November 21, 2013 [Concord Energy Pte Ltd.] - Dialog Group Berhad and Concord Energy Pte. Ltd. announced today that they have signed a Memorandum of Understanding (MOU) to conduct a feasibility study for a proposed development of a dedicated crude oil and petroleum product storage terminal in Pengerang, Johor.
The MOU was signed by Mustaffa Kamal Abu Bakar, Dialog’s Group Managing Director for Malaysia Business Operations and Nasrat Muzayyin, Concord Energy’s Managing Director in the presence of YAB Dato’ Seri Mohamed Khaled bin Nordin, Menteri Besar of Johor and Dr. Ngau Boon Keat, Executive Chairman of Dialog.
The feasibility study, which will take approximately a year to complete, looks into the proposed development that comes with a dedicated and exclusive storage capacity of up to 2 million cubic metres (m3) and deepwater jetty facilities to enable Very Large Crude Carriers access for Concord Energy. The proposed development will be completed in stages with an initial planned capacity for up to 1 million m3. It will be part of the Pengerang Deepwater Petroleum Terminal (PDPT) project in Pengerang. The PDPT project, which is an Entry Point Project under the Economic Transformation Programme (ETP), will be developed on 500 acres of land with a proposed storage capacity of 5 million m3 for petroleum and petrochemicals products.
Mustaffa Kamal said, “We are very pleased to partner Concord Energy in this venture as Concord Energy is one of the region’s leading energy trading companies with interests in refining and storage facilities that stretches from the Middle East to Asia. The signing of this MOU signifies confidence from investors in Pengerang becoming the regional hub for petroleum and petrochemical industry. We are confident that with all the support and commitment from our existing partners, Concord Energy and future investors, Pengerang can be transformed into the ‘Rotterdam of the East’ and make a mark in the global arena.”
According to Mr. Muzayyin, “Asia is a significant net importer of crude and petroleum product and this venture will be meeting future demand for storage capacity along the major trade flow routes in Asia. The facility will be a dedicated make bulk / break bulk crude and petroleum product storage terminal with associated blending facilities. We are extremely pleased to be working with Dialog on this venture. This partnership will leverage the proven skills and strength of Dialog as a developer and operator of terminals and ports with the trading and supply capability of Concord.”
“Ever since the first meeting with Dialog’s leadership team several years ago it has been my vision to be a part of the development in Pengerang and I am committed to participating in the transformation of Pengerang into a major oil trading and distribution hub,” said Mr. Muzayyin.
Currently, Phase 1 of the PDPT project which is owned by Pengerang Independent Terminals Sdn. Bhd. (PITSB), a joint venture between DIALOG, Royal Vopak and State Secretary, Johor (Incorporated), is at an advance stage of development. Phase 1 involves the construction of an initial storage capacity of approximately 1.3 million m³ together with six berths at a cost of RM2.0 billion. With the capability to handle the storage, blending and distribution of crude oil and petroleum products, Phase 1 is expected to be operational in 2014.
“The proposed investment with Concord Energy will complement the current and future development at PDPT,” concluded Mustaffa Kamal.
