Dialog units sign accord on Pengerang LNG project

  • Business
  • Saturday, 15 Nov 2014

KUALA LUMPUR: Dialog Group Bhd’s wholly-owned subsidiaries, Dialog LNG Sdn Bhd and Pengerang LNG (Two) Sdn Bhd (PLNG-2), have entered into a shareholders’ agreement with Petronas Gas Bhd for the development of liquefied natural gas (LNG) regasification facilities at Pengerang, southern Johor.

The total estimated project cost of the Pengerang LNG project was about RM2.7bil, Dialog Group said in filing with Bursa Malaysia.

The project comprised a regasification unit and two 200,000 cu m LNG storage tanks with an initial send-out capacity of 3.5 million tonnes per year, equivalent to about 490 million standard cu ft per day of natural gas, Bernama reported.

The agreement will pave the way for Dialog Group, Petronas Gas and State Secretary, Johor Inc (SSI Johor) to be strategic partners in the equity ownership and development of the Pengerang LNG project.

Following the agreement, Petronas Gas will own 65% in PLNG-2, Dialog LNG will hold 25% and SSI Johor will hold the remaining 10%.

PLNG-2 is a special-purpose vehicle that will undertake the Pengerang LNG project.

Meanwhile, Petronas Gas said in a separate statement that it had secured a US$486.66mil (about RM1.5bil) contract for works at the Regasification Terminal (RGT) project in Pengerang.

Petronas Gas said the contract was for engineering, procurement, construction and commissioning with Samsung C and T Corp.

It added that the contract was in consortium with Whessoe Engineering Ltd, Science-Tech Solutions Sdn Bhd and Samsung C and T (KL) Sdn Bhd.

“The RGT project will comprise a regasification terminal which will function to receive and store liquefied natural gas (LNG) unloaded from LNG carriers into two storage tanks.

“It will subsequently be converted into a gaseous form through a regasification process,” said Petronas Gas.

It said the RGT project was expected to become operational by the fourth quarter of 2017. — Bernama

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