The O&G service provider signed an LTSA with BP Singapore in December 2018 and despite the MCO, Phase 3A is completed in time
By LYDIA NATHAN / Pic TMR
DIALOG Group Bhd has officially opened and completed its Phase 3A of Pengerang Deepwater Terminals (PDT) development which received its first vessel on March 19, 2021.
In a statement yesterday, the oil and gas (O&G) service provider noted that it had signed a long-term storage agreement (LTSA) with BP Singapore Pte Ltd in December 2018 and despite the Movement Control Order (MCO), Phase 3A was completed in time.
The first parcel of the PDT’s Phase 3 consists of storage tanks with a capacity of 430,000 cu m for clean petroleum products, common tankage facilities, including shared infrastructure and deepwater marine facilities (Jetty 3).
Dialog executive chairman Tan Sri Dr Ngau Boon Keat (picture) said this marks the continued expansion of PDT in Pengerang, Johor, with a total initial investment of RM1.6 billion for Phase 3A.
He said from the time the group first signed a memorandum of understanding (MoU) with the Johor state government in 2009 to develop the PDT in stages, the project has grown from strength to strength.
“With the first two phases of the PDT already in operations and the opening of this new terminal, this is another significant milestone in this direction and is expected to catalyse further development of the PDTs in the coming years. So far, the total investments in Phases 1, 2 and 3 have exceeded RM13.5 billion,” he said.
Dialog has targeted medium-to long-term customers, potentially comprising oil traders, multinational oil companies, refineries and petrochemical plants, which will in turn support various downstream operations, including those of the refinery and petrochemical plants within the Pengerang Integrated Petroleum Complex.
Ngau said the group has reserved 500 acres (202.34ha) for Phase 3 and future phases, and believes the PDT has the potential to attract more businesses and talents.
“The PDT has the potential to attract more refining and petrochemical complexes, as well as downstream petrochemical manufacturing plants into Pengerang and I am confident it will evolve into a leading oil, gas and petrochemical hub in the Asia-Pacific region” Ngau said.
The opening ceremony was officiated by Johor Mentri Besar Datuk Hasni Mohammad, who also said the completion of this phase will attract and bring billions of ringgit worth of investments to the state.
“I believe the continued development of Phase 3 has the potential to spur increased trading activities, which could potentially bring multi-billion ringgit investments to Johor. Such continued investments to develop Pengerang will create more economic value, catalyse long-term economic activity and create high value, skilled jobs for both Johor and Malaysia,” he added.
Dialog’s shares closed five sen lower at RM3.06 yesterday.