Dialog to develop Phase 3 of Pengerang deepwater terminal

PETALING JAYA: Dialog Group Bhd is partnering with the Johor government for the development of the third phase of the Pengerang deepwater terminal in Johor at an indicative initial cost of investment of RM2.5 billion.
Dialog told Bursa Malaysia that its wholly owned subsidiary Dialog Pengerang Sdn Bhd had entered into a memorandum of understanding (MoU) with the Johor state government and the State Secretary, Johor (Incorporated).
Phase 3 will be developed on about 300 acres of land next to Phase 2, which is expected to be completed in early 2019.
The terminal consists of common tankage facilities/dedicated deepwater marine facilities, petroleum/petrochemicals storage terminals and development of industrial land for further downstream oil and gas related activities.
The business activities will be undertaken by Dialog’s indirect wholly owned subsidiary Pengerang CTF Sdn Bhd (PCTF), in which the Johor government will own up to a 20% stake via its investment arm Permodalan Darul Ta’zim.
Dialog will use both internally generated funds and borrowings to finance its investment in PCTF.
Concurrently with the MoU, Dialog’s another wholly owned subsidiary Dialog E & C Sdn Bhd has appointed Penta-Ocean (Malaysia) Sdn Bhd for the engineering, procurement and construction works for the reclamation, soil improvement and shore protection works. The land reclamation requires 22 months to complete.
Dialog shares rose half a sen or 1.7% to close at RM2.99 today on some 10.6 million shares done.