converging strengths

ANNUAL REPORT 2009

PETRONAS Gas Berhad remains committed
to adding value to Malaysias natural gas
resource. Weaving together strong operational
and people excellence for over 25 years,
we continue to forge ahead with resilience
amidst an increasingly challenging environment.
...& growing
together
Through the years, the Company
grew with the community where
it operates. With our 25th Anniversary
theme of Bakti Dihulur, Kasih Disemai,
staff and their family members
contributed time, energy and resources
to programmes involving the community,
focusing especially on those in need.
 contents
NOTICE IS HEREBY GIVEN THAT the Twenty Sixth Annual General Meeting

of the Company will be held at Ballroom 1 and 2, Level 2, Nikko Hotel,

165, Jalan Ampang, 50450 Kuala Lumpur on Wednesday,

22 July 2009 at 10.00 a.m.

72 Corporate Responsibilities
74 Health, Safety and Environment
80 Human Resource

26 Performance Review 86 Corporate Social Responsibility

28 Chairmans Statement 90 25 Years of Progress, Together

34 Chief Executive Officers Report 102 Calendar of Events

2 Corporate Mission
48 Financial Review
107 Financial Statements
4 Five Year Financial Summary 52 Statement of Value Added
159 Other Information
53 Financial Calendar
6 Corporate Information 160 Summary of Landed Property,
53 Performance of Shares
8 Corporate and Management Plant and Equipment
Directory 54 Corporate Governance 167 Training Programmes Attended
9 Organisational and 56 Corporate Governance Statement by Directors
Corporate Structure 169 Analysis of Shareholdings
62 Internal Control Statement
10 Our Operations 172 Corporate Directory
66 Board Audit Committee Report
14 Board of Directors 173 Notice of Annual General Meeting
69 Board Audit Committees Terms
16 Board of Directors Profiles of Reference 174 Statement Accompanying
20 Management Committee 71 Statement of Directors Notice of Annual General Meeting
22 Management Committees Profiles Responsibility Proxy Form
 2 P E T R O N A S G A S B E R H A D (101671-H)

Corporate Mission
We are a business entity
Gas is our core business
Our primary responsibility
is to add value to this
natural resource
3 P E T R O N A S G A S B E R H A D (101671-H)
 4 P E T R O N A S G A S B E R H A D (101671-H)

GZkZcjZGBb^aa^dc Egd[^iGBb^aa^dc
PAT PBT

3,415.1 2009 928.0 2009 1,231.4

3,125.7 2008 1,092.9 2008 1,394.1
2,982.3 2007 1,247.0 2007 1,281.2
3,415.1 2009 937.7 2009 1,241.1
3,125.7 2008 1,064.8 2008 1,366.0
2,982.3 2007 1,198.9 2007 1,233.1
2,839.3 2006 971.0 2006 1,024.9
2,307.3 2005 823.2 2005 893.3

Profit After Tax (PAT) Profit Before Tax (PBT)

IdiVa6hhZihGBb^aa^dc IdiVa:fj^inGBb^aa^dc

9,867.1 2009 8,038.3 2009

9,793.3 2008 7,922.4 2008
9,493.1 2007 7,586.3 2007
9,800.8 2009 7,971.7 2009
9,717.1 2008 7,846.1 2008
9,445.0 2007 7,538.2 2007
9,397.2 2006 7,047.7 2006
9,499.7 2005 6,686.1 2005

Five Year
Financial Summary
 5 P E T R O N A S G A S B E R H A D (101671-H)

Egd[^iVhGZkZcjZEZgXZci :Vgc^c\heZgH]VgZHZc
% After Tax % Before Tax

27.2 2009 36.1 46.9 2009

35.0 2008 44.6 55.2 2008
41.8 2007 43.0 63.0 2007
27.5 2009 36.3 47.4 2009
34.1 2008 43.7 53.8 2008
40.2 2007 41.3 60.6 2007
34.2 2006 36.1 49.1 2006
35.7 2005 38.7 41.6 2005

After Tax Before Tax

Adc\IZgbA^VW^a^i^ZhGBb^aa^dc CZi6hhZiheZgH]VgZHZc

1,610.9 2009 406.3 2009

1,636.5 2008 400.4 2008
1,715.6 2007 383.4 2007
1,610.9 2009 402.9 2009
1,636.5 2008 396.5 2008
1,715.6 2007 381.0 2007
1,849.5 2006 356.2 2006
2,207.1 2005 337.9 2005

Company Group

Company Group
RM Million/Year Ended 31 March 2005 2006 2007 2008 2009 2007 2008 2009
Revenue 2,307.3 2,839.3 2,982.3 3,125.7 3,415.1 2,982.3 3,125.7 3,415.1
Profit Before Tax 893.3 1,024.9 1,233.1 1,366.0 1,241.1 1,281.2 1,394.1 1,231.4
Profit After Tax 823.2 971.0 1,198.9 1,064.8 937.7 1,247.0 1,092.9 928.0
Total Assets 9,499.7 9,397.2 9,445.0 9,717.1 9,800.8 9,493.1 9,793.3 9,867.1
Total Equity 6,686.1 7,047.7 7,538.2 7,846.1 7,971.7 7,586.3 7,922.4 8,038.3
Long Term Liabilities 2,207.1 1,849.5 1,715.6 1,636.5 1,610.9 1,715.6 1,636.5 1,610.9
Profit as % Revenue
- Before Tax 38.7 36.1 41.3 43.7 36.3 43.0 44.6 36.1
- After Tax 35.7 34.2 40.2 34.1 27.5 41.8 35.0 27.2
Earnings Per Share (sen) - Basic 41.6 49.1 60.6 53.8 47.4 63.0 55.2 46.9
Net Assets Per Share (sen) 337.9 356.2 381.0 396.5 402.9 383.4 400.4 406.3
 6 P E T R O N A S G A S B E R H A D (101671-H)

leading
We are committed to leading the industry and
solidifying our position as a key player through
harnessing the strengths and capabilities of our
high performance workforce. Amongst others,
the PETRONAS Accelerated Capability Development
(ACD) programme helps to intensify staff
leadership and competency levels and ensure our
people perform to the best of their abilities.
 7 P E T R O N A S G A S B E R H A D (101671-H)

Corporate Information
Corporate and Management Directory 8 Organisational and Corporate Structure 9 Our Operations 10

Board of Directors 14 Board of Directors Profiles 16 Management Committee 20

Management Committees Profiles 22

 8 P E T R O N A S G A S B E R H A D (101671-H)

Corporate and Management Directory

Board Audit Committee

Dato Sadasivan s/o N.N. Pillay
(Chairman)

Dato Chew Kong Seng

Datuk Mohd Zain bin Haji Abdul Majid Registered Office

and Business Address
Directors Mohammed Azhar bin Osman Khairuddin
Tower 1, PETRONAS Twin Towers
Datuk Wan Zulkiflee bin Wan Ariffin Kuala Lumpur City Centre
(Chairman) Secretaries 50088 Kuala Lumpur
Samsudin bin Miskon Noryati binti Mohd Noor Tel : 03-2051 5000
(Managing Director/Chief Executive Officer) (LS0008877) Fax : 03-2051 6987

Dato Sadasivan s/o N.N. Pillay Yeap Kok Leong

(MAICSA 0862549) Auditors
Dato Chew Kong Seng
KPMG Desa Megat & Co.
Datuk Mohd Zain bin Haji Abdul Majid
Registrar
Muri bin Muhammad Symphony Share Registrars Sdn. Bhd. Principal Banker
Mohammed Azhar bin Osman Khairuddin Level 26, Menara Multi-Purpose CIMB Bank Berhad
Capital Square
Datuk (Dr) Abdul Rahim bin Haji Hashim
No. 8, Jalan Munshi Abdullah
(resigned on 27 April 2009)
50100 Kuala Lumpur
Stock Exchange Listing
Farehana binti Hanapiah Tel : 03-2721 2222 Main Board of Bursa Malaysia
(appointed on 27 April 2009) Fax : 03-2721 2530 / 03-2721 2531 Securities Berhad
 9 P E T R O N A S G A S B E R H A D (101671-H)

Organisational Structure

BOARD OF DIRECTORS

BOARD AUDIT COMMITTEE

MANAGING DIRECTOR/
CHIEF EXECUTIVE OFFICER

MANAGEMENT COMMITTEE

FINANCE PLANT OPERATIONS

CORPORATE AND COMMERCIAL SERVICES TRANSMISSION OPERATIONS

TECHNICAL AND FACILITIES DEVELOPMENT CENTRALISED UTILITY FACILITIES

LEGAL AND CORPORATE SECRETARIAT HEALTH, SAFETY AND ENVIRONMENT

HUMAN RESOURCE MANAGEMENT BUSINESS PLANNING

Corporate Structure
PETRONAS GAS BERHAD

Kimanis Energy Industrial Gases Gas Malaysia

60% Venture Sdn. Bhd. 50% Solutions Sdn. Bhd. 20% Sdn. Bhd.
(formerly known as
Unik Kuasa Sdn. Bhd.)

Partly Owned Subsidiary Jointly Controlled Entity Associate Company

 10 P E T R O N A S G A S B E R H A D (101671-H)

Our Operations
NATURAL GAS PROCESSING AND UTILISATION

FEEDGAS
Offshore Gas

PROCESSED GAS
Gas Processing Centralised
Plants Natural Gas Utility
Residential For Vehicles Power Stations Facilities Industries

METHANE

Export Petrochemical
Terminal Manufacturing

ETHANE/PROPANE/BUTANE

Oil Refineries

CONDENSATE
 11 P E T R O N A S G A S B E R H A D (101671-H)

SUPPLY OF INDUSTRIAL UTILITIES

Centralised Utility
Facilities

ELECTRICITY

Kertih Integrated
Petrochemical Complex

STEAM

INDUSTRIAL GASES

Gebeng Industrial Area

OTHERS
Liquid oxygen, liquid nitrogen,
demineralised water, raw water, cooling water,
boiled feed water and effluent treatment.
 12 P E T R O N A S G A S B E R H A D (101671-H)

OUR PRESENCE

PGB Total Pipeline Length Capacity

Complex GPP mmscfd
(in operation)
Main 1,658 km 1 310
Lateral 374 km 2 250
GPP A
3 250
C2, C3 and C4 357 km PERLIS
4 250
GPP Interconnect 116 km 5 500 20
GPP B
Sarawak 45 km 6 500
Total 2,550 km Total 2,060
KEDAH

Power Stations

1. TNB Paka 10. TNB Tuanku Jaafar PULAU

PINANG
2. YTL Paka 11. Port Dickson Power
3. TNB Pasir Gudang 12. Genting Sanyen Power 19

4. YTL Pasir Gudang 13. TNB Serdang 18

5. Senoko Power 14. TNB Connaught Bridge KELANTAN

TERENGGANU
6. Keppel Power 15. TNB Kapar
7. Pahlawan Power, 16. GB3 Lumut
Tg. Kling 17. Segari Energy Ventures
PERAK GPP B 1
8. Panglima Power, 18. Prai Power
CUF Kertih 2
Teluk Gong 19. TNB Gelugor
9. Powertek, 20. Technology Tenaga 17
GPP A
Teluk Gong Perlis Consortium 16

Main Pipeline Gas - in

PAHANG CUF Gebeng
PGU I 32 km
Kertih - Teluk Kalong 1984 SOUTH
SELANGOR CHINA
PGU II 685 km
SEA
Sector I : 233 km
Teluk Kalong - Segamat 1991
15
Sector II : 241 km 14 13
Segamat - Kapar 1991
12 NEGERI
Sector III : 211 km STRAITS SEMBILAN
Segamat - Singapore 1991 OF MELAKA
11
PGU III 450 km 10
9
Sector I : 184 km 8
Meru - Lumut 1996 MELAKA
7
Sector II : 176 km JOHOR
Lumut - Gurun 1998
Facilities
Sector III : 90 km
Gurun - Pauh 1998 Gas Processing Tenaga Nasional 4
Plant (GPP) Berhad Power
Loop 1 265 km Station 3

