KUALA LUMPUR: Dialog Group Bhd has launched Phase 3A of its 1,200-acre (485.6ha) Pengerang Deepwater Terminals (PDT) development, after inking a long-term storage agreement (LTSA) with BP Singapore Pte Ltd.

In a statement yesterday, Dialog said the LTSA will see the construction of storage tanks with a capacity of 430,000 cubic metres for clean petroleum products, and the provision of storage and handling services to BP by Dialog in Phase 3A. The tanks are set to be completed in mid-2021.

Dialog said Phase 3A is the first parcel of PDT’s Phase 3, where construction of common tankage facilities (including shared infrastructure) and deepwater marine facilities (Jetty 3) are already underway.

The launch marks the continued expansion of PDT in Pengerang, Johor, where Phase 3 is currently being developed on about 300 acres of land within PDT with an indicative initial investment cost of RM2.5 billion.

Dialog executive chairman Tan Sri Dr Ngau Boon Keat said PDT offers a compelling value proposition for the establishment of strategic hub operations to capture the Asia-Pacific region’s growth, given its ideal location and one-stop integrated hub offering.

“With Phase 1 and Phase 2 of PDT already in operations, the entry into the long-term storage agreement with BP Singapore for Phase 3A of PDT is another significant milestone in this direction and is expected to catalyse the further development of PDT in the coming years.

Dialog shares gained 0.29% or one sen to close at RM3.40 yesterday, valuing the group at RM19.17 billion.