Tank Terminals 16 Mar 15;
March 16, 2015 [Dialog Group Berhad] - Dialog Group Berhad is pleased to announce that Pengerang Deepwater Terminal, with a draft of up to 24 metres, located at Pengerang, southeastern tip of Johor, Peninsular Malaysia has today received its very first Very Large Crude Carrier – the Liberian-registered “MT Mesdar”.
The 333-metre long vessel weighing in 315,802 metric tonnes arrived from the Middle East to discharge its crude oil cargo at Phase 1 of the deepwater terminal.
“MT Mesdar” is the first VLCC to call at Pengerang and, the first to berth at Malaysian jetty, since the recent commissioning of the crude oil tanks in early March 2015. To date, more than 100 vessels have used the terminal which offers petroleum and crude storage facilities for trading purposes.
Phase 1 terminal of the Pengerang Deepwater Terminal which is owned by Pengerang Independent Terminals Sdn Bhd, a joint venture between DIALOG (46%), Royal Vopak (44%) and State Secretary, Johor (Incorporated) (“SSI, Johor”) (10%), had commenced operations in Q2 2014. Phase 1 has a storage capacity of approximately 1.3 million cubic metres together with six deepwater berths at a cost of RM2.0 billion with the capability to handle the storage, blending and distribution of crude oil, petroleum, chemical and petrochemical feedstock, products and by-products.
The Pengerang Deepwater Terminal, an Entry Point Project under the Economic Transformation Programme ("ETP"), is a deepwater terminal development on 500 acres of reclaimed sea-bed land with proposed storage capacity of 5 million cubic metres.
Strategically located at one of the world’s busiest shipping lanes with close proximity to the regional trading hub in Singapore, the Pengerang Deepwater Terminal project is built with deepwater jetty facilities, 24 metres deep, enabling it to handle VLCCs. The entire development may take another 10-15 years to be fully complete and will create huge impact to local communities through creation of many economic activities as it will also complement the RAPID project that was announced last year.
Upon completion, the Pengerang Deepwater Terminal will be able to handle the bulk breaking and bulk-building activities for crude oil, petroleum products and Liquefied Natural Gas (“LNG”). The Pengerang Deepwater Terminal has the potential to become a regional oil and gas hub owing to its strategic location close to one of the busiest international shipping lanes and close proximity to Singapore.
DIALOG is currently investing in the Pengerang Terminal Phase 2 Project at Pengerang Deepwater Terminal which involves the construction of the storage capacity of approximately 2.1 million cubic metres and a deepwater jetty with twelve berths at an approximate total project cost of RM6.3 billion.
DIALOG is also currently investing in the Pengerang LNG Project for the development of LNG regasification facilities comprising of a regasification unit and two (2) units of 200,000 cubic metres LNG storage tanks with an initial send out capacity of 3.5 million tonnes per annum (“MTPA”) (equivalent to approximately 490 million standard cubic feet per day (“MMscfd”) of natural gas at a total estimated project cost of approximately RM2.7 billion.
Phase 1 terminal together with the investments in Pengerang Terminal Phase 2 Project and Pengerang LNG Project at Pengerang Deepwater Terminal will synergise with DIALOG’s investments in tankage facilities in Kertih, Terengganu in eastern Peninsular Malaysia and Tanjung Langsat, Johor, in southern Peninsular Malaysia.
The development of Pengerang Deepwater Terminal is part of DIALOG’s business strategy to own terminals and tankage facilities which will result in an increase in its sources of sustainable and recurring income.
Dialog: Cheap crude driving up demand for storage facility
The Star 17 Mar 15;
KOTA TINGGI: Dialog Group Bhd, the lead joint-venture partner in a huge land-based crude oil storage facility in Pengerang, Johor, said that cheap crude oil prices on the international market are driving up demand for storage facility.
“We are seeing a surge in demand for storage since the price of crude oil started to decline late last year,” Dialog executive chairman Tan Sri Dr Ngau Boon Keat said.
Ngau was speaking to reporters after a ceremony to welcome the 333m-long vessel MT Mesdar, the first very large crude carrier (VLCC) to dock at the Pengerang jetty.
Ngau, who is also the chairman of Pengerang Independent Terminal Sdn Bhd (PITSB), said its terminals had received 128 vessels since April last year and expected 200 vessels by the year-end.
