer will not compensate for any damage or cost incurred by the bidders.
Should you have any further questions or need information related to the auction, please contact MFGT’s designated contact persons Hajnalka Horváth (Phone: +36 30-748-9971, e-mail: horvathh@mfgt.hu) and Balázs Meggyes sales experts (Phone: +36-30-718-9343, e-mail:, meggyesb@mfgt.hu).
 
Budapest, October 2015.