1. INTRODUCTION
DIALOG Group Berhad (“DIALOG”) is pleased to announce that its wholly owned subsidiary, Dialog E & C Sdn. Bhd. (“DECSB”) has on 19 November 2025 entered into an Engineering, Procurement and Construction (“EPC”) Contract for an estimated value of approximately RM1 billion and Alliance Agreement with its 25% indirectly owned joint venture company, Pengerang Terminals (Two) Sdn. Bhd. (“PT2SB”), for the construction of the biofuel storage and handling facilities (“the Project”).
PT2SB owns and operates a dedicated deep-water terminal serving Pengerang Integrated Complex (“PIC”). The shareholders of PT2SB are Dialog Equity (Two) Sdn. Bhd. (subsidiary of DIALOG) (25%), PRPC Utilities and Facilities Sdn. Bhd. (subsidiary of Petroliam Nasional Berhad (PETRONAS) (“PETRONAS”)) (40%), Vopak Terminal Pengerang BV (subsidiary of Royal Vopak) (25%) and Permodalan Darul Ta'zim Sdn. Bhd. (a Johor State owned company) (10%).
PT2SB is expanding and developing a storage capacity of about 272,000 cbm which is dedicated to Pengerang Biorefinery Sdn. Bhd. with a 25-year long-term take-or-pay Terminal Usage Agreement.
Prospects
The Project reinforces DIALOG’s vision to be the leading integrated technical services provider to the energy sector, in Malaysia and internationally.
DIALOG’s comprehensive integrated technical services in the downstream segment includes Engineering, Procurement, Construction and Commissioning (“EPCC”), Plant maintenance and Catalyst handling services, Fabrication and Specialist Products and Services.
DIALOG, being the main contractor for PT2SB’s existing facilities, brings synergistic benefits from its EPCC experience at PT2SB’s site and in-depth knowledge of Pengerang Deepwater Terminals where PT2SB is situated.
The Group will continue to leverage its technical expertise to deliver high-value services. The provision of technical services to support the energy sector is expected to increase opportunities for synergies within DIALOG Group. This will position DIALOG to capture emerging opportunities, support the Group’s downstream strategy, and contribute to long-term business sustainability.
DIALOG will remain focused and steadfast in the pursuit of diversification across the upstream, midstream and downstream energy sector as well as the sustainable and renewable sector to strategically position the Group to weather different economic and oil price cycles, which is in line with the Group’s strategy of generating long term recurring income.
2. SALIENT TERMS OF THE EPC CONTRACT
2.1 SCOPE OF WORK
The scope of work of the Project involves the engineering, procurement and construction of the tanks designated and built for bio feedstocks and products and its associated works. The Project will be executed under project alliance between PT2SB and DECSB.
2.2 THE PROJECT PERIOD
The Project is expected to be completed by December 2027.
2.3 CONTRACT VALUE
The estimated value of the EPC Contract is approximately RM1 billion.
3. INFORMATION ON PT2SB
PT2SB is a joint venture company between Dialog Equity (Two) Sdn. Bhd., PRPC Utilities and Facilities Sdn. Bhd., Permodalan Darul Ta’zim Sdn. Bhd., all three companies incorporated in Malaysia and Vopak Terminal Pengerang BV, a company incorporated in the Netherlands.
PT2SB is principally engaged in the provision of tank terminal storage facilities for petroleum and petrochemicals products.
4. INFORMATION ON DECSB
DECSB is principally engaged in the provision of engineering, procurement, construction and commissioning services.
5. FINANCIAL EFFECTS
The Project is not expected to have any effects on the share capital and substantial shareholders’ shareholding of DIALOG. The Project, however, is expected to contribute positively to the earnings and net assets of DIALOG for the financial years ending 30 June 2026 onwards until the completion of the Project.
6. RISKS
Risk factors affecting the Project include but are not limited to execution risks such as availability of skilled manpower and materials, changes in prices of materials, and changes in geo-political, economic, financial market and regulatory conditions. DIALOG will undertake all the necessary efforts to mitigate the various risk factors identified.
7. INTERESTS OF DIRECTORS, MAJOR SHAREHOLDERS AND PERSONS CONNECTED WITH THEM
None of the directors of DIALOG, major shareholders of DIALOG and/or persons connected with them have any interest, whether direct or indirect, in the EPC Contract.