Auction Announcement Notice

Hungarian Gas Storage Ltd (hereinafter referred to as MFGT) on this day announces an auction for booking Seasonal Capacity Booking and Profit Sharing Optional Natural Gas Storage Service.  The capacity auction is carried out by MFGT in line with the Auction Regulation as per Annex No. 1.

Participating in the capacity auction shall be conditional on indicating the intent to participate before the deadline by filling in and signing the Registration Datasheet 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. Participant is obliged to inform MFGT of any changes to the content of the documents subsequent to their submission.
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 auction.
Documents required for registration:
a)    Documents required for registration at each capacity auction
§  Duly signed Registration Data Sheet (Annex No. 4), by the signature of which the Bidder verifies its intent to take part 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 online version by the Hungarian Ministry of Justice is accepted) in case of business organisations registered abroad.
a)            Documents required for registration at the first capacity auction of the relevant storage year
§  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 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.
Accordingly, in order to participate in the capacity auction, participant shall submit the documents specified in item b) when registering for the first capacity auction in the storage year 2016/17, and the documents specified in item a) in each case (per auction). In the event of any changes in the content/form of the documents (e.g.: changes in signatories/attorneys-in-fact, identification instruments or data concerning the company) as submitted previously (in the same storage year), participant shall inform MFGT and re-submit the relevant document(s) not later than upon indicating the intent to participate in the subsequent capacity auction.
In as far as the participant fails to submit the required (and updated) document(s) or fails to inform MFGT of the changes, its registration for the capacity auction shall not be accepted until the correction of such document(s).  Furthermore, participant shall be fully liable to MFGT or to a third party for any direct or indirect damage arising from the failure to provide or to properly provide such information.
MFGT reserves the right to request deficiency correction from the participant  – if any formal or substantive deficiency or other non-conformity (e.g.: delay) is detected during the specific review of the documents submitted –, and the participant may not have valid registration for the auction unless such deficiency correction is performed within the deadline – set forth by MFGT.
Deadline for submitting to MFGT the documents required for registration: Friday 8th July 2016, 15:00. MFGT shall confirm the registration to the applicant.
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     1 000 000 kWh firm working gas capacity, 33 333.33 kWh/day (ca. 30-day) firm injection capacity and 33 333.33 kWh/day (ca. 30-day) firm withdrawal capacity.
Number of bundles offered: 10 pieces.
Bid Period: storage year 2016/17
According to the above, the contractual injection cycle shall start at 6:00 on 1st April 2016, and shall end at 6:00 on 1st October 2016. The contractual withdrawal cycle shall start at 6:00 on 1st October 2016, and shall end at 6:00 on 1st April 2017.
Maximum Price: the price according to the Non-Universal Service Price Formula as per the Tariff Decree.
The bid price shall include using withdrawal and injection without any specific fee charged, up to the withdrawal and injection capacity specified in the contract, regardless of the physical gas flow announced by MFGT in advance. In excess of this quantity, any withdrawal and injection in the opposite direction of the gas flow shall require using Storage Plus Service with paying the relevant fees.
The bid price does not include the volume fees or the VAT.
The detailed description of the Profit Sharing Optional Service is contained in Annex No. II, while the settlement process is specified in Annex No. III.
Auction procedure:
When auctioning the capacity bundles, MFGT applies the methodology specified in the Auction Regulation as per Annex No. 1.
Registration deadline: Friday 8th July 2016, 15:00.
Submission of Bids: Duly signed bids can be submitted in sealed envelopes until Monday 11th July 2016, 13:00 hours (GMT+1) specifying the following data.
Bid Price (HUF/kWh) 
Bid Quantity (number of bundles, maximum 10 pieces)
Any Bidder is limited to submitting only one bid at one specific price.
The date of the capacity auction is Monday 11th July 2016, 13:00 hours, when received bids are evaluated in the presence of a public notary in MFGT’s office (1051 Budapest, Széchenyi István tér 7-8.), pursuant to the Auction Regulation. Awarded bidders shall be notified by MFGT until 17:00 hours by e-mail.
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. 2016/VI 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.
Profit Sharing Optional Service is a new service offered by MFGT, developed in response to customer demands in full cooperation with our customers. All the System Users as per the Gas Act are entitled to use this service – provided they are eligible for natural gas storage access – having regard to the principles of non-discrimination and equal treatment. Since MFGT has gathered experience neither directly, nor through its customers in relation to this Service, upon the expiry of the contract, it will decide – based on its own and the system users’ experience – whether to re-offer the service, and whether to offer it under unchanged or different conditions. Based on the above, MFGT does not guarantee and assumes no obligation to re-offer the Service.
Should you have any further questions or require information in relation to the auction, please consult the designated contact persons of MFGT: Hajnalka Horváth (Phone: +36 30-748-9971, e-mail: horvathh@mfgt.hu) and Balázs Meggyes (Phone: +36-30-718-9343, e-mail: meggyesb@mfgt.hu), sales experts.
Budapest, July 2016
Annex no. 1 MFGT Auction regulation II (16_I)_201600610_english.pdf
Profitsharing_product description_2016_07_01_eng.pdf
Profitsharing_Rules of procedure for profit and cost settlement_2016_07_01_eng.pdf
Registration datasheet_ENG_20160701.pdf