The signing agreements signifies DIALOG’s confidence in developing Pengerang into a major downstream oil and gas hub in the region
DIALOG Group Berhad via its wholly owned subsidiary DIALOG Pengerang Sdn Bhd, the Johor State Government and the State Secretary, Johor (Incorporated) (SSI), entered into a Memorandum of Understanding (MoU), marking the launch of Pengerang Deepwater Terminals Phase 3.
Witnessing the signing ceremony was Menteri Besar of Johor, Datuk Seri Mohamed Khaled Nordin. Also present were Tan Sri Dr. Ngau Boon Keat, Executive Chairman of DIALOG Group Berhad; YB Dato’ Hj Azmi Rohani, Johor State Secretary; Hj Ramlee A. Rahman, Deputy State Secretary of Johor (Development) and YB Dato’ Ismail Karim, Member of Johor Royal Committee.
Phase 3 will be developed on approximately 300 acres of land next to Phase 2 within the Pengerang Deepwater Terminals and comprises of common tankage facilities (including shared infrastructure) and dedicated deepwater marine facilities (“Jetty 3”) undertaken by Pengerang CTF Sdn Bhd (“PCTF”) and the development of more petroleum and petrochemicals storage terminals for medium and long term customers. These storage terminals will be integrated and supported by PCTF’s owned common tankage facilities (including shared infrastructure) and deepwater marine facilities (“Jetty 3”); and the development of industrial land for further downstream oil and gas related activities.
The indicative initial cost of investment in Pengerang Deepwater Terminals Phase 3 is approximately RM2.5 billion.
“I hope with the launch of Phase 3, we will be able to attract another refinery and petrochemicals complex (like RAPID) which will enable Pengerang to turn into a huge petroleum downstream manufacturing centre,” said Tan Sri Dr Ngau Boon Keat.
He added, “This will in turn attract Organisation of Economic Co-operation and Development (OECD) countries to use its storage facilities as a strategic oil reserve hub given its strategic location in Asia Pacific – it is like a Central Bank of Oil.”
Under the MoU, the parties will build, own and operate common tankage facilities (including shared infrastructure) and dedicated deepwater marine facilities (“Jetty 3”) to support and promote the petroleum and petrochemicals storage and handling tank terminals business. The business activities will be undertaken by Pengerang CTF Sdn Bhd which the State Government of Johor will own up to 20% stake, via its investment arm Permodalan Darul Ta’zim.
Concurrently with the MoU, DIALOG E & C Sdn Bhd, another wholly owned subsidiary of DIALOG’s, awarded a Letter of Award to Penta-Ocean (Malaysia) Sdn Bhd for the engineering, procurement and construction works for the reclamation, soil improvement and shore protection works.
The land reclamation requires 22 months to complete.
Pengerang Deepwater Terminals has the potential to be the downstream oil and gas hub in the region and its development synergises with DIALOG’s investments in tankage facilities in Kertih, Terengganu, and Tanjung Langsat in Johor.