OSK Research said in a report that despite the positive news, it was not tweaking its FY13-FY14 forecasts for the oil and gas player as the management had yet to finalise its investment decision on the cost of the project, customers to be secured and financing.

“We will find out more about this investment from its management and update investors later on with further details,” it said in a note to clients.

It was reported yesterday that a consortium of companies led by Dialog, the Netherlands-based Royal Vopak and the Johor government will expand investments in Pengerang to include the Pengerang Liquefied Natural Gas (LNG) Terminal project costing RM4.08bil.

The Dialog-Royal Vopak joint venture holds 90% stake in the independent deepwater petroleum terminal while the balance 10% is held by the Johor government, according to the reports.

AmResearch, in its note, also said it was maintaining its FY12F-FY14F net profits for Dialog, with the expectation of further positive news flow.

The group was reaching “key milestones” in its Balai marginal field development, which is on track in its progress for the Pengerang Phase 1 terminal tank project as well as the potential announcement of a significant enhanced oil recovery project with Halliburton, it said.

OSK said that based on estimates, Dialog would need to fork out about RM1.9bilRM2.1bil for the Pengerang Terminal project.

The terminal is an LNG storage, loading and regasification facility to import LNG for trading purposes and for domestic use.

Phase 1 consists of an independent terminal with two tanks and Phase 2 is a dedicated terminal with two tanks. All tanks will have a 360,000 cu m storage capacity with regasification facilities.