Dialog, Petronas Gas to develop Pengerang LNG project
Dialog Group said that its units, Dialog LNG and Pengerang LNG have entered into a shareholders’ agreement with Petronas Gas for the development of LNG regasification facilities at Pengerang, Southern Johor, Malaysia.
The terminal comprises a regasification unit and two 200,000 m3 LNG storage tanks with an initial send out capacity of 3.5 million tonnes per annum of natural gas. The total estimated project cost of the Pengerang LNG Project is approximately RM2.7 billion.
Under the agreement Petronas Gas will acquire 65% in a special-purpose vehicle called Pengerang LNG, that will undertake the Pengerang LNG project, with Dialog LNG to hold 25% and the SSI Johor to hold the remaining 10%.
The Pengerang terminal is being developed with deepwater jetty facility with water depth of up to 24 meters capable of handling very large crude carriers. Upon completion, the Pengerang terminal will be able to handle the bulk breaking and bulk-building activities for crude oil, petroleum products and LNG.
Phase 1 of the Pengerang terminal which is owned by Pengerang Independent Terminals, a joint venture between Dialog, Vopak and SSI Johor, had commenced operations in Q2 2014. Phase 1 involved the construction of an initial storage capacity of approximately 1.3 million cubic metres together with six deepwater berths at a cost of RM2.0 billion.
1 Malaysian ringgit = 0.298775 USD
Press Release; Image: Dialog