Auction Announcement Notice
Hungarian Gas Storage Ltd (hereinafter referred to as MFGT) on this day announces an auction for Establishing the Right of Using Gas Loan. The auction is carried out by MFGT in line with the Auction Regulation as per Annex No. 1.
Participating in the 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.
At the 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 auction
§ Duly signed Registration Datasheet (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 online version by the Hungarian Ministry of Justice is accepted http://www.e-cegjegyzek.hu/) in case of business organisations registered abroad.
b) Documents required for registration at the first 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 auction, participant shall submit the documents specified in item b) when registering for the first 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 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 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: Tuesday, 30th August 2016, 14:00. 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.
Establishing the Right of Using Gas Loan service: having submitted a successful bid, Bidder obtains the right to use gas loan in the period until 15th April 2017 – by concluding the Contract on Lending and Borrowing Natural Gas (Gas Loan service) – to the extent of the number of bundles specified in the bid. Following the conclusion of the contract on Establishing the Right of Using Gas Loan, MFGT shall undertake to keep available – for an availability fee to be paid in advance – the energy quantity awarded to the Bidder until the expiry of the contract on Establishing the Right of Using Gas Loan.
The Gas Loan service may be used by exercising the Right of Using Gas Loan, based on which the Bidder obtains for a gas loan fee, the right to take the energy quantity into its own stock – at a date and according to a schedule agreed by the parties – and the right of free utilization – in full compliance with the conditions specified in the Contract on Lending and Borrowing Natural Gas.
In relation to this announcement notice, the Gas Loan service cannot be sold on its own, without Establishing the Right of Using Gas Loan.
The energy quantity available within the Gas Loan product in relation to the service announced will be offered by MFGT in bundle.
1 piece of bundle contains:
¾ 50,000,000 kWh working gas reclassified from cushion gas, together with the right of using the related working gas capacity, without injection and withdrawal capacities
¾ minimum energy quantity to be booked – and called in later as gas loan –, having regard to the energy quantity required for starting up the storage facility: 300,000,000 kWh, that is a successful bid requires at least requesting 6 bundles.
Number of bundles offered: 22 pieces.
· The Auctioneer (MFGT) does not specify a Maximum Price for the price of Establishing the Right of Using Gas Loan – within this auction.
Bid Period: 1st September 2016 - 15th April 2017, bids for shorter periods shall be qualified as invalid.
Using the Gas Loan service by the the successful Bidder
Successful Bidder shall conclude a CONTRACT ON LENDING AND BORROWING NATURAL GAS (Gas Loan Contract) with MFGT on using (borrowing) its awarded gas quantity (at least 300,000,000 kWh) in full or in part. Pursuant to the Gas Loan Contract, the minimum energy quantity to be contracted for borrowing shall be 300,000,000 kWh. The contracted energy quantity can only be less than this amount if the parties agree on borrowing the energy quantity remaining in excess of 300,000,000 kWh and the start up of the storage site is possible even in the case of this “remaining” quantity – having regard to to the technological/technical conditions set forth in MFGT’s Code of Business Conduct. Parties shall agree on the date and schedule of lending in the Gas Loan Contract.
The fee of the Gas Loan service shall always be payable on the basis of the energy quantity as per the concluded Gas Loan Contract (and not on the basis of the energy quantity awarded at the auction).
When auctioning the bundles, MFGT applies the methodology specified in the Auction Regulation as per Annex No. 1.
Registration deadline: Tuesday, 30th August 2016, 14:00.
Submission of Bids: Duly signed bids can be submitted in sealed envelopes until Wednesday 31st August 2016, 15:00 hours (GMT+1) specifying the following data.
Bid Price (HUF/kWh)
Bid Quantity (number of bundles, maximum 22 pieces)
Any Bidder is limited to submitting only one bid at one specific price.
The bidder offering the highest price for one (1) given bundle and requesting at least 6 bundles shall be the successful bidder.
The date of the auction is Wednesday, 31st August 2016, 15:00 hours, when received bids are evaluated in the presence of a public notary in MFGT’s office (1138 Budapest, Váci út 144-150, 6th floor), 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 contract on Establishing the Right of Using Gas Loan with regard to the awarded quantities within 5 business days from the auction.
Auctioneer (MFGT) explicitly reserves the right to withdraw the open auction announced as Auction No. 2016/IX, 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: firstname.lastname@example.org) and Balázs Meggyes (Phone: +36-30-718-9343, e-mail: email@example.com), sales experts.
Budapest, August 2016