Dialog Group, Johor launch RM2.5b phase 3 of Pengerang Deepwater Terminals

CIMB Equities Research expects Dialog Group Bhd to deliver strong earnings growth from next year onwards.

KUALA LUMPUR: Dialog Group Bhd and the Johor government have inked an MoU to develop phase three of the  Pengerang Deepwater Terminals which will have an indicative initial cost of investment of about RM2.5bil.

Dialog's unit Dialog Pengerang Sdn Bhd, the State Government of Johor Darul Ta’zim and, the State Secretary, Johor (Incorporated) (SSI) had on Thursday inked the MoU to mark the launch of the project.

Phase 3 will be developed on about 300 acres  next to Phase 2 within the Pengerang Deepwater Terminals.

Under the MoU, the main components for phase three are common tankage facilities (including shared infrastructure) and dedicated deepwater marine facilities (jetty three) to be undertaken by Pengerang CTF Sdn Bhd (PCTF).

They will build more petroleum and petrochemicals storage terminals for medium and long term customers. These storage terminals will be integrated and supported by PCTF’s owned common tankage facilities and deepwater marine facilities.

They will also develop industrial land for further downstream oil and gas related activities.

Among those who witnessed the signing ceremony were the Menteri Besar of Johor,  Datuk Mohamed Khaled Nordin, Dialog Group executive chairman Tan Sri Ngau Boon Keat; Johor State Secretary Datuk Azmi Rohani,  deputy state secretary of  Johor (development) Ramlee A. Rahman, and member of the Johor royal committee Datuk Ismail Karim.

“I hope with the launch of Phase 3, we will be able to attract another refinery and petrochemicals complex (like RAPID) which will enable Pengerang to turn into a huge petroleum downstream manufacturing centre,” said Ngau Boon Keat.

He said this would  in turn attract Organisation of Economic Co-operation and Development (OECD) countries to use its storage facilities as a strategic oil reserve hub given its strategic location in Asia Pacific – it is like a Central Bank of Oil.

Under the MoU the parties will build, own and operate common tankage facilities (including shared infrastructure) and dedicated deepwater marine facilities (jetty 3) to support and promote the petroleum and petrochemicals storage and handling tank terminals business.

The business activities will be undertaken by Pengerang CTF Sdn Bhd which the State Government of Johor will own up to 20% stake, via its investment arm Permodalan Darul Ta’zim.

Meanwhile, Dialog's unit Dialog E & C Sdn Bhd had on Thursday appointed Penta-Ocean (Malaysia) Sdn Bhd for the engineering, procurement and construction for the reclamation, soil improvement and shore protections. The reclamation will take 22 months to complete.