Corporate Communication Key ConceptsIn
Malaysia Liquid and Gas (MLNG)(200866-W)
UC00102Corporate Communication
Jamsari Bin HashimGroup 1
No. Name Matric No Section
Project Paper (40%)
Project Paper
Presentation (30%)
1. FELIX BK 22. HO KOON
CHANGBK
11110105 2
3. IAN LEVI JACKERY BS 2
4. NUR FATANAH BS 25. REO RICKIE H
BATINGBK
11110257 2
Tuesday1100-1300
DKP 13Semester II
2011/2012 Session
CONTENT
No. CONTENT PAGE
1. MISSION
2. VISION
3.OBJECTIVES AND
GOALS
4. STRATEGIES
5. IDENTITY
6. IMAGES
7. REPUTATION
8. STAKEHOLDER
9. PUBLIC
10. MARKET
11. ISSUE
12. COMMUNICATION
INTRODUCTION
(a) BACKGROUND OF THE ORGANIZATION
PETRONAS' venture into the liquefied natural gas (LNG)
industry more than three decades ago marked Malaysia's entry into
the modern gas era. When substantial gas reserves were discovered
in Sarawak's Central Luconia basin in the 1970's, it was hoped that
monetising this resource would bring revenue and foreign exchange
needed to spearhead Malaysia's socio economic development and
nation building. It was also realised then that Malaysia's proximity to
industrialised Japan, opened the opportunity for PETRONAS to tap
into an important energy market in need of a cost effective, efficient
and cleaner energy resource.
PETRONAS,Shell BV and Mitsubishi held talks which resulted in
the birth of a partnership to undertake Malaysia's first LNG project,
realised through the incorporation of Malaysia LNG Sdn Bhd or
MLNG on 14 June 1978.
The MLNG project was Malaysia's largest and most ambitious
industrial undertaking at the time and the Malaysian Government
established a special LNG task force to see to its successful
completion. The MLNG project at that time was also the nation's
single largest investment in manufacturing and required what was
considered a quantum leap in technology and knowledge
acquisition. Beyond the construction of the plant, the MLNG project
also involved the construction of a jetty, the acquisition of LNG
carriers, the establishment of infrastructure and amenities and the
training of human resource.
Through hard work and perseverance, the partners in the
initial venture succeeded in transforming the sleepy fishing village
of Bintulu into the site of Malaysia's first gas liquefaction plant,
which was completed on schedule on 7 August 1982. The LNG
complex saw its first cargo destined for the Japanese market leaving
Bintulu on 29 January 1983 on board LNG carrier Tenaga Satu.
Escalating demand for LNG led to the formation of the second
and third joint-venture companies respectively - Malaysia LNG Dua
Sdn Bhd (MLNG Dua) in 1992, and Malaysia LNG Tiga Sdn Bhd
(MLNG Tiga) in 1995.
Indeed, Petronas' entry into the LNG business was a milestone
in the Corporation's journey towards becoming a fully-integrated oil
and gas player. It also marked a major leap for the Corporation in
terms of capability building and technology development, as the
pioneers in the LNG venture persevered to beat insurmountable
odds.As a result of the LNG project, PETRONAS' employees rapidly
acquired capability in every aspect of the LNG business, from plant
construction, commissioning and operations to marketing and
logistics.
The Central Luconia gas fields are about 125 - 275 km
offshore to Bintulu where the sea depth ranges between 60 and 120
metres. The gas reservoirs are at depths of 1,200 to 2,130 metres
below the sea bed. In the process of evaluating the discoveries,
Sarawak Shell Berhad drilled 94 exploration wells in the period 1968
- 1981.
The E11 gas field in the Central Luconia gas province was
discovered in January 1971. Evaluation of this find established with
adequate certainty that there was sufficient gas to make it
worthwhile to consider a large project to export gas in liquid form
i.e., liquefied natural gas or LNG.
(i) THE HISTORY OF MLNG
1965-1969
1967 - 1969
Discovery of substantial natural gas reserved in the Central
Luconia gas fields, about 125 - 250 kilometres offshore
Bintulu, Sarawak.
