Model of an LNG Terminal. Pix: ETP websitePUTRAJAYA: A consortium of companies led by Dialog Group Bhd, the Netherlands-based Royal Vopak and the Johor Government will expand it investment in Pengerang to include the Pengerang Liquified Natural Gas (LNG) Terminal project costing RM4.08bil.

The terminal is an LNG storage, loading and regasification facility to import LNG for trading purposes and for domestic use.

A press handout by Dialog said the terminal, which would allow multiple LNG users to store and trade their products, would be developed in two phases over 10 years.

Phase 1 consists of an independent terminal with two tanks and Phase 2 is a dedicated terminal with two tanks. All tanks will have a 360,000 cu m storage capacity with regasification facilities.

Dialog executive chairman Ngau Boon Keat said the ownership structure of the Pengerang LNG Terminal would be the same as announced previously for the consortium's independent deepwater petroleum terminal in Pengerang.

The Dialog-Royal Vopak joint venture holds 90% stake in the independent deepwater petroleum terminal while the balance 10% is held by the Johor Government.

Speaking at a briefing organised by the government's Performance Management and Delivery Unit, Ngau said the LNG terminal would be located right next to the deepwater petroleum terminal.

“The earlier one is oil while this one is LNG. Both will be located on land size of 500 acres.”

He said funding details for the project would be announced by the consortium later as the focus now was to prepare for the foundation works.

“Reclaimation for the LNG terminal site has started but for the physical works (to start), we will have to wait for the co-findings of an environmental decision, which will be made by the middle of next year.

“The (first part) has started but for the second part such as financing details and securing customers will be completed by the middle of next year as well,” he added.

Pemandu chief executive officer Datuk Seri Idris Jala said the Government was expected to announce more National Key Economic Area projects in November.

– The Star