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Phase 3A of Pengerang Deepwater Terminals launched

Published by , Editorial Assistant
Tanks and Terminals,

DIALOG Group Berhad has officially launched Phase 3A of its 1200 acre Pengerang Deepwater Terminals (PDT) development, following its entry into a long term storage agreement (LTSA) with BP Singapore Pte Ltd (BP Singapore).

The LTSA will see the construction of storage tanks and the provision of storage and handling services to BP by DIALOG in Phase 3A. This will consist of storage tanks with a capacity of 430 000 m3 for clean petroleum products, and is set to complete in mid-2021.

Phase 3A is the first parcel of PDT’s Phase 3, where the construction of common tankage facilities (including shared infrastructure) and deepwater marine facilities (Jetty 3) are already underway. The launch of Phase 3A was officiated by the Menteri Besar of Johor Dr Sahruddin bin Haji Jamal, with Sharon Weintraub, CEO Eastern Hemisphere, BP Supply Trading, and Dr Ngau Boon Keat, Executive Chairman of DIALOG, in attendance.

This marks the continued expansion of PDT in Pengerang, Johor, where Phase 3 is currently being developed on approximately 300 acres of land within PDT with an indicative initial investment cost of RM2.5 billion. DIALOG is targeting medium to long term customers, potentially comprising oil traders, multinational oil companies, refineries and petrochemical plants, which will in turn, support various downstream operations including those of the refinery and petrochemical plants within the Pengerang Integrated Petroleum Complex.

Dr Sahruddin bin Haji Jamal said, “The petroleum and petrochemical industry has emerged as the top foreign investment draw in Johor. The sector recorded the highest amount of FDIs last year at RM11.83 billion, with RM8.46 billion concentrated in the oil and gas industry in Pengerang. Investments in the Pengerang hub has resulted in the creation of thousands of high value jobs and will continue to do so with the ongoing long term development of Pengerang Deepwater Terminals. This hub could well position Malaysia as the new economic powerhouse in the region.”

Dr Ngau Boon Keat commented: “PDT offers a compelling value proposition for the establishment of strategic hub operations to capture the growth in the Asia Pacific region, given its ideal location and one-stop integrated hub offering. With Phase 1 and Phase 2 of PDT already in operations, the entry into the Long Term Storage Agreement with BP Singapore for Phase 3A of PDT is another significant milestone in this direction and is expected to catalyse the further development of PDT in the coming years.”

“With approximately 500 acres reserved for future phases, the development of PDT into the largest oil, gas and petrochemical hub in the Asia Pacific region is well underway, and our vision for Pengerang to become the ‘Rotterdam of the East’ is today becoming a reality,” added Dr Ngau Boon Keat.

At the same event, DIALOG also celebrated the achievement of two new Malaysia Book of Records accreditations. PDT was recognised as the Largest Oil and Gas Storage Terminal in Malaysia with a current storage capacity of 3 million m3 from its Phase 1 and Phase 2 terminals. In addition, PDT was also recognised as the Deepest Jetty in the country, as it is the only terminal in Malaysia that offers multiple berths with water depths of up to 24 m, which enables it to handle very large crude carriers that transport oil, gas and petrochemical products into the region from all over the world.

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