Information Note by Hungarian Gas Storage Ltd (MFGT)

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”) was amended by the Government as of the effective date of 30^th June 2014 of Government Decree No. 156/2014 (VI.30.) on the amendment of certain government decrees on energy and nuclear energy.

MFGT provided available storage capacities pursuant to the amended Section 155, Subsection (2) of the Implementation Decree in an interruptible way for the storage year 2014/2015 for System Users that meet the conditions set out in Section 155, Subsection (1).

As of the effective date of 31^st October 2014 of Government Decree No. 267/2014 (X.30.), the Government has further amended Section 155 of the Implementation Decree.

MFGT stipulates that based on the amendment of Section 155 of the Implementation Decree dated 31^st October 2014, in relation to contracts

(i) concluded pursuant to Government Decree No. 156/2014 (VI.30.), and

(ii) to be concluded pursuant to Government Decree No. 267/2014 (X.30.),

the contractual injection cycle related to the basic service shall commence at 06:00 on 1^st April 2014 and shall end at 06:00 on 1^st January 2015, while the contractual withdrawal cycle shall commence at 06:00 on 1^st January 2015 and shall end at 06:00 on 1^st April 2015. System Users can withdraw gas in the period between 06:00 hours on 1st November 2014 and 06:00 hours on 1st January 2015 to the extent of the withdrawal capacity booked under the contract, duly paying the volume fee and the capacity fee as per contract. With regard to all other services not subject to the above, MFGT shall continue to proceed in line with its Code of Business Conduct.

In compliance with the Grid Code and Annex No. 5 of the Business Conduct Rules (ÁSZF) of MFGT, with regard to the quantities contracted under the above Contracts, full physical injection into the underground storage site of MFGT cannot be guaranteed by MFGT unless facilitated by the technical parameters of the storage sites, since the actual injection and withdrawal capacities will vary depending on the working gas stock and other inevitably changing parameters and boundary conditions. The availability of capacities and the minimum and maximum injection and withdrawal capacity values are published by MFGT on its website for the System Users. System User shall understand that MFGT will not assume any liability for the lack of injecting the full physical contracted quantity.

System User shall understand that at the beginning and at the end of each contractual storage period, available injection and withdrawal capacities might be less than the contracted maximum capacity due to the operational characteristics of storage sites, in which event MFGT shall proceed in line with Section 9.4.4 of the Grid Code.