Dialog to pump another RM100m into Langsat terminal
03 Jul 2020
Dialog Group Bhd is pumping another RM100 million into its Johor-based Dialog Terminals Langsat facility which will enable it to store a further 85,000 cubic metres (m3) of clean petroleum products.
The plant currently has an operating capacity of 770,000 m3 which has been fully leased out, Dialog said in a statement today.
“Dialog’s strategy for its Langsat facility is to continue to enhance its value proposition by enhancing its efficiencies and product storage flexibility. This is in line with the group’s longer term strategy to grow its midstream terminals business to generate sustainable and recurring income,” the group said.
The expansion plan is expected to be completed and ready for operations by the fourth quarter of 2021, it added.
On top of this, Dialog said it still has 17 acres of land which can add another 200,000 m3 of storage capacity to Dialog Terminals Langsat over the longer term, bringing the total capacity at the facility to over one million m3.
Dialog executive chairman Tan Sri Ngau Boon Keat said: “Our ability to build, own and operate terminals has enabled us to create lasting economic impact and activity for the Malaysian economy. Today, we are the second largest terminal owner cum operator in the region with a current total operating capacity of 4.6 million m3.”
He said the continued development of Dialog Terminals Langsat as well as the group’s Pengerang Deepwater Terminals will attract more long-term investments, and will “help us achieve our aspiration of creating a regional oil, gas and petrochemical storage and trading hub in the south of Johor”.
Ngau said since 1996, Dialog and its partners have invested more than RM15 billion across its terminals in Kertih, Langsat and Pengerang.
“Dialog will continue to invest in phased capacity expansions for dedicated long-term customers across our midstream terminals business portfolio, which is also in support of the government’s efforts to attract foreign investments and global players to Malaysia,” he added.
Source: The Edge Markets