What’s new in decree No. 87/2018/ND-CP on gas business?

Decree No. 87/2018/ND-CP (“Decree 87”) on Gas Business will officially come into effect from 1 August 2018 and replace Decree No. 19/2016/ND-CP (“Decree 19”). In comparison with Decree 19, Decree 87 has some outstanding changes as follows:

Firstly, Decree 87 abrogated some business requirements regarding the total minimal volume of LPG, LNG and CNG containers required of gas importing and exporting traders. Secondly, if under Decree 19 traders having no gas containers must lease the same for one year at least from other gas traders as a compulsory condition, traders must hire at least one (01) year under the contract as a compulsory requirement, then under Decree 87, this requirement is abrogated.

In addition to such abrogation, Decree 87 adds further provisions that businesses importing and exporting gas traders must fully meet conditions on fire prevention and fighting. With respect to traders producing and processing gas, Decree 87 supplements requirements that production lines, machines and equipment must be inspected in accordance with regulations and traders must meet fire prevention and fighting requirements as prescribed by the law.

Moreover, if previously Decree 19 stipulates that only focal gas traders are permitted to carry out gas blending at the production or processing facilities or gas storage of focal gas traders, then in Decree 87, those allowed to carry out gas blending and processing are widely expanded. In consequence, traders producing and processing gas and traders importing and exporting gas are  permitted to carry out gas blending at the production or processing facilities or gas storage of the traders.