Vietnam Petroleum Association contributed comments to the Draft Decree on the mechanism for developing power projects using natural gas and LNG

Overview of the meeting

Attending the meeting was Dr. Nguyen Quoc Thap – Chairman of VPA; Hero of Labor, PhD. Nguyen Hung Dung – Vice President and General Secretary of VPA; Dr. Phan Ngoc Trung – Head of the VPA Review Advisory Board; together with representatives of specialized departments of Vietnam Oil and Gas Group (Petrovietnam); Vietnam Petroleum Power Corporation (PV Power); Vietnam Gas Corporation (PV GAS); Phu Quoc Petroleum Operating Company (PQPOC).

Request points to attend online meetings

Pursuant to the Electricity Law; National electricity development planning; Directive No. 05/CT-TTg of the Prime Minister on ensuring electricity supply, coal and gas supply; On April 20, 2024, the Government issued a Draft Decree regulating the mechanism for developing power projects using natural gas and LNG. The content of the draft decree focuses on: Mechanism for gas power plant projects using imported LNG; Mechanism for gas power plants to use domestic natural gas; Power purchase agreement. The Decree will apply to organizations and individuals participating in investing in power plant projects using natural gas and LNG, including Vietnam Oil and Gas Group and Vietnam Electricity Group.

Delegates contributed opinions at the meeting

At the meeting, the attending delegates directly commented on specific provisions in the draft, analyzed and clarified the shortcomings and problems of the draft Decree to make suggestions and recommendations for amendments and supplements. suitable supplement.

Dr. Nguyen Hung Dung, Vice President and General Secretary of VPA expressed his opinion

Dr. Phan Ngoc Trung, Head of the VPA Review Advisory Committee, spoke

The delegates all agreed that the draft Decree basically removed a number of difficulties and obstacles in policy mechanisms in developing power projects using natural gas and LNG such as: regulations on mechanisms and policies in developing power projects using natural gas and LNG. mechanism for horizontal transfer of gas prices to electricity prices of power plants; regulate the proportion of electricity through long-term power purchase contracts at a minimum level of 70% during the debt repayment period of the power plant project; Some main contents apply in electricity purchase contracts.

However, in this draft, some remaining contents, problems, and difficulties of gas power projects still need to be researched, supplemented, and completed to create conditions and remove obstacles (because there is no or the current legal basis is not consistent with the actual situation) for investors/enterprises in implementing gas power and LNG projects.

Dr. Nguyen Quoc Thap – Chairman of Vietnam Petroleum Association concluded the meeting

Speaking at the conclusion of the meeting, Dr. Nguyen Quoc Thap – Chairman of the Vietnam Petroleum Association thanked and acknowledged the exchanged opinions and contributions, and said that the Vietnam Petroleum Association will synthesize specific comments on the draft Decree. to submit to the Prime Minister. Along with that, the Association will continue to research and propose working with the Drafting Team to present specific opinions to develop a new Decree to create favorable conditions for businesses in implementing gas and electricity projects. LNG.

Minh Duc