Kertih - Segamat 1999 Centralised Independent

Utility Facilities Power Producer 6
Loop 2 226 km 5
(CUF) Power Station
Compressor SINGAPORE
Segamat - Meru 2001
Station
 13 P E T R O N A S G A S B E R H A D (101671-H)

Miri Pipeline System Network

LUTONG
N

PIASAU

SOUTH
CHINA 1
SEA PUJUT

MIRI TOWN

SOUTH
CHINA
SEA
LUAK

Taman Tunku
Teacher Training College Kimanis
SABAH

Bintulu Pipeline
System Network

TG. KIDURONG Miri

2

SOUTH 3

CHINA
SEA Bintulu

SARAWAK

Facilities Facilities
Pipeline
1 SESCO Miri Power Station

Power Station
2 Bintulu Edible Oils Sdn. Bhd.
Industry

Proposed Kimanis
3 Syarikat Sebangun Sdn. Bhd.
Power Plant
 14 P E T R O N A S G A S B E R H A D (101671-H)

Board of Directors
 15 P E T R O N A S G A S B E R H A D (101671-H)

FROM LEFT:

Yeap Kok Leong (Company Secretary), Noryati binti Mohd Noor (Company Secretary), Mohammed Azhar bin Osman Khairuddin,
Dato Sadasivan s/o N.N. Pillay, Datuk (Dr) Abdul Rahim bin Haji Hashim, Muri bin Muhammad,
Samsudin bin Miskon (Managing Director/Chief Executive Officer), Datuk Mohd Zain bin Haji Abdul Majid,
Datuk Wan Zulkiflee bin Wan Ariffin (Chairman), Dato Chew Kong Seng, Farehana binti Hanapiah
 16 P E T R O N A S G A S B E R H A D (101671-H)

Board of
Directors
Proles Datuk Wan Zulkiflee bin Wan Ariffin, a Malaysian aged 48, is a
Non-Independent Non-Executive Director. He was appointed as the Chairman
of PETRONAS Gas Berhad in August 2008. He is currently the Vice President of
Gas Business of PETRONAS.
Datuk Wan Zulkiflee graduated in Chemical Engineering from the University of
Adelaide, South Australia. He joined PETRONAS in 1983 as a process engineer
and was involved in the project implementation and operations of several gas
processing facilities up to 1995.
In the ensuing years, Datuk Wan Zulkiflee has held several positions in the
PETRONAS Group including serving in the Office of the President as Senior
Manager (Downstream Business)/Executive Assistant to the President and as
General Manager, International Projects Management Division of OGP Technical
Services Sdn. Bhd. He was the General Manager for the Strategy and Business
Development Unit of PETRONAS before assuming the position of Managing
Director/Chief Executive Officer of PETRONAS Gas Berhad from 2003 to 2007.
Datuk Wan Zulkiflee is a member of PETRONAS Board of Directors and the
Management Committee and presently sits on the Board of several companies
in the PETRONAS Group. He is a member of the Executive Committee of the
International Gas Union. He was conferred the Honorary Fellowship by the
Institution of Chemical Engineers United Kingdom in November 2005 and
was on the council for the Project Management Institute, Malaysian Chapter
until end 2003.
He has attended the Advanced Management Program at Harvard Business
School and is the Industry Advisor to the Engineering Faculty, University
Putra Malaysia.
Datuk Wan Zulkiflee has attended four (4) Board meetings in the financial year.

Samsudin bin Miskon, a Malaysian aged 48,
is the Managing Director/Chief Executive Officer of
PETRONAS Gas Berhad. He graduated in Chemical
Engineering from the University of Aston, UK.
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 has held several positions in the PETRONAS
Group including serving as General Manager in the
Plant Division of OGP Technical Services Sdn. Bhd.,
who was responsible for the project management
of gas processing and petrochemical plants until
2000. He then served as General Manager of
Malaysia LNG Dua Sdn. Bhd., and later as Senior
General Manager of Malaysia LNG Sdn. Bhd.,
managing the operations of the PETRONAS LNG
Complex in Bintulu, Sarawak until 2005.
Prior to his current appointment, Samsudin was
the Senior General Manager of Leadership and
Capability Development Department of Human
Resource Management Division in PETRONAS where
he was responsible to steer the development of
leadership and capability of personnel throughout
PETRONAS.
He obtained Masters of Science in Project
Management from Reading University, UK in 1994
and earned a Diploma in International Management
from INSEAD, France. In 2005, Samsudin attended
the Advanced Management Program at Harvard
Business School.
Samsudin currently sits on the Board of several
companies in the PETRONAS Group. He has attended
four (4) Board meetings in the financial year.
17 P E T R O N A S G A S B E R H A D (101671-H)
Dato Sadasivan s/o N.N. Pillay,
a Malaysian aged 69, is an Independent Non-
Executive Director and the Chairman of the Board
Audit Committee. He graduated in Economics from
University of Malaya in 1963 and started his career
with the Economic Development Board Singapore
till 1967.
In 1968, Dato Sadasivan joined the Malaysian
Industrial Development Authority (MIDA) and was
appointed the Director-General of MIDA in 1984.
He served in that capacity until his retirement in
1995. Upon retirement, he set up SKA Management
Consultants Sdn. Bhd. where he is the Executive
Chairman.
Dato Sadasivan holds directorship in Chemical
Company of Malaysia Berhad, APM Automotive
Holdings Berhad, Leader Universal Holdings
Berhad, Malaysian Airline System Berhad and Yeo
Hiap Seng (Malaysia) Berhad, as well as nine other
private companies and Bank Negara Malaysia.
He was appointed to the Board of PETRONAS Gas
Berhad on 29 August 1995 and has attended four
(4) Board meetings in the financial year.
Dato Chew Kong Seng, a Malaysian aged
71, is an Independent Non-Executive Director and
a member of the Board Audit Committee. He is a
Fellow of the Institute of Chartered Accountants in
England and Wales and a member of the Malaysian
Institute of Certified Public Accountants and
Malaysian Institute of Accountants.
Dato Chew Kong Seng started his career as a tax
officer in the Inland Revenue Department and
subsequently at the Stoy Hayward & Co. in the
UK from 1964 to 1970. He returned to Malaysia to
join Turquand Young & Co. (now known as Ernst
& Young) and then transferred to Sarawak office
in 1973, first as Manager-in-Charge and later as
Partner-in-Charge. He served as the Managing
Partner of Ernst & Young for six (6) years before
retiring from professional practice in 1996. From
May 1999 to June 2005, he was an Executive
Director of Sarawak Enterprise Corporation Bhd.
His experience covers a wide variety of industries
including utilities, banking and financial
institutions, timber-based, manufacturing,
trading and advisory services to local and foreign
investors.
He is also an Independent Director and Audit
Committee Chairman of three (3) other public
listed companies, namely PETRONAS Dagangan
Berhad, AEON Co. (M) Berhad and PBA Holdings
Berhad. He also acts as Independent Director in
other public limited companies.
He was appointed to the Board of PETRONAS Gas
Berhad on 18 March 1999 and has attended four
(4) Board meetings in the financial year.

Board of Directors Profiles
Datuk Mohd Zain bin Haji Abdul Majid,
a Malaysian aged 70, is an Independent Non-
Executive Director and a member of the Board
Audit Committee. He graduated in Economics
from the University of Glasgow and in Law from
the University of London. He is a Fellow of the
Economic Development Institute of the World
Bank in Washington. He also attended the Senior
Executive Programme at London Business School.
Datuk Mohd Zain has served for 37 years in several
positions in the public and private sectors before
retiring at the end of 1999. He was the Director-
General of the Malaysian Industrial Development
Authority (MIDA), Executive Chairman of the
Urban Development Authority, Chief Executive
of the Malaysian Employers Federation and was
Executive and Non-Executive Director of various
companies in the manufacturing, finance and
property sectors. He has been a Director of
Malaysia LNG Sdn. Bhd. since 1982 and is also
a Director of Malaysia LNG Dua Sdn. Bhd. and
Malaysia LNG Tiga Sdn. Bhd.
He was appointed to the Board of PETRONAS Gas
Berhad on 6 March 2002 and has attended four (4)
Board meetings in the financial year.
18 P E T R O N A S G A S B E R H A D (101671-H)
Muri bin Muhammad, a Malaysian aged 66,
is an Independent Non-Executive Director.
He holds a Master of Science in Biological
Oceanography from Dalhousie University, Halifax,
Canada and he started his career with PETRONAS
in 1975. He has served for 27 years in various
capacities, including the Managing Director/Chief
Executive Officer of ASEAN Bintulu Fertilizer Sdn.
Bhd., Managing Director/Chief Executive Officer of
Malaysia LNG Sdn. Bhd. and Vice President, Gas
Business of PETRONAS. On his retirement in 2002,
he was appointed Advisor to Gas Business until
end of March 2005.
Currently, Muri serves as Director of various gas
pipeline companies, namely APA Group, a public
listed Australian gas transmission and energy
company, Transportadora de Gas del Norte and
Transportadora de Gas del Mercosur, both gas
transmission companies of Argentina.
On 1 September 2005, he was appointed by the
Government as a member of the Energy Commission
of Malaysia and continues to serve in this capacity
at present.
Muri has been on the Board of several companies
in the PETRONAS Group including PETRONAS NGV
Sdn. Bhd., Bekalan Air KIPC Sdn. Bhd. and OGP
Technical Services Sdn. Bhd. as well as Chairman
of the Board for Gas District Cooling Group of
Companies.
He was appointed to the Board of PETRONAS Gas
Berhad on 25 November 1996 and has attended
three (3) Board meetings in the financial year.
Datuk (Dr) Abdul Rahim bin Haji
Hashim, a Malaysian aged 55, is a Non-
Independent Non-Executive Director.
He holds a Bachelor of Science Electrical and
Electronic Engineering Degree from the University
of Birmingham, UK. He is registered with the
Board of Engineers and the Institution of
Engineers Malaysia, and an associate member of
the American Institute of Chemical Engineers. He
completed the Advanced Management Program at
Harvard Business School.
Datuk (Dr) Abdul Rahim has held various senior
positions in the PETRONAS Group including the
Managing Director/Chief Executive Officer of
PETRONAS Penapisan (Melaka) Sdn. Bhd., Managing
Director/Chief Executive Officer of Malaysian
Refining Company Sdn. Bhd., Vice President of
Human Resource Management Division, PETRONAS,
Vice President of Gas Business, PETRONAS and Vice
President of Research and Technology Division,
PETRONAS.
He currently holds several key positions in local
and international gas industry organisations. These
include President of the Malaysian Gas Association
and President of the Asia Pacific Natural Gas
Vehicle Association. He is also the Vice President
of the International Gas Union (IGU) for triennium
2006-2009 before assuming IGU Presidency for
triennium 2009-2012.
He was appointed to the Board of PETRONAS
Gas Berhad on 1 October 2002 and has attended
four (4) Board meetings in the financial year.
He resigned as Director of the Company on 27
April 2009.

