DELIVERING MORE - Malaysiastock.biz 2014/4/9 · OVERVIEW I am delighted to inform members that our...

DELIVERING

MOREPETRONAS GAS BERHAD

Annual Report 2013

DELIVERING MORE IS A NEVER ENDING JOURNEY AND A COMMITMENT UNDIMINISHED SINCE WE BEGAN THIRTY YEARS AGO, ENCAPSULATING EVERY FACET OF OUR VERY EXISTENCE BEYOND THE BOTTOM LINEA philosophy ingrained to always challenge the status quo and constantly reinvent the wheel to stay ahead of the

game in our pursuit to continuously fulfil our obligations to our stakeholders, whilst cognisant of our role as a

nation building partner.

Performance defines our future and performance is underpinned by our hawkeyed focus on HSE, operational

excellence, and reengineering our engineering capability. Our endeavours to seek greater opportunities for growth

will hinge upon our core competencies and expertise in gas plant operations, gas transmission and regasification.

Where the end game always translates to what we set out to do thirty years ago, now and in the future.

PETRONAS GAS BERHAD – DELIVERING MORE

OUR VISIONTo be a leading gas infrastructure and

utilities company

OUR MISSION• We are a business entity

• Gas is our core business

• Our primary responsibility is to add

value to this natural resource

OUR SHARED VALUES• Loyalty

• Integrity

• Professionalism

• Cohesiveness

WHAT’S INSIDE3 AGM Date, Time and Venue

4 Facts at a Glance

6 Highlights of FY2013

DELIVERING GROWTH

10 Chairman’s Statement

14 CEO’s Business Review

DELIVERING VALUE

24 Our Profile

26 Our Presence

28 Our Operations

30 Organisational Structure and Corporate Structure

31 Corporate and Management Directory

32 Board of Directors

34 Directors’ Profiles

44 Management Committee

46 Management Committee’s Profiles

54 Business Strategy

56 Key Performance

58 Investor Relations

60 Performance of Shares

61 Financial Calendar

62 Corporate Milestone: Our Journey 1983-2013

64 2013 Media Milestones

66 2013 Calendar of Events

72 2013 Awards and Achievements

74 Past Awards

78 Five Year Financial Summary

80 Simplified Group Statement of Financial Position and

Segmental Analysis

82 Group Quarterly Financial Performance

83 Statement of Value Added

84 Group Financial Review

DELIVERING TRUST

94 Corporate Governance Statement

106 Nomination and Remuneration Committee Report

110 Nomination and Remuneration Committee’s Terms

of Reference

112 Board Audit Committee Report

116 Board Audit Committee’s Terms of Reference

118 Independent Financial Advisor’s Report

120 Statement on Risk Management and Internal Control

128 Training Programmes Attended by Directors 2013

DELIVERING PERFORMANCE

132 Gas Processing Business Review

136 Gas Transportation Business Review

140 Utilities Business Review

142 Regasification Business Review

DELIVERING SUSTAINABILITY

146 Sustainability Report:

Marketplace, Workplace, Environment and Community

168 Financial Statements

253 Other Information

Proxy Form

IN FINANCIAL YEAR 2013, OUR LIQUEFIED NATURAL GAS (LNG)

REGASIFICATION TERMINAL IN SUNGAI UDANG, MELAKA MADE ITS

OPERATIONAL DEBUT, CONTRIBUTING A NEW INCOME STREAM TO OUR

BUSINESS AND SECURING THE SUSTAINABILITY OF GAS SUPPLIES TO

PENINSULAR MALAYSIA IN YEARS TO COME.

OUR EXISTING GAS PROCESSING, TRANSMISSION AND UTILITIES

OPERATIONS CONTINUE TO DELIVER COMMENDABLE PERFORMANCE

AND IMPROVEMENTS IN RELIABILITY AND SAFETY.

Emerald Room

Mandarin Oriental Hotel

Kuala Lumpur City Centre

50088 Kuala Lumpur

Monday, 5 May 2014 at 10.00 a.m.

This annual report is available on the web at

http://www.petronasgas.com

To contact us, please refer to page 31 for Corporate and

Management Directory and page 267 for Corporate Directory

31st

ANNUAL GENERAL MEETING OF THE COMPANY

4PETRONAS GAS BERHAD (101671-H)

Annual Report 2013

FACTS AT A GLANCE

• Malaysia’s leading gas infrastructure and utilities company

• Operating more than 2,500 km of gas transmission pipeline, with a gas processing capacity of

more than 2,000 mmscfd

• Established Malaysia’s first ever LNG Regasification Terminal which started operations in the second quarter of 2013.


Annual Report 2013

HEADERHEADER


Annual Report 2013

HIGHLIGHTSOF FY2013

REVENUE

RM3,892.1 million

+8.8%

Achieved record revenue, the highest ever since its

inception in 1983, boosted by new revenue stream from

the establishment of our new RGT and higher capacity

reservation for the Gas Transportation segment.

PROFIT AFTER TAX

RM2,078.9 million

+48%

Registered the highest ever Profit After Tax,

experiencing a spectacular 48% increase from that

recorded in FY2012.

STARTED UP

LNGRegasification Terminal Started the operations of the state-of-the-art liquefied

natural gas (LNG) Regasification Terminal (RGT) in

Sungai Udang, Melaka in the second quarter of 2013. It

is also the Malaysia’s first ever facility of its kind for the

importation of LNG.


Annual Report 2013

DIVIDEND PER SHARE

55 sen

+14%

Paid out the highest ever dividend of 55 sen per

ordinary share, comprising 15 sen interim dividend

and 40 sen final dividend.

TOTAL ASSETS

RM13,222.4 million

+6.3 %

Total assets strengthened by RM784.1 million from

RM12,438.3 million previously, augmented by the

recognition of RM626.4 million deferred tax assets

arising from tax allowance granted by the Malaysian

Industrial Development Authority for the RGT.

MARKET CAPITALISATION

Top 10Companies Listed on

Bursa MalaysiaRecognised as one of the Top 10 companies listed on

the Main Market of Bursa Malaysia, based on its market

capitalisation of RM48.0 billion.

DELIVERING

GROWTH

PGB continues to contribute to the nation’s economic growth and progress. With renowned technical capabilities and a strong track record in operations, we will continue to expand our portfolio in order to reach greater heights and deliver value to the nation.


Annual Report 2013

CHAIRMAN’SSTATEMENT

OVERVIEW

I am delighted to inform members that our Company celebrated its 30th year

anniversary in 2013. Over the years, our Company has evolved from a gas processing

and transmission entity to include power generation, liquefied natural gas (LNG)

regasification and the supply of utilities to other industries, and has played a significant

role in the nation’s industrial development. We thank you for your support.

Notwithstanding the many challenges confronting the Company, we managed to

deliver a strong performance and lay a solid foundation for sustainable growth.

These achievements were made possible by the commitment and dedication of our

employees and the support of other stakeholders.

Datuk Anuar bin Ahmad

Chairman

Delivering Business Excellence

PROFIT BEFORE TAX

31 December 2013

RM1,896.4 million PROFIT AFTER TAX

31 December 2013

RM2,078.9 million

MARKET CAPITALISATION

TOP 10Companies Listed onBursa Malaysia

INTERIM DIVIDEND

15 senper ordinary share

PROPOSED FINAL DIVIDEND

40 senper ordinary share


Annual Report 2013

PERFORMANCE

The Company generated a revenue of RM3,892.1 million,

an increase of RM315.3 million from the previous year,

contributed by the revenue from the liquefied natural gas

(LNG) Regasification Terminal (RGT) in Sungai Udang,

Melaka, which came into operations in May 2013.

Net profit before tax was RM1,896.4 million. Including the

tax incentive granted by the Government for our RGT, we

recorded a net profit after tax of RM2,078.9 million, the

highest level ever.

I am also pleased to share with our members that our safety

performance has very much improved this year as a result of

concerted efforts in inculcating a safety-oriented mindset

amongst our staff and contractors.

This year also saw the start-up of the RGT which will further

enhance the security and reliability of gas supply to the

nation. Third-party users, in addition to PETRONAS may use

this facility to market imported gas.

We have also completed our Plant Rejuvenation and

Revamp (PRR) 2 project in Kertih, after some delay. We are

progressing with the PPR4 project to rejuvenate and revamp

our Gas Processing Plant 4, which we expect to complete

by 2015.


Annual Report 2013

DIVIDEND

The Board is recommending a final dividend of 40 sen per

share. With this, the total gross and net dividend for the year is

55 sen per share, the highest ever paid by the Company.

This represents a dividend payout ratio of 75%.1

The exceptional dividend is our gesture of appreciation to

shareholders who have supported us over the years and to

celebrate the 30th anniversary of the Company.

OUTLOOK

PGB has concluded the new Gas Processing Agreement (GPA)

and Gas Transportation Agreements (GTA) with PETRONAS

which will be effective from 1 April 2014 for a period of five

years being the first term from 2014 until 2019. In essence,

the new GPA and GTA do not differ much, thus we expect

PGB’s income from GPA and GTA will remain stable.

With the RGT in Melaka fully operational and its capacity fully

underwritten by PETRONAS, we can expect more contribution

to our bottom-line. We can also expect additional contribution

from our Kimanis Power Plant in Sabah once it is fully

commissioned.

Another good news is that PGB has been appointed by

PETRONAS to build and operate another RGT facility in

Pengerang, in Southern Johor to serve the Refinery and

Petrochemical Integrated Development (RAPID) project. If it

comes to fruition, it will provide an additional income stream

to PGB.

We have achieved many successes. But as a corporation that

is constantly challenging itself to forge ahead, we recognise

there are areas for improvement. To successfully implement

the next phase of our growth, amidst a changing industry

landscape, the Board had approved the corporate restructuring

of PGB effective December 2013.

APPRECIATION

We would like to put on record our appreciation to En Samsudin

bin Miskon, the former Managing Director/Chief Executive

Officer (MD/CEO) of PGB for his immense contributions

in building the Company. I am confident he will perform a

commendable job in his new assignment in PETRONAS. We

wish him every success.

At the same time, we would like to welcome En Yusa’ bin

Hassan as the new MD/CEO of PGB. En Yusa’ brings with him

years of experience and knowledge to effectively lead PGB.

I would also like to thank my fellow board members for their

continued stewardship of the Company as well as for their

guidance and counsel. Thank you also goes to the Management

and staff of PGB for their commitment and contribution to

PGB’s success. I thank the various authorities for their support,

cooperation and assistance provided.


Chairman

1 Excluding recognition of deferred tax assets arising from investment tax allowance granted for the RGT amounting to RM626.4 million.


Annual Report 2013

CEO’SBUSINESS REVIEW

Yusa’ bin Hassan

Managing Director/Chief Executive Officer (MD/CEO)

DELIVERING MORE

I am truly honoured by the trust given to me by the Board of

Directors of PETRONAS Gas Berhad (PGB) in appointing me

as the new MD/CEO of PGB, taking over from En Samsudin

bin Miskon in July 2013. My predecessor has contributed

immensely to the growth of PGB in the last few years and I

am truly privileged by this appointment to steer this Company

moving forward.