1970-1974
1973
The proposal to establish the LNG project in Malaysia was
submitted to the Malaysian Government by the Coordinating
Committee on Hydrocarbons. The Committee was set up by
the Malaysian Government, in the wake of OPEC's oil embargo
in the same year, to coordinate all matters pertaining to
petroleum resources, which paved the way for the enactment
of the Petroleum Development Act 1974 and the
establishment of PETRONAS.
1974, August 17
The national oil corporation of
Malaysia, PETRONAS, the acronym for
Petroliam Nasional Berhad, was
registered under the Companies Act, 1965.
1974, October 1
The Petroleum Development Act (PDA) was passed by
Parliament and came into force, vesting upon PETRONAS the
legitimate rights, powers, liberties and privileges in respect of
petroleum resources development in Malaysia. The
establishment of PETRONAS was the starting point for greater
national control and participation in the petroleum industry.
1975-1979
1975
The LNG Task Force was established by YAB Prime Minister
Tun Abdul Razak Hussein, to undertake the implementation of
Malaysia's first LNG Project.
1976, February
Negotiations were held between PETRONAS, Shell and
Mitsubishi to consider the manner in which the LNG project
should be initiated. Formal approval was granted by the
Government to PETRONAS to implement the LNG project.
1978, March 31
Signing of a Joint Venture Agreement
to set up Malaysia LNG Sdn. Bhd. to
own and operate the new three-train
LNG project. Parties to this agreement are PETRONAS (65%),
Shell Gas B.V. (17.5%) and Mitsubishi Corporation (17.5%).
1978, June 14
Incorporation of Malaysia LNG Sdn Bhd (MLNG).
1979, September 13
Letter of Intent for the LNG Sale and Purchase Agreement with
Tokyo Electric and Tokyo Gas was concluded in Tokyo.
1979, September 28
Letter of Intent was signed between MLNG and a
Japanese/American consortium - JGC Corporation of Japan and
the Pullman Kellogg division of Pullman Incorporation, for the
construction of the multi-million dollar LNG complex.
1979, November
MLNG signed Letter of Intent for the LNG Sales and Purchase
Agreement, with Tokyo Electric and Tokyo Gas.
1980-1984
1980, June 20
MLNG Signs Main Contract Agreement
with a consortium comprising JGC
Corporation, Kellogg Overseas
Construction Corporation/Pullman Kellogg of the United States,
for the construction of the MLNG plant.
1982, August 8
The first LNG train (Module) is successfully pre-commissioned,
with the first flow of gas into the Plant.
1982, September 1
MLNG officially moved its head office premises from Kuala
Lumpur to Bintulu.
1983, January 8
MLNG Plant commenced production of
LNG.
1983, January 27
The First Loading of LNG into the tanker.
1983, January 29
MLNG sent 1st LNG Cargo to Tokyo Electric Power Co. Inc. and
Tokyo Gas Co. Ltd. of Japan.
1983, February 4
The Sale and Purchase Agreement between Tokyo Electric
Power Co. Inc and Tokyo Gas Co. Ltd, was signed in Tokyo.
1983, February 7
"TENAGA SATU" berthed at Tokyo Gas,
Sodegaura Works, with her 1st LNG
Cargo from MLNG.
1983, March 27
MLNG signed the LNG Sale and Purchase Agreement with
Tokyo Electric Power Co Inc. and Tokyo Gas Co. Ltd.
1985-1989
1985, March 20
MLNG successfully delivered its 100th LNG Cargo to its
customers.
1985, September 20
MLNG sent 1st LNG Cargo to Tokyo
Electric Power Co Inc.
1985, November 22
Sarawak State Government became the fourth partner of
MLNG when it acquired 5% of the company's equity with
PETRONAS holding 65% and Shell Gas B.V. and Mitsubishi
Corporation owning 15% each (with the signing of the Specific
Agreement).
1989, April 6
MLNG successfully delivered 500th LNG cargo to its
customers.
1990-1994
1990, August 30
MLNG signed 20-year Sale and Purchase Agreement with
Saibu Gas Co. Ltd.
