Six legal firms act on Vietnam’s first LNG-to-power projects
Six firms — Norton Rose Fulbright, VILAF, YKVN, Kim & Chang, Bär & Karrer and Pinsent Masons — have advised on the USD521.5 million financing of PetroVietnam Power Corporation’s (PV Power) Nhon Trach 3 and 4 LNG-to-power projects.
“What sets this deal apart is the innovative financing structure, which includes corporate loans under both untied and tied Export Credit Agency facilities, complemented by a local facility. Importantly, these are the first large-scale LNG projects in Vietnam to be financed without a government guarantee, establishing a crucial precedent for future projects,” Truong Nhat Quang, YKVN’s managing partner and lead on the deal, told Asia Business Law Journal.
The projects, set to become Vietnam’s first LNG-to-power plants, will introduce 1.6GW to the national grid, helping to reduce Vietnam’s coal dependency in line with the government’s Power Development Plan.
Quang further noted that this financing model could serve as a blueprint across Southeast Asia as countries increasingly transition to alternative energy sources. This was echoed by Nick Merritt, Norton Rose Fulbright’s lead partner on this deal: “The project is a pathfinder to help similar projects find a route to financing.”
Citi and ING, advised by Norton Rose Fulbright , acted as joint mandated lead arrangers with backing from the Korea Trade Insurance Corporation (K-SURE) and Swiss Export Risk Insurance (SERV).
VILAF , with partner Trung Vu at the helm, acted as the Vietnamese legal counsel for Citi and ING. Meanwhile, the Korean firm Kim & Chang handled K-SURE-related aspects, led by Grace Nam. For SERV-related considerations, Swiss firm Bär & Karrer provided counsel, with Lukas Roesler leading the advisory efforts.
On the borrower’s side, YKVN and Pinsent Masons advised PV Power. Led by Quang and partner Duong Thu Ha, YKVN’s team handled negotiations for tied ECA loans, structured with a blend of international and local facilities. Partner James Harris led the Pinsent Masons team with partner Kanyi Lui.
“The project highlights the importance of natural gas as a transition fuel in Asia … I am confident we will see similar projects being developed in the region and potentially switching entirely to hydrogen in the later stages of the projects as that fuel source becomes commercially available,” Merritt told Asia Business Law Journal.
Source: https://law.asia/vietnam-first-lng-to-power-projects/