Mohammed Azhar bin Osman
Khairuddin, a Malaysian aged 53, is a Non-
Independent Non-Executive Director and a member
of the Board Audit Committee. He is the Company
Secretary of PETRONAS and a member of PETRONAS
Management Committee.
Mohammed Azhar holds a Bachelor of Law (Honours)
Degree from the University of Malaya. He is also
a member of the International Bar Association as
well as the Inter-Pacific Bar Association.
He started his career with PETRONAS in 1979 as
a legal officer. In the ensuing year, he has held
several positions in the PETRONAS Group including
as Senior Legal Counsel/Company Secretary of
PETRONAS Carigali Sdn. Bhd., General Counsel for
Petroleum Resources Sector, PETRONAS and Group
General Counsel, PETRONAS. Under his current
position as Senior General Manager of Legal and
Corporate Affairs Division, he is responsible for
two main areas of PETRONAS operations namely,
Legal Services Unit and Group Corporate Affairs.
He was appointed to the Board of PETRONAS Gas
Berhad on 9 May 1995 and has attended four (4)
Board meetings in the financial year.
19 P E T R O N A S G A S B E R H A D (101671-H)
Farehana binti Hanapiah, a Malaysian
aged 41, is a Non-Independent Non-Executive
Director. She holds a Degree in Commerce and
Administration from Victoria University of
Wellington, New Zealand and is a member of
the Institute of Chartered Accountants of New
Zealand. She also holds a Diploma in International
Management Program from INSEAD, France.
Farehana started her career with PETRONAS in 1990
as an internal auditor and was involved in the
development of PETRONAS Information Systems
internal controls and auditing capabilities with
KPMG London. She was also involved in many
corporate strategic initiatives for PETRONAS where
one of her key achievements is in pioneering
the development of the Enterprise-wide Risk
Management methodology which is currently being
used in all PETRONAS public listed companies.
She is currently serving as the General Manager of
Group Strategic Planning where she is responsible
for the PETRONAS Group strategies, business plans
and budget and also performance reviews.
She currently sits on the Board of several companies
in the PETRONAS Group and was appointed to the
Board of PETRONAS Gas Berhad on 27 April 2009.
None of the Directors has:
Any family relationship
with any other Director
and/or major shareholder
Any conflict of interest
with PETRONAS Gas Berhad
Any conviction for offences
within the past 10 years
other than traffic offences
 20 P E T R O N A S G A S B E R H A D (101671-H)

Management
Committee
 21 P E T R O N A S G A S B E R H A D (101671-H)

FIRST ROW, FROM LEFT:

Samsudin bin Miskon, Liza binti Mustapha, Rashid bin Muhamad, Nordin bin Ab Ghani

SECOND ROW, FROM LEFT:

Basharuddin bin Saad, Ir. Hudal Firdaus bin Dimyati, Zilfalilah binti Abdul Aziz, A Aziz bin Othman

THIRD ROW, FROM LEFT:

Ozair bin Saidin, Raja Iskandar Arifin bin Raja Azman, Noryati binti Mohd Noor,
Muhamed Ali bin Hashim Mohamed, Zakiah binti Ahmad (Secretary to Management Committee)

Management Committees
Samsudin bin Miskon, aged 48, is the
Managing Director/Chief Executive Officer of
PETRONAS Gas Berhad. He graduated with a Degree
in Chemical Engineering from the University of
Aston, UK and obtained his Masters of Science in
Project Management from Reading University, UK
in 1994. He also holds a Diploma in International
Management from INSEAD, France and attended
the Advanced Management Programme at Harvard
Business School.
Samsudin joined PETRONAS in 1983 as a process
engineer and was involved in the operations, design
and project implementation of gas processing
facilities until 1992. In the ensuing years, he
has held several positions in the PETRONAS Group
including as General Manager in the Plant Division
of OGP Technical Services Sdn. Bhd. where he was
responsible for the project management of gas
processing and petrochemical plants until 2000.
He then served as General Manager of Malaysia
LNG Dua Sdn. Bhd. and Senior General Manager of
Malaysia LNG Sdn. Bhd. until 2005, during which,
he was responsible for managing the operations of
the PETRONAS LNG Complex in Bintulu, Sarawak.
Prior to his current appointment, Samsudin was the
Senior General Manager of Leadership and Capability
Development Department of Human Resource
Management Division in PETRONAS where he was
responsible to steer the leadership development
and personnel capability throughout PETRONAS.
He currently sits on the Board of several companies
in the PETRONAS Group. He assumed his current
position in March 2007.
22 P E T R O N A S G A S B E R H A D (101671-H)
Rashid bin Muhamad, aged 50, is the Senior
General Manager of Plant Operations Division.
He graduated from Texas A & M University, USA with
a Bachelor of Science in Mechanical Engineering.
Rashid started his career in January 1980 with
PETRONAS Gas Berhad and was involved in
engineering, operations and projects relating to
gas processing plants and transmission pipelines
for 14 years.
In 1994, he was appointed as Project and Technical
Service Manager of Gas District Cooling Sdn.
Bhd. to develop centralised gas district cooling
and cogeneration systems in Kuala Lumpur City
Centre, Kuala Lumpur International Airport and
Putrajaya.
Subsequently, he was appointed as a Senior Project Nordin bin Ab Ghani, aged 52, is the General
Manager and then Senior Plant Manager with Manager of Transmission Operations Division.
PETLIN (M) Sdn. Bhd., managing the development He holds a Degree in Civil Engineering from the
and operations of high pressure Low Density University of Malaya.
Polyethylene plant.
Nordin joined PETRONAS in September 1983 after
In 2003, he was assigned to an overseas posting serving in Public Works Department for three
for 1 1/2 years at SASOL Polymer Business in (3) years. He started as a Civil Engineer and
Johannesburg, South Africa, and upon returning was involved in the Project Implementation and
was involved in the Mega Methanol Project as Operations of the Peninsular Gas Transmission
Team Leader. System until December 2002.
Prior to his current position, Rashid served In January 2003, he was appointed as the Director
PETRONAS Fertilizer (Kedah) Sdn. Bhd. as Plant of Operations of PT Transportasi Gas Indonesia, a
General Manager for more than three (3) years. joint venture company based in Jakarta, Indonesia.
He assumed his current position in January 2009. He assumed his current position in August 2005.

Proles
Liza binti Mustapha, aged 38, is the General
Manager of Finance Division. She holds a Degree
in Economics, majoring in Accounting and Finance
from the London School of Economics and Political
Science, University of London, UK. She is also a
Fellow of the Association of Chartered Certified
Accountants.
Liza joined PETRONAS in 1995 as a Finance
Executive in PETRONAS Carigali Sdn. Bhd. (PCSB)
and in the ensuing years, she has held various
positions within the Finance and Accounts
Department of PCSB.
In May 2005, she joined PETRONAS Gas Berhad
as Senior Manager of Financial and Management
Accounting Department. She assumed her current
position in August 2007.
23 P E T R O N A S G A S B E R H A D (101671-H)
Basharuddin bin Saad, aged 54, is the
General Manager of Corporate and Commercial
Services Division. He is a Fellow of the Association
of Chartered Certified Accountants and a member
of the Malaysian Institute of Certified Public
Accountants and the Malaysian Institute of
Accountants. He also holds a Degree in Law from
the University of London and a Certificate of Legal
Practice from the Qualifying Board, Malaysia.
Basharuddin started his career in a utility
company and financial institution prior to joining
PETRONAS. He joined PETRONAS in 1980 and has
held various positions in the areas of Finance and
Accounts, Planning, Treasury, Project Management,
Procurement and Systems Development.
Basharuddin served as Senior Manager, Finance
and Accounts of PETRONAS Carigali Sdn. Bhd. from
1990 to 1996 and General Manager of Finance
Division of PETRONAS Gas Berhad until 2004. He
assumed his current position in September 2004.
Ir. Hudal Firdaus bin Dimyati,
aged 45, is the General Manager of Technical and
Facilities Development Division. He is a member
of the Board of Engineers, Malaysia and also the
Institution of Engineers, Malaysia. He holds a
Degree in Civil Engineering from the University of
Toledo, Ohio, USA.
Hudal Firdaus joined PETRONAS in September
1993 as Deputy Project Services Manager of OGP
Technical Services Sdn. Bhd. after working in a
multinational oil and gas company for six (6)
years. He was involved in the implementation of
various cross-border pipeline projects in Malaysia,
Thailand and Sudan.
In 1999, Hudal Firdaus served in the Group Internal
Audit Division, PETRONAS as Audit Manager and
later as Senior Manager where he was responsible
for the audits on gas and petrochemical companies
in PETRONAS.
In 2003, he was appointed as Head of Business
Development under the Gas Business Unit,
PETRONAS, pursuing gas business opportunities in
Myanmar and Thailand.
Hudal Firdaus joined PETRONAS Gas Berhad in April
2005 as Senior Manager, Engineering Management
Department, Technical and Facilities Development
Division and was promoted to his current position
in January 2006.

Management Committees Profiles
A Aziz bin Othman, aged 43, is the General
Manager of Centralised Utility Facilities Division.
He holds a Degree in Mechanical Engineering from
the George Washington University, USA.
He joined PETRONAS in 1987 as a rotating
equipment engineer in PETRONAS Gas Berhad and
was involved in the project implementation of
several gas plants up to 1996. From 1997 to March
2000, he was assigned as the Manager of Project
Control and System Planning in the Pipeline Gas
Utilisation project.
From April 2000 to July 2005, A Aziz was assigned
to the Gas Business Unit, PETRONAS, where he
was responsible for the strategy formulation and
business development of gas business.
In September 2002, he was appointed as a member
of the PETRONAS Corporate Strategic Study team,
a think-tank group formulating the PETRONAS
Corporate Agenda. He assumed his current position
in August 2005.
24 P E T R O N A S G A S B E R H A D (101671-H)
Ozair bin Saidin, aged 49, is the Senior
Manager of Health, Safety and Environment
Department. He graduated with Honours from
Universiti Kebangsaan Malaysia with a Degree in
Chemistry. Noryati binti Mohd Noor, aged 43, is
the Senior Manager of Legal and Corporate
Ozair began his career with PETRONAS in 1982 as a
Secretariat Department. She holds a Bachelor of
Chemist at PETRONAS Laboratory and later moved
Law (Honours) from the International Islamic
to Plant Operations Division of PETRONAS Gas
University Malaysia.
Berhad in 1984. He served in various capacities
in Plant Operations Division including Operations Her career in PETRONAS started in 1990 as Legal
Shift Supervisor, Head of Quality Control, and Executive for PETRONAS Dagangan Berhad. She
Integrity and Reliability Manager. continued to serve PETRONAS Dagangan Berhad
until 1997 when she joined Gas District Cooling
Prior to his current position, Ozair was the Senior
(M) Sdn. Bhd. as Senior Legal Counsel.
Manager of Process Operations at Gas Processing
Plant Complex B. He assumed his current position Noryati assumed her current position in October
in April 2006. 2005.