1992, May 26
Signing of a Joint Venture Agreement to set up Malaysia LNG
Dua Sdn Bhd to own and operate the new three-train LNG
expansion project. Parties to this agreement are PETRONAS
(60%), Shell Gas B.V. (15%), Mitsubishi Corporation (15%) and
the Sarawak State Government (10%).
1992, June 1
Incorporation of Malaysia LNG Dua Sdn Bhd (MLNG Dua).
1993, April 7
MLNG successfully delivered 1000th LNG Cargo to its
customers.
1993, May 24
MLNG sent 1000th LNG Cargo to Tokyo Electric Power Co. Inc.
and Tokyo Gas Co. Ltd. This marked the half-way stage of the
20-year contract with both companies.
1993, June 28
MLNG signed Sale and Purchase Agreement (SPA) with Korea
Gas Corporation for supply of LNG for 20 years, beginning
1995.
1993, October 20
MLNG sent 1st LNG Cargo to Saibu Gas
Co. Ltd. Japan.
1994, July 27
MLNG signed a Sale and Purchase Agreement with Tohoku
Electric.
1994, December 5
MLNG signed a Sale and Purchase Agreement with the
Japanese Gas Consortium (GCKE) comprising Tokyo Gas
(MLNG's established/earliest customer), Osaka Gas, Kansai
Electric and Toho Gas.
1995-1999
1995, March 22
MLNG signed a Sale and Purchase Agreement with Chinese
Petroleum Corporation (CPC), the first long-term customer
from Taiwan.
1995, May 19
MLNG sent 1st LNG Cargo to Chinese
Petroleum Corporation (CPC) Taiwan.
1995, May 30
MLNG sent 1st LNG Cargo to Japanese Gas Consortium/Kansai
Electric (GCKE).
1995, June 26
MLNG sent 1st LNG Cargo (FOB) to Korea Gas Corporation.
1995, November 15
MLNG signed a Sale and Purchase Agreement with Gas
Bureau, City of Sendai.
1995, November 8
Incorporation of Malaysia LNG Tiga Sdn. Bhd.
1995, December 8
Signing of a Joint Venture Agreement
to set up Malaysia LNG Tiga Sdn. Bhd.
to own and operate the new two-train
LNG expansion project. Parties to this agreement are
PETRONAS (60%), Sarawak State Government (10%), Shell
Gas B.V. (15%), Nippon Oil LNG B.V. (10%) and Diamond Gas
B.V. (5%).
1996, April 23
MLNG signed ex-ship Sale and Purchase Agreement with
Shizuoka Gas.
1996, May 29
MLNG sent 1st LNG Cargo to Tohoku Electric Power Co.
1996, May 29
MLNG sent 1st LNG Cargo to Shizuoka Gas Co. Ltd.
1997, May 28
MLNG sent 1st LNG Cargo to Gas Bureau, City of Sendai,
Japan.
1998, February 11
MLNG successfully delivered 2000th LNG Cargo to its
customers.
1998, November 6
1st night berthing for LNG tanker - "Tenaga Dua".
2000-2004
2001, April 16
MLNG Tiga signed a Sale and Purchase Agreement with
Tohoku Electric Power Co., Inc.
2001, June 10
MLNG successfully delivered 3,000th
LNG Cargo to its customers.
2002, February 19
MLNG Tiga signed a Sale and Purchase Agreement with the
Japanese Gas Consortium (GC) comprising Tokyo Gas (MLNG's
established/earliest customer), Osaka Gas and Toho Gas.
2002, April 9
MLNG Tiga signed a Sale and Purchase Agreement with Japan
Petroleum Exploration Co. Ltd. (JAPEX).
2003, January 6
Incorporation of ASEAN LNG Trading Co. Ltd. (ALTCO), a
trading company whose principal activity is to conduct a
global business buying and selling LNG, chartering LNG ships,
transporting and supplying LNG and re-gasified gas.
2003, February 8
PETRONAS increased equity in MLNG to 95% (from 65%) upon
the expiry of the Joint Venture Agreement with Shell Gas B.V.
and Mitsubishi Corporation.