As a member of the PETRONAS Group, PGB has a long heritage

of operational excellence and business strength that has been

the hallmark of the three decades of its existence.

With the support of our esteemed shareholders, I hope to

continue building upon this heritage and strengthen the

organisation’s fundamentals to weather future challenges.

We are committed to enhance our value through our

improvement initiatives, stronger operational excellence and

timely project delivery.

This is evident from the commencement of the operations

of our liquefied natural gas (LNG) Regasification Terminal

(RGT) in Sungai Udang, Melaka, which has already contributed

favourably to our earnings within its brief existence.

Financial Performance

REVENUE

31 December 2013

RM3,892.1 million+8.8%

EARNINGS PER SHARE

31 December 2013

73.4 sen1

+2.4 sen

During the year, we have also initiated a number of changes in

the way we carry out our work and we hope our shareholders

will continue to support us as we showcase the fruits of these

efforts in years to come.

OPERATIONAL PERFORMANCE

In the year, our Gas Processing Plants (GPP) processed an

average of 1,967 million standard cubic feet per day (mmscfd)

of feed gas. Our Peninsular Gas Utilisation (PGU) pipeline

network, which also received 403 mmscfd of dry gas from the

Malaysia-Thailand Joint Development Area (MTJDA) delivered

some 2,334 mmscfd of sales gas to PETRONAS’ end customers,

an improvement from the 2,132 mmscfd delivered last year.

In our Gas Processing business, our GPP experienced a marginal

decline in reliability for its liquid products, though the reliability

for sales gas remained at world-class standards.

1 Excluding recognition of deferred tax assets arising from investment tax allowance granted for the RGT amounting to RM626.4 million.


Annual Report 2013

Our Gas Transportation business continued to be a bright spot for PGB as we

sustained our pipeline reliability at world class standards.

Our Utilities business experienced a drop in reliability of electricity due to equipment

issues experienced at our Utilities plants. However, there was a slight improvement in

the reliability for steam and industrial gases.

Our newly-established Regasification business registered positive reliability and

availability, which we hope will improve further as the operations mature.

We have improved our Occupational Safety and Health (OSH) performance through

the reduction of incidents at the work place, injuries and fatalities, which signifies

early success of our efforts to inculcate a safety-oriented mindset amongst our staff.

While we are pleased with this noticeable improvement, safety audits conducted

during the year revealed areas for further improvement, especially in operational

practices and process safety.

We are committed to work harder in ensuring that Health, Safety and Environmental

(HSE) best practices must be at the heart of everything that we do. One of the initiatives

that we undertook to drive this mindset last year was the HSE Timeout, which made

it mandatory for all of PGB’s management to cascade, discuss and deliberate the

learnings from a selected safety incident at all levels of the organisation.

This is also to further promote and create a culture to be more mindful of various

aspects of process and behavioural safety which must be observed in order to run

our operations safely.


Annual Report 2013


FINANCIAL PERFORMANCE

During the year under review, PGB continues to uphold its

obligations under the 4th Gas Processing Agreement (GPA) and

Gas Transportation Agreement (GTA) with PETRONAS. Under

the arrangement, PETRONAS pays PGB a throughput fee (TF)

for processing and transporting gas to PETRONAS’ customers.

Thanks to our concerted efforts to deliver more value, PGB

delivered an improved financial performance in FY2013. The

Group recorded a revenue of RM3,892.1 million, an 8.8%

increase from RM3,576.8 million recorded in the previous

year, contributed by additional revenue brought in by our

Regasification business, which began receiving LNG cargoes in

the second quarter of 2013.

As a result, the Group achieved a profit before tax of RM1,896.4

million, which is an increase of RM45.1 million from the

previous year.

Profit after tax for the year under review increased to

RM2,078.9 million, which is RM674.0 million or 48% higher

than the RM1,404.9 million recorded in the previous year,

primarily contributed by recognition of deferred tax assets

arising from investment tax allowance granted for the RGT

amounting to RM626.4 million.

Accordingly, earnings per share attributable to the shareholders

of the Company increased to 73.4 sen from 71.0 sen in the

previous year, excluding deferred tax assets arising from

investment tax allowance.

PROJECT PROGRESS UPDATE

During the year, we have charted some notable milestones

with our capital projects in Melaka and Sabah.

I am pleased to report that after a very challenging project

implementation phase, we have completed our RGT and begun

commercial operations in the second quarter of 2013.

This achievement has allowed LNG volumes to be imported

into Malaysia to supplement domestic gas supplies and cushion

the adverse impact of any gas shortfall on industries and other

users throughout Peninsular Malaysia.

I am happy to note that the RGT has also been singled out

as one of the first Entry Point Projects under the Economic

Transformation Programme (ETP) Oil, Gas and Energy National

Key Economic Area (NKEA) to reach the finish line.

The completion of the project also underscores PGB’s

commitment towards promoting the Third-Party Access

Regime, which will allow other players to utilise the PGU pipeline

system to transport their own gas supplies for a specified fee.

PGB is also in the midst of evaluating bids for our RGT 2 project

in Pengerang, Johor. The progress of this project will be in

tandem with the implementation of PETRONAS’ Refinery and

Petrochemical Integrated Development (RAPID) project in

Southern Johor.


Annual Report 2013

The Kimanis Power Plant complex developed by our joint-

venture company, Kimanis Power Sdn Bhd in Kimanis, Sabah is

also progressing well.

As a key project under the ‘Power Up Sabah’ plan rolled out

under the ETP, the Kimanis Power Plant is currently undergoing

extensive commissioning for its first generation block of

100MW and is expected to achieve commercial operations

by the second quarter of 2014. We expect the commissioning

activities for the remaining two generation blocks to be

completed by the third quarter of 2014.

Upon its completion, the project is envisioned to provide

sufficient and reliable electricity supply to spur the state’s

socio-economic development.

Closer to our existing plant operations, we have just completed

Plant Rejuvenation and Revamp (PRR) 2 project, albeit slight

delay undertaken at our GPP in Kertih and are still on track to

realise the completion of our PRR4 as announced previously.

CORPORATE RESPONSIBILITY

Our quest in delivering more to our stakeholders extends into

various aspects of Corporate Responsibility. During the year,

we continued to showcase our commitment towards our

shareholders and customers, our people, the environment and

the communities around our operations through a number of

platforms.

Corporate Responsibility in the Marketplace

We continued to do our utmost to deliver more value to our

stakeholders. During the year, we remained committed to

uphold high standards of corporate governance as well as

sustaining high quality of our products and services.

We provided ample opportunities for interaction with our

shareholders, primarily through our Annual General Meeting,

which was held on 16 May 2013, coupled with our various

engagements with numerous fund managers and analysts.

Profit after tax for the year under

review increased to RM2,078.9

million, which is RM674.0 million

or 48% higher than the RM1,404.9

million recorded last year, primarily

contributed by recognition of deferred

tax assets arising from investment

tax allowance granted for the RGT

amounting to RM626.4 million.


Annual Report 2013


Corporate Responsibility in the Workplace

In our efforts to develop a high performing talent pool, we

have built a strong emphasis on talent management and

competency building amongst our staff.

One of the efforts introduced under this programme is the

‘Chain Effect’ initiative which looked into the development

of executive staff, as well as getting the commitment of line

managers to assist with their career path development.

Line managers are also further empowered through the ‘HR in

Me’ programme, which exposed them to their various roles and

responsibilities in managing their staff’s career and personal

growth, as well as the relevant policies and procedures that

govern human resource management within the PETRONAS

Group.

Corporate Responsibility in the Environment

As a responsible corporate citizen, we also continued

to contribute towards preserving biodiversity and the

environment.

During the year, we strived to improve the tracking of our

environmental performance in the areas of water and energy

consumption, as well as efforts in reducing the release of green

house gases (GHG) through the use of a specialised software.

As part of efforts to inculcate greater environmental

awareness, we carried out a number of activities to foster

a deeper awareness on the importance of biodiversity and

conservation under the umbrella of our ‘4G’ (Green Care, Green

Mind, Green Ownership and Green Growth) which culminated

in an Environmental Awareness Day at the ecoCareTM

Environment Awareness Centre in Kertih, Terengganu. During

the programme, our staff shared the importance of caring for

the environment and mitigating the impact of pollution.

Corporate Responsibility in the Community

As a partner to the community, we continue to invest in

capability development efforts through education. Our

signature programme, Program Sentuhan Ilmu PETRONAS last

year reached out to some 361 primary schools pupils in four

schools throughout Malaysia, by helping them improve their

academic performance through tuition classes in Mathematics,

Science and English. This is further reinforced by Fun Learning

Sessions to instil a sense of discipline, self-confidence and

creativity through interesting learning modules. Some 134

volunteers from amongst PGB staff participated as facilitators

conducting 10 specially-designed modules during 2013.

During the year, we have also adopted a new school, Sekolah

Kebangsaan Cherana Putih in Melaka, in line with our business

expansion in the state through the establishment of our RGT.


Annual Report 2013

IN OUR EFFORTS

TO DEVELOP A

HIGH PERFORMING

TALENT POOL,

WE HAVE BUILT A

STRONG EMPHASIS

ON TALENT

MANAGEMENT

AND COMPETENCY

BUILDING

AMONGST OUR

STAFF

RECOGNITION

Our efforts in improving all levels of excellence did

not go unnoticed.

In the area of HSE, we have received the following

awards, attesting to the level of our plant and

operational safety excellence during the year:

• 9 Malaysian Society For Occupational Safety and

Health Awards - Grand Class (1); Gold Class I (2);

Gold Class II (1); Gold Merit (5)

• Department of Occupational Safety and Health:

Excellence Award – Health & Safety Gas Utility

Category (1)

• Institut Kimia Malaysia (IKM) – Lab Excellence

Award (3)

• Malaysia Productivity Council (MPC):

– 5S Practitioner for Plant Category Certification

(2)

– 5S Practitioner for Non Plant Category

Certification (1)

• ISO 9001:2008: Quality Management System

• ISO 14001: Environmental Management System

• SIRIM OHSAS 18001:2007 & MS 1722:2011

Occupational Health and Safety Management

System

On the corporate front, our business excellence

have also been recognised through the following

accolades:

• The Edge Billion Ringgit Club 2013

• National Annual Corporate Report Awards

(NACRA) 2013 - Merit Award, Industrial Products

& Technology

• Alpha Southeast Asia’s 3rd Annual Southeast Asia

Institutional Investor Corporate Awards 2013

– Best Senior Management Investor Relations

Support award

The recognitions garnered from industry and

statutory bodies have encouraged us to continue

to deliver the best level of performance in years to

come.


Annual Report 2013


PREPARING FOR FUTURE CHALLENGES

Having experienced three decades of growth and expansion,

our 30th anniversary in FY2013 allowed us an opportunity

to pause, take stock of our achievements and prepare the

organisation to meet the challenges of an ever-changing

business, social and economic landscape.

Since our public listing in 1995, our market capitalisation has

grown by more than four-fold to RM48.0 billion as at end

2013, and we are currently recognised as one of the ten largest

corporations listed on Main Market of Bursa Malaysia in terms

of market capitalisation. While we have enjoyed a certain

measure of success, we are not immune to some challenges

that may stand in the way of optimum growth.

