LEGAL FRAMEWORK ON GAS BUSINESS (LPG – LNG – CNG) – LATEST STATUTORY CONDITIONS

Gas business (including liquefied petroleum gas – LPG, liquefied natural gas – LNG, compressed natural gas – CNG, and other industrial gases) is a conditional business line regulated under Decree No. 87/2018/NĐ-CP and relevant guiding instruments. Gas-related business activities cover a wide range of sectors, from production, distribution, and transportation to import–export and leasing of gas storage equipment. As a conditional business line, traders must comply with multiple legal requirements on safety, fire prevention and fighting, and must obtain all required licenses for their specific activities.

I. Common gas business activities

1. Gas production, processing, trading, filling and supplyThese include all activities related to: producing and processing gas for household and industrial needs; trading and supplying gas under contracts with distributors, agents, or end-users; filling gas into cylinders/bottles, tanks, or other compliant equipment; and supplying gas to consumption systems at factories, manufacturing facilities, industrial parks, and other gas-using sites.

2. Gas transportationThis includes: delivery and transportation of gas by road, inland waterway, or pipeline; and the use of specialized transport vehicles such as LPG tank trucks, LNG container trucks, tube-trailers, etc.This stage requires very high safety standards and strict compliance with regulations on fire prevention and fighting, technical safety, and vehicle inspection/registration.

3. Gas import and exportEnterprises are permitted to: import LPG, LNG, CNG, as well as gas cylinders or storage tanks; and export gas to foreign markets under commercial contracts.Such activities must satisfy conditions regarding storage facilities, transport means, and international sales and purchase contracts.

4. Leasing of gas storage equipment and facilitiesThis includes: leasing tanks, cylinders, LPG bottles; leasing gas warehouses or other specialized equipment used for gas filling and supply.Leasing activities must ensure safety standards, inspection requirements, and periodic maintenance in accordance with law.

Legal framework on gas business (LPG – LNG – CNG) – Latest statutory conditions

II. Key licenses for gas business

Gas business (LPG, LNG, CNG) is a conditional business line and must meet stringent requirements on safety, fire prevention and fighting, and standards for equipment, facilities, and storage systems. Enterprises participating in this sector must obtain relevant certificates of eligibility corresponding to each activity as prescribed under Decree No. 87/2018/NĐ-CP.

Below are the main licenses and activity-specific certificates required:

1. General licenses for gas business activities

1.1 Certificate of Eligibility for LPG/LNG/CNG importers and exportersIssued to enterprises conducting import and export of gas products. This is a mandatory condition for enterprises wishing to participate in the international gas market.

1.2 Certificate of Eligibility for LPG/LNG/CNG tradersIssued to enterprises engaged in domestic trading and distribution of gas. This is the most common license for distributors, general agents, and retail gas dealers.

2. Activity-specific certificates

Depending on the business model, enterprises must apply for the following corresponding certificates:

2.1 Certificate of Eligibility for bottled LPG retail storesApplicable to bottled LPG retail outlets serving households and civilian/commercial consumers. Strict requirements apply to fire prevention and fighting, safe distances, display arrangements, and storage of LPG cylinders.

2.2 Certificate of Eligibility for LPG cylinder manufacturing or repairApplicable to units manufacturing, fabricating, repairing, or inspecting LPG cylinders. Requirements on machinery, technology, and qualified technical personnel are highly stringent.

2.3 Certificate of Eligibility for mini LPG cylinder productionApplicable to enterprises producing mini LPG cylinders for household and commercial purposes. Compliance with technical standards on packaging, cylinder shells, and safety procedures is mandatory.

2.4 Certificate of Eligibility for LPG bottling stations (filling LPG into cylinders)Applicable to stations filling LPG into cylinders for market circulation. Detailed regulations apply to filling equipment, storage tanks, safe distances, and fire prevention and fighting systems.

2.5 Certificate of Eligibility for LPG filling stations for tank trucksApplicable to stations filling LPG into tank trucks for transportation to agents or gas supply stations. This model requires the most stringent technical and safety standards in the LPG sector.

2.6 Certificate of Eligibility for LPG/LNG/CNG filling stations for vehiclesIssued to stations supplying gas to transport vehicles such as trucks, buses, or specialized gas-powered vehicles. Regulations cover filling technology, metering equipment, operational safety, and periodic maintenance.

Depending on the specific business activities, an enterprise may need one or multiple licenses. Correctly identifying the required certificates helps enterprises: comply fully with legal regulations; avoid penalties or suspension; and operate gas business safely and sustainably.

Gas business (LPG – LNG – CNG) is a sector that requires strict compliance with a comprehensive legal framework, from technical conditions, fire safety requirements, and standards for storage facilities, tanks, and transport means, to activity-specific eligibility certificates. Properly establishing the business model and obtaining all necessary licenses not only ensures safe operation and minimizes sanction risks, but also provides a solid legal foundation for long-term development.

With a team of lawyers and Industry-and-Trade legal experts with many years of experience, Vietlink Law Firm is proud to be a specialized advisory unit, accompanying enterprises throughout all legal processes related to gas business.

We provide comprehensive, synchronized, and secure legal services, including:

• advising on gas business models suitable to the enterprise’s scale;

• obtaining eligibility certificates under Decree No. 87/2018/NĐ-CP;

• reviewing compliance conditions for storage facilities, filling stations, and transport means;

• supporting the establishment of safety, fire prevention and fighting, and environmental management systems;

• representing clients before competent state authorities and handling arising legal issues;

• providing ongoing legal retainer services in the gas and Industry-and-Trade sectors.

Vietlink Law Firm is committed to delivering complete, accurate, timely, and fully compliant legal solutions, enabling enterprises to confidently implement gas business operations safely and effectively.

Should your enterprise require deeper analysis on business models, dossiers, costs, and licensing procedures, Vietlink’s lawyers and experts are always ready to support you. We would be honored to accompany your enterprise in its sustainable development.

Vietlink Law Firm – A trusted legal companion for businesses.

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