2003, March 17
MLNG renewed Sales & Purchase
Agreement (SPA) with Tokyo Electric
Power Co. Inc. and Tokyo Gas Co. Ltd.
for the supply of LNG for 15 years beginning 2003. In 1983,
Tokyo Electric Power and Tokyo Gas became the pioneer
buyers of LNG from Malaysia when they signed a 20-year
contract with MLNG. After this contract expired, a new
agreement marked another milestone in the long-term
relationship between MLNG and the two buyers, and was a
testimony to MLNG's reputation as a stable, reliable and
competitive LNG supplier.
2003, March 26
MLNG Tiga sent 1st LNG cargo to Japan Petroleum Exploration
Co. Ltd. (JAPEX).
2003, May 8
Official launching / opening of the PETRONAS LNG Complex in
Bintulu by Y.A.B. Prime Minister Dato Seri Dr. Mahathir
Mohamad.
2003, May 9
MLNG Tiga signed a Sale and Purchase
Agreement (SPA) with Korea Gas
Corporation (KOGAS) to supply LNG for
seven years.
2003, December 1
Mitsubishi Corporation acquired 5% equity in MLNG from
PETRONAS, changing the PETRONAS' stake to 90%, while
Sarawak State Government held the remaining 5%.
2004, April 16
MLNG Tiga sent 1st LNG Cargo to Japanese Gas Consortium
(GC).
2005-2009
2005, April 5
MLNG Tiga sent 1st LNG Cargo to Tohoku Electric Power Co.,
Inc.
2005, July 4
MLNG signed a Sale and Purchase Agreement (SPA) with
Hiroshima Gas Co., Ltd. (Hiroshima Gas) to supply LNG for
eight years.
2005, July 12
MLNG Tiga signed a Sales & Purchase
Agreement (SPA) with Korea Gas
Corporation (KOGAS) for supply of LNG
for 20 years beginning 2008. The relationship between MLNG
and KOGAS started in 1991 with sales of spot cargoes,
followed by a long-term contract signed in 1993, expanded
into medium-term and short-term supply contracts in 2003
and 2004 respectively. The signing of a long-term contract
marked another important milestone, and was testimony to
the spirit of mutually-beneficial relationship between the two
companies.
2006, March 2
MLNG Tiga signed a Sale and Purchase Agreement with Toho
Gas Co., Ltd. Toho Gas, the third largest gas company in
Japan, has been importing LNG from MLNG since 1995 under a
20-year supply contract, signed in 1994 through a consortium
of Japanese companies of which Toho Gas is a member. The
signing of a new SPA marked the first supply deal for Toho Gas
as a single buyer.
2006, April 7
MLNG signed a Confirmation of Intent
(COI) with Osaka Gas Co. Ltd (Osaka
Gas) to supply LNG for 15 years
beginning April 2009. The long term relationship with Osaka
Gas, the second largest gas company in Japan, started in 1994
when MLNG signed a 20-year supply contract with a
consortium of Japanese companies of which Osaka Gas is a
member. In 2002, the consortium signed a contract with MLNG
Tiga, for the supply of LNG for a period of 20 years from 2004.
The new signing marked another important milestone for
Osaka Gas, as this was its first supply deal signed
independently with MLNG.
2006, April 25
MLNG signed a Sale and Purchase Agreement with Chubu
Electric Power Company, Incorporated. The relationship
between MLNG and Chubu Electric existed in 1991, 2001,
2002 and 2004, when MLNG sold spot ex-ship LNG cargoes to
the Company. The new SPA was its first long-term contract
with MLNG.
2006, July 21
MLNG Tiga signed a Sale and Purchase Agreement with
Shanghai LNG Company Limited for supply of LNG for 25 years
beginning 2008. The signing of the SPA marked a major
breakthrough for PETRONAS into China's energy sector. This
was PETRONAS' first LNG deal with China. The deal further
enhanced the economic ties between the two countries.
