Pengerang Terminals provides storage for biorefinery

Under the expansion project, PT2SB will expand and develop a storage capacity of about 272 000 m3 which is dedicated to PBSB at a total investment of approximately USD 330 million including costs associated with shared facilities at the terminal. The expansion project is supported by a 25-year long-term take-or-pay TUA and will benefit from efficiencies of current capacity and infrastructure of PT2SB.

PT2SB owns and operates a dedicated deep-water terminal serving Pengerang Integrated Complex (PIC). The shareholders of PT2SB are Dialog Equity (Two) Sdn. Bhd. (subsidiary of DIALOG) (25%), PRPC Utilities and Facilities Sdn. Bhd. (subsidiary of Petroliam Nasional Berhad (PETRONAS)) (40%), Vopak Terminal Pengerang BV (subsidiary of Royal Vopak) (25%) and Permodalan Darul Ta'zim Sdn. Bhd. (a Johor State owned company) (10%). Whereas PBSB is a joint venture between PETRONAS Mobility Lestari Sdn. Bhd. (a subsidiary of PETRONAS) (42.5%), Enilive S.p.A (a company directly controlled by Eni S.p.A.) (Eni) (42.5%), and Euglena Sustainable Investment Limited (a subsidiary of Euglena Co. Ltd) (Euglena) (15%).

The biorefinery of PBSB will have the capability to process approximately 650 000 tpy of raw material to produce sustainable aviation fuel (SAF) and other biofuels such as renewable diesel and hydrogenated vegetable oil (HVO) to cater to the growing demands of the global aviation and transportation industries.

Prospects

The expansion project reinforces DIALOG’s midstream investments and supports development plans in Pengerang Deepwater Terminals (PDT), a port and storage facility in southern Peninsular Malaysia. Since 2014, PDT, spanning a total land area of approximately 1200 acres, has expanded in phases and now includes four terminals and three jetties. Its deep-water jetties are capable of accommodating VLCCs and Q-Max LNG vessels. The remaining approximately 700 acres of reclaimed and buffer land are reserved for future development. DIALOG remains committed to developing Pengerang Deepwater Terminals into the largest petroleum and petrochemical hub in the Asia Pacific region.

In addition, the development of storage facilities for sustainable and renewable products under the expansion project aligns with the low-carbon economy transition under DIALOG’s Climate Change Strategy, as part of ongoing efforts to expand product and solution offering to support the growth and development in the sustainable and renewable sector. The expansion project also complements the initiatives by the group to achieve business sustainability and fulfil its environmental, social and governance agenda through commercially viable ventures.

Read the article online at: https://www.tanksterminals.com/storage-tanks/01082025/pengerang-terminals-provides-storage-for-biorefinery/