Realising this, during the year, the Board of Directors of PGB

recommended a study to be carried out to analyse PGB’s current

structure and operations and recommend a way forward.

Using the results of the study and extensive work by an

internally-established taskforce for the Strategic PGB

Organisational Review and Alignment (SPORA), a new structure

was established and came into effect on 1 December 2013.

Following the restructuring, we have integrated our gas

processing and utilities businesses and our transmission and

regasification businesses into new divisions – Gas Processing

and Utilities (GPU) and Gas Transmission and Regasification

(GTR) respectively, coupled with the realignment of certain

functions.

This new structure has revitalised PGB into a more streamlined

organisation, with an intent to achieve superior performing

assets, improved HSE performance and breakthrough

operational results. The new structure also reflects our desire

to return to our fundamentals, which is focusing on our core

business of gas processing, gas transportation, utilities and

regasification while achieving improved Overall Equipment

Effectiveness (OEE), as well as better manage and deliver our

projects.

We are hopeful that the improvements brought about by this

restructuring will deliver a positive impact on our results for

FY2014 onwards.


Annual Report 2013

APPRECIATION

I would like to take this opportunity to thank my predecessor

En Samsudin for building PGB from strength to strength into

the Company we know today. En Samsudin and the other MD/

CEOs before him have exhibited their passion and commitment

in establishing PGB as a well-respected gas infrastructure and

utilities company, and we are truly indebted to their legacy.

I would also want to thank our staff who have worked

relentlessly day and night to ensure that we met our

performance targets for FY2013. Despite all the challenges we

faced during the year, they have persevered and exhibited a

resilient spirit in discharging their duties, delivering more than

what is expected of them, with selflessness and devotion. I

hope they will continue to give their fullest commitment to

PGB in the spirit of our Company’s motto ‘Together As One’.

My gratitude also goes to the PGB Management Committee

members past and present who have demonstrated their ability

to lead our people to deliver seemingly impossible tasks and

contributed ideas and insights that have made us the Company

we are today. A special thanks to our former Management

Committee members, Ir. Hudal Firdaus bin Dimyati, En Mohd

Sukri bin Ibrahim, En Ahmad Nawawi bin Mohd Yatim and

En Helmi bin Zaidan who have moved on to other units within

the PETRONAS Group. I wish them the best of luck in their new

endeavours.

I am also grateful to our Chairman, Datuk Anuar bin Ahmad,

whose guidance and wisdom has allowed us to progress

through yet another challenging but truly rewarding year.

His constant encouragement and wealth of experience has

inspired us to work hard to bring about the renewal of our

organisation, setting the foundation for its continued success

in years to come. My thanks are also for our esteemed Board

of Directors for their wise counsel and stewardship of the

Company during the year.

Last but not least, I would like to put on record my heartfelt

appreciation to our shareholders, who continue to give their

vote of confidence in PGB. We will continue to do our utmost

to return superior value to your investments.

We have journeyed far in this last 30 years and we count on

your support to enable us to deliver more in years to come.

Yusa’ bin Hassan

Managing Director/Chief Executive Officer

We are always thinking of ways to achieve sustainable and long term growth. We are putting the right tools and processes in place today to aim for a future where our carbon footprint is smaller and well managed. As we continue our growth momentum, the drive for a sustainable business operation will continue to remain as part of our business creed.

DELIVERING

VALUE


Annual Report 2013

OURPROFILE

PGB has been in business for 30 years and is still growing strong. Since its incorporation in 1983, PGB’s business has vastly

expanded in spite of challenges faced. Today, PGB has prospered

as Malaysia’s leading gas infrastructure and utilities Company, with business presence throughout the country.

• PETRONAS Gas Berhad (PGB)’s core flagship

businesses are Gas Processing & Utilities and Gas

Transmission remain as the bread and butter of the

Company’s growth.

• Since 1998, PGB’s Utilities plants in Kertih and

Gebeng have been manufacturing, supplying and

marketing industrial utilities products.

• PGB entered into an agreement with PETRONAS

Carigali Sdn Bhd in 2007 for project management

and execution of the Sabah-Sarawak Gas Pipeline

Project (SSGP) which was duly completed in 2013.

• In 2009, PGB ventured into power business with

the formation of Kimanis Power Sdn Bhd, a joint

venture company with NRG Consortium (Sabah)

Sdn Bhd.

• The commissioning of liquefied natural gas (LNG)

Regasification Terminal in Sungai Udang, Melaka in

2013 paved way for the importation of LNG to cater

the increasing gas demand in Malaysia.


Annual Report 2013

Gas Processing Plant (GPP)

Utilities Plant

Compressor Station

Tenaga Nasional Berhad Power Station

Independent Power Producer Power Station

LNG Regasification Terminal

RGT Pipeline

Capacity

mmscfd

GPK

GPS

GPPComplex

1 310

2 250

3 250

4 250

5 500

6 500

Total 2,060

PGB Total Pipeline Length

(in operation)

Main 1,658 km

Lateral 374 km

C2, C3 and C4 357 km

GPP Interconnect 116 km

Sarawak 45 km

RGT 33 km

Total 2,583 km

1. TNB Paka

2. YTL Paka

3. TNB Pasir Gudang

4. YTL Pasir Gudang

5. Senoko Energy

6. Keppel Gas

7. Pahlawan Power,

Tg. Kling

8. Panglima Power,

Teluk Gong

9. Powertek,

Teluk Gong

Sales Gas Customers

10. TNB Tuanku Jaafar

11. Port Dickson Power

12. Genting Sanyen Power

13. TNB Serdang

14. TNB Connaught Bridge

15. TNB Kapar

16. GB3 Lumut

17. Segari Energy Ventures

18. Prai Power

19. TNB Gelugor

20. Technology Tenaga

Perlis Consortium

PULAUPINANG

Processing Plant (GPP)

ies Plant

pressor Station

ga Nasionalad Power Station

pendent Powerucer Power Station

Regasification Terminal

Pipeline

PULAUPINANG

20

19

18

17

16

15

GPS

Utilities Kertih

Utilities Gebeng

GPK

STRAITS

OF MELAKA

SOUTH

CHINA

SEA

PERAK

SELANGOR

PAHANG

KEDAH

KELANTANTERENGGANU

NEGERI

MELAKA

JOHOR

SINGAPORE

14

12

11

109

8

7

6 5 3

4

2

1

SEMBILAN

PERLIS

13

OURPRESENCE


Annual Report 2013

PGU I 32 km

4891gnolaK kuleT - hitreK

PGU II 685 km

Sector I : 233 km

1991tamageS - gnolaK kuleT

Sector II : 241 km

1991rapaK - tamageS

Sector III : 211 km

1991eropagniS - tamageS

PGU III 450 km

ni - saGenilepiP niaM

Sector I : 184 km

6991tumuL - ureM

Sector II : 176 km

8991nuruG - tumuL

Sector III : 90 km

8991huaP - nuruG

Loop 1 265 km

9991tamageS - hitreK

Loop 2 226 km

1002ureM - tamageS

ni - saGenilepiP niaM

Pipeline

Power Station

Industry

Kimanis Power Plant

Sales Gas Customers

SESCO Miri Power Station

Sarawak Gas Distribution System

Bintulu Edible Oils Sdn Bhd

Syarikat Sebangun Sdn Bhd

Sime Darby Austral Sdn Bhd

Biport Bulkers Sdn Bhd

1

2

3

4

5

6

Pipeline

Power Station

Industry

Kimanis Power Plant

3

6

4

5

SARAWAK

Miri

Bintulu

SABAH

SOUTH

CHINA

SEA

Kimanis

MIRI TOWN

LUAK

Teacher Training CollegeTaman Tunku

1

2

N

LUTONG

PIASAU

PUJUT


Annual Report 2013


Annual Report 2013

OUROPERATIONS

GAS PROCESSINGSituated in Kertih and Santong. Both

complexes are able to process raw gas

of over 2,000 million standard cubic

feet per day. These plants churn out

sales gas which is transmitted into PGB’s

Peninsular Gas Utilisation (PGU) pipeline

and by-products such as ethane for

petrochemical feedstock.

PETRONAS Gas Berhad

(PGB) business portfolio

is divided into four core

operations which are

G a s P r o c e s s i n g , G a s

Transmission, Utilities

and Regasification.

GAS TRANSMISSIONThe Control Centre is the nerve

centre for more than 2,500 km of gas

transmission pipelines which transports

sales gas to PETRONAS’ customers.


Annual Report 2013

Gas Processing and Gas Transmission

are closely related with the former

being responsible for processing natural

gas piped from PETRONAS’ offshore

fields while the latter is responsible for

transporting the processed gas via the

PGU pipeline network to PETRONAS’

customers in Malaysia and Singapore.

The Utilities plants supports the gas value

chain by supplying industrial utilities to

various petrochemical plants operating

in Kertih, Terengganu and Gebeng,

Pahang while liquefied natural gas

(LNG) Regasification Terminal facilitates

diversification of PGB’s business portfolio

into Regasification business to fulfil

Malaysia’s gas demand.

Following the reorganisation of PGB’s

business, the gas processing and utilities

businesses have been merged into

the Gas Processing and Utilities (GPU)

Division while gas transmission and

regasification businesses have been

merged into Gas Transmission and

Regasification (GTR) Division.

REGASIFICATIONSituated in Sungai Udang, Melaka, the

plant receives LNG cargoes from LNG

vessels and regasifies the LNG to be

injected into the PGU pipeline network.

UTILITIESSupplies industrial utilities such as steam

and industrial gases to Kertih Integrated

Petrochemical Complex in Terengganu

and Gebeng Industrial Area in Pahang.


Annual Report 2013

ORGANISATIONALSTRUCTURE

CORPORATESTRUCTURE

BOARD AUDIT COMMITTEE

NOMINATION AND

REMUNERATION COMMITTEE

BOARD OF DIRECTORS

PETRONAS GAS BERHAD

MANAGING DIRECTOR/

CHIEF EXECUTIVE OFFICER

MANAGEMENT

COMMITTEE

Subsidiaries

Joint Ventures

Associate

GAS PROCESSING AND UTILITIES

GAS TRANSMISSION AND REGASIFICATION

FINANCE

COMMERCIAL AND CORPORATE SERVICES

HSE AND OPERATIONAL EXCELLENCE

HUMAN RESOURCE MANAGEMENT

LEGAL AND CORPORATE SECRETARIAT

PLANNING AND RISK MANAGEMENT


Annual Report 2013

Subsidiaries

100% PGB Regas Terminal (Sungai Udang) Sdn Bhd

100% PGB Regas Terminal (Pengerang) Sdn Bhd

99% PGB Regas Terminal (Lahad Datu) Sdn Bhd1% Sabah Energy Co

Joint Ventures

50% PGB Industrial Gases Solutions Sdn Bhd50% Linde Malaysia Sdn Bhd

60% PGB Kimanis Power Sdn Bhd40% NRG Consortium (Sabah) Sdn Bhd

60% PGB Kimanis O&M Sdn Bhd40% NRG Consortium (Sabah) Sdn Bhd

Associate

41% MMC-SHAPADU Holdings

26% Public Shareholders Gas Malaysia Berhad19% Tokyo Gas-Mitsui Holdings

14% PGB

CORPORATE ANDMANAGEMENT

DIRECTORY

DIRECTORS


Yusa’ bin Hassan

Dato’ N. Sadasivan N.N. Pillay

Datuk Rosli bin Boni

Ir. Pramod Kumar Karunakaran

Dato’ Ab. Halim bin Mohyiddin

Lim Beng Choon

Habibah binti Abdul

BOARD AUDIT COMMITTEE


Dato’ Ab. Halim bin Mohyiddin

Datuk Rosli bin Boni

NOMINATION AND REMUNERATION

COMMITTEE

Lim Beng Choon


Habibah binti Abdul

COMPANY SECRETARIES

Intan Shafinas (Tuty) binti Hussain

(LS 0009774)

Yeap Kok Leong

(MAICSA 0862549)

REGISTRAR

Symphony Share Registrars Sdn Bhd

(378993-D)

Level 6, Symphony House

Pusat Dagangan Dana 1

Jalan PJU 1A/46

47301 Petaling Jaya

Selangor Darul Ehsan

Tel: (+603) 7841 8000

Fax: (+603) 7841 8151

REGISTERED OFFICE AND BUSINESS

ADDRESS

Tower 1

PETRONAS Twin Towers

Kuala Lumpur City Centre

50088 Kuala Lumpur

Tel: (+603) 2051 5000

Fax: (+603) 2051 6555

AUDITORS

KPMG Desa Megat & Co.

