September 05, 2013 [Mysinchew] - AmResearch, which has maintained a 'buy' call on Dialog Group, believes the expansion of Pengerang Independent Deepwater Petroleum Terminal site acreage can result in higher gross development value (GDV) for the project, if the safety buffer zone is no longer needed.
As at end-August, 160ha had been reclaimed which were 80 per cent of the targeted 2200ha, it said.
“If the zone allocated between the Pengerang tank terminal and the residential is no longer needed due to the proximity of refinery and petrochemical integrated development (RAPID), we understand that the entire Pengerang tank terminal area could reach 280 ha (40 per cent larger),” it said in a research note today.
AmResearch said the entire 200ha Pengerang tank terminal development included a RM5 billion oil storage facility” and a RM4 billion liquefied natural gas regassification and storage facility.
“Hence, the site acreage expansion can result in higher GDV for the project,” it said.
