DIALOG Group Berhad has announced that its 25% indirectly owned joint venture company, Pengerang Terminals (Two) Sdn. Bhd. (PT2SB) has signed a terminal usage agreement (TUA) with Pengerang Biorefinery Sdn. Bhd (PBSB), paving the way for PT2SB to provide storage and handling facilities for PBSB’s feedstocks and products.
Under the 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 US$330 million including costs associated with shared facilities at the terminal. The 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.
The biorefinery of PBSB will have the capability to process about 650 000 tpy of raw material to produce sustainable aviation fuel (SAF) and other biofuels such as renewable diesel/ hydrogenated vegetable oil (HVO) to cater to the growing demands of the global aviation and transportation industries.