Pengerang Terminals To Invest RM1.4 Bln In Expanding Storage Capacity

KUALA LUMPUR, July 30 (Bernama) -- Pengerang Terminals (Two) Sdn Bhd (PT2SB) will expand and develop a storage capacity of about 272,000 cubic metres, involving a total investment of about US$330 million (RM1.4 billion), including costs associated with shared facilities at the terminal.

Dialog Group Bhd said in a filing with Bursa Malaysia that its 25 per cent indirectly owned joint venture company, PT2SB, has inked a terminal usage agreement with Pengerang Biorefinery Sdn Bhd (PBSB) to provide storage and handling facilities for PBSB’s feedstocks and products.

“The expansion project is supported by a 25-year long-term take-or-pay agreement and will benefit from efficiencies of current capacity and infrastructure of PT2SB,” it said.

“The biorefinery of PBSB will have the capability to process approximately 650,000 tonnes per year of raw material to produce sustainable aviation fuel and other biofuels, such as renewable diesel/ hydrogenated vegetable oil,“ it said.

Dialog Group said the project is not expected to have any effects on the share capital and substantial shareholders’ shareholding, as well as material effects on the earnings, for the current financial year ending 30 June 2026.

“However, it is expected to contribute positively to the future earnings of Dialog Group,” it said.

Meanwhile, Royal Vopak said in a separate statement that the expansion will leverage existing and operational efficiencies at the terminal, enhancing its competitiveness.

“The total investment of €282 million (RM1.38 billion), of which Vopak's share is €72 million, will support group operating cash returns upon commissioning, expected by mid-2028.

“This investment aligns well with our strategy to accelerate towards infrastructure that supports energy transition while further strengthening the industrial position of PT2SB,” it added.

PT2SB owns and operates a dedicated deep-water terminal serving Pengerang Integrated Complex (PIC).

The shareholders of PT2SB are Dialog Equity (Two) Sdn Bhd (subsidiary of Dialog) (25 per cent), PRPC Utilities and Facilities Sdn Bhd (subsidiary of Petronas) (40 per cent), Vopak Terminal Pengerang BV (subsidiary of Royal Vopak) (25 per cent) and Permodalan Darul Ta'zim Sdn Bhd (a Johor-owned company) (10 per cent).

-- BERNAMA