KUALA LUMPUR, Pengerang Terminals (Two) Sdn Bhd (PT2SB) is set to expand its storage and handling capacity by approximately 272,000 cubic metres, marking a significant move in strengthening Malaysia’s position as a key regional oil and gas hub. The expansion will involve a total investment of about RM1.4 billion, which also includes costs associated with the development of shared facilities at the terminal.
The announcement was made by Dialog Group Bhd, one of Malaysia’s leading integrated technical service providers in the oil, gas and petrochemical industries. In a filing with Bursa Malaysia, Dialog disclosed that PT2SB — in which Dialog indirectly holds a 25% equity stake — has entered into a terminal usage agreement with Pengerang Biorefinery Sdn Bhd (PBSB).
The agreement entails the provision of storage and handling services for PBSB’s feedstock and refined products, further diversifying the types of energy-related materials handled at the terminal. This aligns with Malaysia’s broader energy transition agenda and enhances the terminal’s capabilities to support bio-based and renewable energy sectors.
“The proposed development will strengthen PT2SB’s position as a deepwater terminal of choice in the region, while contributing to the long-term sustainability and growth of Dialog’s tank terminal business,” the company said in its statement.
Located in Johor’s Pengerang Integrated Complex (PIC), PT2SB is a strategic infrastructure asset jointly developed by Dialog Group, Royal Vopak, and the State Government of Johor. The terminal supports a wide range of storage and logistics services, primarily catering to petrochemical, petroleum and gas-related industries.
Industry analysts view the expansion as a timely move, especially with growing demand for energy storage infrastructure amid global shifts in supply chains, refining capacity and sustainability efforts.
Dialog Group reaffirmed that the expansion and associated agreements are not expected to have a material effect on its earnings, gearing or net assets for the financial year ending June 30, 2025. However, the long-term outlook remains positive, supported by rising demand for integrated terminal and logistics solutions in Southeast Asia.
