Vietnam Raises 2026 LNG Power Generation Price Cap
Vietnam’s Ministry of Industry and Trade has set the 2026 price cap for power generated by LNG combined-cycle plants at 3,453.72 Vietnamese dong per kWh, more than 126 dong above the 2025 cap. Effective November 9, the new framework will guide power purchase contract negotiations between Vietnam Electricity and generators.
Under Decision 2972 of the Ministry of Industry and Trade, the 2026 price cap for electricity generated by combined-cycle gas turbine plants using liquefied natural gas (LNG) is 3,453.72 Vietnamese dong per kWh, excluding value-added tax. The price framework took effect on November 9, 2026, and is more than 126 dong higher than the 2025 cap of 3,327 dong per kWh. Vietnam Electricity and power generators will use it as the basis for negotiating and signing power purchase agreements.
The new cap is 7.6% higher than the 3,210 dong per kWh cap for power generated by battery energy storage systems and nearly 55% higher than the 2,231 dong per kWh cap for coal-fired plants with a capacity below 200 MW. Compared with ground-mounted solar plants without energy storage, the LNG power generation cap is about 2.2 to 3.1 times higher, depending on the region.
To calculate this year’s cap, the ministry used parameters for a plant with a capacity of about 1,528 MW. The imported LNG price used in the calculation fell from $14.1 to $13.4 per million British thermal units, including import tax; transportation, storage, regasification and distribution costs fell from $2.6 to $1.8. The exchange rate used in the calculation rose from 25,670 to 26,378 Vietnamese dong per U.S. dollar.
Nhơn Trạch 3 and Nhơn Trạch 4 in Đồng Nai are Vietnam’s first power plants designed from the outset to use LNG. Both plants were developed by PV Power and have begun commercial operations, with a combined capacity of 1,624 MW. Phú Mỹ 3 and Phú Mỹ 2.2, which previously used domestic natural gas, have also used imported LNG to generate electricity.
Nhơn Trạch 3 and Nhơn Trạch 4 power plants.（VietVance）
Under the revised Power Development Plan VIII, Vietnam’s total LNG-fired power capacity is expected to reach 22,524 MW by 2030, accounting for 9.5% to 12.3% of total generating capacity serving domestic demand. Among projects under development, Vietnam Electricity began construction of the Quảng Trạch II LNG power plant in Quảng Trị in October 2026. The project has a capacity of nearly 1,613 MW and an investment of more than 40 trillion Vietnamese dong. Its two generating units are expected to begin commercial operation in 2030.
Source: VietVance