PRINCIPAL BANKER

CIMB Bank Berhad

STOCK EXCHANGE LISTING

Main Market of Bursa Malaysia

Securities Berhad

WEBSITE

www.petronasgas.com


Annual Report 2013

BOARD OF DIRECTORS

from left to right:

Yeap Kok LeongCompany Secretary

Lim Beng ChoonIndependent Non-Executive Director

Dato’ Ab. Halim bin MohyiddinIndependent Non-Executive Director

Dato’ N. Sadasivan N.N. PillaySenior Independent Non-Executive Director

Datuk Anuar bin AhmadChairmanNon-IndependentNon-ExecutiveDirector


Annual Report 2013

Yusa’ bin HassanManaging Director/Chief Executive OfficerNon-IndependentExecutive Director

Habibah binti AbdulIndependent Non-Executive Director

Ir. Pramod Kumar KarunakaranNon-Independent Non-Executive Director

Datuk Rosli bin BoniNon-Independent Non-Executive Director

Intan Shafinas (Tuty) binti HussainCompany Secretary


Annual Report 2013

Datuk Anuar bin AhmadChairman, Malaysian (age 60)

Appointed as Director and Chairman of PETRONAS Gas Berhad

on 17 August 2010.

Qualification, Skills and Experience:

Datuk Anuar holds a Bachelor of Science Degree (Econs)

from the London School of Economics & Political Science,

University of London, United Kingdom and had attended

Harvard Business School’s Advanced Management Programme

(AMP), United States of America.

He joined PETRONAS in 1977 and is currently the Executive

Vice President (EVP) of Gas and Power Business, PETRONAS.

Prior to his appointment as EVP of Gas and Power Business,

he held various senior managerial positions in the International

Marketing Division and Corporate Planning Unit of PETRONAS

Trading Corporation Sdn Bhd and PETRONAS Dagangan

Berhad respectively. Datuk Anuar has held the positions of Vice

President of Oil Business, PETRONAS, as well as Vice President

of Human Resource Management, PETRONAS.

Datuk Anuar is a member of the PETRONAS Executive

Committee and PETRONAS Management Committee. He also

sits on the Board of several companies within the PETRONAS

Group.

Datuk Anuar has no family relationship with any director and/

or major shareholder of PGB. He has no conflict of interest

with PGB and has never been charged for an offence.

DIRECTORS’PROFILES


Annual Report 2013

Yusa’ bin HassanManaging Director/Chief Executive Officer (MD/CEO),

Malaysian (age 51)

Appointed to the Board of PETRONAS Gas Berhad as

Managing Director/Chief Executive Officer (MD/CEO) on

1 July 2013.


Yusa’ graduated with a Bachelor of Science in Mechanical

Engineering from West Virginia University, United States of

America in 1984.

Yusa’ has a career which spans over 28 years in PETRONAS

Refining and Petrochemical Businesses, covering plant

technical and operations areas. He started his career in

1985 as an Engineer in the Technical Department as part of the

pioneer team of PETRONAS Chemicals Group Berhad’s (PCG)

maiden plant, ASEAN Bintulu Fertiliser Sdn Bhd. From 1998

to 2011, he held various plant senior and top management

positions in PETRONAS Chemicals Ammonia Sdn Bhd,

PETRONAS Penapisan (Terengganu) Sdn Bhd and PETRONAS

Chemicals MTBE Sdn Bhd and Polypropylene Malaysia

Sdn Bhd.

Yusa’ joined PCG in July 2010 as the Head of Fertiliser and

Methanol Business Division. In June 2011, he assumed the

position of Head of Olefins and Derivatives Business Division

of PCG and was also the MD/CEO of PETRONAS Chemicals

Aromatics Sdn Bhd.

Yusa’ is the Chairman of Kimanis Power Sdn Bhd, Regas

Terminal (Sungai Udang) Sdn Bhd, Regas Terminal (Pengerang)

Sdn Bhd and Regas Terminal (Lahad Datu) Sdn Bhd. He also

sits on the Board of several companies within the PETRONAS

Group.

External Appointments:

• Director, Gas Malaysia Berhad

Yusa’ has no family relationship with any director and/or

major shareholder of PGB. He has no conflict of interest with

PGB and has never been charged for an offence.


Annual Report 2013


Dato’ N. Sadasivan N.N. PillaySenior Independent Non-Executive Director,

Malaysian (age 74)

Appointed to the Board of PETRONAS Gas Berhad on

29 August 1995.


He graduated in Economics from the University of Malaya in

1963.

Dato’ N. Sadasivan began his career with the Economic

Development Board Singapore upon graduation until 1967.

In 1968, Dato’ N. Sadasivan joined the Malaysian Industrial

Development Authority (MIDA) and was appointed as the

Director-General of MIDA in 1984. He served in that capacity

until his retirement in 1995.


• Director, APM Automotive Holdings Berhad

• Director, Bank Negara Malaysia

• Director of seven private companies (Sdn Bhd)

Committee Membership:

• Chairman, Board Audit Committee

• Nomination and Remuneration Committee

Dato’ N. Sadasivan has no family relationship with any director

and/or major shareholder of PGB. He has no conflict of interest



Annual Report 2013

Datuk Rosli bin BoniNon-Independent and Non-Executive Director,

Malaysian (age 57)


1 November 2010.


Datuk Rosli holds a Bachelor of Science in Petroleum

Engineering from the University of Wyoming, United States of

America in 1979.

Datuk Rosli has 33 years of experience in the petroleum

industry. He began his career with PETRONAS in 1980 as a

Petroleum Engineer. He served as a Field Asset Manager for

5 years from 1996 to 2000. From July 2000 to March 2004,

Datuk Rosli was involved in several overseas assignments

at management level, namely with Premier Oil in the United

Kingdom, an oil development project in Chad and exploration

project in Bahrain.

From April 2004 to February 2010, he served as the

General Manager (GM) in the Petroleum Management Unit

in Exploration and Production Division, Senior GM of the

Operations Division, in charge of all production operation

both in Malaysia and overseas and as the Senior GM of the

Corporate Human Resource Shared Services. He is active in

the Society of Petroleum Engineer (SPE) and has served in the

committee of various SPE forums and workshops.


• Chief Executive Officer of Malaysia-Thailand Joint Authority

(MTJA)


• Board Audit Committee

Datuk Rosli has no family relationship with any director and/or




Annual Report 2013


Ir. Pramod Kumar KarunakaranNon-Independent Non-Executive Director, Malaysian (age 54)


25 July 2011.


Ir. Pramod holds a Bachelor of Science, Communication

(Electronics) Engineering from Leeds Polytechnic, United

Kingdom.

Ir. Pramod joined PETRONAS in 1984 and is currently the Vice

President of Infrastructure & Utilities, Gas and Power Business,

PETRONAS. Prior to assuming this position, he has held various

senior positions in PETRONAS including as the Managing

Director/Chief Executive Officer of PETRONAS Chemicals

Ethylene Sdn Bhd, Senior General Manager and Head of Group

Plant Performance Management, Group Technology Solution,

PETRONAS and General Manager (Plant) of ASEAN Bintulu

Fertiliser Sdn Bhd.

Ir. Pramod sits on the Boards of several companies within the

PETRONAS Group.

Ir. Pramod has no family relationship with any director and/or




Annual Report 2013

Dato’ Ab. Halim bin MohyiddinIndependent Non-Executive Director, Malaysian (age 68)


4 August 2011.


Dato’ Ab. Halim graduated with a Bachelor of Economics

(Accounting) from the University of Malaya in 1971 and

thereafter joined Universiti Kebangsaan Malaysia as a Faculty

member of the Faculty of Economics. He obtained his Masters

of Business Administration degree from the University of

Alberta, Edmonton, Alberta, Canada in 1973 and subsequently

a Diploma in Accountancy from University Malaya in 1975.

He is a Council Member of the Malaysian Institute of Certified

Public Accountants (MICPA) and a Member of the Malaysian

Institute of Accountants (MIA). Dato’ Ab. Halim also sits as

the Chairman of the Education and Training Committee of

the Institute of MICPA. He is a past member of the Education

Committee of the International Federation of Accountants

(IFAC) and represented Malaysia in the Committee from 2001-

2005.

He joined KPMG/KPMG Desa Megat & Co. in 1977 and had his

early accounting training in both Malaysia and the United States

of America. He was made Partner of KPMG in 1985. During his

tenure as Partner for 17 years, he held various designations in

KPMG and acted as receiver and manager and liquidator for

several companies. At the time of his retirement on 1 October

2001, he was the Partner in Charge of the Assurance and

Financial Advisory Services Divisions and was also looking after

the Secured e-Commerce Practice of the Firm.


• Director, Amway (Malaysia) Holdings Berhad

• Director, KNM Group Berhad

• Director, RCE Capital Berhad

• Director, DiGi Telecommunications Sdn Bhd


• Board Audit Committee

Dato’ Ab. Halim has no family relationship with any director

and/or major shareholder of PGB. He has no conflict of interest



Annual Report 2013


Lim Beng ChoonIndependent Non-Executive Director, Malaysian (age 54)


4 August 2011.


Beng Choon holds a Bachelor of Science (First Class Honours)

in Mathematics and Computer Science from the Australian

National University, Canberra, Australian Capital Territory,

Australia and has attended numerous Accenture Management

Training Programs in the United States of America and the IMD

Leadership Program in Switzerland.

Beng Choon was the Country Managing Director in Accenture,

the global consulting, technology and outsourcing giant,

before he retired in 2009. He held various positions during

his 28 years tenure in Accenture, including that of Managing

Partner for Accenture’s Resources Industry Group (Oil & Gas,

Chemicals, Utilities, Natural Resources) in South Asia. He also

oversaw the Management Consulting practice across industries

in ASEAN.

