3rd Annual Vietnam

Energy and Power

Development Summit

LNG to Power: Structures

and Implementation

Dave Seibert

9 November 2022
A COMPREHENSIVE REACH IN
SOUTHEAST & SOUTH ASIA
. 9 countries
. 13 offices
. 170+ legal and tax advisers
. 24 nationalities

Bangladesh (2011)
3 Partners | 19 Advisers
Cambodia* (1995) Philippines* (2015)
7 Partners | 33 Consultants 4 Partners | 6 Advisers
Lao PDR (1994) ASEAN Desk in Singapore* (2010)
3 Partners | 8 Advisers 1 Adviser
Indonesia* (2011) Thailand (2005)
2 Partners | 8 Advisers 7 Partners | 21 Advisers
Myanmar (1995) Vietnam (2006)
2 Partners| 15 Advisers 4 Partners | 15 Advisers In Cambodia, DFDL works in commercial cooperation with Sarin & Associates.
In Indonesia, DFDL works in association with Mataram Partners.
DFDL collaborates with Philippine law firm, Ocampo & Suralvo Law Offices for local legal advice.
DFDL in Singapore is qualified as a foreign law practice and is not licensed to practice Singapore law.
LOCAL PRESENCE
REGIONAL EXPERTISE
DFDL

Bangladesh Cambodia* Indonesia* Lao PDR Myanmar Philippines* ASEAN Desk Thailand Vietnam
. 9 countries
. 13 offices Yangon
Bangkok
Hanoi
Dhaka Phnom Penh Jakarta Vientiane Manila Singapore Phuket
Naypyidaw Samui Ho Chi Minh City

Banking, Finance and Technology

Compliance and Investigations

Corporate, Mergers and Acquisitions

. 7 Regional
Practice Employment and Labour

* DFDL collaborating firms

Groups
Energy, Mining and Infrastructure

Real Estate and Construction

Taxation and Accounting

. 4 Desks China Desk French Desk India Desk Japan Desk

KEY
CONTACTS
Dave Seibert Audray Souche
Martin Desautels Regional
Acting Head
Senior Partner
Regional Energy Practice Managing Partner
martin.desautels@dfdl.com
dave.seibert@dfdl.com audray.souche@dfdl.com

Shahwar Nizam Vinay Ahuja Kristy Newby Hanh Tran

Partner, Bangladesh Partner, Indonesia/Singapore Partner, Lao PDR Partner, Vietnam
shahwar.nizam@dfdl.com vinay.ahuja@dfdl.com kristy.newby@dfdl.com hanh.tran@dfdl.com

Nishant Choudhary Jude Ocampo Walanchathas Phong Anh Hoang

Partner, Myanmar Partner, Philippines Sanguanwong Partner, Vietnam
nishant.choudhary@dfdl.com Ocampo & Suralvo Law Offices Partner, Thailand phonganh.hoang@dfdl.com
(DFDL Affiliated firm) walanchathas@dfdl.com
jocampo@ocamposuralvo.com
ENERGY, MINING & INFRASTRUCTURE

DFDL’s Regional Energy, Mining and Infrastructure Practice Group

has an outstanding reputation in the development of major projects
in Southeast Asia and South Asia. DFDL has a wealth of experience in assisting clients with
cross-border mandates. They have extensive expertise
The depth of our international and local capabilities paired with
industry knowledge, enable the successful development and in hydropower project financing, as well as M&A.
financing of energy, mining and infrastructure projects for sponsors, Sources attest that “they definitely know their stuff.“
developers, lenders and investors.
(Chambers Asia Pacific)
Where necessary, we draw on the expertise of our firm’s other
market-leading practices to provide our clients with specialized
advice including:

▪ Concession-based projects (such as BOOT/BOO, PPP and other

governmental agreements)
▪ FSOs and FPSOs, including all shipping and handling issues, FSO
conversions and shipping finance
▪ Mine and port development
▪ Multilateral and ECA supported financings
▪ Major M&A transactions (including private equity investments)
▪ Oil and gas fields
▪ Pipelines and transmission lines
▪ Power generation projects, both thermal and non-thermal
generation, including integrated gas-to-power projects

5
LNG to gas to power – to what end?

What does the government want?

Issues:
Resource adequacy
We can’t provide a solution if we don’t first identify the issues. Base load portfolio
Transmission constraints
(Jim Leyland)
Intermittency (RE)
Reserve margin
Access to capital

A: Power on the wire.

6
Structure - LNG to gas to IPP to EVN

Vessel Co LNGC Co FSRU Co Infra Co IPP

LNG Carriers FSRU Port/mooring CCGT

/storage

PVN EVN
LEGEND
Gov entity
Asset
Sponsor
Contract
Ownership

7
 Structure - LNG to gas to IPP to EVN

Vessel Co LNGC Co FSRU Co Infra Co IPP

▪ Procures LNG supply ▪ Procures FSRU ▪ Generation

▪ Mooring / jetty /
▪ Procures LNGC ▪ Sells to PVN (to toll to ▪ Regas LNG ▪ Delivers
port lease
▪ Delivers to FSRU Co Infra Co) or sells to ▪ Allocates FSRU electricity to
▪ Delivers gas
Infra Co capacity EVN

W h y : F l e x i b i l i t y, s c a l a b l e , d i f f e r e n t e x p e r t i s e .
A l i g n m e n t o f i n t e r e s t s . R i s k m a n a g e m e n t t h r o u g h S P Vs .

