Integrated oil and gas (O&G) technical service provider Dialog Group Bhd is believed to be in talks to rope in a major Chinese investor into its Pengerang Deepwater Terminal (PDT) and liquefied natural gas (LNG) terminal project. Both parties are expected to reach an agreement by the middle of this month, say industry sources.
An observer says it is unlikely the Chinese investor will participate in Dialog’s existing projects but possibly look at creating a new partnership.
“China’s increasing demand for LNG and petrochemical products means it is looking for a more efficient manner to store, process, and transport the products. Pengerang is strategically located to cater to its needs and Dialog has the expertise,” he says.
The deal, he adds, could be similar to the Saudi Aramco-Petronas partnership signed in February. Saudi Arabia’s national O&G company will pump in US$7 bil for a 50% equity stake in Rapid’s refinery and cracker project.