KUALA LUMPUR: Dialog Group Bhd
has started construction of the storage terminal and jetty for phase three of the Pengerang Deepwater Terminals.
It said on Tuesday the construction included common tankage facilities, including shared infrastructure, and deepwater marine facilities.
Dialog also said in line with its development plans for Phase 3, Pengerang Terminals (Five) Sdn Bhd (PT5), an indirect unit, had signed a long term storage agreement (LTSA) with BP Singapore Pte Ltd (BPS).
It said that Dialog Terminals Sdn Bhd would hold 90% in PT5 and Permodalan Darul Ta’zim Sdn Bhd – a unit of the State Secretary, Johor (Incorporated) to hold 10%.
“PT5 will develop, construct and operate storage tanks with capacity of 430,000 m3 for clean petroleum products, and provide storage services in respect thereof to BPS as the term customer, with completion date expected in mid 2021,” it said.
Dialog said its unit Pengerang CTF Sdn Bhd would develop the common tankage facilities (including shared infrastructure) and jetty fpr the phase three.
Dialog would hold an 80% stake in Pengerang CTF and Permodalan Darul Ta’zim the remaining 20%.
Phase three of the Pengerang Deepwater Terminals would be designated for the development of more dedicated petroleum and petrochemical storage terminals for medium to long term customers.
“This will support various downstream operations including those of the refinery and petrochemical plants within the Pengerang Integrated Petroleum Complex.
“Phase three is being developed on approximately 300 acres of land that is currently being reclaimed within PDT, with an indicative initial investment cost of RM2.5bil.
“Land reclamation activities, which commenced in May 2018, is currently 62% complete and is on track for completion at the end of 2019,” it said.