Beng Choon has extensive experience in management

consulting which spans strategy formulation, operational

consulting and merger integrations and has led complex

projects to deliver transformational change for multinationals

as well as top Malaysian companies. Prior to moving into

management consulting, he was in technology consulting

covering IT Strategies and System Integration work.


• Trustee for the ECM Libra Foundation

• Director, PETRONAS Dagangan Berhad

• Director, Hong Leong Bank Berhad

• Director, MISC Berhad


• Chairman, Nomination and Remuneration Committee

Beng Choon has no family relationship with any director and/

or major shareholder of PGB. He has no conflict of interest



Annual Report 2013

Habibah binti AbdulIndependent Non-Executive Director, Malaysian (age 58)


13 September 2013.


Habibah graduated with a Bachelor of Economics (Accounting)

from the University of Malaya. She is a Member of the Institute

of Chartered Accountants in England and Wales, Malaysian

Association of Certified Public Accountants and Malaysian

Institute of Accountants.

She has 34 years of experience in providing audit and business

advisory services to several large public listed companies,

multinationals and local corporations. Habibah was previously

the Group Partner of the Audit & Business Advisory Division in

Ernst & Young (EY).

Habibah was a former member of the Securities Commission

from 1999 to 2002.


• Director, CIMB Islamic Bank Berhad

• Director, CIMB Investment Bank Berhad

• Director, Wing Tai Malaysia Berhad

• Director, KLCC Property Holdings Berhad


• Nomination and Remuneration Committee

Habibah has no family relationship with any director and/or

major shareholder of PGB. She has no conflict of interest with



Annual Report 2013


Samsudin bin MiskonManaging Director/Chief Executive, up to 1 July 2013,

Malaysian (age 53)

Resigned as the Managing Director/Chief Executive Officer of

PETRONAS Gas Berhad with effect from 1 July 2013.


Samsudin holds a B.Sc (Hons) in Chemical Engineering from

Aston University, United Kingdom in 1985. He obtained a

Masters of Science in Project Management from Reading

University, United Kingdom in 1994. In 2005, Samsudin

attended the Advanced Management Program at Harvard

Business School, United States of America.

Samsudin began his career with PETRONAS in 1983 as a

Process Engineer and was involved in the operations, design

and project implementation of gas processing facilities in

PETRONAS Gas Berhad until 1992.

He had held several positions in the PETRONAS Group including

serving as General Manager (GM) in the Plant Division of OGP

Technical Services Sdn Bhd and was accountable for the

project management of gas processing and petrochemical

plants until 2000. He then served as the GM of Malaysia

LNG Dua Sdn Bhd, and subsequently as the Senior General

Manager (SGM) of Malaysia LNG Sdn Bhd until 2005, managing

the operations of the PETRONAS LNG Complex in Bintulu,

Sarawak.

Samsudin was also the SGM of Leadership and Capability

Development Department of Human Resource Management

Division, PETRONAS. He was appointed as the Managing

Director/Chief Executive Officer of PETRONAS Gas Berhad in

March 2007. Samsudin has since assumed the position of Head

of Downstream Operations, PETRONAS, effective 1 July 2013.

Samsudin sits on the Board of several companies within the

PETRONAS Group.


Annual Report 2013

Dato Mohammad Medan bin AbdullahNon-Independent Non-Executive Director, Malaysian (age 55)

Dato Medan resigned from the Board of PETRONAS Gas

Berhad with effect from 1 September 2013.


Dato Medan graduated with a Bachelor of Laws from

the University of Malaya and had attended the Advanced

Management Program at the Wharton School, University of

Pennsylvania, Philadelphia, United States of America.

Dato Medan began his career in 1982 at PETRONAS as a Legal

Officer at the Legal Services Department, PETRONAS and had

since held various positions before his appointment as the

Senior General Manager (SGM) of Group Corporate Affairs

Division of PETRONAS in May 2010. Among the various

senior positions he helmed in the PETRONAS Group include

Managing Director/Chief Executive Officer (CEO) of Malaysia

LNG Group of Companies, SGM of Group Tenders and

Contracts Division, Executive Assistant to the President/CEO of

PETRONAS, SGM of Corporate Services Division in PETRONAS

Carigali Sdn Bhd and General Counsel for PETRONAS’

Exploration & Production Business. He was appointed to the

Board of PETRONAS Gas Berhad on 1 November 2010.

Dato Medan possessed a proven track record in achieving

various significant successes across the oil and gas value

chain, to contribute towards PETRONAS’ overall profitability

and growth.

Dato Medan was a member of PETRONAS’ Management

Committee and attended the Boards of several companies

within the PETRONAS Group until his resignation from

PETRONAS in September 2013.


Annual Report 2013

MANAGEMENTCOMMITTEE

from left to right:

Intan Shafinas (Tuty) binti HussainHead Legal and Corporate Secretariat

A Razak bin SaimHead Commercial &Corporate Services

Aida Aziza binti Mohd JamaludinHead Finance

Yusa’ bin HassanManaging Director/Chief Executive Officer


Annual Report 2013

Azlimi bin Mohd LazimHead Gas Processing & Utilities

Norarnizar bin Ali AmranHead Gas Transmission & Regasification

Barishah binti Md HanipahHead Human ResourceManagement

A Rashid bin MukriHead Planning & Risk Management


Annual Report 2013

Yusa’ bin HassanManaging Director/Chief Executive Officer (MD/CEO), Malaysian (age 51)

Yusa’ assumed his current position as Managing Director/Chief

Executive Officer on 1 July 2013.


Yusa’ graduated with a Bachelor of Science in Mechanical Engineering

from West Virginia University, United States of America in 1984.

Yusa’ has a career which spans over 28 years in PETRONAS Refining

and Petrochemical Businesses, covering plant technical and

operations areas. He started his career in 1985 as an Engineer in the

Technical Department as part of the pioneer team of PETRONAS

Chemicals Group Berhad’s (PCG) maiden plant, ASEAN Bintulu

Fertiliser Sdn Bhd. From 1998 to 2011, he held various plant senior

and top management positions in PETRONAS Chemicals Ammonia

Sdn Bhd, PETRONAS Penapisan (Terengganu) Sdn Bhd and

PETRONAS Chemicals MTBE Sdn Bhd and Polypropylene Malaysia

Sdn Bhd.

Yusa’ joined PCG in July 2010 as the Head of Fertiliser and Methanol

Business Division. In June 2011, he assumed the position of Head of

Olefins and Derivatives Business Division for PCG and was also the

MD/CEO of PETRONAS Chemicals Aromatics Sdn Bhd.

Yusa’ is the Chairman of Kimanis Power Sdn Bhd, Regas Terminal

(Sungai Udang) Sdn Bhd, Regas Terminal (Pengerang) Sdn Bhd and

Regas Terminal (Lahad Datu) Sdn Bhd. He also sits on the Board of

several companies within the PETRONAS Group.


• Director, Gas Malaysia Berhad

MANAGEMENTCOMMITTEE’S PROFILES


Annual Report 2013

Azlimi bin Mohd LazimHead, Gas Processing and Utilities, Malaysian (age 48)

Azlimi assumed his current position in April 2012.


Azlimi holds a degree in Chemical Engineering from Lamar University,

Texas, United States of America. He had also attended the Advance

Management Program at the Wharton School, University of

Pennsylvania, Philadelphia, United States of America in 2007.

Azlimi began his career as a Trainee Engineer in 1990 at Sabah

Gas Industries in the methanol plant division and later joined

PETRONAS in March 1991 as Shift Operations Supervisor, Dehydro

Section at PETRONAS Chemicals MTBE Malaysia Sdn Bhd.

Azlimi’s experience of six years in the Dehydro Section provided the

platform for him to emerge as Section Head at the Export Terminal

section in 1996. In 1998, he was appointed as a Senior Process

Engineer and subsequently returned to the Dehydro Section, as

Operations Manager within the same year. Azlimi was later promoted

to Asset Senior Manager in April 2003 in the same operating unit.

After 13 years at PETRONAS Chemicals MTBE Malaysia Sdn Bhd,

Azlimi was appointed in December 2004 as General Manager of

Gas Processing Kertih, PETRONAS Gas Berhad and thereafter at Gas

Processing Santong till March 2011.

Subsequently, he was appointed as President/Chief Executive Officer

of Trans Thai-Malaysia (Thailand) Ltd (TTM) in Songkhla Thailand

from April 2011 until March 2012.

He is currently responsible for the gas processing and utilities

operations of the Company.


Annual Report 2013


Aida Aziza binti Mohd JamaludinHead, Finance, Malaysian, (age 40)

Aida Aziza assumed her current position in September 2012.


Aida Aziza holds a Bachelor of Accounting and Finance from the

University of Lancaster, United Kingdom. She is a Fellow of the

Association of Chartered Certified Accountant of United Kingdom.

Aida Aziza began her career with PETRONAS in October 1996 as an

Executive in the Budget Department of PETRONAS and in the ensuing

years, has held various positions in the PETRONAS Group, including

serving as General Manager for the Finance and Accounts Services

Department, PETRONAS.

Aida Aziza has acquired more than 16 years of experience in

accounting and finance related assignments. She has lead several

Financial Reporting Standard (FRS) and Malaysian Financial

Reporting Standard (MFRS) implementations for PETRONAS Group

of Companies as well as the implementation of the SAP ECC6.0

for PETRONAS.

She is responsible for the management of all financial and fiscal

aspects of the Group, as well as investor relations. In addition, Aida

Aziza is also a Director of Kimanis Power Sdn Bhd and Kimanis O&M

Sdn Bhd.


• Alternate Director, Gas Malaysia Berhad


Annual Report 2013

Norarnizar bin Ali AmranHead, Gas Transmission and Regasification, Malaysian (age 52)

Norarnizar assumed his current position in November 2011.


Norarnizar holds a Bachelor Degree in Chemical Engineering

from University Technology Malaysia and Diploma in Mechanical

Engineering from Mara Institute of Technology.

Norarnizar has been in the gas industry for more than 28 years since

he began his career as a Project Engineer in Gas Processing Plant

(GPP) Project in 1984. He was involved in the design and project

implementation of gas processing facilities.

Norarnizar has acquired vast experience in the gas transmission

operation from his assignment in PETRONAS Gas Berhad taking

position as Pipeline Executive, Regional Manager and finally as

Senior Manager Operation in 2005. Prior to his appointment to

the current position, he was Senior Manager of the Operation

Engineering Department.

He is currently responsible for the gas transmission and regasification

operations of the Company. He also assumes the position of

Chief Executive Officer of Regas Terminal (Sungai Udang) Sdn Bhd.


Annual Report 2013


Abdul Razak bin SaimHead, Commercial and Corporate Services, Malaysian (age 48)

Razak assumed his current position in February 2013.


Razak holds a Degree in Mechanical Engineering (Hons) from the

University of Wollongong, New South Wales, Australia.

Razak has been with the gas industry for the past 22 years, since

he began his career as a Procurement Executive at PETRONAS Gas

Berhad’s (PGB) Transmission Operations Division (currently known as

Gas Transmission and Regasification) in 1992. He later held various

technical positions within PGB in the fields of engineering, gas

compression and facilities management.

