GAIL India has agreed to extend financial support to Ratnagiri Gas and Power for building a breakwater, which could allow it to run the LNG terminal throughout the year. This may allow the company to award the contract for the much-delayed project, earlier called Dabhol power project, in which GAIL India holds 25.51% stake. A breakwater is an offshore structure that breaks the intensity of waves and helps the terminal operate all-year round. It takes about three years to build.
"We have invited bids for the breakwater for Dabhol LNG terminal. We hope to award it by October. We have decided that if needed, GAIL India would extend financial support to the project," GAIL India chairman BC Tripathi said.
At present, the LNG terminal cannot operate for almost five months between June and September because the lack of a breakwater structure puts the ships at risk from choppy sea during monsoon. India aims to more than double its LNG import terminal capacity in six years to cater to growing demand from refineries, fertiliser and power plants.