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.