Zilfalilah binti Abdul Aziz, aged 42, is the
General Manager of Human Resource Division. She
graduated with a Degree in Computer Science and
Mathematics from New Mexico Institute of Mining
and Technology, New Mexico, USA.
She began her career in PETRONAS in 1990 where
she was assigned to develop the Human Resource
Information System that is being used in the
organisation until today. Since then, Zilfalilah
has served in various capacities in the field of
human resource management. Amongst others,
she has been responsible for the development of
PETRONAS leadership dimensions, Leadership and
Performance Management System, and employees
reward programmes for PETRONAS. She had also
served Vinyl Chloride (Malaysia) Sdn. Bhd.,
a subsidiary of PETRONAS.
She assumed her current position in January
2009.
25 P E T R O N A S G A S B E R H A D (101671-H)
Raja Iskandar Arifin bin Raja Azman, Muhamed Ali bin Hashim Mohamed,
aged 52, is the Managing Director of Kimanis
aged 41, is the Senior Manager of Business Planning
Energy Venture Sdn. Bhd., a joint venture company
Department. He graduated from the University
between PETRONAS Gas Berhad and Yayasan Sabah.
of Illinois at Urbana-Champaign, USA with a
He graduated from Middlesex Polytechnic, UK with
Bachelor of Science in Business Administration,
a Bachelor of Science (Honours) Civil Engineering
majoring in Management Information System.
in 1983.
He also holds a Masters of Business Administration
in International Management from the University Muhamed Ali began his career in PETRONAS as a
of East London, UK. Project Engineer in 1983. His experience expanded
from the management of pipeline system integrity
Raja Iskandar Arifin began his career in PETRONAS
to plant constructions. He also has had vast
as a Systems Programmer in 1991. Subsequently,
experience in managing projects including the
he joined the Group Tenders and Contracts Division
Malaysia LNG Tiga project in Bintulu, Sarawak, the
where he was mainly involved in developing Small
Pars LNG project in Iran and the Kakinada LNG
and Medium Industry through the PETRONAS
project in India.
Vendor Development Programme. Later, he
continued to serve PETRONAS under the Corporate Prior to his current position, Muhamed Ali headed
Risk Management Unit. the Business Development of LNG, in the Gas
Business Unit, PETRONAS. His responsibility was
Prior to his current position, Raja Iskandar Arifin
to manage the entry strategy for PETRONAS global
gained business development experience through
LNG ventures through joint venture partnerships
his tenure in the Integrated Transition Programme
or acquisitions of new assets.
and Gas Business Unit of PETRONAS. He assumed
his current position in September 2006. He assumed his current position in January 2009.
 26 P E T R O N A S G A S B E R H A D (101671-H)

innovating
Our commitment to innovation is manifested
in the way we are open to exploring
new growth opportunities and strategic alliances.
Our venture into the Kimanis power plant
project demonstrates our pioneering spirit
and determination to explore new horizons.
 27 P E T R O N A S G A S B E R H A D (101671-H)

Performance Review
Chairmans Statement 28 Chief Executive Officers Report 34 Financial Review 48

Statement of Value Added 52 Financial Calendar 53 Performance of Shares 53

 28 P E T R O N A S G A S B E R H A D (101671-H)

Chairmans
Statement
 29 P E T R O N A S G A S B E R H A D (101671-H)

The year under review also witnessed

a major milestone with the Companys
investment of 60% equity interest
in a new subsidiary company, Kimanis
Energy Venture Sdn. Bhd. Through this
subsidiary, the Group will undertake the
Kimanis power plant project in Sabah.

On behalf of the Board of Directors (Board),
I am pleased to present the Annual Report of
PETRONAS Gas Berhad for the financial year
ended 31 March 2009.
The Companys 25th year of incorporation
proved to be an eventful year with an equal
mix of external and internal challenges.
Externally, we witnessed an unprecedented
global economic downturn resulting from
synchronised recessions in advanced
economies which significantly impacted
growth prospects for the rest of the world,
coupled with widespread credit crunch,
leading to contraction in global trade and
foreign direct investments. Domestically,
the Gross Domestic Product (GDP) saw a
moderation in growth, averaging at 4.6%
compared to the 6.3% average in the
previous year. Accordingly, demand for
electricity experienced slowing growth with
dependency on gas sources contributing to
around 67% of the power generation mix.
 30 P E T R O N A S G A S B E R H A D (101671-H)

Chairmans Statement

Results/Performance Despite the significant increase in fuel gas

cost during the year, the Groups overall
The throughput business delivered an
financial performance was not severely
average of 2,234 million standard cubic feet
impacted. This was made possible due
per day (mmscfd) of sales gas as compared
to our good long-term relationship with
to 2,257 mmscfd in the previous year, in
our customers, namely PETRONAS and the
view of tight feedgas supply and lower
utilities customers, who have agreed to ride
demand. Notwithstanding this, operational
out the challenging times together with
performance was maintained at world class
us. As a result, the impact of variations in
standards with the Gas Processing Plants
fuel gas cost, which would have otherwise
(GPPs) attaining sales gas reliability rate of
severely affected our financial performance,
99.5% whilst transmission facilities achieved
has been mitigated.
a reliability rate of 100.0%. Revenue from
liquid by-products however, was adversely The Group recorded an increase in revenue
impacted due to leaner feedgas composition by 9.3% to RM3,415.1 million during the
and declining export prices for propane year, due to higher throughput revenue and
and butane due to the global economic utilities sales. However, cost of revenue
downturn. increased by 23.3% to RM2,194.4 million
mainly as a result of higher fuel gas cost.
For the utilities business, sales volume
In line with the PETRONAS Group of
for steam and industrial gases was
Companies, the Company also early adopted
higher by 15.4% and 9.9%, respectively.
a new accounting standard namely Financial
Furthermore, our industrial gases plant has
Reporting Standards (FRS) 139 pertaining to
also accomplished its highest reliability
the recognition and measurement of financial
rate since its commissioning at 99.7%.
instruments. Due to FRS 139 implementation,
This achievement is mainly due to effective
the revaluation of our term loan resulted in a
execution of maintenance activities and
net unrealised loss of RM34.0 million. Profit
improvement in operational efficiency. In
before tax for the Group decreased by 11.7%
addition, several extensions of Certificate of
to RM1,231.4 million whilst the Groups profit
Fitness were received from the Department of
after tax decreased by 15.1% to RM928.0
Safety and Health for our utilities facilities.
million. After adjusting for the minority
The financial results for the year under interest, earnings per share attributable to
review are derived from the performance the shareholders of the Company declined
of the Company and its subsidiary, and the from 55.2 sen to 46.9 sen.
Groups interest in an associate company and
a jointly controlled entity.
 31 P E T R O N A S G A S B E R H A D (101671-H)

We will not cease from looking for growth

opportunities and developing the Groups capabilities,
experience and expertise.
 32 P E T R O N A S G A S B E R H A D (101671-H)
Chairmans Statement
The Board is recommending a final dividend
We have reached of 20% per share tax exempt, 5.1% per share
less 25% tax and 9.9% per share tax exempt
a major milestone under the single tier tax system. Together
with the interim dividend of 15% less 25%
tax paid out on 18 December 2008, total
as we commemorate gross dividend for the financial year ended
31 March 2009 will amount to 50.0 sen per
our 25th Anniversary share. The resultant total net dividend is 45.0
sen per share which represents a dividend
payout ratio of 95.8%.
on 23 May 2008
Other Interests
which was celebrated Owing to the Companys vast expertise and
experience in pipeline project management,
the 500km Sabah Sarawak Gas Pipeline
with the spirit of giving project from Kimanis in Sabah to Bintulu
in Sarawak has progressed into its initial
back to the community. execution phase. The Company also, together
with Yayasan Sabah, agreed to develop a 300
megawatt gas power plant and its related
facilities in Kimanis to meet the growing
demand for electricity requirement in Sabah.
This led to the setting up of a joint venture
company between the Company and Yayasan
Sabah with equity participation of 60% and
40%, respectively.
Corporate Responsibilities
The Company continued its efforts in driving
and maintaining a safe and conducive
working environment. Health, Safety and
Environment (HSE) remains at the forefront of
our business with pervasive implementation
of HSE programmes at all levels. We have
been recognised for our good HSE practices
by the Malaysian Society of Occupational
Safety and Health through the numerous
awards received for our operating divisions.
The Company had also successfully secured
the re-certification of Occupational Health
and Safety Assessment Series (OHSAS)
18001, and the International Organization
for Standardization (ISO) 14000 certification
for the Centralised Utility Facilities division
during the year.
The Company remains committed in
instilling a high performance culture through
the enhancement of staff capabilities.
In this regard, the Company has put in
place programmes to further intensify
staff leadership and competency levels to
achieve a higher degree of performance
at an accelerated pace. Along with these
programmes, the strong commitment and
drive from our staff will propel the Company
to greater heights.
We have reached a major milestone as we
commemorate our 25th Anniversary on 23
May 2008 which was celebrated with the
spirit of giving back to the community.
With contribution from the Management
and staff who volunteered their time, energy
and resources, various corporate social
responsibility programmes were carried
out, ranging from interactions with the
communities in need and the less fortunate,
to environment related programmes including
beach cleaning and gotong-royong activities.
The Program Bakti Pendidikan PETRONAS
that was first implemented in the Company
three (3) years ago had also continued to
be impressive and rewarding, with the first
batch of students that were involved in
the programme producing remarkable Ujian
Penilaian Sekolah Rendah (UPSR) results.

I applaud our staff who have committed their
personal time and energy to be involved in
these voluntary activities and I hope that
this commitment will continue in the years
to come.
Looking Ahead
The global economic environment for the
rest of 2009 is likely to be difficult with the
International Monetary Fund (IMF) revising
its forecast of world economic growth in April
2009 to -1.3%. Accordingly in May 2009, the
Malaysian Government also revised its initial
GDP growth forecast to a range between -4.0%
and -5.0%. While there are considerable
uncertainties in the near term prospects of
global economic recovery, the aggressive
fiscal and monetary policy measures being
implemented across the globe, Malaysia
included, are expected to contribute to
improving conditions. The IMF has projected
that the world growth will slowly recover in
2010.
Looking ahead, we can expect challenging
times in the year to come as our earnings
have always remained heavily correlated
with power and industrial growth. Against
this backdrop, the Group must position
itself favourably to ride this storm of
uncertainties. Prudence in expenditure and
cost containment measures have always been
an integral part of our business operations.
Notwithstanding this, we will not cease
from looking for growth opportunities
and developing the Groups capabilities,
experience and expertise. This is to ensure
we strive towards achieving our mission and
continue to add value to the Group and its
shareholders.
33 P E T R O N A S G A S B E R H A D (101671-H)
Appreciation
On behalf of the Board of Directors, I would
like to take this opportunity to thank
YBhg. Tan Sri Mohd Hassan Marican for his
leadership and tremendous contribution
during his 17-year tenure as Chairman of
PETRONAS Gas Berhad since his appointment
to the Board in August 1991.
My appreciation also goes to YBhg. Datuk
Abdul Rahim Haji Hashim who retired from the
Board in April 2009 for his contribution and
I wish him the best in his future endeavours.
On the same note, I am pleased to welcome
his successor, Puan Farehana Hanapiah and
look forward to her active participation on
the Board.
I also wish to record my sincere appreciation
to our valued shareholders for their
continuous support and confidence. A special
appreciation goes to PETRONAS and the
utilities customers for their unwavering
support particularly during these turbulent
times. My gratitude further extends to the
Board of Directors for their wisdom and
guidance and the Management and staff for
their continuous professionalism, loyalty,
cohesiveness and integrity.
I look forward to the continuing strong The Company strives towards achieving our
support from all stakeholders for the future mission and is ever ready to face challenges.
growth and success of the Group.
Datuk Wan Zulkiflee bin Wan Ariffin
Chairman

Through persistent efforts and strong
support by all stakeholders, we are thankful
that the Company continues to progress
during this difcult time.
Introduction
The financial year 2008/2009 marks the
25th year of incorporation for PETRONAS
Gas Berhad. At this relatively young age,
the Company is putting up a tough front
facing the global economic slowdown which
had impacted its operations mainly during
the last two quarters of the financial year.
34 P E T R O N A S G A S B E R H A D (101671-H)
Through persistent efforts and strong support
by all stakeholders, we are thankful that the
Company continues to progress during this
difficult time. Given the capabilities and
strengths that the Company has developed
over the last 25 years, I am confident that
we will continue to remain relevant and
reliable both operationally and financially.
 35 P E T R O N A S G A S B E R H A D (101671-H)