2006, November 9
MLNG successfully delivered 5,000th LNG Cargo to its
customers
2007, March 8
MLNG signed a Sale and Purchase Agreement (extension) with
Saibu Gas Co. Ltd. for supply of LNG for another 15 years
beginning 2013. The new SPA was a testimony to the spirit of
long-term mutually-beneficial relationship between MLNG and
Saibu Gas that was forged when the two parties first sealed a
20-year supply contract in 1990.
2007, May 11
MLNG Dua signed a Sale and Purchase
Agreement with Shikoku Electric
Company Limited for supply of LNG for
15 years beginning 2010. The deal increased MLNG's portfolio
of Japanese customers to 15.
2007, November 19
MLNG signed a Sale and Purchase Agreement with Osaka Gas
Co., Ltd., for supply of LNG for 15 years beginning 2009. The
long term relationship with Osaka Gas, the second largest gas
company in Japan, started in 1994 when MLNG signed a 20-
year supply contract with a consortium of Japanese companies
of which Osaka Gas is a member. The COI with Osaka Gas was
signed in April 2006.
2008, January 29
MLNG celebrates the 25th anniversary of Malaysia's 1st LNG
Cargo to Japan.
(b) RATIONALE CHOOSING THIS ORGANIZATION
MLNG proven capability in operating a fully integrated LNG
operation is among their greatest strengths. The availability of gas
resources from our upstream operations has enabled PETRONAS to
diversify into downstream gas liquefaction activities in Malaysia and
increasingly overseas, in line with our value-adding, business
integration and globalisation strategy.
By leveraging on their ability to ensure security of supply from our
gas reserves, and synergy of connectivity throughout the whole value
chain of our LNG business, they are able to meet their customer's
needs with a high level of reliability and flexibility.
It was over three decades ago when PETRONAS carried out detailed
studies on the feasibility of implementing a Liquefied Natural Gas
(LNG) project in Sarawak. Through joint ventures with other global
players, they have successfully developed their resources and realised
their vision to monetise the gas reserves of the Central Luconia Basin
offshore to Sarawak. The integration of the three LNG plants formed
the world's largest LNG production facility at a single location - the
PETRONAS LNG Complex at Bintulu, Sarawak, in East Malaysia.
Since the first LNG shipment in 1983, the LNG Complex has proven
to be a reliable supplier of LNG to our overseas customers and has
generated significant contributions in terms of foreign exchange
earnings for the country.
The PETRONAS LNG Complex has not only positioned PETRONAS as
a formidable player in the global LNG market, but also stands as a
testimony to the capability of Malaysians in participating and
successfully undertaking a complex world scale mega project, with
perseverance and strong teamwork. The integrated LNG project is a
successful collaboration between the government and the private
sector, and a partnership between the producing and importing
countries. In current parlance, it is a Malaysia Incorporated and smart
partnership.
MISSION
MLNG is in the business of manufacturing and marketing LNG.
As a key player in the LNG business, they seek to be a reliable and
preferred supplier of LNG.
As a leading producer of LNG, they will operate in a safe and
efficient manner, consistent with best practices, government
regulations and international standards.
As a JV company, they will optimise the use of resources, maximise
our revenue and ensure commensurate return on investment to their
Shareholders.
As a responsible corporate citizen, they will maximise our foreign
earnings for the benefit of the country and the well-being of the people.
As a caring employer, they will create an environment of mutual
respect and trust among our employees.
VISION
To be a global LNG player, continually creating value to our stakeholders
and preferred by customers.
MLNG’s vision “To be a global LNG player, continuously creating value to
its stakeholders and preferred by customers”, is supported by our
achievement of superior performance through managing our assets
safely, reliably, and cost effectively.
To support the vision, we shall strive to implement our Reliability and
Integrity Management System (RIMS) effectively to achieve “Superior
Performing Asset” of our facilities in accordance with the following
principles:
Nurture a risk based reliability and integrity centred culture in the
company by having challenging reliability and integrity targets,
implementing initiatives towards achievements of these targets,
monitoring and owning the performance at all levels.
Adopt standards and procedures from Petronas and other relevant
renowned international bodies or organizations, industry applicable best
practices into the design, modification, operation and maintenance of
our facilities.
