Product offer by Hungarian Gas Storage Ltd (MFGT)
Available product from 1 st April 2015
Hungarian Gas Storage Ltd’s offer regarding the “PRODUCT OF SHORT TERM WITHDRAWAL OF NATURAL GAS STOCK REQUIRED FOR SUPPLYING USERS ELIGIBLE FOR UNIVERSAL SERVICE AS LEFT IN STORAGE AT THE END OF THE WITHDRAWAL PERIOD”
The product of Short Term Withdrawal of Natural Gas Stock Required for Supplying Users Eligible For Universal Service as Left in Storage at the End of the Withdrawal Period (“Product”) can be booked as of 06:00 hours, 01 April 2015.
Hungarian Gas Storage Ltd (MFGT) issues today a call for tenders for booking the Product, regarding the month of April of the storage year 2015/2016. MFGT considers this present product offer as a one-time offer, reserves its right to withdraw the offer and does not guarantee that the product will also be offered under the same terms and conditions in the future.
Ongoing legal changes concerning the gas year 2015/2016 have significant impact on the storage year 2015/2016, as well. These changes affect the gas market behaviour of licensed system users supplying users eligible for universal service. Currently, the regulatory background cannot be considered as final, which situation in turn generates significant uncertainty with regard to business and planning among the licensees authorized to supply users eligible for universal service, potentially affecting the security of supply of household users.
The ongoing transformation of the industry’s regulation involves the following:
- the quantity of the natural gas source with regulated price as per NFM Decree No. 19/2010 (XII.3.) to be sold to universal service providers is uncertain for the next quarter;
- Act No. V of 2015 took effect on 11th March 2015, amending Act No. XL of 2008 on natural gas supply (Gas Act) in order to implement the EU CAM network code. The amendment of the Operational and Trading Code and the Gas Act Implementation Decree adjusted to the Gas Act is ongoing, which is expected to significantly modify the rules of USP storage capacity booking;
- regarding users supplied by a company intending to terminate its universal service provision activity, the regulation on ensuring continuous natural gas supply under universal service provision has not yet come into force.
Faced with this situation, - having special regard to the importance of maintaining a constant level of security of supply - MFGT offers the Product available in the first month of the storage year 2015/2016 (April 2015) with the following parameters.
The Product can be requested by system users with universal service provision licence and with a valid natural gas storage contract with MFGT for USP purposes regarding the storage year 2014/2015, provided they close the storage year 2014/2015 with a positive closing stock.
The Product includes the following storage capacities:
- working gas capacity: to the extent of the system user’ positive closing stock applicable on 01 April 2015, at 06:00 hours,
- withdrawal capacity: to the extent of withdrawal capacity which was requested by the system user and which is technically feasible for MFGT.
The duration of contract shall be the period between 06:00 hours on 01 April 2015 and 06:00 hours on 01 May 2015.
- system user shall pay the following fee for the natural gas quantity specified in the Product contract: HUF 0.234 + VAT/ MJ / 1 month (April 2015)
By paying the product fee, the system user shall be entitled to the following:
· the storage of natural gas wholly owned by the System User - as a licensee authorized to supply users eligible for universal service - and left in storage at the end of the gas year 2014/2015 (without providing technical withdrawal and injection capacities), and
· the full physical, firm withdrawal of this natural gas with the general quality parameters during the term of this contract - that is already in the injection period - depending on the technical capacity of the storage site, similarly to MFGT’s Storage+ Optional Service (but without offering an option for injection), and
- withdrawal shall be implemented by using the withdrawal peak capacity provided by MFGT, similarly to MFGT’s Peak+ Optional Service (but without offering the option for injection). Using the withdrawal peak capacity is in any case conditional on the storage site’s technical capacity, and
· offering a positive or negative option exceeding 10% of the daily nomination of the System User to the Natural Gas Transmission Company (FGSZ) for the zero point of the MFGT’s unified storage facility, as in the FLEX+ Optional Service.
The Product fee - excluding VAT - shall be payable in two instalments following the conclusion of the legal relationship.
- 50% of the fee calculated for the heat quantity left in storage shall be payable on the day the contract takes effect, based on the pro forma invoice,
- the remaining 50% shall be payable based on invoice, until the day when 50% of the heat quantity left in storage is withdrawn, but not later than until 15th April 2015.
Volume fees shall be invoiced subsequently, based on protocol, and shall be paid within 30 days from issuance.
The service may only be used if the service fee has already been paid as scheduled above. MFGT may refuse performance until the due instalment of the service fee is received on its bank account.
In the event that the system user has a positive closing stock at 06:00 hours on 01 May 2015, MFGT is entitled to proceed in line with Section 40 of HEPURA Decree No. 1/2013.
The technical and commercial terms of using storage services are specified by the contract concluded upon this offer and by the MFGT Code of Business Conduct.
Procedure for submitting requests
Requests shall be submitted to MFGT according to the following:
by e-mail: email@example.com or
fax: +36 1 354 7045 or
by mail: Hungarian Gas Storage Ltd. 1051 Budapest, Széchenyi István tér 7-8.
Evaluation of requests
System users’ product booking requests shall be continuously received and fulfilled by MFGT on a first-come, first-served basis. This product offer shall by no means be deemed as a contractual commitment by MFGT towards any system user, and MFGT explicitly reserves the right to declare the product booking procedure unsuccessful within its own scope of competence.
Should you have any questions, please contact:
Krisztián Deme - Head of Sales, Marketing and Regulation
phone: +36 30 663 0124
fax: +36 1 354 7045
phone: +36 30 533 7218
fax: +36 1 354 7045
Molnárné Andrea Talmács
phone: +36 20 933 5110
fax: +36 1 354 7045