Dialog Group has launched Phase 3A of its Pengerang Deepwater Terminals development, comprising 430,000 m3 of clean petroleum products storage capacity.
Phase 3A, which is the first part of the terminal's Phase 3, is supported by a long-term storage agreement with BP Singapore and is due to complete in mid-2021.
The construction of common tankage facilities and deepwater marine facilities (jetty 3) is already underway.
This project marks the continued expansion of the terminal in Pengerang, Johor, where Phase 2 is currently being developed on 300 acres of land within Pengerang Deepwater Terminals with an indicative initial investment of RM2.5 billion.
Dialog says it is targeting medium to long-term customers, potentially comprising oil traders, multinational oil companies, refineries and petrochemical plants, which will support various downstream operations including the refinery and petrochemical plants within the Pengerang Integrated Petroleum Complex.
Menteri Besar of Johor YAB Dato' Sahruddin bin Haji Jamal says: 'The petroleum and petrochemical industry has emerged as the top foreign investment draw in Johor.
'The sector recorded the highest amount of FDIs last year at RM11.83 billion, with RM8.46 billion concentrated in the oil and gas industry in Pengerang. Investments in the Pengerang hub has resulted in the creation of thousands of high value jobs and will continue to do so with the ongoing long-term development of Pengerang Deepwater Terminals.
Dialog executive chairman Tan Sri Ngau Boon Keat adds: 'Pengerang Deepwater Terminal offers a compelling value proposition for the establishment of strategic hub operations to capture the growth in the Asia Pacific region, given its ideal location and one-stop integrated hub offering. With Phase 1 and Phase 2 of PDT already in operation, the entry into the long-term storage agreement with BP Singapore for Phase 3A of PDT is another significant milestone in this direction and is expected to catalyse the further development of PDT in the coming years.
'With approximately 500 acres reserved for future phases, the development of PDT into the largest oil, gas and petrochemical hub in the Asia Pacific region is well underway, and our vision for Pengerang to become the 'Rotterdam of the East' is becoming a reality.'
The terminal has been recognised as the largest oil and gas storage terminal in Malaysia, with a current storage capacity of three million m3 and is has also been recognised as the deepest jetty in the country.