OFFICIAL 2024 LNG PRICE FRAMEWORK

On May 27, 2024, the Ministry of Industry and Trade approved the price framework for combined cycle gas turbine power plants using liquefied natural gas. 

Accordingly, the electricity generation price framework for LNG-fired thermal power plants in 2024 ranges from: 0 - 2,590.85 VND/kWh (excluding value-added tax - VAT). Of which, the ceiling price applied to LNG gas electricity is 2,590.85 VND/kWh. This ceiling price is also about 30% higher than the average retail price (2,006.9 VND per kWh). The parameters used to calculate the ceiling price of the electricity generation price framework applied to LNG-fired thermal power plants in 2024 are as follows: 

Explanation of Terms:

Net Power: The installed power converted to the metering point for the purpose of electricity trading between the Seller and the Buyer (kW).

Net Heat Rate: The amount of heat consumed to produce one kWh of electricity at the delivery point (BTU/kWh or kJ/kWh or kcal/kWh).

Net Fuel Consumption Rate: The amount of fuel consumed to produce one kWh of electricity at the delivery point (kg/kWh). 

Experts believe that the approved LNG power generation price framework will be the basis for resolving price issues, ensuring progress for LNG gas power projects in Vietnam.

According to the VIII Power Plan, the total capacity of gas power plants invested and put into operation by 2030 is 30,424 MW (23 projects); of which, gas power plants using domestically extracted gas have 10 projects, LNG gas power plants have 13 projects. It is expected that by 2030, the total capacity of LNG gas power sources will account for about 15% of the total national power capacity. However, at present, many projects are still under investment and have not made much progress. One of the main reasons affecting the progress of the projects is the lack of determination of the LNG gas price, leading to investors not being able to calculate the investment efficiency. 

The development of liquefied natural gas (LNG) helps to increase efficiency in power production, reduce the use of coal-fired thermal power, and contribute to reducing CO2 emissions, protecting the environment towards the goal of sustainable development of the country. LNG is an energy source with low emission factors and good combustion efficiency. LNG is becoming increasingly popular, especially as Vietnam participates in implementing the COP26 commitment to bring net emissions to "0" by 2050. 

See more:

• Các dự án điện khí LNG tại Việt Nam
• Điện khí LNG là gì
• LNG là gì
• Giá LNG mới nhất

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