Wednesday, November 24, 2010

Dialog expects to start Pengerang project early next year

PETALING JAYA: DIALOG GROUP BHD [] anticipates to embark on phase 1 of the RM5 billion independent deepwater petroleum terminal in Pengerang, Johor, early next year.

Its executive chairman Ngau Boon Keat said on Wednesday, Nov 24 he expected the project to begin contributing to its earnings in its first quarter ending Sept 30, 2011 (1QFY12).

Dialog was awaiting approval from the Department of Environment's environmental impact assessment (EIA) as well as the green light from relevant federal government agencies before starting, noting that the Johor government had approved 500 acres of land for the project site.

He said the group had spent RM7 million and would invest an additional RM16 million for "detailed study" of the Pengerang project to be completed in the next two to three months.

"We are telling the shareholders that we are still conducting detailed study to make sure that everything is in order, and that the risks are well contained, before investing into the RM5 billion job," Ngau said after Dialog's AGM.

The Pengerang terminal is one of the two entry-point projects (EPPs) under the enhancing downstream growth thrust that falls within the oil, gas and energy national key economic areas (NKEA).

The project which has three phases is a public-private partnership between the Johor government, Dialog and Vopak Asia Pte Ltd. Dialog would be investing RM2.3 billion in the project of which 30% would come from equity and the 70% from project financing.

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