July 29, 2024 [KLSE Screener]- Dialog Group Bhd has announced that its subsidiary it will be expanding its storage facilities for an additional 150,000 m3 storage for renewable and petroleum products at its terminal in Tanjung Langsat, Johor.
In a filing with Bursa Malaysia, the group said the first 100,000m3 is dedicated to EcoCeres Limited, a subsidiary of EcoCeres Inc and the remaining 50,000m3 is expected to be leased to third party customers such as multinational companies and trading houses.
The expansion is expected to be completed in the first quarter of FY27.
According to the filing, the group’s unit Dialog Terminals Langsat (3) Sdn Bhd secured a take-or-pay storage agreement with EcoCeres Limited for the dedicated 100,000 m3 of storage which serves as a catalyst for the expansion of DTL3 terminal.
This comes following EcoCeres’ announcement of a significant investment in a new production facility in Pasir Gudang, Johor.
Dialog said the development is in response to growing investor interest in low-carbon fuel alternatives.
“Dialog will remain focused and steadfast in the pursuit of diversification across the upstream, midstream and downstream energy sector as well as the sustainable and renewable sector to strategically position the Group to weather different economic and oil price cycles, which is in line with the group’s strategy of generating long term recurring income,” it said.
