Vietnam's Ministry of Industry Revises LNG Power Project Regulations
The Ministry of Industry and Trade of Vietnam has proposed amendments to Decree 56/2025/ND-CP, focusing on the minimum long-term electricity contract mechanism for LNG projects. This adjustment aims to resolve financial challenges faced by investors and align with the 2024 Electricity Law.
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The proposed changes to Decree 56/2025/ND-CP include raising the minimum long-term electricity contract volume (Qc) from 65% to 75% of average annual electricity output for LNG projects. The Ministry's rationale is to facilitate investor financing while balancing stakeholder interests.
However, industry feedback suggests that an increase to 85-95% is needed for financial viability. The Ministry warns that setting Qc above 80% risks creating over-contracting issues, leading to higher system costs. The draft maintains that electricity purchase agreements (PPAs) can be negotiated freely above the minimum set, promoting competition in the electricity market.
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