KUALA LUMPUR: Dialog Group Bhd
has secured an engineering, procurement and construction (EPC) contract with an estimated value of about RM1bil from Pengerang Terminals (Two) Sdn Bhd (PT2SB) for the construction of biofuel storage and handling facilities at the Pengerang Integrated Complex (PIC).
In a filing with Bursa Malaysia, the group said the contract was awarded to its wholly owned subsidiary, Dialog E&C Sdn Bhd (DECSB), which signed the EPC agreement and an alliance agreement with PT2SB.
PT2SB owns and operates the deep-water terminal serving the Pengerang Integrated Complex (PIC). Its shareholders are Dialog Equity (Two) Sdn Bhd, a wholly owned subsidiary of Dialog Group, with a 25% stake; PRPC Utilities and Facilities Sdn Bhd, a subsidiary of Petroliam Nasional Bhd (Petronas), with 40%; Vopak Terminal Pengerang BV, a unit of Royal Vopak, with 25%; and Johor state-owned Permodalan Darul Ta’zim Sdn Bhd with 10%.
PT2SB is expanding and developing a storage capacity of about 272,000 cbm, which is dedicated to Pengerang Biorefinery Sdn. Bhd. with a 25-year long-term take-or-pay terminal usage agreement.
“The project is expected to be completed by December 2027. The estimated value of the EPC contract is approximately RM1bil,” Dialog said.
The EPC scope covers the design, procurement and construction of tanks for biofeedstocks and biofuel products, along with associated infrastructure works.
“Dialog, being the main contractor for PT2SB’s existing facilities, brings synergistic benefits from its EPCC experience at PT2SB’s site and in-depth knowledge of Pengerang Deepwater Terminals where PT2SB is situated.
“The group will continue to leverage its technical expertise to deliver high-value services. The provision of technical services to support the energy sector is expected to increase opportunities for synergies within Dialog Group. This will position Dialog to capture emerging opportunities, support the Group’s downstream strategy, and contribute to long-term business sustainability,” it said.
Dialog said the contract is expected to contribute positively to its earnings and net assets from the financial year ending June 30, 2026, until the project’s completion.
