Ministry of Industry and Trade Proposes 75% Offtake for LNG Power Output, VinEnergo Advocates for Minimum 90%

The Ministry of Industry and Trade is drafting a Resolution to address challenges in national energy development for the 2026-2030 period. This includes significant regulations regarding LNG-based power generation.

Under the draft, the contract term for gas-fired and liquefied natural gas (LNG) power projects is set at 20 years from the commercial operation date of the plant.

The government’s guarantee period for BOT contracts spans the entire project term, while for power purchase agreements (PPAs) involving gas and LNG projects, it is 15 years.

For long-term minimum contracted electricity volumes (often referred to as take-or-pay arrangements) and their applicable periods for LNG-importing gas power projects, the draft stipulates a minimum of 75% of the project’s average annual electricity output.

This minimum contracted volume applies during the debt repayment period but not exceeding 10 years from the project’s commercial operation date.

These policies apply to LNG-importing gas power projects approved by state authorities, with completion certificates issued to developers and LNG-based power generation commencing between the effective date of Law 61/2024/QH15 and December 31, 2030.

VinEnergo, part of the Vingroup ecosystem, has provided feedback on the draft. Aligning with the 75% figure, VinEnergo proposes extending the period to no more than 25 years (compared to the draft’s 10 years) for projects commencing LNG-based power generation between January 1, 2030, and December 31, 2031.

For projects starting earlier, from January 1, 2026, to December 31, 2029, VinEnergo suggests a minimum contracted volume of 90% (compared to the draft’s 75%) and a debt repayment period of no more than 25 years (compared to the draft’s 10 years).

The Ministry of Industry and Trade responded that the 25-year proposal lacks a basis for evaluation and does not ensure a balance of interests between electricity buyers and sellers. Regarding minimum take-or-pay volumes, the Ministry clarified that the resolution only sets a minimum threshold, with actual volumes potentially higher based on project structures and agreements between parties to ensure mutual benefit.

On September 26, Vingroup officially commenced construction of the Tan Trào Industrial Zone Infrastructure Development Project (Phase 1) and the Hai Phong LNG Thermal Power Plant, the largest in Vietnam and among the world’s leading LNG power projects.

The Hai Phong LNG Thermal Power Plant, located within the Tan Trào Industrial Zone, is jointly developed by Vingroup and VinEnergo. Spanning nearly 100 hectares with a total investment of over 178 trillion VND, the project is expected to complete construction within five years and begin operations by late 2030.

The plant will generate approximately 9.6 billion kWh/year (Phase 1) and 19.2 billion kWh/year (Phase 2), supplying power to the Tan Trào Industrial Zone and significantly contributing to the national grid. This will enhance grid stability, reduce reliance on traditional energy sources, and support Vietnam’s energy transition.

With a designed capacity of 4,800 MW (1,600 MW in Phase 1 and 3,200 MW in Phase 2), the plant will be Vietnam’s largest thermal power facility, as outlined in the Government’s Power Development Plan VIII, and among the world’s top LNG-based power plants.