In 2002, Razak was appointed as the Senior Executive (Marketing) at

the East Australia Pipeline Marketing Pty Ltd, a subsidiary of

PETRONAS Australia Pty Ltd, where he managed the capacity marketing

for the 3,000 km Moomba-Sydney gas pipeline. Subsequently,

Razak was assigned to work on the Front End Engineering and Design

(FEED) for the Papua New Guinea – Queensland pipeline project.

Having acquired vast experience in the technical and commercial

areas of the gas infrastructure industry, as well as a stint in PETRONAS’

international operations, upon his return to Malaysia in 2006, Razak

was appointed as Manager, Gas Supply Planning, Malaysia Gas

Management Department at Gas Business Unit, PETRONAS. He later

headed this department from 2008 until 2011. Prior to his current

position, Razak led the Gas Business Development Department.

He is currently responsible for all the commercial and corporate

services of the Company. Razak has been appointed as the Chairman

of Industrial Gases Solutions Sdn Bhd, a joint venture between

PGB and Linde Malaysia Sdn Bhd, as well as a Director of Gas District

Cooling (UTP) Sdn Bhd, Regas Terminal (Pengerang) Sdn Bhd and

Regas Terminal (Lahad Datu) Sdn Bhd.


• Director, Transasia Pipeline Company Pvt Ltd


Annual Report 2013

Barishah binti Md HanipahHead, Human Resource Management (HRM), Malaysian (age 50)

Barishah assumed her current position in March 2013.


Barishah graduated in 1986 with a Bachelor in Business Administration

(Cum Laude) from the University of Toledo, Ohio, United States of

America.

She began her career with PETRONAS in February 1988 as an

Executive at Education sponsorship. In 1991, she joined the Human

Resource Division of PETRONAS, where she was assigned to various

functions.

In January 2005, she was appointed as Manager (HR Planning) in

PETRONAS Gas Berhad (PGB). Subsequently, in 2006, she took on

the role of Manager, Human Resource Management (HRM), in

PETRONAS Chemicals Fertiliser Kedah Sdn Bhd.

In December 2011, she was appointed as the Head of Sponsorship and

Talent Sourcing at Talent Sourcing & Employee Relations Department,

HRM Division, PETRONAS.

Amongst her major accomplishments during her 26 years of

service includes the implementation of HRIS/SAP system, and

the outsourcing of medical administration for PETRONAS, the

decentralisation of talent sourcing initiative, recruitment and brand

enhancement initiatives as well as the Employee Referral Program.

She is currently responsible for the human resource management of

the Company. Barishah is also the joint secretary of the Nomination

and Remuneration Committee.


Annual Report 2013


Intan Shafinas (Tuty) binti HussainHead, Legal and Corporate Secretariat, Malaysian (age 41)

Intan assumed her current position in March 2012.


Intan holds an LLB (Hons) from the University of Leicester, United

Kingdom and Certificate in Legal Practice (Legal Profession Qualifying

Board, Malaysia). She is also a licensed Company Secretary.

Prior to joining PETRONAS, Intan had garnered five years of banking

experience having worked at several banks.

Her career in PETRONAS started in 2001 as Legal Executive with the

Petrochemical Business, PETRONAS. In 2007, she was attached to

the Corporate Services and Technology Department, Legal Division,

providing legal advisory services in the area of intellectual property

and commercialisation of technologies. In 2010, she was appointed

as Senior Legal Counsel of Corporate Services, PETRONAS.

Intan then joined PETRONAS Chemicals Group Berhad in 2011 and was

subsequently appointed as Senior Manager of Legal and Corporate

Secretariat Department, PETRONAS Gas Berhad in March 2012.

She is currently the Company Secretary, as well as Head of Legal,

responsible for all legal affairs and company secretarial services of

the Group. In addition, she also assumes the position as Company

Secretary for Regas Terminal (Sungai Udang) Sdn Bhd, Regas Terminal

(Pengerang) Sdn Bhd and Regas Terminal (Lahad Datu) Sdn Bhd, Gas

District Cooling (UTP) Sdn Bhd, Industrial Gas Solutions Sdn Bhd,

Kimanis Power Sdn Bhd and Kimanis O&M Sdn Bhd.


• Member and Honorary Secretary, Board of Visitors,

Prince Court Medical Centre


Annual Report 2013

Abdul Rashid bin MukriHead, Planning and Risk Management, Malaysian (age 47)

Rashid assumed his current position in July 2012.


Rashid holds a Bachelor of Engineering (Civil) from the University of

Western Australia, Australia.

Rashid started his career in 1991 with PETRONAS Gas Berhad as a

developmental executive in Construction Management and had nine

years of Project Management experience in various areas from Front

End to Planning and Control prior to a two years stint in marketing

Pipeline Capacity of the Moomba to Sydney and Central West Pipeline

in New South Wales, Australia with Australian Pipeline Trust.

Rashid then spent the next ten years of his career in PETRONAS Gas

Business Unit holding various positions and acquired experience in

Joint Venture Management, Gas Monetisation, Unconventional Gas

and Business Development.

He is currently responsible for the planning, joint ventures and risk

management of the Company.


Annual Report 2013

BUSINESSSTRATEGY

Following our organisational review and alignment in

FY2013, we have rolled out a new strategic framework

to sustain our business, strengthen our foundation

and grow within the areas of our core competencies.

The new strategies are aligned to our new structure and

will support our efforts to deliver more business impact in

years to come.

THE STRATEGIES ARE BUILT UPON

VISIONTo be a leading gas infrastructure and utilities company

MISSION• We are a business entity• Gas is our core business• Our primary responsibility

is to add value to this natural resource

• Empowered leaders with clear

ownership and accountability

• Business savvy with excellent

competencies to deliver value

• Performance-driven culture and

customer-oriented mindset


Annual Report 2013

Health, Safety and Environment (HSE) Excellence

STRONGER HSE GOVERNANCE AND ASSURANCE

THROUGHOUT ALL AREAS OF PGB’S OPERATIONS.

We constantly monitor our overall safety performance and

ensure that we roll out the necessary interventions to improve

our HSE performance.

A ROBUST HSE CULTURE

We pledge to strengthen our safety governance and adopt

a safety-at-heart approach throughout our operations and

projects. We ensure that the same approach is also adopted

by vendors and contractors who are working for our projects

and operations.

Operational Excellence

SUPERIOR PRODUCT DELIVERY AND RELIABILITY

We constantly challenge ourselves to elevate our Overall

Equipment Effectiveness (OEE) and equipment reliability

performance to support production and ensure minimal

disruption of products to our customers, thus improving

customer satisfaction.

SUSTAINABLE IMPROVEMENTS OF KEY OPERATIONAL

INDICATORS

We constantly push our performance boundaries to improve

our operational benchmarks and raise our achievements to the

next level, knowing that these improvements will bring direct

and indirect returns.

Value Optimisation & Growth

OPTIMUM COST CONTROL AND ASSET UTILISATION

We strive to achieve the best cost per unit, minimise wastage

and value leakage, which translates to higher returns to our

stakeholders. We ensure that we sweat our assets to generate

the best value from our investment.

IMPROVED ENERGY EFFICIENCY

We endeavour to improve our energy efficiency through

innovation and technological improvements that would help

decrease our energy consumption per unit of production,

which translates into better production costs.

STRATEGIC GROWTH IN GAS INFRASTRUCTURE AND

UTILITIES BUSINESS

We ensure our growth options are built upon the Company’s

core gas infrastructure and utilities business, allowing us to

deliver the best performance within the area of our core

competencies.

PROJECT DELIVERY EXCELLENCE

We strive to be proactive in managing our projects through

exhaustive planning and scoping, robust contractors

selection, and constant monitoring of project timeline, cost

and quality to ensure excellent delivery and stem value

leakage.


Annual Report 2013

KEYPERFORMANCE

THE FINANCIAL INDICATORS ASSESS THE GROUP’S CURRENT YEAR PERFORMANCE AS COMPARED TO THE PRECEDING YEAR.

GROUP PERFORMANCE RATIOS

39%Net profit margin is defined as

a ratio of net profit after tax to

revenue.

54%Attributed to tax income arising

from tax allowance as well as

higher revenue and share of

profit of associate and joint

ventures.

20132012

54%39%

NET PROFIT MARGIN

15%ROE is defined as profit attributable

to shareholders divided by the

average shareholders’ equity for

the year.

20%Improved on the back of higher

net income generated for the

year.

20132012

20%15%

RETURN ON EQUITY (ROE)

11%ROA is an indicator that measures

the Company’s efficiency in using

the total assets to generate earnings.

1.60Current ratio is defined as the

Company’s ability to meet its short-

term obligations.

16%In line with higher earnings for

the year which outweighed the

increase in total assets.

1.47Slightly lower due to higher

utilisation of cash reserves to

finance capital projects and

operations during the year.

20132012

16%11%

20132012

1.471.60

RETURN ON ASSETS (ROA)

CURRENT RATIO

2012 2013


Annual Report 2013

INVESTOR RATIOS

71 senEPS represents the portion of the

Company’s distributable income

allocated to each equity share.

73 sen*Higher in tandem with higher distributable

net income for the year.

20132012

7371

EARNINGS PER SHARE (EPS)

50 senInterim and final dividends for the

shareholders.

55 senThe additional 5 sen per share is as

an appreciation to shareholders for

continuous supports and to celebrate

the 30th anniversary of the Company,

coupled with contribution from liquefied

natural gas (LNG) Regasification Terminal

(RGT) in Sungai Udang, Melaka which

commenced operations during the year.

20132012

5550

DIVIDEND PER SHARE

70%Dividend payout is defined as the

percentage of earnings paid to

shareholders in dividends.

32%TSR is the measure of share price

performance and dividend paid

during the year, divided by the

opening share price.

* Excluding recognition of deferred tax assets arising from investment tax allowance granted for the RGT amounting to RM626.4 million.

75%*Higher dividend per share in line with

higher earnings for the year.

27%Due to lower rate of appreciation of share

price during the year.

20132012

75%70%

20132012

27%32%

DIVIDEND PAYOUT

TOTAL SHAREHOLDERS’ RETURN (TSR)

2012 2013


Annual Report 2013

INVESTORRELATIONS

As a public listed company, PETRONAS Gas Berhad (PGB) is continuously focused on creating value for our shareholders.

The Company firmly believes that it must deliver stable shareholders’ return as a leading gas infrastructure and utilities

company. In this regard, Investor Relations form a key initiative for the Company to ensure that shareholders and investors

are engaged regularly on PGB’s business and strategic direction.

Financial Results Announcement

To ensure best practices, PGB aligns its practice with the Malaysian Code of Corporate Governance which promotes fair and

timely disclosure of information to all shareholders and investors. The Company’s operations are guided by the Main Market

Listing Requirements of Bursa Malaysia Securities Berhad (Bursa Malaysia) as it continues to maintain high levels of transparency

and timeliness in its financial reporting.

