PETALING JAYA: Dialog Group Bhd has launched Phase 3A of its 1,200-acre Pengerang Deepwater Terminals (PDT) development.
This comes after its entry into a long-term storage agreement (LTSA) with BP Singapore Pte Ltd, which will see the construction of storage tanks and the provision of storage and handling services to BP by Dialog in Phase 3A.
“This will consist of storage tanks with a capacity of 430,000 cubic metres for clean petroleum products, and is set to complete in mid‐2021,” Dialog said in a filing with Bursa Malaysia.
Phase 3A is the first parcel of PDT’s Phase 3, where the construction of common tankage facilities (including shared infrastructure) and deepwater marine facilities (Jetty 3) are already underway.
The launch of Phase 3A was officiated by the Johor Menteri Besar Datuk Dr. Sahruddin Haji Jamal.
Dialog noted that the continued expansion of PDT in Pengerang, Johor, where Phase 3 is currently being developed on about 300 acres of land within PDT with an indicative initial investment cost of RM2.5 billion.
It is targeting medium- to long-term customers, potentially comprising oil traders, multinational oil companies, refineries and petrochemical plants, which will in turn, support various downstream operations including those of the refinery and petrochemical plants within the Pengerang Integrated Petroleum Complex.
“The petroleum and petrochemical industry has emerged as the top foreign investment draw in Johor. The sector recorded the highest amount of foreign direct investments last year at RM11.83 billion, with RM8.46 billion concentrated in the oil and gas industry in Pengerang,” said Sahruddin.
Meanwhile, Dialog executive chairman Tan Sri Ngau Boon Keat highlighted that with about 500 acres reserved for future phases, the development of PDT into the largest oil, gas and petrochemical hub in the Asia Pacific region is well underway.
At the midday break, Dialog’s share price gained 2 sen to RM3.41 on 2.41 million shares done.
