Auction Announcement Notice - 2018/9

Hungarian Gas Storage Ltd (hereinafter referred to as MFGT or Auctioneer) on this day announces an auction for using Gas Loan.

Participation in the auction is inter alia conditional on an existing “Registration” as specified below, the full and complete submission of the below specified “Documents required for registration” for the acceptance of the registration by MFGT, which can take place by mail or by email. 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.


At the auction, bids can be made by only those Bidders that have submitted a registration in the required form to MFGT prior to the auction.

Please note that even in case of submitting a successful bid, the gas loan service may only be used if the successful bidder has a working gas capacity sufficient for taking the natural gas to be borrowed until 06:00 a.m. on 31st October 2018.

Documents required for registration:

  • 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 –  http://www.e-cegjegyzek.hu/) 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 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 bidder during registration and/or bidding.


    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 (within the storage year 2018/2019), Candidate shall inform MFGT and re-submit the relevant document(s) not later than upon indicating the intent to participate in the subsequent auction.

    In as far as the Candidate fails to submit the required (and updated) document(s) or fails to inform MFGT of the changes, its registration for the auction shall not be accepted until the correction of such document(s).  Furthermore, Candidate 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 Candidate – 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.

During registration, in the event of late or incomplete delivery of documents, MFGT may require deficiency correction from the Candidate 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 Candidate 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 Product, Gas Loan:


On the Gas Day of 31 October 2018, Borrower shall take over in the unified storage facility the total Gas Quantity awarded at the auction, and shall return the total Gas Quantity to MFGT not later than until the Gas Day of 30 June 2019.


A precondition for the product shall be the acceptance that after lending, upon notification from the Hungarian Energy and Public Utility Regulatory Authority (HEPURA) or upon a ministerial decree pursuant to Section 141/G (3) of the Gas Act (hereinafter referred to as Mandatory Return), the total Gas Quantity borrowed shall be replaced (injected) within the deadline specified in the notification sent by MFGT.


Fee of Offered Gas Loan Product:


    1. Loan Fee:

      loan fee (excluding working gas, withdrawal and injection capacity fees and volume fees related to the Natural Gas Quantity lent) payable by the Borrower for the duration of the loan contract upon borrowing the Gas Quantity Lent.



    2. Amount of Loan Fee:

      to be determined by the product of the quantity request (kWh) submitted at the auction and the bid price offered at the auction (HUF/kWh) in relation to the full term of the loan.


      In the event that the return takes place prior to the gas day of 30 June 2019, MFGT will not make any refund from the loan fee.


      In the event of Mandatory Return, if it occurs before 31 March 2019, Parties shall pro-rata settle with each other on the basis of calendar days, and if it occurs after 31 March 2019, MFGT will not refund any loan fee.


Neither primary, nor secondary trading of the Gas Loan product is possible.

The Gas Quantity available within the Gas Loan product in relation to the service announced will be offered by MFGT in units.

1 unit contains:

  • 1,000,000 kWh working gas reclassified from cushion gas (without working gas, injection and withdrawal capacities)

  • minimum energy quantity to be booked: 50,000,000 kWh, that is a successful bid requires requesting at least 50 units.

Number of units offered: 400 units.

Maximum price:


  • The Auctioneer does not specify a Maximum Price for the Loan Fee of the Gas Loan Product – within this auction.

Minimum price:

  • The lowest unit price set forth by the Auctioneer below which the bid price renders the relevant bid unsuccessful. Auctioneer determines the Minimum Price until the bidding deadline expires, without making it public. Auctioneer shall record the Minimum Price in a protocol in the presence of a public notary following the expiry of the bidding deadline, but before the received bids are known – that is prior to opening the closed envelopes.

Bid Period: from gas day 31 October 2018 - until gas day 30 June 2019, bids for shorter periods shall be qualified as invalid.


To guarantee the return of the Natural Gas Lent, Borrower shall provide – at its own discretion – bank guarantee or injected gas guarantee or a combination of these two collaterals to MFGT.

Further details shall be contained in the contract template attached to the Offer.

Auction procedure:

“STORAGE CAPACITY AUCTION REGULATION II/A” contained in MFGT’s Code of Business Conduct shall apply in relation to conducting the Auction, taking into account that Auctioneer will not offer working gas, injection or withdrawal capacities at this auction, while the principles and rules governing congestion management shall remain unchanged.

Registration deadline: Deadline for submitting to MFGT the documents required for registration: (Thursday) 11 October 2018, 9:00. MFGT accepts/declines registration by sending an email to the Candidate.

Deadline for Bid submission: Duly signed bids can be submitted in sealed envelopes until (Friday) 12 October 2018, 14:00 hours (GMT+1) specifying the following data.

Bid Price (HUF/kWh)

Bid Quantity pieces (number of units, maximum 400 pieces)

Any Bidder is limited to submitting one bid at one specific price only.

Method of Bid submission: Document to be submitted during the Submission of Bids:

Original copy of the duly signed Bid (Annex No. 1), by the signature of which the Candidate verifies its intent to participate and its acceptance of the stipulations contained in this offer and in the template “CONTRACT ON LENDING AND BORROWING NATURAL GAS”.

Date of the Auction: (Friday) 12 October 2018, 14:00 hours + (GMT+1),  when received bids are evaluated in the presence of a public notary in MFGT’s office (1138 Budapest, Váci út 144-150, 6th floor). Awarded Bidders shall be notified by MFGT until 15:00 hours by e-mail.

If several submitted valid bids contain a bid price reaching the Minimum Price and the bid prices are different, the Auctioneer concludes the Contract with the successful Bidder submitting the highest bid price first, then with the successful Bidder submitting the second highest price up to the extent of the offered units.

In this case it may occur that the Auctioneer satisfies a successful Bidder’s or several successful Bidders request only partially.

In case of oversubscription if several submitted valid bids contain a bid price reaching the Minimum Price and the bid prices are the same, the Auctioneer distributes the still available capacity units pro rata in accordance with the units requested by the successful Bidders.

The bidder offering the highest price for one (1) given unit and requesting at least 50 units shall be the successful bidder.

Contracting: Following the auction, MFGT and the successful Bidder of the relevant Gas Quantity shall conclude the template “CONTRACT ON LENDING AND BORROWING NATURAL GAS” (Annex No. 2) on the awarded units within 5 business days from the auction.

Auctioneer explicitly reserves the right to withdraw the open auction announced as Auction No. 2018/9, without explanation 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 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,8 October 2018


Annex No. 1: BID (template)

Annex No. 2: Contract on lending and borrowing natural gas - contract template

Annex No. 3: Declaration offering perviously injected gas as collateral relating to gas loan contract

Annex No. 4: Declaration Offering Injected Gas as Collateral for Gas Loan and Storage Services

Annex No. 5: Product description