Chief Executive Officers Report

Chief Executive
Ofcers Report

Chief Executive Officers Report
The Companys strength comes
from synergistic combination
of experienced staff
and fresh young talents.
36 P E T R O N A S G A S B E R H A D (101671-H)
Financial Performance 60% equity participation. Accordingly, our
financial results for the financial year ended
Our financial performance faced significant
31 March 2009 comprises the Company and
challenges during the year. The world
its subsidiary, and the Groups interest in an
economic downturn has resulted in, amongst
associate, i.e. Gas Malaysia Sdn. Bhd., and
others, a slowdown to the nations economy,
in a jointly controlled entity, i.e. Industrial
thus impacting customer demand for both
Gases Solutions Sdn. Bhd.
the throughput services business and utilities
business. In addition, effective July 2008, The Group recorded overall revenue of
domestic fuel gas prices and electricity tariff RM3,415.1 million, an increase of 9.3%
increased significantly, thereby impacting compared to RM3,125.7 million in the
our operating costs. previous year. The increase was attributed
to higher throughput services income mainly
To mitigate the increase in operating
due to the pass-through of variations in cost
costs arising from the revised fuel gas
of gas, as well as higher utilities sales mainly
price, negotiations were carried out with
due to the execution of revised pricing
our customers, namely PETRONAS and the
agreements with our utilities customers.
utilities customers, which resulted in the
Throughput services revenue increased by
implementation of a cost pass-through
5.7% to RM2,657.9 million while revenue
arrangement with PETRONAS for gas
from the utilities business increased by
internally consumed, and the execution of
23.7% to RM757.2 million. On the other
revised pricing agreements with our utilities
hand, cost of revenue increased by 23.3%
customers.
to RM2,194.4 million mainly due to higher
During the year, the Company also ventured fuel gas price.
into generation of electricity through a
In line with PETRONAS Group of Companies,
joint venture company set up with Yayasan
effective 1 April 2008, we voluntarily
Sabah. The joint venture company, known
undertook early adoption of Financial
as Kimanis Energy Venture Sdn. Bhd. was
Reporting Standards (FRS) 139, Financial
incorporated to undertake the Kimanis
Instruments, to enable our financial statements
power plant project in Kimanis, Sabah, with
to be comparable with other multinational
 37 P E T R O N A S G A S B E R H A D (101671-H)

Non-stop operations, 24 hours a day

to ensure reliable supply to the nation.

companies, and to be in accordance with Throughput Services Business

International Financial Reporting Standards
Our Gas Processing Plants (GPPs) in Kertih
(IFRS). FRS 139 provides guidance for the
and Paka faced several operational challenges
recognition and measurement of financial
in the form of tight feedgas supply, leaner
instruments. The adoption of FRS 139 affects
feedgas composition and some plant
the unsecured term loan comprising the
equipment problems. During the year, an
6th series 3.4% Samurai Bond which was
average of 2,247 million standard cubic feet
on lent from PETRONAS to the Company in
per day (mmscfd) of feedgas was processed
April 1997. Under FRS 139, the underlying
including imported gas of 199 mmscfd. This
Yen 16 billion term loan and the Currency
represents a 1.3% decline compared to 2,277
Exchange Agreement (CEA) are valued and
accounted for separately at each reporting
mmscfd which was processed in the last The Company continued
financial year. Our Peninsular Gas Utilisation
date. During the year, the Company recorded
an unrealised loss of RM34.0 million arising
network also received 295 mmscfd of gas from
the Malaysia-Thailand Joint Development
to implement rigorous
from retranslation of the term loan and
revaluation of the CEA.
Area. Consequently, sales gas delivered to
customers at 2,234 mmscfd was lower than
cost containment
The Groups overall profit before tax the previous year of 2,257 mmscfd.
decreased by 11.7% from RM1,394.1 million
Our GPPs sales gas reliability at 99.5%
efforts especially in
to RM1,231.4 million, whilst profit after
registered a slight decline of 0.2%
tax declined by 15.1%, from RM1,092.9
compared to 99.7%, mainly due to some reducing its internal
million to RM928.0 million. Earnings per
plant equipment problems. Nevertheless,
share attributable to the shareholders of the
Company fell from 55.2 sen to 46.9 sen.
the Companys pipeline network continue gas consumption.
 38 P E T R O N A S G A S B E R H A D (101671-H)

Chief Executive Officers Report

to maintain its excellent reliability record
by achieving 100.0% reliability, exceeding
world class standards.
Leaner feedgas composition, slowing demand
due to the global economy slowdown,
coupled with some plant equipment problems
have impacted the production of our liquid
by-products. Ethane production decreased
from 1.43 million Metric Tonnes (MT) to
1.31 million MT. Similarly, propane and
butane production also declined from 1.42
million MT to 1.34 million MT for propane,
and from 1.02 million MT to 0.92 million
MT for butane. Furthermore, owing to global
slowdown in the petrochemical sector, prices
for propane and butane have fallen sharply
during the last two quarters of the financial
year. The average selling prices for propane
and butane during the above mentioned
period was lower by almost 30% compared
to the average prices in the previous year.
Ethane plant reliability improved by 2.1%
from 95.3% to 97.4%. However the propane
and butane plants recorded a decrease in
reliability by 0.5% from 99.3% to 98.8%.
The Company continued to implement
rigorous cost containment efforts especially
in reducing its internal gas consumption
(IGC). Our plant operations, through its
value improvement programme, have carried
out relentless efforts and consequently
managed to reduce the volume of gas used
for internal consumption from an average of
78.3 mmscfd to an average of 77.6 mmscfd.

The pipeline network is maintained

at world class standards to ensure
reliable supply to customers.

In addition, Specific Equipment Reliability
Plan (SERP) was introduced to further
improve plant equipment reliability through
close monitoring of plant equipments.
The SERP will enhance the maintenance
strategy of plant equipment by identifying
problematic equipments and formulating
specific maintenance plans to ensure smooth
running of the plant.
Utilities Business
With regards to our utilities plants, reliability
for both steam and industrial gases showed
commendable improvements, with steam
reliability increasing by 0.3% from 97.1% to
97.4%, and our industrial gases recording its
highest ever reliability rate at 99.7%, a 3.1%
improvement from 96.6% in the previous year.
These improvements were mainly attributed
to the comprehensive maintenance activities
conducted at our utilities plants. However,
electricity reliability declined by 1.1% from
98.4% to 97.3% mainly due to rotor blade
damage at one of the gas turbines and
several trips caused by instrument hardware
failure.
We had also safely and successfully completed
six (6) major inspections at our utilities plants
to meet regulatory requirements without
39 P E T R O N A S G A S B E R H A D (101671-H)
Comprehensive maintenance activities
are planned and executed to ensure
efficient plant operations.
interrupting supply to customers. As a result
of good maintenance practice, extensions
in Certificates of Fitness (CF) were received
from the Department of Safety and Health
from 36 to 51 months for Air Separation Unit
2 in Kertih and both the Nitrogen Generation
Unit 1 and Demineralised Water Plant in
Gebeng. We also received extensions of CF
from 15 to 36 months for our Gas Turbine and
Heat Recovery Steam Generator in Kertih.
Other Involvements
The Sabah Sarawak Gas Pipeline (SSGP)
project, where we provide project execution
services for PETRONAS Carigali Sdn. Bhd.,
has progressed to the detailed engineering
stage of development. We have also carried
out site engineering survey works and
clearing activities along the planned 500 km
pipeline route which will run from the Sabah
Oil and Gas Terminal in Kimanis, Sabah to
the PETRONAS Liquefied Natural Gas Complex
in Bintulu, Sarawak. The project execution
services is led by our in-house engineering
arm, namely Technical Facilities and
Development Division (TFDD).
In June 2008, in view of the growing demand
for electricity supply in Sabah, the Company
entered into a Joint Development Agreement
 40 P E T R O N A S G A S B E R H A D (101671-H)
Chief Executive Officers Report
The Companys safety measures focuses
on the well-being of employees,
communities and the environment.
with Yayasan Sabah to develop a 300
megawatt gas power plant and its related
facilities and infrastructure, in Kimanis,
Sabah. Subsequently in November 2008, a
Shareholders Agreement with Yayasan Sabah
was signed to this effect.
Health, Safety and Environment (HSE)
Underlying all activities within the Company
is its HSE Policy. The HSE Policy describes our
priority in ensuring safety of our operations,
caring for the well-being of our employees,
the surrounding local communities and
the environment, and safeguarding our
investments at all times. Accordingly, various
activities were carried out to improve HSE
practices and to further internalise HSE
culture among employees and contractors.
The PETRONAS HSE Management System
(HSEMS) continues to be the set standard
which is used as an internal benchmark
when assessing the effectiveness of HSE
implementation. During the year, the
Company carried out a HSEMS Tier 2 audit
as part of its efforts to ensure continuous
improvements and compliance to the HSEMS.
The audit was conducted by the Companys
HSEMS auditors. The audit scope also
included Process Safety Management (PSM)
to ensure a more holistic implementation of
HSE since PSM not only focuses on the safety
of the people within the organisation, but
also on the safety of our equipments and
processes. Various PSM engagement sessions
were conducted among the operations and
maintenance teams to increase awareness
on the subject and to ensure pervasive
implementation at the plants. Through
these efforts, we achieved HSE in the
Heart level of HSEMS implementation which
demonstrates internalisation of HSE practices
throughout the organisation.
Our concern and priority on safety also
extends to our contractors who work within
our facilities. To this effect, two engagement
programmes with contractors were carried
out. The Companys annual Contractors Forum
was conducted with a HSE theme, hence
providing a platform for our contractors to
strengthen their understanding of our HSE
requirements. The contractors were also
given the opportunity to share best practices
and concerns amongst their peers to
improve their service levels to the Company.
Another session that was carried out with
our contractors was the TFDD Contractors
Engagement Session. Topics discussed during
this inaugural session centred on the subject
of HSE where open communications were
encouraged to foster better understanding
between both parties and to overcome all
work related issues that exist during project
execution.

The Company also continues its efforts in risk
monitoring and mitigation which extends to
business continuity management in order
to prepare ourselves for any emergency
possibilities that might occur. During the
year, we conducted an emergency exercise
called the ex-Sayap at our GPP operations
in Kertih, a full scale Avian Influenza
Emergency Preparedness Exercise which was
jointly organised with the Terengganu State
Health Department. Areas for improvement
were identified during the exercise which
resulted in the formulation of specific
mitigation plans.
With regards to the environment, as part of
our commitment to reduce greenhouse gas
emissions from our operations, we embarked
41 P E T R O N A S G A S B E R H A D (101671-H)
on the construction of Acid Gas Oxidisers
(AGOs) at GPP A. The GPP 2 AGO commissioning
was successfully completed on 11 January
2009. The AGOs are an improvement to the
existing acid gas removal process whereby
the acid gases from our plants are oxidised,
making it safe and clean prior to release
to the atmosphere. Another environmental
improvement project carried out was the
GPP B Waste Minimisation Project. The
project made it possible to recover about
70% of waste solids prior to final disposal
of waste to Kualiti Alam. In addition, we
also successfully established a combined
off-site scheduled waste storage facility for
various scheduled waste sources, an effort
The Company is committed in ensuring
plant processes and equipments are
managed and operated in the safest manner.
 42 P E T R O N A S G A S B E R H A D (101671-H)

Safety is the top priority for every

employee in the Company.

undertaken by our Transmission Operations On the subject of health, we continue to

Division (TOD), which has contributed towards actively promote and encourage healthy
reducing the operating, maintenance and lifestyle culture within the workplace. Our
transportation costs of scheduled waste. efforts and commitment was recognised
when the Company was accorded with the
The Company also established an
Merit Award in Health programmes during the
environmental awareness programme which
PETRONAS HSE Forum in October 2008. The
introduced the possibility of incorporating
year under review saw the implementation
Clean Development Mechanism (CDM) into
of the second phase of the Love My Body,
our projects. CDM is an arrangement under
Cherish My Life campaign. The second phase
the Kyoto Protocol that allows industrialised
focused on prevention of chronic diseases
countries with greenhouse gas reduction
by practicing a healthy lifestyle. Various
commitment to invest in projects that
programmes were organised and carried out
reduce emissions in developing countries as
throughout the organisation including Stop
an alternative to more expensive emission
Smoking Competition and Weight Reduction
reduction programmes in their own countries.
Competition for overweight staff, in addition
During the year, staff participated in training
to various exercise and health awareness
and awareness sessions to share and learn
sessions. It is encouraging to note that
more about CDM and the possibility of its
majority of our staff had participated in this
implementation within the organisation.
campaign.