Ensure there are sufficiently trained personnel to safety and effectively
manage, supervise, operate and maintain our facilities in accordance
with statutory regulations, and approved standard guidelines and
procedures.
Continually improve our RIMS effectiveness by conducting external
benchmarking with other LNG producers, international Situational
Assessment and ensuring that measures are taken to close any gaps
identified,
Together we can achieve our organisational goals and support Petronas
towards Global Championship.
OBJECTIVES AND GOALS
1. What are the goals?
STRATEGIES
A marketing strategy must be created in order to determine the means by
which a set of clear objectives may be met. Objectives communicate what
marketers want to achieve, guide marketing actions and are used to
measure how well a plan is working. They can be related to market share,
sales reaching the target audience and creating awareness in the
marketplace. The marketing strategy is the statement of how objectives
will be delivered. It explains what marketing actions and resources will be
used and how they will work together.
a. Product
The important thing to remember when offering items to potential
customers is that there is a huge amount of choices available to
those potential customers with regard how and where they spend
their money. Therefore, MLNG places considerable emphasis on
developing what customers want. However, customers’
requirements change over time. What is attractive today may be
discarded tomorrow. Marketing continuously monitors customers’
preferences. MLNG currently produces three main products for
export. These are LNG, LPG and Gasoline.
i. LNG
Liquefied Natural Gas (LNG) is an odourless, colourless, non-
corrosive and non-toxic product of natural gas consisting
primarily of methane (CH4) that is in liquid form at near to
atmospheric pressure. This is clean fuel. Natural gas is
increasing becoming the fuel of choice for customers around
the world due to its clean-burning and lower emission
qualities. LNG is a way of delivering natural gas to all corners
of the globe, safely and reliably. Currently MLNG supply LNG
under long term contracts to customers in Japan, Korea,
Taiwan and China.
ii. LPG
Propane and Butane, normally termed as LPG, is gaseous
hydrocarbons at normal temperature and pressure but readily
turn into liquids under moderate pressure at normal
temperature. MLNG export this product to Vietnam, India and
Philippines. MLNG also bottle them domestic market.
iii. Gasoline
Stabilized Gasoline from MLNG and MLNG Tiga Fractionation
units. MLNG Dua Stabilization Unit as well as MLNG Tiga
Condensate Stabilization unit. MLNG sell this product to
Bintulu Crude Oil Terminal (BCOT).
IDENTITY
With the phenomenon of ‘globalization’, companies have their eyes firmly
fixed on global expansion. This expansion has caused the businesses to
set up quality standards for proper branding and management of their
products. That’s why the need to establish a proper and authentic
trademark has never been so direly needed. A trademark is a guarantee
of consistency and quality. It assures the customers that all the products
bearing a specific trademark are of the same quality everywhere in the
world.
MLNG Shared Values
Loyalty
Professionalism
Integrity
Cohesiveness
Board of Directors
Malaysia LNG Sdn Bhd
Chairman
Dato’ Shamsul Azhar Abbas
Members
M Sabarudin M Amin
Datuk Wan Zulkiflee Wan Ariffin
Datuk George Ratilal
Samsudin B. Miskon
Datuk Mohd Zain Abdul Majid
Tan Sri Datuk Amar Hj Abdul Aziz B. Hj Husain (alt: Dato Sri Ahmad
Tarmizi Hj Sulaiman)
Kazuyuki Mori (alt: Junichi Iseda)
IMAGES AND REPUTATION
STAKEHOLDERS
The Stakeholder Model
A stakeholder is defined as any individual or group who has an
interest in the success of the business. It is worth noting the reference to
'success' because this would exclude competitors from the model.
Competitors may have an interest in seeing the business decline but not
necessarily in its success so for that reason we are excluding this group.
The Shareholders List
1. PETRONAS BERHAD
Petronas Bhd was established as Malaysia’s national oil company in
1974 to develop and manage the country’s oil and gas resources. It is
wholly-owned by the Malaysian Government and is vested with the entire
ownership and control of the petroleum resources in Malaysia through the
Petroleum Development Act 1974.
