Auction Announcement Notice – 2021/6

Hungarian Gas Storage Ltd (hereinafter referred to as HGS) on this day announces an auction for booking available storage capacities for the storage years 2022/2023, 2023/2024, 2024/2025 and 2025/2026. The capacity auction is carried out by HGS in line with the Storage Capacity Auction Regulation II/B document as per Annex No. 1.

Auction Details:

Auction name		2021/6		Auction Type	Minimum price
Registration deadline		15.12.2021 13:00 p.m.		Partial delivery	Yes
Bid submission deadline		16.12.2021 11:00 a.m.		Currency of the Bid	HUF
Product		Árverés/Auction_2022_2026		Maximum bid price	As per Tariff Decree, HUF/kWh
Bid period		01.04.2022 - 31.03.2026		Bid price unit of quantity	0.01
Content of one bundle				Minimum number of bid bundles	1	piece(s)
	Working gas capacity	900 000	kWh	Maximum number of bid bundles	1 000	piece(s)
	Injection capacity	10 000	kWh/day	Bid/participant	1	piece(s)
	Withdrawal capacity	15 000	kWh/day	The bid price does not include the volume fees or the VAT.
Injection cycle		in relevant storage year from 01.04. to 30.09.
Withdrawal cycle		in relevant storage year from 01.10. to 31.03.

Working gas capacity booked for the storage year 2022/2023 and 2023/2024 may not be modified, while with regard to further 2 storage years, modification shall be possible capacity until 17^th January preceding each storage year within the following ranges:

Storage Year	Range
2022/23 and 2023/24	No modification possible (quantity booked via auction)
2024/25	- 100%
2025/26	- 100%

Bidders may deviate from their working gas capacity booked for the storage year 2022/2023 and 2023/2024 in the positive direction - maximum + 300% - with regard to storage years 2024/2025 and 2025/2026 only with HGS’ consent.

The Auction can be accessed via HGS’ IT Platform, following an early registration (https://nom.mfgt.hu/SMCS.html).

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.
“the original copy of the „IT Platform (SMCS) Registration Datasheet and Power of Attorney” (Annex No. 5.3 of the HGS Code of Business Conduct: Storage Capacity Auction Regulation II/B, Annex No. 1) (Annex No. 3.)
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 Power of Attorney.
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 “IT Platform (SMCS) Registration Datasheet and Power of Attorney”;
or the original copy of their sample signature signed in manuscript in the presence of two witnesses (Annex No. 5), and a copy of the signed side of a personal document belonging to the signatories (by mail or e-mail).

Participation in the capacity auction shall be conditional on the full and complete submission of the documents required for registration as specified above for the acceptance of the registration by HGS, which can take place by mail or by email, however, in the latter case, the original documents shall also be submitted prior to bidding, in the absence of which the registration is rendered invalid, and thus the bid cannot be evaluated. Participant is obliged to inform HGS of any changes to the content of the documents subsequent to their submission.

Furthermore, in order to participate in the capacity auction, the listed documents shall be delivered until the registration deadline specified for this 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 2021/2022, as they shall be considered as void in terms of this auction.

HGS 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 HGS.

In case of a valid registration, HGS confirms the fact of registration to the Bidder by e-mail.

During registration, HGS shall be obliged to treat data submitted to the auction in a confidential manner and will not disclose them to any third party.

Final Provisions

Awarded bidders shall be notified by HGS following the evaluation until 16:00 hours.

Following the auction, HGS 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 (HGS) explicitly reserves the right to withdraw without explanation the open storage electronic capacity Auction announced as capacity auction No. 2021/6 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 HGS: Hajnalka Horváth (Phone: +36 30 748 9971, e-mail: horvathh@mfgt.hu and Dóra Tóth (Phone: +36 20 236 1972, e-mail: tothd@mfgt.hu), sales specialists.

Annexes:

Budapest, 9 December 2021