April 09, 2018 [The Malaysian Reserve] - Dialog Group Bhd has entered into a memorandum of understanding (MoU) with the Johor state government and Johor State Secretary Inc (JSS) to invest RM2.5 billion in the third phase of the Pengerang Deepwater Terminals.
“I hope with the launch of the third phase of the project, we will be able to attract another refinery and petrochemicals complex, which will enable Pengerang to turn into a huge petroleum downstream manufacturing centre,” Dialog Group executive chairman Tan Sri Dr Ngau Boon Keat (picture) said in a statement yesterday.
“This will in turn attract Organisation of Economic Cooperation and Development countries to use its storage facilities as a strategic oil reserve hub given its strategic location in Asia Pacific — it is like a central bank of oil.”
Under the arrangement with the Johor authorities, Dialog will hold an indirect 80% stake in Pengerang CTF Sdn Bhd which is to undertake the works, while the JSS-unit Permodalan Darul Ta’zim Sdn Bhd will hold the remaining 20% interest in the joint-venture company.
This is aimed at supporting and promoting the petroleum and petrochemical storage, and handling tank terminal business to be constructed and carried out at the 300-acre (121.41ha) site, while the arrangement will further see the development of industrial land for the downstream oil and gas-related activities.
The third phase of the Pengerang Deepwater Terminals will be developed next to the second phase of the project.
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