Over the years, Petronas has grown to become a fully integrated oil
and gas corporation and is ranked among the FORTUNE Global 500®
largest corporations in the world. Petronas has four subsidiaries listed on
the Bursa Malaysia and has ventured globally into more than 30 countries
worldwide in its aspiration to be a leading oil and gas multinational of
choice.
The company’s gas experience was demonstrated with the
successful commissioning of MLNG Satu in 1982 and its global LNG
venture in Egypt, Australia and many more.
2. SHELL
Shell is a global group of energy and petrochemical companies, operating
in more than 140 countries and territories. Since 1907, the Shell group
has grown and developed its business interest around the world. Shell
delivers a wide range of energy solutions and petrochemicals. These
include transporting and trading oil and gas, marketing natural gas,
producing and selling fuels for ships and planes, generating electricity and
providing energy efficiency advice. Shell also produces and sells
petrochemical building blocks to industrial customers globally and is
investing in renewable and lower-carbon energy resources competitive for
large-scale use.
3. Sarawak Government
The current Sarawak Government is formed by four Barisan Nasional
(National Alliance) component parties namely Parti Pesaka Bumiputera
Bersatu, Sarawak United People’s Party, Sarawak Progressive Democratic
Party and Parti Rakyat Sarawak. The government holds equity stake in
most oil and gas companies operating in the State.
4. Mitsubishi Corporation
Mitsubishi Corporation (MC) is Japan's largest general trading
company (sogo shosha) with over 200 bases of operations in
approximately 80 countries worldwide. Together with its over 500 group
companies, MC employs a multinational workforce of approximately
60,000 people. MC has long been engaged in business with customers
around the world in virtually every industry, including energy, metals,
machinery, chemicals, food and general merchandise.
5. Nippon Oil Corporation
Nippon Oil Corporation is a Japan-based supplier of petroleum
products. The Company operates in four business segments. The Oil
Refinement and Sales segment is engaged in the refinement and
processing of petroleum products, as well as the manufacture and sale of
petrochemical products. This segment is also engaged in the storage and
transportation of its petroleum products, as well as the purchase and sale
of coal and other mining products.
The Petroleum and Natural Gas Development is engaged in the
exploration and development of petroleum and natural gas. The
Construction segment is involved in road construction and civil
engineering works, as well as the design and construction of oil-related
facilities. The Others segment is involved in the real estate, automobile-
related and other businesses.
6. Diamond Gas Operation Co. Ltd. (DGO)1Diamond Gas Operation Co. Ltd. (DGO) is a wholly-owned
subsidiary of Mitsubishi Corporation. It was established in 1990 to
handle the practical business related to customs clearance and
payment settlements relating to MC's LNG suppliers in Alaska,
Brunei, Malaysia, Indonesia and other countries in which MC is
involved—areas supplying a total of about 20 million tons of LNG a
year. In addition to this, DGO collects information about natural gas
and other relevant industry information from all over the world and
provides it to customers—including electric power companies, gas
companies, government agencies, petroleum companies,
shipbuilding companies, plant engineering companies and banks—
by issuing and delivering a weekly newsletter named "Diamond Gas
Report (DGR)." As an additional service to its customers, DGO has
also started to provide Natural Gas-related information via its
website.
1 http://www.mitsubishicorp.com/jp/en/bg/energy/investments/dngb2.html
PUBLIC
i. Giving Back to the Society
MLNG is proud to represent a country rich in tradition, history and
natural resources. MLNG position as a leader in Malaysia’s energy
industry is an opportunity for MLNG to support important social
development initiatives that will continue to improve the lives of the
people of this country. Corporate citizenship forms an integral part of
the company’s vision.
Apart from providing valuable assistance to health, safety,
education and sport programmes throughout Malaysia, MLNG will
ensure that the people of Bintulu and generally Sarawak will continue
to benefit directly from the LNG project which acted as catalyst for the
development of basic infrastructures such as roads, water, electricity,
housing and schools, as well as telecommunications, customs services
and civil aviation facilities.
