Dialog Group expands Tanjung Langsat terminal with investment of up to RM200 million

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Dialog expands Tanjung Langsat terminal

Highlights

Dialog Group is investing up to RM200 million to expand the Langsat 3 terminal, adding storage capacity at the existing site with a high single-digit internal rate of return.
Public Investment expects the new capacity to achieve utilisation of more than 90% after commissioning, driven by regional demand and the need for flexibility amid geopolitical uncertainty.
Dialog now has almost six million cubic metres of operating storage capacity and is the second-largest terminal owner-operator in Southeast Asia, but room for future expansion in Langsat is becoming increasingly limited.

This article was translated from the original. Read the original version by our correspondent here.

Project details and expansion timeline

According to The Edge Malaysia, as reported in a Dialog Group Bhd exchange filing, the expansion at the Langsat 3 terminal will cost up to RM200 million and focus on adding new storage capacity at the existing site.

According to Public Investment Bank, the project offers a high single-digit internal rate of return. The research firm views the move positively, as it expands Dialog’s recurring income base while making use of existing marine facilities.

This latest expansion follows the addition of 150,000 cubic metres of capacity, which began operations in September and has been fully contracted. Of that total, 100,000 cubic metres has been allocated to Hong Kong renewable fuel company EcoCeres under a take-or-pay arrangement.

Implications for operations and regional markets

Overall, Dialog now has almost six million cubic metres of operating storage capacity, making it the second-largest terminal owner-operator in Southeast Asia.

Public Investment expects the new capacity to achieve utilisation of more than 90% after commissioning, supported by regional storage demand. At the same time, geopolitical uncertainty is seen as potentially strengthening customers’ need for supply and logistics flexibility.

However, the research firm also noted that the Tanjung Langsat terminal site is now almost fully developed. This suggests that opportunities to add further capacity after the latest phase may become more limited.

In our earlier coverage of the approval of 27 data centre projects under the data centre task force through July 2026, we examined the scale of investment, the distribution of projects by state and the current stage of implementation. We also highlighted the impact on the skilled jobs market and the minimum 30% local content requirement, which is monitored regularly.

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