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Auction Announcement Notice - No. 2017/VIII.

Hungarian Gas Storage Ltd (hereinafter referred to as MFGT) on this day announces an auction for booking available storage capacities for the storage year 2018/19 and a further 3 storage years thereafter. The capacity auction is carried out by MFGT in line with the Auction Regulation as per Annex No. 1. 

Capacity bidders with valid registration for storage year 2017/2018 do not have to register again unless any data have been changed in the formerly submitted documents.

In case of capacity bidders without valid registration for storage year 2017/2018, participating in the capacity auction shall be conditional on indicating the intent to participate before the deadline, which shall be in line with the registration process rules announced on 7 March 2017. Acceptance of the registration by MFGT shall be conditional on the full and complete submission of the registration documents specified below, which can take place 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.

Registration

At the capacity auction, bids can be made by only those capacity bidders that are eligible for storage access, and whose documents submitted during the registration process were accepted.

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 capacity bidder during registration and/or bidding.

 

Accordingly, in order to participate in the capacity auction, the listed documents shall be submitted before the deadline given in relation with the present auction. Although registrations received after the deadline specified in the registration process may be accepted, they only qualify the capacity bidder to submit bids on subsequent auctions announced in storage year 2017/2018, as they shall be considered as void in terms of this 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 until the end of the 3rd business day preceding the bid submission deadline of the subsequent capacity auction.

Capacity bidder with and without a valid registration shall pay attention to the following:

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 in relation to this auction: Tuesday 7th November, 2017 14:00 hours. MFGT shall confirm the registration to the applicant. Valid registrations received after the specified deadline shall be valid for subsequent auctions announced in the storage year 2017/2018.

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:

  • 1 000 000 kWh firm working gas capacity, 16 666.67 kWh/day (approx. 60 days) firm injection capacity and 16 666.67 kWh/day (approx. 60 days) firm withdrawal capacity.

Number of bundles offered: 1 500 pieces.

Bid Period: 4 storage years: storage year 2018/2019, 2019/2020, 2020/2021, and 2021/2022

According to the above, the contractual injection cycle during the storage year 2018/2019 shall start at 6:00 on 1st April 2018, and shall end at 6:00 on 1st October 2018. The contractual withdrawal cycle shall start at 6:00 on 1st October 2018, and shall end at 6:00 on 1st April 2019.

The contractual injection cycle during the storage year 2019/2020 shall commence at 6:00 on 1st April 2019 and shall end at 6:00 on 1st October 2019, and the contractual withdrawal cycle shall commence at 6:00 on 1st October 2019 and shall end at 6:00 on 1st April 2020.

The contractual injection cycle during the storage year 2020/2021 shall commence at 6:00 on 1st April 2020 and shall end at 6:00 on 1st October 2020, and the contractual withdrawal cycle shall commence at 6:00 on 1st October 2020 and shall end at 6:00 on 1st April 2021.

The contractual injection cycle during the storage year 2021/2022 shall commence at 6:00 on 1st April 2021 and shall end at 6:00 on 1st October 2021, and the contractual withdrawal cycle shall commence at 6:00 on 1st October 2021 and shall end at 6:00 on 1st April 2022.

Bidders cannot modify their working gas capacity booked for the storage year 2018/2019 and 2019/2020. With regard to further 2 storage years Bidder may modify their working gas capacity until 15th January preceding each storage year within the following ranges:

Storage Year

Range

2019/20

not modifiable ( the booked working gas capacity through auction)

2020/21

- 100%

2021/22

-100%

 

Bidders may deviate from their working gas capacity booked for the storage year 2018/2019 and 2019/2020 in the positive direction - maximum + 300% - with regard to storage years 2020/2021 and 2021/2022 only with the consent of MFGT.

Maximum Price: the price according to the formula set out in the Tariff Decree.

The bid price does not include the volume fees or the VAT.

Auction procedure:

When auctioning the capacity bundles, MFGT applies the methodology specified in the Auction Regulation as per Annex No. 1.

Deadline of registration required for participation in this procedure: Tuesday 7th November, 2017 14:00 hours.

Submission of Bids:

Documents to be submitted during the Submission of Bids:

- Original copy of the duly signed Bid (Annex No. 3), by the signature of which the Bidder verifies its intent to take part and its acceptance of the Auction Regulation and the Natural Gas Storage contract template.

We accept the document to be submitted during bid submission in a closed envelope (indicating “2017/VIII.” on the envelope) until Thursday, 9th November 2017, 14:00 hours (GMT+1).

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

The date of the capacity auction is Thursday, 9th November 2017, 14:00 hours, when received bids are evaluated in the presence of a public notary in MFGT’s office (1138 Budapest, Váci út 144-150.), 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 Bidder having submitted a valid and successful bid shall conclude the Natural Gas Storage Contract on the awarded natural gas storage capacities 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. 2017/VIII. 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: +36-30-748-99-71, e-mail: horvathh@mfgt.hu), Balázs Meggyes (Phone: +36-30-718-9343, e-mail: meggyesb@mfgt.hu) and Árpád Varga Horgosi (Phone: +36-20-434-2788, e-mail: vargaa@mfgt.hu ), sales experts.

 

Budapest, 26th October 2017

 

Annex_1-Storage_Capacity_Auction_Regulation_II

Annex_2-MFGT_Long_Term_Flexible_Contract 

Annex_3-Bid_Form