The LNG project also became the catalyst for other gas-related
projects to emerge in the area, which added value and further
diversified the output from this resource. Bintulu became the site for
an ASEAN joint-venture granular urea fertiliser plant, and a high
technology middle distillate synthesis plant, converting natural gas into
quality petroleum products. With the proliferation of these activities,
Bintulu became a regional growth centre attracting some of the state's
leading development projects including a deep-water port and
container terminal, a power plant, and other infrastructural support
facilities.
In addition to the new LNG infrastructure and facilities, the people of
the state of Sarawak have gained tremendously through increased
employment opportunities. Through job-based skills training, Sarawak
today boasts a competent and committed workforce; motivated by the
rapid development they witnessed first-hand in their villages and
towns.
Today, the entire management team at the PETRONAS LNG
Complex is Malaysian, signifying the successful transfer of capability
and expertise to the nation. In addition, the experience gained by our
local workforce has opened up more opportunities for these skilled staff
to move to other PETRONAS projects in Malaysia and overseas, and
other foreign oil and gas ventures around the world.
The PETRONAS LNG Complex is an active member of the community
in Bintulu and MLNG’s staffs enjoy many opportunities to engage with
the residents. Throughout the years, MLNG has built up strong
relationship with the community through annual activities like sporting
events, festive celebrations, education sponsorships, school-based
tutorial and motivational camps, health and safety workshops, and
environmental projects.
Through these community programmes, we shoulder a continuous
responsibility to progressively, proactively and positively contribute to
the society in Bintulu, as well as in areas of our operations around the
globe. PETRONAS hopes to inspire our partners, employees and
stakeholders to participate in our mission to enrich the lives of the
millions of people we touch.
ii. Growing With the Local Community
MLNG companies and their joint venture partners have contributed
tremendously to nation building. This can be gleaned from the massive
transformation of Bintulu town from a sleepy fishing village in the late
70s to a bustling industrial township today. MLNG has also brought
significant socio-economic and infrastructural transformation to the
surrounding areas of Bintulu.
Sarawakian especially the people of Bintulu have benefitted directly
from the LNG projects through various modernization undertakings
which have resulted in the provision of infrastructure such as roads,
water, electricity, housing and schools, as well as telecommunication,
customs and civil aviation facilities.
The PETRONAS LNG Complex is an active member of the community
in Bintulu, and our staffs enjoy many opportunities to engage with the
citizens. Over the years, we have built up a strong relationship with the
local community through annual activities like sporting events, festive
celebrations, scholarships school-based tutorial and motivational
camps, health, safety and environmental programmes.
MARKET
In 2005, Malaysia LNG exported 21.85 million ton of LNG. LNG
is exported through Bintulu port ex-ship (for all term Japanese sales)
and FOB (for some Korean volumes) on various sized ships. Malaysia
Dua has agreed a sale ex-ship to Sendai City Gas and Saibu Gas using
small ships. These vessels of 18,928 cu.m. can cause some operational
problems as they are relatively slow in loading and occupy one of the
berths at Bintulu that is also used for larger ships.
MLNG Japan buys 65% of Malaysian LNG, and this represented
22% of Japan’s LNG requirements in 2005. Other importers are Korea
(26%) and Taiwan (9%). In addition to the export on a long-term basis,
MLNG also sells LNG on the spot market to the Asia region and the
Atlantic Basin.2
2 http://en.wikipedia.org/wiki/Malaysia_LNG
ISSUE
COMMUNICATION
i. Investing in Education
Under the MLNG Minor Scholarship programme, MLNG is sponsoring
the underprivileged children to pursue their secondary school
education. We believe that education initiatives such as this one are an
investment into the future of company and our country.
ii. Focus Areas
a. Education
MLNG Minor Scholarship Award Scheme
- Cybercamp For Schools
- Program Bakti Pendidikan PETRONAS
- Motivational Camps For Schools (Kem Motivasi)
b. HSE
HSE Awareness Programme
c. Sports
- Liga Bolasepak PETRONAS
- PETRONAS Golf
- Inter-School Sports
d. Social
- Activities in support of festive occasions such as Majlis
Berbuka Puasa, Pre-Gawai, and Program Sentuhan Kasih