May 17, 2011 [Borneo Post] - Dialog Group Bhd (Dialog) has entered into a development cum joint venture agreement with the Johor state government to start reclamation work for the construction of an independent deepwater petroleum terminal in Pengerang.
In a filing to Bursa Malaysia on Friday, the group said the independent deepwater petroleum terminal would serve as a springboard for other industries to be developed.
It is also in line with the Johor state government’s master plan expansion to develop Southeast Johor into a regional oil and gas hub.
The agreement signed via its wholly-owned subsidiary, Dialog Pengerang Sdn Bhd, would have a combined investment estimated at RM5 billion over a seven-year period.
“Dialog’s ownership of the terminal will result in an increase in its sources of sustainable and recurring income in the future.
“It will also synergise with Dialog’s investment in tankage facilities in Kertih, Terengganu and Tanjung Langsat, Johor,” it said.
Dialog added that the independent deepwater petroleum terminal would be developed on contiguous onshore and seabed land located between Tanjung Ayam and Tanjung Kapal, Pengerang, with a harbour port, jetty and other marine facilities.
With a water depth of up to 26 metres, it is capable of handling Ultra Large Crude Carriers, Very Large Crude Carriers and other vessels, with tankage facilities for handling, storage, processing and distribution of crude oil, petroleum, petrochemicals and chemical products in Tanjung Ayam and Tanjung Kapal
