Dialog says deepwater petroleum terminal to contribute to bottomline by Q3 2011
November 25, 2010 [Star Publications] - Oil and gas service provider Dialog Group Bhd expects to clear the Department of Environment's (DOE) Environmental Impact Assessment (EIA) by February next year for its RM5bil deepwater petroleum terminal in Pengerang, Johor.
Dialog executive chairman Ngau Boon Keat said there was now more clarity on the timelines for the EIA report.
In September, Ngau told StarBiz on the sidelines of the Economic Transformation Programme (ETP) open day that all the necessary approvals for the project, including from the DOE, would be secured by the end of this year.
Speaking to reporters after the company AGM yesterday, Ngau said that once the approvals were secured, work on the Pengerang project, which has been identified as an entry point project under the National Key Economic Area, would start. He also said the project would begin contributing to Dialog’s bottomline by the third quarter of 2011.
The independent deepwater storage terminal for oil products in Pengerang will be undertaken by Dialog and its partner, Vopak Asia Pte Ltd, via a 51:49 joint venture.
The joint-venture company, Dialog Vopak JV, owns 90% of the project, with the Johor government holding the balance 10% stake.
The project is divided into three phases. Should all approvals be obtained, we can start work next year and complete Phase 1 by 2013. The subsequent phases will take two years each, Ngau said.
Ngau said the multiplier effect of the Pengerang project was tremendous and not only confined to Dialog but to the entire economy.
Under the ETP roadmap, the Pengerang project is expected to generate RM1.6bil gross national income by 2020. The storage facility is aimed at making Malaysia a regional oil storage hub. Its proximity to Singapore, where land is scarce and expensive, could lure customers.
In a September report, CIMB estimated that the pre-tax contribution from Pengerang could be at least RM30mil per annum.
The Pengerang project will create huge economic activity for everyone in every sector. More importantly, it will create jobs for our grandchildren in the future, said Ngau.
On the progress of Dialog’s proposed RM100mil integrated offshore supply base in Jubail Commercial Port in Saudi Arabia, construction is expected to start next year. The project is expected to start contributing to the group in 2011.
For the first quarter ended Sept 30, 2010, Dialog’s net profit rose 22.87% to RM33.09mil on revenue of RM263.8mil.
