Dialog Group has entered into an MoU with Johor state officials to invest RM2.5 billion into the third phase of its Pengerang Deepwater Terminal.
As part of the memorandum of understanding with the Johor state government and Johor State Secretary (JSS), the company will hold an indirect 80% stake in Pengerang CTF, which will be responsible for the works. The remaining 20% will be held by JSS-unit Permodalan Darul Ta’zim.
The third phase of the project will be built on a 300-acre parcel of land yet to be reclaimed next to phase 2. It will comprise common tankage facilities and deepwater marine facilities, development of more petroleum and petrochemical storage terminals for medium to long-term customers and the development of industrial land for further downstream oil and gas related activities. It is expected to take 22 months to complete.
Dialog Group executive chairman Tan Sri Dr Ngau Boon Keat is quoted by local media saying: ‘I hope with the launch of the third phase of the project, we will be able to attract another refinery and petrochemicals complex, which will enable Pengerang to turn into a huge petroleum downstream manufacturing centre.
‘This will in turn attract Organisation of Economic Cooperation and Development countries to use its storage facilities as a strategic oil reserve hub given its strategic location in the Asia-Pacific.’