Chief Executive Officers Report
Along with physical health, our healthy
lifestyle programmes also extended to
the promotion of emotional and spiritual
well-being. Eleven stress management
programmes were conducted at all divisions
to assist staff in understanding the cause
of stress and how it can be effectively
managed. We also formulated a Striving
for Excellence Programme which is called
the Al-Falah Programme to help promote
overall excellence in life by incorporating
a more holistic approach to manage
physical, financial, emotional, spiritual and
psychological health.
Human Resource Management
The Groups achievements during the year
would not have been realised without the
relentless efforts, support and unwavering
commitment of our staff. We continue to focus
on structured people development to build
our employees leadership and performance
capabilities in order to strengthen our business
resilience. Classroom training, mentoring
and coaching programmes offer different
approaches for staff to learn more effectively
thus creating a high performing culture.
Structured cascading of Key Performance
Indicators (KPIs) was implemented to align
each individuals performance requirements
to the corporate vision and goals. Through
the intensified Performance Management
System, each individuals performance and
43 P E T R O N A S G A S B E R H A D (101671-H)
leadership behaviour are effectively assessed
to ensure clear differentiation between each
staffs level of performance and contribution
to the Company.
To ensure continuous improvements within
the organisation, the Company remains
committed to people development with an
average of 14 training days being recorded per
staff. The PETRONAS Accelerated Capability
Development (ACD) was also introduced to
accelerate employee capability development.
The ACD helps employees to identify
competency gaps and formulate activities
to close the gaps. Regular assessments
would then measure the effectiveness of
each gap closure programme and improve
the speed of progress in each employees
career. The Companys PGB Accelerated
Capability Enhancement (PACE) committee
complements the implementation of ACD by
overseeing and providing direction on overall
competency development for both technical
We owe our business resilience
executive and non-executives. As a result, we to our employees who are committed
achieved approximately 20% increase in the to continuously improve themselves.
passing rates for Trade Technical Specialists
and other technical staff competency
assessments.
In addition, leadership development was
also carried out through various programmes
which cater for the different levels of
leaders within the organisation. The Senior
Management Development programme
organised together with INSEAD and the

Chief Executive Officers Report
Various leadership development
opportunities are provided
to groom future leaders.
44 P E T R O N A S G A S B E R H A D (101671-H)
Leadership Excellence at PETRONAS (LEAP)
programme were organised for senior
management to enhance management
skills to achieve business performance.
Thirteen members of the Companys senior
management attended these programmes. A
similar programme for managers known as
Maximising Your Leadership Success (MYLS)
was attended by 20 of our managers to assist
and prepare these newly appointed leaders
for higher responsibilities.
The Building Leadership Program (BLP)
continue to be implemented in the Company
to identify and develop potential leaders, thus
ensuring the availability of leaders within
the organisation. The programme identifies
and grooms potential leaders by providing
accelerated leadership development through
coaching and mentoring, structured training
and provision of opportunities to learn and
gather experiences.
In addition, we continue to engage with the
many different facets of the organisation
through various platforms to enhance
cohesiveness within the organisation.
Regular engagements with the various
groups within the organisation such as the
non-executives union, Kesatuan Kakitangan
Petroliam Nasional Berhad (KAPENAS),
quarterly communication sessions with the
Management, Town Hall sessions, and shift
communication sessions were conducted
during the year. These sessions communicate
the Companys performance to all staff at
all locations as well as allow them to raise
concerns and suggestions to further improve
the organisation. Other forums were also
held with the aim of providing a platform for
better understanding on career development
opportunities and highlighting staff concerns
on work related matters.
Corporate Social Responsibility (CSR)
Bakti Dihulur, Kasih Disemai, which means
every act of kindness instills the spirit of
caring for each other, was chosen as the
theme for the Companys Silver Jubilee.
The theme which is in line with PETRONAS
Brand Essence; Energy Received, Energy
Returned, Aspiring People Everywhere
demonstrates our gratitude to the society for
 45 P E T R O N A S G A S B E R H A D (101671-H)

We encourage the sharing of experience

and transfer of knowledge between staff
their continuous support. The CSR activities We continue to support the Program Bakti to accelerate competency development.

provide a platform for our staff to interact Pendidikan PETRONAS (BAKTI) at our
and contribute to the communities where three (3) adopted schools namely Sekolah
we operate and foster closer relationship Kebangsaan Santong in Paka, Terengganu,
between the Management and staff. Sekolah Kebangsaan Kemasik in Kemasik,
Terengganu and Sekolah Kebangsaan Pinang
A series of 55 CSR reach out activities were
Tunggal in Kepala Batas, Pulau Pinang.
carried out encompassing various areas,
The programme, which currently includes
focusing on communities in need and the
440 students from our adopted schools,
less fortunate. To ensure the success of the
is a structured and integrated long-term
programmes, staff and the Management
education programme focusing on marginal
contributed their personal time, energy
performers. The programme was conducted by
and money during the visits to orphanages,
our dedicated staff volunteers who invested
single mothers homes, old folks homes and
their time and energy on a regular basis.
hospitals. Among the activities that were
During the year, 92% of BAKTI students
conducted at these homes included health
passed the Ujian Penilaian Sekolah Rendah
screening, public awareness programmes,
(UPSR), 12 of whom achieved 5As while
motivational talks and exhibitions, and
another 13 students recorded more than 3As
gotong-royong activities. More than 3,000
for the examination. This is a remarkable
staff and their family members contributed
achievement for the students as they were
and participated in the activities.
 46 P E T R O N A S G A S B E R H A D (101671-H)

The Company is committed to delivering

excellence in all aspects of our operations.

previously categorised as marginal performers objective to promote better understanding

prior to their involvement in BAKTI.
BAKTI has been internationally recognised
when PETRONAS was awarded with the
2008 Platts Global Energy Award under the
Community Development Program of the Year
Award. At the national level, the Companys
efforts were also recognised at the Star Biz-
ICR Malaysia Corporate Social Responsibility
Award ceremony where we received an award
under the Community Category.
Twelve visitations to encourage Ownership,
Unity, Relationship and Satisfaction (OURS)
programme between staff and their family
members were conducted during the year.
The OURS programme was participated by
approximately 350 of our employees and their
family members. The programme realised its
of our operations and also enhanced the
spirit of staff ownership. In addition, the
programme allows us to appreciate the
family members for their continuous support
towards our employees in their pursuit of
excellence.
To further increase awareness on
environmental preservation among staff and
the community, we organised beach cleaning
activities along the East Coast, close to the
areas where we operate. The project involved
local authorities, villagers, school children
and teachers from the area. We hope that
through such activities and programmes,
our staff would gain more knowledge and
experience and continue to participate and
contribute in environmental conservation
activities.

Chief Executive Officers Report
Recognitions
The Company has received several accolades
and awards for its good practices and
achievements in HSE from the Malaysian
Society for Occupational Safety and Health
(MSOSH). Our CUF in Kertih and GPP B in
Paka were awarded the Grand Awards, while
GPP A in Kertih was awarded the Gold
Award. In addition, CUF Gebeng, TOD, Export
Terminal in Kemaman and TFDD received
Gold Merit Awards. The Company was also
accorded three (3) awards from Department
of Occupational Safety and Health (DOSH),
namely the Occupational Safety and Health
(OSH) Gold Award for our Segamat Regional
Office, and the OSH Silver and Bronze awards
for Pasir Gudang and Kertih Regional Offices,
respectively.
The Companys CUF Gebeng and Kertih
successfully attained International Organization
for Standardization (ISO) 14001:2004
re-certification, for demonstrating commitment
towards conserving and preserving its
surrounding environment as well as
Occupational Health and Safety Assessment
Series (OHSAS) 18001:1999 and Malaysian
Standards (MS) 1722:2005 for good practices
in managing occupational health and safety.
We expect to expand those certifications to
other locations in the future.
For the first time, the Company was also
accorded by Finance Asia as one (1) of Asias
top companies under two (2) categories.
The Company ranked seventh for the Best
Managed Company for its good governance
47 P E T R O N A S G A S B E R H A D (101671-H)
practices and sixth for Most Committed
to Strong Dividend Policy in Asia. We also
received Certificate of Merit from the National
Annual Corporate Report Awards (NACRA)
2008 for our presentation and reporting to
the stakeholders in the annual report.
Within the PETRONAS Group, our former
Senior General Manager of Plant Operation
Division, Encik Kamal Bahrin Ahmad was
selected as the HSE Personality for 2007
during his time of service with the Company
at the PETRONAS Group HSE Forum, held in
October 2008.
In the Coming Years
Moving forward, efforts are focused towards
preparing ourselves to be able to harness
better revenue once the global economic
situation improves. As we continue to seek
for high value growth opportunities, we
believe that the Company is well positioned
to capture valuable business opportunities
as they emerge.
Meanwhile, we are taking proactive measures
to drive down our costs through frugal
spending and by carrying out resource
optimisation initiatives. Two (2) of such
initiatives are the Manpower Optimisation
Initiative and the Inventory Value
Optimisation Initiative.
We will also continue close collaboration
with our suppliers and customers to ensure
that we deliver our best and create value for
all our stakeholders.
Appreciation
On behalf of the Company, I wish to take this
opportunity to express our gratitude to our
former Chairman, Y.Bhg. Tan Sri Mohd Hassan
Marican for his leadership and immense
contribution in taking the organisation into
new horizons during his tenure as Chairman.
I am also pleased to welcome Y.Bhg. Datuk
Wan Zulkiflee Wan Ariffin as the new Chairman
of the Company.
I would also like to express our appreciation
to two (2) of our Management Committee
members, Encik Kamal Bahrin Ahmad and
Puan Raiha Azni Abdul Rahman, who have
moved to other parts of the PETRONAS Group
and to wish both of them continued success.
I would also like to welcome three (3) new
Management Committee members, Encik
Rashid Muhamad, Puan Zilfalilah Abdul Aziz
and Encik Muhamed Ali Hashim Mohamed to
the Company.
On behalf of the Management, I would like
to thank the employees for their unwavering
contribution, commitment, sacrifice and
dedication that have contributed towards
the success during the year. Our gratitude
also goes out to our valued contractors, our
customers, regulatory agencies, business
partners and all shareholders for their
confidence and continuous support. I would
also like to thank the Board of Directors for
their guidance and wise counsel.
Samsudin bin Miskon
Managing Director/Chief Executive Officer
 48 P E T R O N A S G A S B E R H A D (101671-H)

