Dialog to build $1 billion terminal in Malaysia

Malaysian engineering company Dialog Group Bhd is building a storage terminal capable of handling Very Large Crude Carriers (VLCCs) in the state of Johor. The US$1 billion-worth terminal construction, the company said, is in line with the country’s bid to outdo Singapore as the Asia-Pacific region’s fuel trading hub. The project is a joint venture between Dialog, the Johor state government and the state secretary. The project aims to meet the increasing demand for storage facilities to be located some 500 acres of reclaimed land between Tanjung Kapal and Tanjung Ayam about 16 nautical miles from Singapore, the Pengerang terminal. The state’s long coastline, deep waters and proximity to Singapore gives it certain advantages in the area, Johor Chief Minister Ghani said, pointing to a recent shift in investments in the state which has resulted in oil and gas investments surpassing those from electrical and electronics. He also said that the project is of great significance because it will bring direct capital investments from construction and operations, as well as being a platform to generate growth in trading of petroleum products and other associated services. Moreover, it would attract supporting industries and services, creating more jobs and business opportunities. (June 9, 2009)