HCMC – The Ministry of Industry and Trade has proposed requiring power buyers to commit to purchasing at least 75% of output from power projects using imported liquefied natural gas (LNG) to support investment and ensure a stable electricity supply.
The proposal is included in a draft decree amending Decree 56/2025 and Decree 100/2025 to clarify provisions of the 2024 Electricity Law.
Under the draft, power plants running on imported LNG must sign power sale agreements with contracted volumes of no less than 75% of their multi-year average electricity generation.
The commitment would apply for up to 15 years, aligned with loan repayment periods. After that, contracted volumes would be negotiated by the parties in accordance with regulations.
The mechanism would apply to imported-LNG-fired power projects entering operation from the effective date of the 2024 Electricity Law until before January 1, 2031.
The ministry said the requirement would help investors make investment decisions and mobilize capital. Electricity procurement costs may rise, but the ministry considers this lower than the risks and losses caused by shortages of baseload power sources such as LNG-fired plants.
During the implementation of Decree 56/2025 and Decree 100/2025, the ministry received feedback from LNG power project developers and related entities.
Most comments cited difficulties in implementation and proposed solutions, focusing on the application of a two-part electricity pricing mechanism and minimum contracted output commitments.
Developers also proposed raising the minimum long-term contracted output above 65% and extending the commitment period to 20 or 25 years, compared with the previous limit of no more than 10 years.
Based on these proposals, the ministry has submitted to the Government a plan to revise the regulations toward more flexible mechanisms on contracted output and contract duration for imported LNG power projects.
The aim is to address investor challenges, balance stakeholder interests, and help ensure energy security and a stable power supply.