8
Structure - LNG to gas to IPP to EVN (Structure A)
TCP BBC
Vessel Co LNGC Co FSRU Co Infra Co IPP

LNG Carriers Port/mooring CCGT

LNG SPA FSRU /storage

TUA PPA

GSA
PVN EVN
LEGEND
Gov entity
Asset
Sponsor
Contract
Ownership

9
Structure - LNG to gas to IPP to EVN (Structure A)
TCP BBC
Vessel Co LNGC Co FSRU Co Infra Co IPP

LNG Carriers Port/mooring CCGT

LNG SPA FSRU /storage

TUA PPA

GSA
PVN EVN
LEGEND
Gov entity
Asset
Sponsor
Quiz:
Contract C a n a n y o n e i d e n t i f y w h o t a ke s t h e m o s t r i s k h e r e ?
Ownership

10
Structure - LNG to gas to IPP to EVN (Structure A)
TCP BBC
Vessel Co LNGC Co FSRU Co Infra Co IPP

LNG Carriers Port/mooring CCGT

LNG SPA FSRU /storage

TUA PPA

GSA
PVN EVN
LEGEND
Gov entity
Asset
Sponsor
Answer: Constrained in the middle.
Contract
Ownership

11
Financing – how to get it?
… lender risk assessment
1. Participant
Risk

7. Political & 2. Completion

Legislative Risk Risk

Risks
3. Operating
6. Currency Risk Risk

5. Off-take Risk 4. Supply Risk

12
Financing – how to get it?
… lender risk assessment
1. Participant
Risk

7. Political & 2. Completion

Legislative Risk Risk

Risks
3. Operating
6. Currency Risk Risk

5. Off-take Risk 4. Supply Risk

13
Structure - LNG to gas to IPP to EVN (Structure A)
TCP BBC
Vessel Co LNGC Co FSRU Co Infra Co IPP

LNG Carriers Port/mooring CCGT

LNG SPA FSRU /storage

TUA PPA

GSA
PVN EVN
LEGEND
Gov entity
Asset
Sponsor
Contract
Ownership

14
Structure - LNG to gas to IPP to EVN (Structure B)
LNG SPA
TCP BBC TUA
Vessel Co LNGC Co FSRU Co Infra Co IPP

LNG Carriers Port/mooring CCGT

LNG SPA FSRU /storage

TUA PPA

PVN EVN
LEGEND
Gov entity
Asset
Sponsor
A d d a T U A . 2 L N G S PA s
Contract I P P i n c o n t r o l o f g a s s u p p l y.
Ownership
PVN still gets gas.
15
Structure - LNG to gas to IPP to EVN (Structure B)
LNG SPA
TCP BBC TUA
Vessel Co LNGC Co FSRU Co Infra Co IPP

LNG Carriers Port/mooring CCGT

LNG SPA FSRU /storage

TUA PPA

PVN EVN
LEGEND
Gov entity
Asset
Sponsor
Q u i z : We c r e a t e d a n e w r i s k . W h a t ?
Contract
Ownership

16
Structure - LNG to gas to IPP to EVN (Structure B)
LNG SPA
TCP BBC TUA
Vessel Co LNGC Co FSRU Co Infra Co IPP

LNG Carriers Port/mooring CCGT

LNG SPA FSRU /storage

TUA PPA

PVN EVN
LEGEND
Gov entity
Asset
Sponsor
Answer: Priority at FSRU. Now becomes a
Contract constrained asset.
Ownership
Also, we’ve privatized the gas supply and
associated risks. 17
Structure - LNG to gas to IPP to EVN (Structure C)
LNG SPA
TCP BBC GSA
Vessel Co LNGC Co FSRU Co Infra Co IPP

LNG Carriers Port/mooring CCGT

FSRU /storage

GSA PPA

PVN EVN
LEGEND
Gov entity
Asset
Sponsor
“J u s t b u y g a s . J u s t b u y p o w e r.” M o d e l .
Contract A l l p r i v a t e r i s k s u p t o t h e o f f - t a ke r i s k .
Ownership
P V N n o c o n t r o l o v e r s u p p l y.
18
Structure - LNG to gas to IPP to EVN (Structure C)
LNG SPA
TCP BBC GSA
Vessel Co LNGC Co FSRU Co Infra Co IPP

LNG Carriers Port/mooring CCGT

FSRU /storage

GSA PPA

PVN EVN
LEGEND
Gov entity
Asset
Sponsor
Quiz:
Contract W h y e l s e m i g h t P V N / E V N / g o v n o t l i ke t h i s ?
Ownership
W h y m i g h t f i n a n c e r s l i ke i t ?
19
Financing – how to get it?
Lender risk assessment
1. Participant
Risk

7. Political & 2. Completion

Legislative Risk Risk

Risks
3. Operating
6. Currency Risk Risk

5. Off-take Risk 4. Supply Risk

20
THANK YOU

Dave Seibert
Acting Head Regional Energy Practice
dave.seibert@dfdl.com
 EXCELLENCE · C R E AT I V I T Y · TRUST
Since 1994

BANGLADESH | CAMBODIA* | INDONESIA* | LAO PDR | MYANMAR | PHILIPPINES* | SINGAPORE | THAILAND | VIETNAM
‡ DFDL collaborating firms
22