Dialog unveils third phase of PDT project

PETALING JAYA: Dialog Group Bhd has launched the third phase of its Pengerang Deepwater Terminal (PDT) in Johor, involving about RM2.5bil worth of investment.

In a filing with Bursa Malaysia, Dialog announced that it had inked a memorandum of understanding (MoU) with the Johor state government and the state secretary, Johor (Inc) (SSI) for the project.

The MoU signing marked the launch of Phase 3 of the PDT project.

Dialog said that Phase 3 would span over 300 acres next to Phase 2 within the PDT.

The land reclamation for the 300 acres requires 22 months to complete, it added.

The PDT project is located next to Petroliam Nasional Bhd’s (Petronas) Refinery and Petrochemical Integrated Development (Rapid) project and is divided into three development phases.

Phase 1 involves building a tankage facility for the handling, storage, blending and distribution of oil.

This facility has already been up and running since 2015 with a 1.3 million-cubic meter capacity.

Dialog’s equity portion of Phase 1 of the PDT stands at 46%, with Royal Vopak owning 44%.

Vopak is the world’s largest independent tank storage company in terms of capacity, with a market capitalisation of some 5.31 billion euros (RM26.5bil).

For Phase 2 of the PDT, Dialog has a 25% equity in the vehicle that will undertake the project, with the other shareholders being Petronas (40%), Vopak (25%) and the Johor state (10%).

Meanwhile, the construction of PDT’s Phase 2 is ongoing, involving a larger storage capacity of 2.1 million cubic meters expected to be completed in early 2019.

Phase 3 will comprise common tankage facilities (including shared infrastructure) and dedicated deepwater marine facilities (Jetty 3) to be undertaken by Pengerang CTF Sdn Bhd.

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

“I hope with the launch of Phase 3, we would be able to attract another refinery and petrochemical complex (like Rapid), which will enable Pengerang to turn into a huge petroleum downstream manufacturing centre,” said Dialog’s executive chairman Tan Sri Ngau Boon Keat in the statement.

“This will, in turn, attract the Organisation of Economic Co-operation and Development 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,” he added.

The business activities will be undertaken by Pengerang CTF, in which the state government of Johor will own up to a 20% stake via its investment arm Permodalan Darul Ta’zim.

The remaining 80% will be held by Dialog through its wholly owned subsidiary, Dialog Terminals Sdn Bhd.

Dialog recently touched an all-time high of RM3.15 a share. Yesterday, its share price closed at RM2.99, having risen more than 19% on a year-to-date basis.