Date Event Share Price

10 May 2013 PGB Group Q1 FY2013 Announcement RM20.04

22 August 2013 PGB Group Q2 FY2013 Announcement RM20.08

31 October 2013 PGB Group Q3 FY2013 Announcement RM24.52

10 February 2014 PGB Group Q4 FY2013 Announcement RM23.10

Engagement with Investors

PGB places great emphasis on maintaining a strong relationship with our investors. To ensure that they are kept abreast of the

Company’s strategies, performance and latest development on growth pursuits, PGB continuously engages with our investors

through frequent meetings with analysts and fund managers.

Analyst Meeting

During the year, PGB met with analysts and fund managers every fortnight from various financial institutions of several

countries namely, Singapore, Hong Kong and the United States of America which took place in the form of face-to-face meetings

and conference calls, held at our corporate office in Kuala Lumpur. During these sessions, we encouraged two-way dialogues

and we obtained feedback from investors. These engagements have allowed us to better understand and attend to their interests

and concerns.

There were 26 analyst meetings attended by PGB in FY2013 and the number of analysts or investment houses are as follows:

No. Country No. of Analyst/Research House

1 Malaysia 24

2 Singapore 6

3 United States of America 3

4 Hong Kong 1


Annual Report 2013

Conference

Annually, PGB participates in corporate events hosted

within the region. During the year, PGB participated in

Pulse of Asia held in Singapore where PGB was showcased

via three one-to-one and group discussions with

39 investors. This conference has provided an opportunity

for us to reach out to the investors in the international

capital market community and update them with the latest

developments in the Company.

Market Feedback

PGB is well covered through regular issuance of reports from

research houses and had been given positive outlook and

recommendation for its shares. As at 31 December 2013, PGB

was covered by nine research houses, both local and foreign

where 70% of the equity research reports provided favourable

feedback i.e. to hold or buy Petgas shares.

In addition, PGB won ‘Best Senior Management IR (Investor

Relations) Support’ award at the Alpha Southeast Asia's 3rd

Annual Southeast Asia Institutional Investor Corporate Awards

2013.

Investor Relations Portal

In further efforts to foster closer ties with various stakeholders,

we maintain a portal via the Company’s website, www.

petronasgas.com. The website serves as a vital channel to

extend information of interest, including annual reports,

financial results, news updates and announcements to Bursa

Malaysia to shareholders and the general public.

We understand the importance of having an active

communication with the investment community, thus we

welcome and highly value constructive feedback. Investors

with useful ideas or require clarifications are encouraged

to contact us at [email protected]. We look

forward to interactive and on-going engagement.

CIMB Research1

Affin Investment Bank6

Kenanga Research2

Maybank IB Research7

Alliance Research3

DBS Group Research4

J.P. Morgan8

AmResearch5

RHB Research9

Research House


Annual Report 2013

DIVIDEND PER SHARE +5 senFY2013 : 55 sen

FY2012 : 50 sen

SHARE PRICE +RM4.76FY2013 : RM24.28

FY2012 : RM19.52

EARNINGS PER SHARE +2 senFY2013 : 73 sen*

FY2012 : 71 sen

TOTAL SHAREHOLDERS’ RETURN -5%

FY2013 : 27%

FY2012 : 32%

MARKET CAPITALISATION +11 billion

FY2013 : RM48 billion

FY2012 : RM37 billion

For the Year

Ended 31 December 2012

For the Year

Ended 31 December 2013

For the Year

Ended 28 February 2014

Share price

(RM)

Volume

(‘00)

Share price

(RM)

Volume

(‘00)

Share price

(RM)

Volume

(‘00)

Highest 20.50 81,718 24.521 35,6743 23.82 16,499

Lowest 14.70 858 18.202 207 22.82 1,538

PETRONAS Gas Berhad (PGB) was listed on the Main Board

of the Bursa Malaysia Securities Berhad (Bursa Malaysia) in

1995. Since then, the Company has steadily grown to be one

of the active players in the capital market especially with the

realisation of its growth projects in the recent years.

Consequently, PGB currently has a market capitalisation of

RM48.0 billion, ranking it as one of the top ten companies listed

on the Main Market of Bursa Malaysia. PGB was recognised

by The Edge Billion Ringgit Club as one of the top three

companies industrial product sector which provided the

highest return on equity over the last three years.

The Company’s substantial shareholders are Petroliam Nasional

Berhad, Employees Provident Fund (EPF) Board and Kumpulan

Wang Persaraan (Diperbadankan), which together account for

80% of the shareholding in PGB. On top of this, the foreign

shareholding as at 31 December 2013 stood at 6.7%.

PGB’s share price has experienced persistent growth of 27%

during FY2013. It started the year at RM19.52, rose to its peak

on 31 October 2013 and gradually headed down towards

the end of the year to RM24.28. The highest share price

during the year of RM24.521 was the highest price ever recorded

by PGB since the Company’s listing on Bursa Malaysia whilst

the lowest share price was at RM18.202. The movement in

the share price was fundamentally in tandem with FTSE Bursa

Malaysia (FBM) Kuala Lumpur Composite Index (KLCI) and

supported by the Company’s growth activities particularly in

regasification and power business. The Company’s shares

were actively traded throughout the year with the highest

volume being 3,567,400 units3.

PERFORMANCEOF SHARES

* Excluding recognition of deferred tax assets arising from

investment tax allowance granted for the RGT amounting to

RM626.4 million.


Annual Report 2013

Volume

Year 2013 Year 2014

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

Closing Price (sen)/Composite Index

Shares

Volume Composite Index Closing Price

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

100

300

500

700

900

1,100

1,300

1,500

1,700

1,900

2,100

2,300

2,500

2. Lowest share price

3. Highest volume

1. Highest share price

RESULTS

First Quarter ended 31 March 2013 Announced On 10 May 2013

Second Quarter ended 30 June 2013 Announced On 22 August 2013

Third Quarter ended 30 September 2013 Announced On 31 October 2013

Fourth Quarter ended 31 December 2013 Announced On 10 February 2014

DIVIDENDS

Interim Entitlement Date 10 September 2013 Paid On 20 September 2013

Final Entitlement Date 14 May 2014 Payable On 10 June 2014

ANNUAL GENERAL MEETING

NOTICE OF ANNUAL GENERAL MEETING 9 April 2014

THIRTY FIRST ANNUAL GENERAL MEETING 5 May 2014

FINANCIALCALENDAR

FINANCIAL YEAR FROM 1 JANUARY 2013 TO 31 DECEMBER 2013


Annual Report 2013

CORPORATE MILESTONE:OUR JOURNEY 1983-2013

1983 + 1993

1999 Commissioning of GPP5 and

GPP6, first delivery of electricity

from CUF Kertih and CUF Gebeng

to customers.

1991 Commissioning of PGU 2 and the

official opening of the Segamat

Gas Transmission Operation

Centre by Prime Minister of

Malaysia, Tun Dr. Mahathir bin

Mohamed.

1992 First sales gas delivery to Senoko

Power Station in Singapore via

submarine pipeline and the

commissioning of GPP2 and GPP3.

1994 Commissioning of GPP4.

1995 Signing of a 20-year agreement

between PGSB and PETRONAS

for the provision of services

relating to Gas Processing and Gas

Transmission Agreement (GPTA)

in Malaysia on 31 March 1995 with

effective date 1 April 1994.

Conversion of PGSB from private

limited to a public listed company

(PETRONAS Gas Berhad) and was

listed on the main board of Kuala

Lumpur Stock Exchange (now

Bursa Malaysia Securities Berhad

(Bursa Malaysia)).

1998 Completion of PGU 3 project

and the signing of first Sale

and Purchase Agreement with

Centralised Utility Facilities (CUF).

1983 PETRONAS Gas Sdn Bhd (PGSB)

was incorporated as a wholly-

owned subsidiary of PETRONAS

on 23 May 1983.

1984 Commissioning of Peninsular Gas

Utilisation (PGU) 1; Commissioning

of Gas Processing Plant (GPP) 1 and

first gas in; First sales gas delivery

to power and industrial customers.

1987 Appointment of PGSB as

throughput and servicing agent

to PETRONAS in relation to the

PGU project in Peninsular Malaysia

(Throughput Agreement) on

2 November 1987.


Annual Report 2013

2003 + 2013

2005 First gas-in from Malaysia-

Thailand Joint Development

Area; Signing of Operation

and Maintenance Services

Agreement with Trans Thai-

Malaysia (M) Sdn Bhd.

2007 Signing of Project Execution

Services Agreement with

PETRONAS Carigali Sdn Bhd

for Sabah-Sarawak Gas Pipeline

(SSGP) Project.

2008 S ign ing of Shareholders

Agreement (SHA) with NRG

Consortium (Sabah) Sdn Bhd,

a subsidiary of Yayasan Sabah

on 24 November 2008 for

the establishment of Kimanis

Power Sdn Bhd, a 60:40 joint

venture company tasked with

the development of a 300

megawatt power plant in

Kimanis, Sabah.

2009 Ground breaking ceremony of

Kimanis Power Plant project on

26 November 2009 by Chief

Minister of Sabah, Datuk Seri

Panglima Musa bin Haji Aman.

2010 Prime Minister of Malaysia, Dato’

Sri Mohd Najib bin Tun Haji

Abdul Razak announced on 10

June 2010 the development

of Malaysia’s first liquefied

natural gas (LNG) Regasification

Terminal (RGT) in Sungai Udang,

Melaka by PETRONAS under the

10th Malaysia Plan. PETRONAS

assigned PGB to undertake the

RGT project on 29 June 2010.

2011 Signing of Engineering,

Procurement, Construction,

Installation and Commissioning

Alliance agreement between PGB

and a consortium of contractors

for LNG Regasification Facilities

Project on 25 February 2011. PGB

unveiled the PGB Network Code

on the 23 December 2011 to the

public via official announcement

to Bursa Malaysia.

2012 Signing of a Power Purchase

Agreement (PPA) between PGB

and Sabah Electricity Sdn

Bhd (SESB), witnessed by Prime

Minister of Malaysia, Dato’ Sri

Mohd Najib bin Tun Haji Abdul

Razak and Chief Minister of

Sabah, Datuk Seri Panglima Musa

bin Haji Aman on 16 February 2012.

Official launch for mechanical

completion of the RGT in Sungai

Udang, Melaka by the Prime

Minister of Malaysia, Dato’ Sri

Mohd Najib bin Tun Haji Abdul

Razak and the Chief Minister of

Melaka, Datuk Seri Haji Mohd Ali

bin Mohd Rustam on 4 June 2012

in conjunction with World Gas

Conference 2012.

2013 Commissioning of RGT in Sungai

Udang, Melaka on 23 May 2013;

Commissioning and testing of

Kimanis Power Plant.


Annual Report and Accounts 2013

2013 MEDIAMILESTONES


Annual Report 2013


Annual Report 2013

2013 CALENDAROF EVENTS

JANUARY 2013

Jan 8 Oil & gas trainees of the Republic of South Sudan (RSS) attended

training at Gas Processing Kertih (GPK) with an objective to

familiarise and to learn more about gas processing.

Feb 24Program Sentuhan Ilmu PETRONAS (PSIP) was held at

Dewan Shahbandar, Seri Negeri Melaka. It was launched by

YAB Datuk Seri Hj. Mohd Ali bin Mohd Rustam, Chief Minister

of Melaka for the newly adopted schools and rebranding of

Program BAKTI Pendidikan PETRONAS.

