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| The Thi Vai LNG terminal is capable of receiving LNG carriers with a tonnage of up to 100,000 tons__Photo: VNA |
The Ministry of Industry and Trade is working on a draft decree on development of gas-fired power projects, proposing that power plants using imported liquefied natural gas (LNG) might be allowed to adjust selling prices of electricity based on fluctuations of gas prices.
This mechanism would also apply to natural gas-fired power plants of key petroleum projects that make substantial contributions to economic development, assurance of national energy security, security and national defense and protection of Vietnam’s sovereignty.
Owners of LNG-fired power projects included in the 8th Power Development Plan must take the initiative in negotiating and concluding commercial contracts and agreements and be held responsible for these contracts and agreements.
Regarding electricity sale and purchase contracts, under the draft decree, power plants would conclude contracts with the Electricity of Vietnam so as to participate in the competitive wholesale electricity market and sell electricity in the spot electricity market.
Expenses for purchase of power from power plants using domestically extracted natural gas or imported LNG would include legitimate, reasonable expenses and be included in electricity retail prices.
The governing regulation and dispute resolution mechanism must comply with Vietnam’s law but the parties might agree on the application of appropriate foreign laws to deal with issues not yet fully covered by Vietnam’s law.
This draft decree applies to power generators that have gas-fired power plants connected to the national electricity system, and power units namely the Vietnam Electricity, Vietnam Oil and Gas Group, load dispatch centers and electricity market operators.
As provided in the 8th Power Development Plan, the total capacity of power sources by 2030 will be 150,489 GW. Of which, the total capacity of gas-fired power projects that must be built will be 30,424 MW (10 natural gas-fired power projects with a total capacity of 7,900 MW and 13 LNG-fired power projects with a total capacity of 22,824 MW).- (VLLF)
