KUALA LUMPUR: Analysts view Dialog Group Bhd's latest expansion of its petroleum product storage capacity in Tanjung Langsat, Johor, positively, saying it will strengthen the group's recurring income base and support its midstream growth prospects.

Earnings contributions from the expansion are expected from the financial year ending June 2030 (FY30).

Dialog announced an additional 100,000 cubic metres (cbm) storage capacity at its wholly owned Dialog Terminals Langsat 3 (DTL3), with completion targeted by mid-2029.

The expansion, estimated to cost up to RM200 million, will increase DTL3's capacity by 26 per cent to 480,000 cbm from 380,000 cbm currently, bringing Dialog's total storage capacity at Tanjung Langsat to more than 1.1 million cbm.