The Pengerang project is a deepwater terminal development on 500 acres of reclaimed seabed land.
Phase 1 of the Pengerang Deepwater Terminal project, a joint venture between Dialog (46%), Royal Vopak (44%) and State Secretary, Johor Inc (10%), commenced operations in the second quarter of 2014.
The first phase, costing RM2bil, has a storage capacity of about 1.3 million cu m together with six deepwater berths with the capability to handle the storage, blending and distribution of crude oil, petroleum, chemical and petrochemical feedstock, products and by-products.
“With Asia being a growing demand area for crude and crude travelling longer distances, we are glad to see our crude storage facility and VLCC berth at Pengerang are of value to our customers,” Vopak Asia division president Patrick van der Voort said in a statement yesterday.
As South-East Asia’s first independent land-based storage facility for crude, Pengerang Independent Terminal – with a depth of 24m – is equipped with deepwater facilities, capable of handling VLCCs.
The entire development will take another 10 to 15 years to be fully completed.
Dialog is currently investing in the second phase of the project, which involves the construction of storage capacity of about 2.1 million cu m and a deepwater jetty with 12 berths at an approximate total project cost of RM6.3bil.
Dialog is also currently investing in the Pengerang LNG project for the development of LNG regasification facilities comprising a regasification unit and two units of 200,000 cu m LNG storage tanks with an initial send-out capacity of 3.5 million tonnes per year (equivalent to about 490 million standard cu ft per day of natural gas) at a total estimated project cost of about RM2.7bil.
Supertanker docks at Johor terminal
Reme Ahmad The Straits Times AsiaOne 18 Mar 15;
THE first supertanker to dock in Malaysia tied up at Johor's Pengerang Independent Terminals jetty yesterday - marking a big step in the country's efforts to grow its oil tanking business.
The 333-metre long MT Mesdar unloaded its one million barrels of Middle East crude cargo at a time when global oil trading is in a flux after steep price falls that have sent demand soaring for storage facilities for petroleum products.
"Oil prices have fallen sharply from US$100 so many people are looking for oil storage, to wait for higher prices," Tan Sri Ngau Boon Keat, executive chairman of oil and gas services firm Dialog Group, told The Straits Times.
Dialog is a shareholder in the Johor terminal.
The 1.9km-long jetty at the Pengerang terminal has a water depth of 24 metres - essential if a supertanker is to dock.
Previously, such ships could only unload in Malaysia by using the less efficient method of berthing at a single buoy located about 8km offshore while the oil was piped underwater to be stored on land.
Another key advantage for Pengerang, which is to the east of Changi airport, is that it is "right at the doorstep of the busiest shipping channel in the world", said Mr Ngau.
He was referring to the route taken by vessels from the Middle East, many laden with oil and gas, as they sail past Singapore and Pengerang towards fuel-hungry East Asian countries.
Other ships sail in the opposite direction with goods for India, the Middle East and Africa.
The Pengerang Oil Terminal also hopes to bank on the oil trading boom in Singapore by building up cheaper tank facilities next door.
"This is complementary to Singapore. When Singapore grows and the oil market keeps expanding, it can expand to this side," said Mr Ngau.
The completed RM2 billion (S$752 million) first phase of the terminal can store up to 1.3 million cubic metres of crude and petroleum products.
About three quarters of the capacity has been leased out.
The second phase, costing RM12 billion, will be ready from 2018 and can offer an additional 2.1 million cubic metres of storage as well as storage for petrochemicals and liquefied natural gas.
In comparison, Singapore can store about 11 million cubic metres of oil, petroleum products and petrochemicals in its tank farms. Singapore also has four berths for supertankers.
Dialog is a partner in the Pengerang project with Dutch firm Royal Vopak, the world's largest independent oil storage company, and a Johor state investment agency.
Pengerang's ambition to be a major oil hub for Malaysia has also been boosted by state energy giant Petronas, which is clearing 2,428 hectares to build a 300,000 barrel-a-day integrated refinery and petrochemical development called Rapid.
The refinery is expected to cost US$16 million (S$22 million) and start operations by around 2019.
"You can't go wrong with a location like this. We call this development 'Rotterdam of the East'," Mr Ngau said, referring to Europe's oil hub.
