Dialog, Petronas Gas to Develop $807m LNG Project

Malaysian energy services firm Dialog Group Bhd said on Friday it would work with Petronas Gas Bhd on a 2.7 billion ringgit ($807 million) project to develop liquefied natural gas (LNG) regasification facilities in the southern state of Johor.

Under the agreement, a wholly owned unit of Dialog will take a 25 percent stake in a special-purpose vehicle called Pengerang LNG (Two) Sdn Bhd, which will undertake the project, a stock exchange filing showed.

Petronas Gas will take a 65 percent stake in Pengerang LNG while Johor state will hold the balance, according to the filing.

Shares of Dialog closed 0.65 percent higher at 1.56 ringgit apiece, while Petronas Gas ended 0.93 percent higher at 21.66 ringgit. The benchmark stock index dropped 0.11 percent.

(1 US dollar = 3.3460 Malaysian ringgit)

(Reporting by Yantoultra Ngui; Editing by Dale Hudson)