Financial Review

Revenue Increase/
In the year under review, the Group 2009 2008 (Decrease)
(mmscfd) (mmscfd) (mmscfd) %
recorded a 9.3% increase (RM289.4 million)
in revenue, from RM3,125.7 million to Feedgas processed at the 2,247 2,277 (30) (1.3)
RM3,415.1 million. This was contributed by gas processing plants
higher throughput services income by 5.7% Sales gas delivery from JDA 295 276 19 6.9
(RM144.4 million) and higher utilities sales
Total gas injected into the system 2,542 2,553 (11) (0.4)
by 23.7% (RM145.0 million).
Total sales gas delivery 2,234 2,257 (23) (1.0)
Throughput services income had risen by 5.7%
(RM144.4 million) from RM2,513.5 million to Increase/
RM2,657.9 million mainly due to the passed- 2009 2008 (Decrease)
through of Internal Gas Consumption (IGC) Liquid by-products (MT) (MT) (MT) %
cost whereby an agreement was reached with Ethane production 1,311,372 1,434,250 (122,878) (8.6)
PETRONAS to pass-through the costs arising
Propane production 1,344,009 1,419,317 (75,308) (5.3)
from the increase in gas price to PETRONAS.
This was partly negated by lower performance Butane production 923,120 1,021,792 (98,672) (9.7)
based income as a result of lower volume
qualified and lower prices realised from
Increase/
the sale of Propane and Butane, and lower Utilities 2009 2008 (Decrease) %
revenue from flowrate charge. Daily average
Electricity 1,605,167,701 1,669,451,691 (64,283,990) (3.9)
volume of gas delivered into the Peninsular (kwh)
Gas Utilisation system was 2,542 million
Steam 4,720,352 4,091,910 628,442 15.4
standard cubic feet per day (mmscfd) in the (MT)
current financial year, as compared to 2,553
Industrial Gases 639,519,946 581,769,317 57,750,629 9.9
mmscfd for the previous year. Daily average
(Nm3)
volume of sales gas delivered to PETRONAS
customers decreased by 1.0% (23 mmscfd)
from 2,257 mmscfd to 2,234 mmscfd. Operating Cost Gross Profit
Operating cost for the Group increased by In the year under review, gross profit for the
Utilities revenue increased by 23.7%
23.3% (RM414.4 million) from RM1,780.0 Group decreased by 9.3% (RM125.0 million)
(RM145.0 million) from RM612.2 million to
million to RM2,194.4 million. This was due from RM1,345.7 million to RM1,220.7
RM757.2 million mainly due to the revision
to higher operating cost incurred for both million. Gross profit for the throughput
in pricing agreement with utilities customers
the throughput services business and the services business decreased by 7.3%
to mitigate the impact of the increase in gas
utilities business arising from the gas price (RM85.6 million) from RM1,178.1 million to
price. Sales volume for steam and industrial
revision during the year. The former increased RM1,092.5 million. The decrease was mainly
gases were higher by 15.4% and 9.9%,
by 17.2% (RM230.0 million) from RM1,335.4 due to lower revenue from performance based
respectively whilst the electricity volume was
million to RM1,565.4 million whilst the latter income and flowrate charge. Gross profit for
slightly lower compared to previous year.
increased by 41.5% (RM184.5 million) from the utilities business decreased by 23.6%
RM444.5 million to RM629.0 million. (RM39.5 million) from RM167.7 million to
RM128.2 million mainly due to higher cost
of sales resulting from the price revision of
fuel gas effective from July 2008.
 49 P E T R O N A S G A S B E R H A D (101671-H)

Other Expenses
Other expenses for the Group was higher
by RM85.8 million mainly due to unrealised
loss on retranslation of term loan of RM74.6
million resulting from the adoption of FRS
139, Financial Instruments. The adoption
of FRS 139 has resulted in a change in
the accounting policy in relation to the
recognition and measurement of the
unsecured term loan. The term loan comprise
of the 6th series 3.4% Samurai Bond which
was on lent from PETRONAS to the Company
on 21 April 1997. Prior to adoption of
FRS 139, the term loan was translated at
the contracted exchange rate of 100 Yen
RM2.838. Upon adoption of FRS 139, the
term loan was translated at the spot rate at
the balance sheet date.
Other Income
Other income for the Group was higher by
74.6% (RM52.5 million). This was mainly
due to unrealised gain on revaluation of
Currency Exchange Agreement (CEA) of
RM40.6 million. The CEA was previously
treated as the hedging instrument for the
term loan and thus, was not accounted for
in the financial statements. Upon adoption
of FRS 139, the CEA was fair valued at the
balance sheet date based on the difference
in discounted cash flow using the forward
exchange rate and the contracted exchange
rate. The net unrealised loss arising from
retranslation of term loan and revaluation of
CEA during the year was RM34.0 million.
Higher other income for the Company was
further contributed by higher dividend
received from Gas Malaysia Sdn. Bhd. (GMSB),
an increase of RM43.1 million from RM19.7
million in the previous year to RM62.8
million in the current financial year.

Income Statement
Group Company Increase/(Decrease)
Against Against
2009 2008 2009 2008 Group Company
RM million RM million RM million RM million % %
Throughput services income 2,657.9 2,513.5 2,657.9 2,513.5 5.7 5.7
Sale of industrial utilities 757.2 612.2 757.2 612.2 23.7 23.7
Revenue 3,415.1 3,125.7 3,415.1 3,125.7 9.3 9.3
Cost of throughput (1,565.4) (1,335.5) (1,565.4) (1,335.5) 17.2 17.2
Cost of industrial utilities (629.0) (444.5) (629.0) (444.5) 41.5 41.5
Cost of revenue (2,194.4) (1,780.0) (2,194.4) (1,780.0) 23.3 23.3
Gross profit 1,220.7 1,345.7 1,220.7 1,345.7 (9.3) (9.3)
Administration expenses (60.9) (52.0) (60.3) (52.0) 17.1 16.0
Other expenses (87.3) (1.5) (87.3) (1.5) 5,720.0 5,720.0
Other income 122.9 70.4 187.4 90.1 74.6 108.0
Operating profit 1,195.4 1,362.6 1,260.5 1,382.3 (12.3) (8.8)
Financing costs (19.4) (16.3) (19.4) (16.3) 19.0 19.0
Share of profit after tax of equity accounted 55.4 47.8 - - 15.9 -
associate and jointly controlled entity
Profit before tax 1,231.4 1,394.1 1,241.1 1,366.0 (11.7) (9.1)
Taxation (303.4) (301.2) (303.4) (301.2) 0.7 0.7
Profit after tax 928.0 1,092.9 937.7 1,064.8 (15.1) (11.9)
Earnings per share (sen) 46.9 55.2 47.4 53.8 (15.0) (11.9)
Profit before tax / Revenue 36.1% 44.6% 36.3% 43.7%
Profit after tax / Revenue 27.2% 35.0% 27.5% 34.1%
 50 P E T R O N A S G A S B E R H A D (101671-H)

Financial Review

Profit
The Group recorded lower profit before tax
by 11.7% (RM162.7 million) from RM1,394.1
million to RM1,231.4 million. Our associate
company, GMSB contributed share of profit
after tax of RM53.8 million whilst our jointly
controlled entity, Industrial Gases Solutions
Sdn. Bhd. (IGS), contributed share of profit
after tax of RM1.6 million. The total share of
profit after tax of equity accounted associate
and jointly controlled entity amounting to
RM55.4 million represents an increase of
15.9% (RM7.6 million) compared to the
previous year.
In addition, our subsidiary, Kimanis Energy
Venture Sdn. Bhd. (formerly known as Unik
Kuasa Sdn. Bhd.) (KEVSB) which was set
up with Yayasan Sabah to develop a 300
megawatt gas power plant in Kimanis, Sabah,
registered a RM1.6 million loss during the
year.
Taxation expense at RM303.4 million was
slightly higher by 0.7% (RM2.2 million)
from RM301.2 million in the previous year.
Effective tax rate was at 25.8% compared
to 22.4% for the previous year. Higher
effective tax rate was mainly due to lower
Reinvestment Allowance available during the
year.
As a result, profit after tax for the Group
decreased by 15.1% (RM164.9 million) from
RM1,092.9 million in the previous year to
RM928.0 million this year. Earnings per share
(EPS) for the Group decreased by 15.0%
(8.3 sen) from 55.2 sen to 46.9 sen, with 2.7 sen
attributed to our 20% interest in GMSB.
Dividends
During the year, the Company paid interim
dividend of 15% per share less 25% tax
amounting to RM222.6 million. The Board of
Directors is recommending a final dividend
of 20% per share tax exempt, 5.1% per share
less 25% tax and 9.9% per share tax exempt
under the single tier tax system, altogether
amounting to RM667.2 million in respect of
the financial year ended 31 March 2009. This,
together with interim dividend, will result in
total gross dividend of 50.0 sen per share.
The resultant total net dividend of 45.0 sen
per share, represents a payout ratio of 95.8%
on the profit after tax for the financial year
ended 31 March 2009.
Assets
Total assets for the Group increased slightly
by 0.7% (RM73.7 million) from RM9,793.3
million as at 31 March 2008 to RM9,867.1
million as at 31 March 2009.
Property, plant and equipment decreased
by 4.1% (RM291.0 million) from RM7,050.8
million as at 31 March 2008 to RM6,759.8
million as at 31 March 2009. This was
mainly after depreciation charges for the
year of RM615.4 million and net additions of
RM336.6 million.

Group Financial Performance

RM Million
Revenue 3,415.1 2009
3,125.7 2008
2,982.3 2007

Cost of Revenue 2,194.4 2009

1,780.0 2008
1,725.6 2007

Profit Before Tax 1,231.4 2009

1,394.1 2008
1,281.2 2007

Profit After Tax 928.0 2009

1,092.9 2008
1,247.0 2007

Investment in associate reduced by 5.0%
(RM9.0 million) to RM169.3 million as at 31
March 2009 compared to RM178.3 million
as at 31 March 2008, after taking into
consideration our share of profit in GMSB
of RM53.8 million and dividend received of
RM62.8 million. In addition, investment in
jointly controlled entity increased to RM3.2
million as at 31 March 2009 as compared to
RM1.5 million as at 31 March 2008.
Fund and other investments of RM70.9
million comprise of investments in Malaysian
Government Securities and other unquoted
securities undertaken during the year.
Cash and cash equivalents increased by
13.9% (RM237.3 million) from RM1,707.8
million as at 31 March 2008 to RM1,945.1
million as at 31 March 2009. During the
year, the Company paid dividend of RM841.0
million to the shareholders. The Company
also received dividend from GMSB in the
amount of RM62.8 million.
Earnings Per Share and Net Dividends Per Share
sen
2009 11.3
2008 10.9
2007 10.8
2006 10.8
2005 10.0
Interim Dividend
* To be approved at the PETRONAS Gas Berhads Twenty Sixth Annual General Meeting on 22 July 2009.
51 P E T R O N A S G A S B E R H A D (101671-H)
Liabilities
Total liabilities for the Group decreased
by 2.3% (RM42.2 million) from RM1,870.9
million as at 31 March 2008 to RM1,828.7
million as at 31 March 2009. The decrease
was mainly due to lower provision for
taxation by 74.3% (RM64.9 million) as a
result of lower profit before tax in the current
financial year.
Borrowings decreased by 1.0% (RM4.5
million) from RM454.1 million as at 31 March
2008 to RM449.6 million as at 31 March 2009.
The decrease was due to the retranslation of
the unsecured term loan of RM591.4 million,
offset by the revaluation of CEA of RM141.8
million, as a result of FRS 139 adoption.
Deferred income balance of RM15.3 million
as at 31 March 2009 mainly represents the
deferred amount relating to access right to
our gas pipeline corridor granted to Trans
Thai-Malaysia (Malaysia) Sdn. Bhd. for a
period of 20 years from 1 April 2004 and
access right to our gas pipeline corridor
granted to Fiberail Sdn. Bhd. for a period of
33.7* 46.9
31.3
27.3
25.0 49.1
20.0 41.6
Final Dividend Earnings Per Share
20 years from 9 February 2006. The former
was for the purpose of constructing and
operating their pipeline system whilst the
latter was for the purpose of constructing
and operating their fiber optic network.
Equity
At the Group level, total equity attributable
to the shareholders of the Company increased
by 1.5% (RM116.6 million) from RM7,922.4
million as at 31 March 2008 to RM8,039.0
million as at 31 March 2009. The increase
was due to net profit attributable to the
shareholders of the Company of RM928.7
million, net unrealised gain from retranslation
of term loan and revaluation of CEA as at 1
April 2008 of RM28.8 million as a result of
FRS 139 implementation less dividends paid
in the financial year of RM841.0 million.
Total equity was further reduced by the
minority interest of RM0.7 million to
RM8,038.3 million as at 31 March 2009. The
minority interest consists of the minority
shareholders proportion of the share capital
and reserves of KEVSB.
55.2
63.0
 52 P E T R O N A S G A S B E R H A D (101671-H)

