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Menteri Besar of Johor Officiates Launch of DIALOG Terminals Langsat (3) Expansion Into Renewable Fuel Storage

Johor Bahru, 16 March 2023 – DIALOG Group Berhad (DIALOG) today launched the expansion of its terminal operations into storage facilities for renewable fuel products at its terminal in Tanjung Langsat, Johor, Malaysia. It is operated by DIALOG Terminals Langsat (3) Sdn. Bhd., an indirect wholly owned subsidiary of DIALOG.

The launch was officiated by both the Menteri Besar of Johor YAB Datuk Onn Hafiz Ghazi and Tan Sri Dr. Ngau Boon Keat, Executive Chairman of DIALOG.

DIALOG Terminals Langsat 3 is an operating terminal with a storage capacity of 205,000 m3 and serves short to medium-term energy traders and multinational companies storing energy products. It is located adjacent to DIALOG Terminals Langsat 1 and DIALOG Terminals Langsat 2.

In response to growing investor interest in low-carbon fuel alternatives, this expansion marks DIALOG’s first venture into storage facilities for renewable fuel products. The development, which is connected to truck loading bays and existing marine facilities, is expected to commence operations by end-2024.

This venture will serve potential users such as biofuel production companies, energy trading houses and multinational energy companies and others.

In his speech, Johor Menteri Besar YAB Datuk Onn Hafiz Ghazi said, “I am pleased that DIALOG Terminals Langsat 3 has taken the initiative to expand its storage capacity to include renewable fuel storage which will target renewable fuel feedstocks and biodiesel products. This new development will support both the State and Federal Government’s environmental initiatives and further support the ESG agenda.”

DIALOG Group's Executive Chairman, Tan Sri Dr. Ngau Boon Keat disclosed, “The storage facility will consist of storage tanks with a capacity of 24,000 cubic metres targeted for renewable fuel feedstocks and products which include used cooking oil, tallow, pyrolysis oil, palm oil mill effluent as well as biodiesel which include used cooking oil methyl ester (UCOME) and fatty acids methyl ester (FAME).”

“This is just the first step in DIALOG Terminals Langsat 3’s plan to create an ecosystem for renewable fuels with potential plans in the future to include integration and collaboration with pre-treatment or hydrotreat plants thereby creating synergy to blend renewable and conventional fuel,” noted Tan Sri Dr. Ngau.

The development of storage facilities for sustainable and renewable products is in line with the low-carbon economy transition under DIALOG’s Climate Change Strategy as part of ongoing efforts to expand product and solution offering to support the growth and development in the sustainable and renewables sector. This development is also a continuation of the initiatives by DIALOG to achieve business sustainability and fulfil its Environmental, Social and Governance (ESG) agenda through commercially viable ventures.

In conjunction with the launch today, DIALOG announced its contribution of RM500,000 to MyKasih Foundation’s fundraiser. This is to support Johor’s flood relief efforts, and the contribution is also part of the Group’s commitment towards corporate responsibility and social development.

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