Supported by the favorable geographical and natural conditions, and constrained by the restrictions on thermal power projects in the last few years, Vietnam has been promoting the solar and wind renewable energy in the last 5 years, and now the LNG-to-power (the concept of using liquefied natural gas for power production) (LNG).
Fear of being late, many local and foreign investors have been lining up to find opportunities to develop large scale gas-fired power plants using LNG as fuel despite the unclear legal framework. The first LNG Project with a capacity of 3,200 MW on an area of 40ha, including a LNG floating terminal and storage FSU, a gas recycling station (FSRU), with the estimated total investment close to US$4.0 billion, approved in January 2020 by Bac Lieu Provincial People’s Committee, with planned construction commencement in early 2021 for initial commercial operations by 2023, is more than likely delayed. At the same time, various MOUs were just signed between the potential investors and the relevant provincial people’s committee to start the pre-feasibility studies for big LNG Projects in the last few months while the Prime Minister has yet to approve the upcoming national power development plan for the period of 2021-2030, with a vision to 2045 (PDP VIII).
This brief looks at the overview of the LNG Project legal framework to provide a comprehensive picture on this very important development in Vietnam.
Read the brief overview here.
For a detailed read, please refer to the Lexology site.