KUALA LUMPUR: Dialog Group Bhd
's 25%-indirectly owned joint venture company, Pengerang Terminals (Two) Sdn Bhd (PT2SB) has entered into a terminal usage agreement with Pengerang Biorefinery Sdn Bhd (PBSB).
In a filing with Bursa Malaysia, Dialog said the agreement paves the way for PT2SB to provide storage and handling facilities for PBSB's feedstocks and products.
"Under the expansion project, PT2SB will expand and develop a storage capacity of about 272,000 cbm which is dedicated to PBSB at a total investment of approximately US$330mil including costs associated with shared facilities at the terminal.
"The expansion project is supported by a 25-year long-term take-or-pay terminal usage agreement and will benefit from efficiencies of current capacity and infrastructure of PT2SB," it said.
The biorefinery of PBSB will have the capability to process about 650,000 tonnes per year of raw material to produce Sustainable Aviation Fuel (SAF) and other biofuels such as renewable diesel/ hydrogenated vegetable oil (HVO) to cater to the growing demands of the global aviation and transport industries.
PT2SB owns and operates a dedicated deep-water terminal serving Pengerang Integrated Complex (PIC). The shareholders of the JV are Dialog subsidiary Dialog Equity (Two) Sdn Bhd (25%), PETRONAS subsidiary PRPC Utilities and Facilities Sdn Bhd (40%), Royal Vopak subsidiary Vopak Terminal Pengerang BV (25%) and Johor state-owned Permodalan Darul Ta'zim Sdn. Bhd (10%).
