Dialog LNG and Pengerang LNG have entered into a shareholders' agreement (SHA) with Petronas Gas Berhad (PGB) for the development of LNG regasification facilities in Malaysia.
The facilities will comprise of a regasification unit and two units of 200,000m3 LNG storage tanks with an initial send out capacity of 3.5 million tonnes per annum (MTPA) of natural gas at Pengerang, Southern Johor, Malaysia.
The total estimated project cost of the Pengerang LNG Project is approximately RM2.7 billion (€644.4 million). Pengerang LNG, a special purpose vehicle which is currently wholly owned by Dialog LNG, will undertake the Pengerang LNG Project. Pengerang LNG will be restructured whereby PGB will acquire 65% in the company with Dialog LNG to hold 25% and the State Secretary, Johor, to hold the remaining 10%.
The project is part of another development phase of the Pengerang Terminal at Pengerang, State of Johor where Dialog, through its other wholly owned subsidiary, Dialog Pengerang, has been granted the land rights and development rights by the State Government of Johor Darul Takzim and SSI, Johor under a development and joint venture agreement dated 13 May 2011. The project will be developed on reclaimed land located within the Pengerang Terminal where the land reclamation for the Pengerang LNG Project has been completed by Dialog.
The terminal is being developed on land located between Tanjung Ayam and Tanjung Kapal, Pengerang, State of Johor, with deepwater jetty facility with water depth of up to 24m capable of handling Very Large Crude Carriers. Upon completion, the Pengerang Terminal will be able to handle the bulk breaking and bulk-building activities for crude oil, petroleum products and LNG.
Phase 1 of the terminal, owned by Pengerang Independent Terminals, a joint venture between Dialog (46%), Koninklijke Vopak (44%) and SSI, Johor (10%), commenced operations in Q2 2014. Phase 1 involves the construction of an initial storage capacity of approximately 1.3 million m³ together with six deepwater berths at a cost of RM2 billion with the capability to handle the storage, blending and distribution of crude oil, petroleum, chemical and petrochemical feedstock, products and by-products.
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