GAIL to construct a breakwater at the Dabhol LNG Terminal to convert it into an all-weather port

GAIL (India) Limited is likely to construct a breakwater at the Dabhol LNG terminal to convert it into an all-weather port. The contract for the breakwater facility is likely to be awarded soon and the facility is expected to be operational by 2019. Currently, the LNG terminal cannot operate for about four months (from June to September) since the sea poses a risk to ships. With the breakwater facility, the terminal is expected to run at its full capacity. The demerger of Ratnagiri Gas and Power Private Limited is currently under way. The LNG terminal will be delinked from the power project, to make the project more viable financially. GAIL and NTPC hold a 25.1 per cent stake each in the terminal, while the Maharashtra government owns 13.51 per cent and lenders have a 35.47 per cent stake. Post the demerger, GAIL will be a majority stakeholder in the terminal, while NTPC will run the 500 MW power project. The demerger of the power plant and the LNG regasification unit has been delayed since the lenders such as the Power Finance Corporation and the Life Insurance Corporation of India have put forth certain conditions.

 

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