DIALOG Group Berhad (“DIALOG”) is pleased to announce that Phase 1A of Pengerang Terminal in Pengerang, Johor, southeastern Peninsular Malaysia has been successfully completed and has commenced operations. Pengerang Terminal received its first shipment from a reputable international oil trader on 12 April 2014.
Phase 1A consisting of 25 tanks of various capacities with a total storage capacity of 432,000 cubic metres (“cbm”) is ready to serve various clean petroleum products customers.
With the completion of Phase 1A, Phase 1 of Pengerang Terminal is progressing well with the construction of the other phases on schedule for completion by end of 2014. Phase 1’s development covers 150 acres of reclaimed sea-bed land with initial storage capacity of approximately 1.3 million cbm for together with six berths, at a cost of RM2.0 billion.
This Phase 1, an independent petroleum and crude storage facility, is being undertaken by DIALOG’s joint venture company, Pengerang Independent Terminals Sdn Bhd (“PITSB”). PITSB is a 90:10 joint venture company between Pengerang Terminals Sdn Bhd (“PTSB”) and State Secretary, Johor (Incorporated) (“SSI”).
Dialog Pengerang Sdn Bhd, wholly owned subsidiary of DIALOG and Vopak Terminal Pengerang BV holds 51% and 49% equity stake respectively in PTSB.
The Pengerang Terminal, an Entry Point Project under the Economic Transformation Programme ("ETP"), is a terminal development on 500 acres of reclaimed sea-bed land with proposed storage capacity of 5 million cbm.
Strategically located at one of the world’s busiest shipping lanes with close proximity to the regional trading hub in Singapore, the RM5.0 billion Pengerang Terminal project is built with deepwater jetty facilities, 24 metres deep, enabling it to handle very large crude carriers (VLCCs). The entire development may take another 10-15 years to be fully complete and will create huge impact to local communities through creation of many economic activities as it will also complement the RAPID project that was recently confirmed by PETRONAS.
The Pengerang region is located at the southeastern tip of Johor state, southeastern Peninsular Malaysia close to international shipping routes and Singapore’s international petroleum hub. The Pengerang Terminal will be DIALOG’s third terminal and will synergise with DIALOG’s investment in tankage facilities in Kertih, Terengganu in eastern Peninsular Malaysia and Tanjung Langsat, Johor, in southern Peninsular Malaysia.
The development of Pengerang Terminal is part of DIALOG’s business strategy to own terminals and tankage facilities which will result in an increase in its sources of sustainable and recurring income.
This announcement is dated 14 April 2014.
