KUALA LUMPUR: Dialog Group Bhd
has announced the expansion of Phase 3 at its Pengerang Deepwater Terminals (PDT) in Johor, Malaysia, following the signing of a conditional long-term service agreement (LTSA) with BP Singapore Pte Limited.
In a filing with Bursa Malaysia, Dialog said the agreement was signed between Dialog Terminals Pengerang (5) Sdn Bhd (DTP5), Dialog Terminals Sdn Bhd (DTSB) and BP Singapore.
Dialog said the expansion will add 614,000 cubic meters of tank capacity for refined petroleum products and biofuels, with BP Singapore as the dedicated long-term customer.
The project is expected to be completed by mid-2028, bringing PDT’s total storage capacity to approximately one million cubic meters across 48 tanks.
Dialog said the expansion is part of its ongoing efforts to develop the PDT into the largest petroleum and petrochemical hub in the Asia-Pacific region.
“Phase 3 PDT comprises common tankage facilities including shared infrastructure and dedicated deepwater marine facilities and the development of additional petroleum and petrochemicals storage terminals for multiple medium to long-term customers, including oil traders, multinational oil companies, refineries, and petrochemical plants,” it added.
The agreement follows the successful launch of Phase 3 PDT in 2018, which began with a 430,000 cubic meter storage capacity.
“Upon completion of the current expansion of Phase 3 PDT, PDT’s total storage capacity will increase to approximately one million cubic meters across 48 tanks, effectively more than doubling its existing capacity of 430,000 cubic meters.
“In parallel, the addition of five new operational berths will enhance marine handling capacity,” it said.
Dialog said the expansion of Phase 3 PDT will further increase long-term recurring income and unlock further opportunities for its engineering, construction, fabrication, and plant maintenance divisions.
“It is envisaged that Dialog will use both internally generated funds and borrowings to finance this expansion of Phase 3 PDT,” it said.
