Wednesday, June 1, 2011

Dialog unit inks RM1.9b Pengerang EPCC contract

KUALA LUMPUR: DIALOG GROUP BHD []'s unit Dialog E&C Sdn Bhd has inked a RM1.9 billion contract with Pengerang Independent Terminals Sdn Bhd (PITSB) to build the first phase of an independent deepwater petroleum terminal at Pengerang, Johor.

Dialog said on Wednesday, June 1 that Dialog E&C had signed an engineering, procurement, CONSTRUCTION [] and commissioning (EPCC) contract and alliance agreement with PITSB.

PITSB is a special purpose vehicle which will be 90% owned by Pengerang Terminals Sdn Bhd (PTSB) and the balance 10% to be held by the State Secretary, Johor (Incorporated).

PTSB is the joint venture company between Dialog and a Royal Vopak group unit , pursuant to the joint venture agreement signed earlier on June 1.

Dialog's wholly owned unit Dialog Pengerang Sdn Bhd had entered the agreement with Vopak Terminal Pengerang BV to form a JV company, Pengerang Terminals Sdn Bhd, in which Dialog will have a 51% stake and the balance held by Vopak.

Dialog said the independent deepwater petroleum terminal would be developed on contiguous onshore and seabed land located between Tanjung Ayam and Tanjung Kapal, Pengerang, State of Johor, with harbor port, jetty and other marine facilities with water depth up to 26 meters capable of handling Ultra Large Crude Carriers, Very Large Crude Carriers and other vessels, and with tankage facilities for the handling, storage, processing and distribution of crude oil, petroleum, petrochemicals and chemical products in Tanjung Ayam and Tanjung Kapal, Pengerang in Johor.

It said this first phase terminal would have an initial storage capacity of approximately 1.3 million cubic meters and six vessel berths.

'Given Dialog E&C's track record in engineering, procurement, construction and commissioning projects for terminal facilities in Kertih, Terengganu and Tanjung Langsat, Johor, Dialog is optimistic about the successful completion of the project.

'The independent deepwater petroleum terminal would also complement Dialog's other investment in the terminal facilities in Kertih, Terengganu and Tanjung Langsat, Johor,' it said.

Dialog said the terminal would serve as a springboard for other oil and gas industry to be developed and set up in the vicinity of Pengerang, Johor, and in the longer term help to create an oil and gas hub in southeast Johor.

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