PETRONAS Gas Berhad (PGB) has been in business for 27 years and still counting. It has come a long way since its incorporation in 1983 and it would not be an overstatement to say that PGB has earned more stripes than it could have possibly imagined in close to three decades of existence.
Gas processing and gas transmission remain the flagship business of PGB. The process begins at its six Gas Processing Plants located in Kertih and Paka, operated by the Company’s Plant Operations Division (POD). Natural gas from the offshore fields of Terengganu is processed there before being piped into PGB’s Peninsular Gas Utilisation (PGU) pipeline which is operated by the Transmission Operations Division (TOD). TOD is responsible for the transmission and delivery of sales gas to customers in the power, industrial and commercial sectors throughout Peninsular and East Malaysia.
In 1998, the Company expanded and diversified the business into manufacturing, supplying and marketing of industrial utility products to customers in Kertih Integrated Petrochemical Complex and Gebeng Industrial Area through its Centralised Utility Facilities Division (CUF).
PGB’s technical capability is acknowledged when the Company, given a strong track record in gas transmission operations and project management, entered into an agreement with PETRONAS Carigali Sdn. Bhd. for the provision of project management and execution services for the Sabah-Sarawak Gas Pipeline Project.
The Company’s vast experience in the operations of industrial utility products which included power generation via its CUF was the key to unlock the door to the world of power producing. In 2009, PGB’s business landscape has further evolved to include the generation of electricity with the formation of Kimanis Power Sdn. Bhd., a joint venture company with Yayasan Sabah. The entity was set up to develop a 300 megawatt gas power plant in Kimanis to meet the growing demand for electricity in the state of Sabah.
PGB’s business and technical credentials were further reaffirmed when it entered into an agreement with PETRONAS to construct the country’s first ever LNG Regasification Facilities in Sg. Udang, Melaka. The project is expected to be completed and commercially operational in mid 2012. The facilities would be a gateway for the entry of gas sourced worldwide, which would address the nation’s energy supply challenges. It is also a significant factor to complement the Company’s Third Party Access (TPA) initiative where the PGU pipeline will be opened for external gas shippers other than PETRONAS to transport gas molecules from readily available sources.
It will be interesting times ahead for PGB, especially now that the Company has entered into the 4th Term Gas Processing and Transmission Agreement (GPTA) with PETRONAS. This new and improved addendum to the agreement ensures that the Company is strategically positioned to leverage on current and new ventures which promises an era of invigorating and perennial growth.
Growth and progress for PGB also means growth and progress for the nation. PGB new ventures, particularly the LNG regasification and independent power producing, have redefined PGB’s business portfolio. It is the beginning of an evolution.