IMPORTING LNG FOR LNG POWER PLANT

1. Pursuant to Article 6 of Decree 87 of the Government dated 13 March 2018 on gas trading (Decree 87), an entity involving in the import of LNG for trading in Vietnam needs to obtain a certificate on satisfaction of conditions applicable to LNG importing/exporting merchant (Import Certificate) from the Ministry of Industry and Trade (MOIT) before doing such activity.

2. The requirements of Decree 87/2018 seem to be drafted with entities importing LNG to trade in Vietnam in mind, but not for own consumption purpose, for example, a LNG power plant (LNG Power Plant) imports LNG to turn it into power. That said, if the LNG Power Plant imports LNG for own consumption purpose, it is advisable to apply for the Import Certificate because (i) there are no specific regulations guiding how to import LNG for own consumption purpose and (ii) the conditions to issue the Import Certificate set out in Decree 87/2018 mainly focus to ensure the safety of the LNG import activities.

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Written by Lawyers VNLaw On In ,

Key issues under the model power purchase agreement (PPA) for Rooftop Solar System

In this post, we discuss some key issues under the model PPA used for roof top solar system (RTS) under Circular 18/2020. This post is written by Le Thanh Nhat and edited by Nguyen Quang Vu.

Limited ability to amend the RTS PPA

1.1. Under the laws of Vietnam, the use of the RTS PPA for sale and purchase of power with EVN is mandatory, and the parties are only allowed to supplement the RTS PPA to clarify the parties’ rights and obligations and may not change the main contents of the RTS PPA. The supplementary content injected by the parties must also be consistent with, and must therefore not contradict, the RTS PPA. Under the RTS PPA, the parties can agree on the following additional information:

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Written by Nguyen Quang Vu On In

Model PPAs for LNG and Coal Fired Power Projects under Circular 57/2020

1) Background

a) On 31 December 2020, the Ministry of Industry and Trade (MOIT) issued Circular 57/2020 regulating the method to calculate the tariff, and the power purchase agreement. Circular 57/2020 replaces Circular 56/2014 from 22 February 2021.

b) In this post, we will provide our comparison of Circular 57/2020 with Circular 56/2014.

Please download the pdf version here.

This post is written by Nguyen Hoang Duy and edited by Nguyen Quang Vu.

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Written by Nguyen Quang Vu On In ,

Tariff Calculation For LNG And Coal Fired Power Projects Under Circular 57/2020

1) Background

a) On 31 December 2020, the Ministry of Industry and Trade (MOIT) issued Circular 57/2020 regulating the method to calculate the tariff, and the power purchase agreement. Circular 57/2020 replaces Circular 56/2014 from 22 February 2021.

b) In this post, we will provide our summaries and comments on the tariff calculation of the model power purchase agreement under Circular 57/2020 (Model PPA) between an independent power producer (IPP) as the seller, and Vietnam Electricity Corporation (EVN) as the buyer.

Please download the pdf version here. This post is written by Nguyen Hoang Duy and edited by Nguyen Quang Vu.

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Written by Nguyen Quang Vu On In , ,