Dialog Group Bhd's wholly-owned subsidiaries, Dialog LNG Sdn Bhd and Pengerang LNG (Two) Sdn Bhd (PLNG-2), have entered into a shareholders' agreement with Petronas Gas Bhd for the development of liquefied natural gas (LNG) regasification facilities at Pengerang, Southern Johor.
The total estimated project cost of the Pengerang LNG project is about RM2.7 billion, Dialog Group said in filing to Bursa Malaysia.
The project comprises a regasification unit and two units of 200,000-cubic metre LNG storage tanks with an initial send out capacity of 3.5 million tonnes per annum equivalent to about 490 million standard cubic feet per day of natural gas.
The agreement will pave the way for Dialog Group, Petronas Gas and State Secretary, Johor Incorporated (SSI Johor) to be strategic business partners in the equity ownership and development of the Pengerang LNG project.
Following the agreement, Petronas Gas will own 65 per cent in PLNG-2, Dialog LNG will hold 25 per cent and SSI Johor will hold the remaining 10 per cent.
PLNG-2 is a special purpose vehicle that will undertake the Pengerang LNG project.