Vietnamese government approves criteria for 2026 price cap on power generated by LNG-fired plants

【Hanoi, Vietnam—Correspondent Kim Jun-seok】Vietnam's Ministry of Industry and Trade has officially approved the criteria for the 2026 ceiling price for power generated by LNG-fired power plants. The measure will serve as a key benchmark for power purchase agreements (PPAs) between LNG power producers in Vietnam and Vietnam Electricity (EVN).
According to local media and other sources on the 12th, Vietnam's Ministry of Industry and Trade announced on the 9th a decision approving the 2026 power price framework for gas-turbine combined-cycle power plants that use LNG. Under the framework, the 2026 power price cap was set at 3,453.72 dong per kWh, excluding value-added tax (VAT) (about 179 won). The power price range is 0–3,453.72 dong per kWh. The key assumptions used to calculate the cap include a reference capacity of 1,528,292 kW and a net heat rate of 6,253.43 BTU/kWh at 85% load.
Key input cost variables were also standardized in detail. The LNG import price, including import duties, was set at $13.4099 per million BTU (about 17,851 won). The combined transportation and supply rate—including ocean freight to the regasification terminal, storage, regasification, and pipeline delivery costs after regasification—was set at $1.831 per million BTU (about 2,436 won). The reference exchange rate was set at 26,378 dong per U.S. dollar (about 1,367 won).
The Ministry of Industry and Trade instructed Vietnam Electricity (EVN) and each power producer to negotiate and conclude power purchase agreements (PPAs) based on the newly approved price framework. It also stipulated that the parties must strictly comply during the contract conclusion process with regulations on the methodology for calculating power generation service prices, as announced by the minister of industry and trade. The decision took effect immediately on the 9th, the date it was signed.
[email protected] Kim Jun-seok Reporter