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Auction Announcement Notice

MFGT provides available storage capacities

 

Section 155 of Government Decree No. 19/2009. (I.30.) on the implementation of Act No. XL of 2008 on natural gas supply (hereinafter referred to as “Implementation Decree”) has been amended by the provisions as of the effective date of 30th June 2014 of Government Decree No. 156/2014 (VI.30.) on the amendment of certain government decrees on energy and nuclear energy (hereinafter referred to as Gov. Decree).
MFGT provides available storage capacities pursuant to amended Section 155, Subsection (2) of the Implementation Decree - taking effect on the above date - in an interruptible way for the storage year 2014/2015 for those bidders who meet the conditions referred in the amended Section 155, Subsection (1) of the Implementation Decree.
Based on the above, Hungarian Gas Storage Ltd (hereinafter referred to as MFGT) on this day announces an auction for booking available storage capacities for the storage year 2014/2015. 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. A further condition is to send a copy of the certificate of incorporation not older than 30 days and a copy of the specimen signature(s) in Hungarian or English (via regular mail or e-mail) before the registration deadline to facilitate checking the corporate signature.
 
Registration
At the capacity auction, bids can be made by only those capacity bidders that are eligible for storage access based on the amended Section 155, Subsection (1) of the Implementation Decree 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.
§  Copy of the certificate of incorporation not older than 30 days in Hungarian or English
§  Copy of the specimen signature(s) of the authorized signatory (signatories) signing the bid in Hungarian or English (via regular mail or e-mail)
Deadline for submitting to MFGT the documents required for registration: 25th September 2014, 16:00. MFGT shall confirm the registration to the applicant.
In the event that the documents are received late, MFGT considers the registration invalid. 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
The contractual injection period starts at 06:00 a.m. on 01. 04. 2014 and ends at 06:00 a.m. on 01. 11. 2014. The contractual withdrawal period starts at 06:00 a.m. on 01. 11. 2014 and ends at 06:00 a.m. on 01. 04. 2015. Injection is possible after 01. 11. 2014, in accordance with the section of the MFGT ÜSZ pertaining to the Storage plus description and fee specifications.
Capacities booked by the System User may not be subject to primary or secondary capacity trading, and such transactions will not be recorded on the IT Platform by MFGT.Capacities will be offered by MFGT in bundles.
1 piece of bundle contains:
¾     3 420 000 MJ working gas capacity, 70.31 days (48 642 MJ/day) interruptible withdrawal capacity and 35 days (97 714 MJ/day) interruptible injection capacity
Number of bundles: 8000 pieces.
The period of booking a bundle: the storage year 2014/2015
Starting Price: the price according to the non-universal service price formula as per the Tariff Decree.
The price does not include the volume fee or the VAT.
MFGT will not refund a time and capacity proportional part of the booking fee to the System User for the days when the service is interrupted.
As for working gas capacities, injection capacities and withdrawal capacities booked during the storage year, the System User shall pay the full annual capacity pursuant to the Code of Business Conduct of MFGT. The System User shall pay the monthly fee for the month of contract conclusion together with the fee for the months already elapsed in the storage year in a lump sum within 30 calendar days from issuing the invoice.  The date of issuing the invoice shall be the date the contract takes effect. The capacity fee for every month of the rest of the storage year shall be paid in equal instalments.
System User shall pay the price of the purchased bundles in equal monthly instalments. The bundle fee contains the storage capacity fee, excluding the injection volume fee and the withdrawal volume fee, which shall be paid by the System User according to the prevailing Tariff Decree, based on the monthly volume, also excluding the fees of optional services used, as contained in Section III.1 of the Code of Business Conduct.
Please note that the offered capacities are available under technical conditions specified by the Grid Code and by Annex No. 1 of the MFGT Code of Business Conduct.
Please visit our website for further information on the changes and breakdowns of available injection and withdrawal capacities, and the minimum starting capacities of the storage facilities for injection and withdrawal. MFGT provides continuously updated information.
In this respect, please note the particular importance of two pieces of technical information in capacity booking:
·         injection and withdrawal requests can only be performed on any given gas day if requested quantities reach or exceed the technological minimum of injection or withdrawal,
·         injection and withdrawal capacities vary according to the prevailing storage load level.
Auction procedure:
When auctioning the capacity bundles, MFGT shall apply the method set forth in Annex No. 1.: Auction Regulation.
Registration deadline: 25th September 2014, 16:00
Submission of Bids: duly signed bids can be submitted via as sealed envelope that is to arrive by Friday 26th September, 14:30 specifying the following data:
Price (HUF/MJ) 
Number of bundles (maximum 8000)
Any Bidder is limited to submitting only one bid at one specific price.
The date of the capacity auction is Friday 26rd September 2014, 14:30 hours, when received bids are evaluated in the presence of a public notary pursuant to the auction regulation. Awarded bidders shall be notified by MFGT by e-mail until 16:00 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. 2014/IX, 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 person Katalin Romics sales and marketing expert (Phone: +36-30-3099173, e-mail: romicsk@mfgt.hu).
Budapest, September 2014
 
Appendix No.1. MFGT Auction regulation(7).pdf
 
Appendix No.2. MFGT Bundled Interruptible Storage Contract_2014-2015(7).pdf