MARCH 2013

Mar 2PGB organised a Majlis Anugerah Cemerlang & Majlis

Penghargaan PSIP for Sekolah Kebangsaan Pinang Tunggal at

Seberang Jaya, Pulau Pinang to commemorate the success of

PGB’s adopted school’s UPSR students.

Mar 7Malaysian Gas Association (MGA) visited Utilities Gebeng for

familiarisation and to learn more about gas processing.

Mar 12GTR staff at Bekok, Johor conducted a CSR programme at

Hutan Lipur Sungai Bantang. This is a regular event with local

communities at places where we operate.

Jan 18Gas Engineering Faculty of Universiti Teknologi Mara (UiTM)

visited Segamat Operations Centre for familiarisation on Gas

Transmission and Regasification (GTR) division’s operation.

Jan 20Universiti Teknologi Malaysia students visited Utilities Kertih for

a study trip to understand and gain knowledge on the oil & gas

industry.

Jan 24GTR staff participated in the Maulidur Rasul Parade for Johor

State at Segamat.

FEBRUARY 2013

Feb 20PETRONAS and PETRONAS Gas Berhad (PGB) GTR staff

conducted and organised a Chinese New Year Corporate

Social Responsibility (CSR) at Kg. Baru Buluh Kasap, Segamat

to help the community celebrate Chinese New Year. This was

done in collaboration with PETRONAS Group Corporate Affairs.


Annual Report 2013

Mar 13Konebada Petroleum Park Authority of Papua New Guinea visited GPK for familiarisation and to learn more about gas processing and its plants.

Mar 31Electrical students from UiTM Shah Alam visited Utilities

Kertih for an educational visit to learn about working

environment at gas plants.

APRIL 2013

Apr 1PETRONAS Chemicals MTBE Sdn Bhd visited GPK and Gas

Processing Santong (GPS) for familiarisation and to acquire

knowledge on gas processing.

Apr 11YBhg Datuk Ir. Ahmad Fauzi bin Hasan of Suruhanjaya Tenaga

visited liquefied natural gas (LNG) Regasification Terminal (RGT)

in Sungai Udang, Melaka for a familiarisation trip.

Apr 16Datuk Seri Idris Jala, Chief Executive Officer of PEMANDU and

Minister in the Prime Minister’s Department visited RGT for a

familiarisation visit and project progress update.

Apr 18Students and lecturers from Universiti Malaysia Terengganu

visited GPK to learn more about gas processing and the gas

industry.

Apr 24YB Datuk Wira Omar bin Kaseh, Melaka State Secretary visited

RGT for familiarisation and to learn about the RGT operations.

PETRONAS Trading Corporation Sdn Bhd (PETCO) visited GPK

and Tanjung Sulong Export Terminal to familiarise on PGB’s

operations and learn more about gas processing.

MAY 2013

May 16PGB held its 30th Annual General Meeting at

Mandarin Oriental Kuala Lumpur.


Annual Report 2013


May 18Managing Director and Chief Executive Officer (MD/CEO)

Office organised a CSR at Pusat Penjagaan Warga Tua Sri

Tanjung, Kuang, Selangor to help the poor and needy.

PGB’s Technical and Facilities Development Division (TFDD)

organised a CSR at Madrasah Anak Yatim dan Tahfiz Quran

Hashimah at Batu Caves, Selangor.

Hodogaya Chemical Co. (Japan) visited Utilities Gebeng to

understand more on the utilities business and plant operations.

May 19A CSR programme was organised by GTR staff at Rumah

Orang-Orang Buta, Kg. Seri Sepakat, Yong Peng.

May 22TIM Naziran Sasaran Penting from Majlis Keselamatan Negara

visited GPS to conduct audit inspection.

May 28Malaysian Society For Occupational Safety And Health visited

GPS to conduct safety audit.

JUNE 2013

Jun 4PERTAMINA Indonesia visited RGT for a familiarisation and

educational trip on RGT’s operations.

Jun 6YB Menteri Hal Ehwal Luar Negeri dan Perdagangan Brunei

Darussalam visited RGT for a familiarisation and educational

trip on RGT’s operations.

Jun 17Corporate Strategic Planning Division PETRONAS visited GPK

for a familiarisation visit and to learn more about gas processing.

Jun 19Malaysian Investment Development Authority (MIDA) Pahang

and MIDA Kuala Lumpur visited Utilities Gebeng to understand

more on the utilities business and its operations.

Jun 22GTR Segamat staff organised a CSR programme at Surau

Kg. Kadut in Segamat, Johor.

Jun 29 & 30TFDD organised a CSR at Rumah Amal Baitul Kasih to help the

poor and needy.

JULY 2013

Jul 3Sime Darby delegates visited Utilities Gebeng to understand more on the utilities business.

Jul 3 & 4Delegates from PERTAMINA visited PETRONAS Twin Towers and RGT to learn more about PGB and its business.

Jul 5Petrobangla visited PETRONAS Twin Towers for a familiarisation visit to learn more about PGB’s role in the Malaysian gas industry value chain.

Jul 7A CSR programme was conducted at Sekolah Kebangsaan Kg. Kadut in Segamat to help the poor and needy at places we operate.

Jul 10National Innovation Agency and Metropolitan Electricity Authority of Thailand visited PETRONAS Twin Towers on a familiarisation visit to learn more about PGB and its role in the Malaysian gas industry.

Jul 26Minister of Kementerian Tenaga, Teknologi Hijau dan Air (KeTTHA), YBhg Datuk Seri Panglima Dr. Maximus Johnity Ongkili, Ministry’s Secretary General Datuk Loo Took Gee, Suruhanjaya Tenaga’s Chairman Tan Sri Dr. Ahmad Tajuddin bin Ali and TNB Chief Executive Officer Datuk Seri Ir. Azman bin Mohd visited Kimanis Power Plant to familiarise and be updated on the project progress.


Annual Report 2013

SEPTEMBER 2013

Sep 6Delegates from the International Gas Union visited Kimanis

Power Plant (KPP) on a familiarisation visit and to learn more

about KPP and its business.

Sep 8PGB participated in East Coast Economic Region (ECER)

Exhibition & Open Day in Kuantan, Pahang to educate the

masses on PGB and its business.

Sep 17YB Dato’ Razali bin Ibrahim, Deputy Minister in the Prime

Minister’s Office visited KPP to monitor the power plant

project progress.

Sep 19Trans Thai-Malaysia (M) Sdn Bhd Board of Directors visited RGT

to learn more about regasification and its business.

Sep 21Royal Malaysian Customs Department visited GPS on a

familiarisation visit to learn more about the gas processing and

PGB’s role in the Malaysian gas industry.

Delegates from the Institute of Engineers Malaysia (IEM) (Sabah

Branch) visited KPP on an educational visit to learn more about

its operations.

Jul 31Delegates from Petro South Africa visited RGT to learn more

about PGB and its role in the Malaysian gas industry.

AUGUST 2013

Aug 3RGT Department and Corporate, Commercial and Services

Division organised a CSR for Anak-Anak Yatim at Rumah Amal

Permata Hatiku, Jalan Gombak, Kuala Lumpur.

Aug 20PGB organised a Majlis Ramah Mesra Aidilfitri PETRONAS Gas

Berhad with Stakeholders at KL Convention Centre, KLCC. It

is a yearly event to bridge the gap and enhance solidarity

between PGB and its key stakeholders.

Aug 31GTR Segamat joined the Merdeka Parade in conjunction

with 56th Malaysian Independence Day and was joined by

selected GTR Segamat staff representing PETRONAS in

Merdeka Parade at District level (Johor).


Annual Report 2013


Oct 22PGB organised 2nd Media Networking Luncheon with Melaka

Media at Holiday Inn, Melaka to enhance the relationship

between PGB and the media fraternity.

Oct 23Delegates from Transportasi Gas Indonesia visited Segamat

Operations Centre as part of a series of training organised by

PETRONAS Leadership Centre (PLC).

Oct 28National Hydraulic Research Institute of Malaysia (NAHRIM)

visited Segamat Operations Centre to learn more about GTR

and its operations.

Oct 31Suruhanjaya Tenaga visited RGT to ensure compliance and safety

is maintained and to familiarise on RGT and its operations.

NOVEMBER 2013

Nov 2A CSR programme was conducted by Pasir Gudang Regional

Office for 20 poor families and the disabled in Pasir Gudang.

Nov 8PETRONAS Vice President of Group Operational Excellence

visited RGT to learn more about RGT and its business module.

Sep 27KPMG, Desa Megat & Co. PGB’s external auditor visited RGT

on a familiarisation visit and to learn more about regasification

terminal operations.

Sep 28Finance Division organised a CSR at Jalan Puyuh, Kg. Batu 10,

Mukim Cheras, Selangor to build a kitchen and lavatory for the

poor and needy.

Sep 30PGB organised its 1st Media Networking luncheon with Sabah

Media at Hyatt Regency, Kota Kinabalu to enhance the relationship

between PGB and the media fraternity.

OCTOBER 2013

Oct 1MIDA visited GPK for familiarisation and to learn more

about PGB’s gas processing.

Oct 9Royal Malaysian Air Force visited GPK to learn more about gas

processing and safety system management at PGB’s plants.

Oct 10Delegates from PETRONAS Chemicals Group Berhad (PCG)

visited GPS to familiarise and to learn on the gas processing

procedures.

Department of Environment (DOE) visited RGT to familiarise the

department with the new facility and ensure overall compliance

with Malaysia’s environmental regulations.


Annual Report 2013

Nov 10PGB held its Annual Invitational Golf 2013 at Sg Long Golf

& Country Club for Local Authorities. This event is catered

at enhancing solidarity and networking amongst PGB’s

management and key stakeholders

Nov 16TAS Institute of Oil and Gas visited KPP on an educational visit.

Nov 18Tokyo Gas visited RGT to familiarise and learn on RGT and its

impact in the Malaysian gas value chain.

Suruhanjaya Tenaga visited GPS on a familiarisation visit to

learn more about gas processing.

Nov 19A CSR was conducted at Surau Kg. Rancangan Kimanis for

gotong-royong to repair the surau.

Nov 21PGB organised its Media Engagement Programme at

BERNAMA, Jalan Tun Razak. This first media networking

session is crucial in strengthening the relationship

between media fraternity at BERNAMA and PGB’s key

personnel.

Nov 23Bintulu Operation Centre conducted a CSR Programme at

PDK Gemilang, Taman Li Hua in Bintulu to help the needy and

to give back to the people at places where we operate.

Nov 24PGB hosted its Annual Invitational Golf 2013 at Glenmarie Golf

& Country Club for its customers. This event is a platform to

further enhance solidarity and networking between PGB and

its customers.

Nov 28Peninsular Malaysia Gas Supply Committee visited RGT on a

familiarisation visit and to learn more about the regasification

terminal operations.

Nov 30MISC Berhad Board of Directors visited RGT on a

familiarisation visit and to learn more about RGT and its business

operations.

DECEMBER 2013

Dec 19The media fraternity visited RGT on a familiarisation visit

and to learn more about RGT’s impact to Malaysia, PGB’s

business and the gas value chain.

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