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 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. 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.
Registration
At the auction, bids can be made by only those 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:
§ 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 Contract on Establishing the Right of Using Gas Loan, along with the Contract on Lending and Borrowing Natural Gas.
§ 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) 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 addition to 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.
Deadline for submitting to MFGT the documents required for registration: (Monday) 14th December 2015, 16:00. 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.
Offered Product:
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 31st March 2016 – 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 the energy quantity awarded to the Bidder until the conclusion of the contract on Establishing the Right of Using Gas Loan or until the expiry of this contract.
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 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 52,257,409 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, having regard to the energy quantity required for starting up the storage facility: 313,544,454 kWh
Number of bundles offered: 24 pieces.
Starting Price:
· The Auctioneer (MFGT) does not specify a Starting Price for the price of Establishing the Right of Using Gas Loan – within this auction.
Bid Period: 16th December 2015 - 31st March 2016, bids for shorter periods shall be qualified as invalid.
Auction procedure:
When auctioning the bundles, MFGT applies the methodology specified in Annex No. 1 of the Auction Regulation.
Registration deadline: (Monday) 14th December 2015, 16:00
Submission of Bids: Duly signed bids can be submitted in sealed envelopes until (Tuesday) 15th December 2015, 13:00 hours (GMT+1) specifying the following data.
Bid Price (HUF/kWh)
Bid Quantity (number of bundles, maximum 24 pieces)
Any Bidder is limited to submitting only one bid at one specific price.
The bidder offering the highest price for a given bundle shall be the successful bidder.
The date of the auction is (Tuesday) 15th December 2015, 13:00 hours, when received bids are evaluated in the presence of a public notary in MFGT’s office (1051 Budapest, Széchenyi István tér 7-8.), 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. 2015/XI, 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 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), our sales experts.
Budapest, December 2015