“The Pengerang Terminal phase two project, slated for completion in 2019, would provide an additional two million cubic metres of storage capacity to the company’s 2.3 million cubic metres currently.”
Dialog gets shareholders’ nod for investment projects worth RM2.6b
KUALA LUMPUR: Integrated oil and gas company Dialog Group Bhd has received the shareholders’ nod for two Pengerang projects with a total investment cost of RM2.6 billion.
The projects are a storage facility service via Pengerang Terminal (Two) Sdn Bhd and a LNG regassification plant via Pengerang LNG (Two) Sdn Bhd.
Executive chairman Tan Sri Dr Ngau Boon Keat said with the approval, the company would pursue fund raising of about RM1 billion according to their stakeholding in the projects.
“We will use the combination of internally generated funds, warrant conversion and bank borrowing for the fundraising,” he told reporters after the company’s extraordinary general meeting (EGM) here today.
Ngau said the Pengerang Terminal phase two project, slated for completion in 2019, would provide an additional two million cubic metres of storage capacity to the company’s 2.3 million cubic metres currently.
At the moment, Dialog’s storage facilities are located in Kerteh, Terengganu and Tanjung Langsat, Johor as well as in Pengerang Terminal phase one.
He said the company is involved at all levels – upstream, midstream and downstream – of the industry and all levels contribute equally to its revenue.
He said while the upstream business has been negatively impacted by low oil prices, this has been offset by the positive impact on the midstream and downstream businesses.
He said the upstream contribution is expected to drop to 20 per cent this year while the midstream and downstream contributions are forecast to rise to 40 per cent each.
Among Dialog’s major investments in the upstream business is a RM1 billion investment to enhance the recoverable reserves of an oilfield offshore Bintulu for a span of 20 years beginning last year.
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