Dialog venture receives Sabah-Sarawak gas pipeline contract

Mar 05, 2008 01:00 AM

Dialog Group scored a major coup in the local oil and gas industry when its joint venture was awarded a RM 1.6 bn contract from Petronas Carigali. Dialog told the project involved the construction of a 512 km 26-inch diameter onshore natural gas pipeline and associated facilities stretching from Kimanis, Sabah, to Petronas’s liquefied natural gas complex in Bintulu, Sarawak.
“The gas pipeline will run approximately 90 km in Sabah and 422 km in Sarawak,” it said.

The consortium involved Dialog’s subsidiary, Dialog E&C, India’s Punj Lloyd and the Sabah government’s unit, Petrosab Logistik.
Dialog said it would fund the working capital from its own funds and/or bank borrowings. Dialog said the project would increase its order book of engineering, procurement, construction and commissioning (EPCC) contracts in Malaysia.

“Leveraging on the strength, expertise and experience of the respective consortium partners, the project is expected to be implemented and completed successfully,” it said.
It added the project was also in line with its strategy to participate in selected EPCC projects in the development of oil, gas and petrochemical activities in Sabah and Sarawak.

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