Statement of Value Added

Group Company
2009 2008 2009 2008
RM mil RM mil RM mil RM mil
Revenue 3,415.1 3,125.7 3,415.1 3,125.7
Purchase of goods and services (1,303.6) (938.2) (1,303.1) (938.2)
Value added by the companies 2,111.5 2,187.5 2,112.0 2,187.5
Other Expenses (87.3) (1.5) (87.3) (1.5)
Other Income 122.9 70.4 187.4 90.1
Financing costs (19.4) (16.3) (19.4) (16.3)
Share of profit after tax of equity accounted associate and 55.5 47.8
jointly controlled entity
Value added available for distribution 2,183.2 2,287.9 2,192.7 2,259.8
Distribution
To employees Employment costs 317.5 268.4 317.5 268.4
To government Taxation 303.4 301.2 303.4 301.2
To shareholders Dividends 841.0 756.9 841.0 756.9
Minority Interest (0.7)
Retained for reinvestment and future growth
Depreciation and amortisation 634.2 625.3 634.2 625.3
Retained profit 87.8 336.1 96.6 308.0
2,183.2 2,287.9 2,192.7 2,259.8

Distribution of Value Added

14% 13%

To employees
12% 33%*
15% 38%* To government
Group Group
2009 2008
To shareholders

Retained for reinvestment

and future growth
33%* 42%*

* For Company, 38% distributed to * For Company, 33% distributed to

shareholders while 33% was retained shareholders while 41% was retained
for reinvestment and future growth. for reinvestment and future growth.
 53 P E T R O N A S G A S B E R H A D (101671-H)

Financial Calendar
FINANCIAL YEAR FROM 1 APRIL 2008 TO 31 MARCH 2009

Results
First Quarter ended 30 June 2008 Announced On 14 August 2008
Second Quarter ended 30 September 2008 Announced On 19 November 2008
Third Quarter ended 31 December 2008 Announced On 19 February 2009
Fourth Quarter ended 31 March 2009 Announced On 21 May 2009
Dividends
Interim Entitlement Date 4 December 2008
Paid On 18 December 2008
Final Entitlement Date 3 August 2009
Payable On 19 August 2009
NOTICE OF ANNUAL GENERAL MEETING 30 June 2009
TWENTY SIXTH ANNUAL GENERAL MEETING 22 July 2009

Performance of Shares
Closing Price/
Composite Index Shares Volume

1400 35000

1200 30000

1000 25000

800 20000

600 15000

400 10000

200 5000

0 0
Apr May June Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May
2008 2009

Composite Index Closing Price Volume

For the Year Ended 31 March April-May

2008 2009 2009
Highest price 11.90 10.40 9.80
Lowest price 8.80 9.20 9.40
 54 P E T R O N A S G A S B E R H A D (101671-H)

conserving
We will always remain committed
to environmental conservation and sustainable
development. As a responsible corporate citizen,
we believe in protecting the environment
for our future generations.
 55 P E T R O N A S G A S B E R H A D (101671-H)

Corporate Governance
Corporate Governance Statement 56 Internal Control Statement 62 Board Audit Committee Report 66

Board Audit Committees Terms of Reference 69 Statement of Directors Responsibility 71


Corporate Governance Statement
The Board of Directors (Board) of PETRONAS
Gas Berhad recognises that its primary
responsibility is to safeguard and promote
the interests of the shareholders and to
enhance the long term value of the Company.
The Board is fully committed to maintaining
high standards of corporate governance to
safeguard the interests of the shareholders.
The Board has applied in full the Principles of
Corporate Governance and the Best Practices
in Corporate Governance as set out in the
Malaysian Code on Corporate Governance
(Revised 2007).
Board and Board Committees
The Board is entrusted with the responsibility
to exercise reasonable and proper care of the
Companys resources for the best interests
of its shareholders and to safeguard the
Companys assets. Members of the Board
have been selected based on their character,
calibre, extensive experience and expertise
in a wide range of related and unrelated
industries, as well as their ability to add
strength to the stewardship of the Company.
The Directors are accountable under the law
for the Companys activities, strategy and
financial performance. Particular attention is
given to ensure that the strategies proposed
by the Management of the Company are fully
discussed and critically examined by the
Directors.
56 P E T R O N A S G A S B E R H A D (101671-H)
Board Composition the respective responsibilities of the divisions
and departments in the Company and he is
As at the date of this report, the Board
assisted in the management of the business
comprises the following:
by the Management Committee (MC), which
Executive Director 1/8 (12.5%) he consults regularly.
(also the Managing Director/
Chief Executive Officer)
All Non-Executive Directors have the
Independent 4/8 (50.0%) necessary expertise and skill to ensure that
Non-Executive Directors the strategies proposed by the Management
are fully evaluated, taking into account the
Non-Independent 3/8 (37.5%)
long term interests of the shareholders.
Non-Executive Directors
(including the Chairman) In addition, they contribute to policy
formulation and are actively involved in
decision making. They provide guidance and
The profile of each Director is presented in
promote professionalism and competence
this Annual Report on pages 16 to 19.
among Management and employees.
The assessment of the appropriateness of the
The presence of the Independent Non-
size of the Board to ensure its effectiveness
Executive Directors is essential in providing
is being undertaken accordingly.
unbiased and independent views, advice
and judgement, as well as safeguarding the
There is a clear demarcation of responsibilities
interests of other parties such as minority
within the Company to ensure a balance
shareholders of the Company. The concept
of power and authority. The positions
of independence adopted by the Board
of Chairman and Managing Director are
is in accordance with the definition of an
separately held. The Chairman is primarily
Independent Director in Paragraph 1.01 of
responsible for running the Board and
the Bursa Malaysia Listing Requirements.
ensuring that all Directors have full and
Any new Director is given a comprehensive
timely access to all relevant information,
understanding of the operations of the
which is necessary for informed decision-
Company through regular briefings on
making. The Managing Director who is also
Company history and financial control
the Chief Executive Officer oversees the
systems. In addition, plant visits are
implementation of Board policies, the day-to
arranged to ensure first-hand understanding
day running of the business and operational
of the Companys operations.
decision making. The Managing Director/
Chief Executive Officer (MD/CEO) also manages
 57 P E T R O N A S G A S B E R H A D (101671-H)

The Articles of Association of the Company The meeting attendance record of the Providing Information to the Board
further provides that at least one third of Directors is as follows:
The Board may, whenever required, as
the Directors are subject to retirement by Table 1 : Attendance Record provided by the Articles of Association, set
rotation at each Annual General Meeting
Name of Directors Attendance up Board Committees delegated with specific
and provided always that all Directors shall
powers and responsibilities.
retire from office once at least in each three Tan Sri Mohd Hassan 2/2*
(3) years but shall be eligible for re-election bin Marican
Prior to the Board meetings, every Director is
in line with the Bursa Malaysia Listing Datuk Wan Zulkiflee 4/4** given an agenda and a set of Board papers to
Requirements. bin Wan Ariffin facilitate informed decision-making. The MD/
Dato Sadasivan 4/4 CEO leads the presentation of Board papers
Tan Sri Mohd Hassan bin Marican resigned
s/o N.N. Pillay and provides comprehensive explanation
as Chairman and Director of the Company on
on pertinent issues. All proceedings of the
15 August 2008 and was replaced by Datuk Dato Chew Kong Seng 4/4 Board meetings are minuted and signed by
Wan Zulkiflee bin Wan Ariffin effective on
Datuk Mohd Zain 4/4 the Chairman of the meeting in accordance
the same date.
bin Haji Abdul Majid with the provisions of Companies Act, 1965
in Malaysia. Minutes of the Board meetings
Muri bin Muhammad 3/4
Attendance at Board Meetings which include a record of the decisions and
Datuk (Dr) Abdul Rahim 4/4*** resolutions of the Board meetings are properly
Board meetings are scheduled in advance
bin Haji Hashim maintained by the Company Secretary.
before the beginning of the new financial
year to enable Directors to plan their Mohammed Azhar 4/4
schedules ahead of time to fit the years bin Osman Khairuddin The Board is kept updated on the Companys
meeting. Board meetings are held at activities and operations on a regular basis.
Samsudin bin Miskon 4/4 All Directors have full access to information,
quarterly intervals with additional meetings
held whenever necessary. The Board met four Farehana binti Hanapiah *** including monthly reports on Company
(4) times during the year under review. Most activities, both financial and operational.
of the Directors attended all of the Board * Resigned as Chairman and Director of the
Company on 15 August 2008. In addition, whenever independent
meetings.
** Appointed as Chairman of the Company on 15 professional advice is required by the
August 2008. Directors, outside experts may, and have
*** Resigned as Director of the Company on 27 been engaged at the Companys expense.
April 2009 and Farehana binti Hanapiah
appointed in his stead.
 58 P E T R O N A S G A S B E R H A D (101671-H)

Corporate Governance Statement

The Directors have access to the advice and
services of the Company Secretaries, whose
appointments and resignations are subject
to the Boards approval.
The Board is fully aware of, and acts on any
matters for decision to ensure proper direction
and control of the Company as outlined in
the Companys Limits of Authority.
Board Audit Committee
The Board Audit Committee (BAC) has specific
terms of reference including the review of
the interim and full year financial statements
and preliminary announcements, internal
financial controls and the reports of the
Group Internal Audit Division of PETRONAS.
It ensures the adequacy and integrity of
the Companys internal control system and
management information system and that
they are in compliance with the Companys
policies and procedures, applicable laws
and regulations and the Bursa Malaysia
Listing Requirements. The BAC monitors the
effective implementation of programmes to
ensure compliance to the Companys Risk
Management Policy. It will continue to ensure
that the principal risks facing the Company
are identified and monitored and appropriate
measures are undertaken to manage these
risks.
Financial Control
For each financial year, the Board will, in
advance, approve the Companys Plans and
Budget including cash flow forecast for
the year and projections for the four (4)
subsequent years, preparation of which is
one of the key responsibilities of the MD/
CEO. These are prepared by the respective
operating units and support services units
and reviewed by the Companys MC and
the BAC before submission to the Board.
Subsequently, the Companys business
performance results are reviewed periodically
by both the MC and the BAC. Results are
reported to the Board on a quarterly basis
together with an in-depth explanation and
analysis of variances to the budget by the
MD/CEO.
Directors Nomination
Non-Executive Directors are paid Directors
and Remuneration
The Board as a whole serves as the
Nomination and Remuneration Committee.
No smaller committee is recommended as
the Company believes that all members must
be equally responsible for the duties of such
committee, stated as follows:
to assess and recommend new Directors
to the Board;
to annually review the mix of skills and
experience, and other qualities to enable
the Board to function completely and
efficiently;
to implement a formal appraisal process
for the evaluation of the effectiveness
of the Board as a whole, the committees
and the individual contribution of each
Board member; and
to recommend to the Board the
remuneration of all Non-Executive
Directors; individual Directors do not
participate in the discussion relating to
their own remuneration.
The Board will deliberate on the above during
the normal proceedings of the meeting of
Directors.
With the exception of the MD/CEO, all
fees as approved by the shareholders at
the Annual General Meeting, based on the
recommendation of the Board. For the year
under review, the breakdown of fees received
by each Director is as follows:
 59 P E T R O N A S G A S B E R H A D (101671-H)

Table 2: Details of Directors Fees

Name of Directors Directors Fees BAC Fees Total

(RM) (RM) (RM)

Tan Sri Mohd Hassan bin Marican Non-Executive 22,500 _ 22,500

Datuk Wan Zulkiflee bin Wan Ariffin Non-Executive 51,000 51,000
Dato Sadasivan s/o N.N. Pillay Non-Executive 36,000 12,000 48,000
Dato Chew Kong Seng Non-Executive 36,000 8,400 44,400
Datuk Mohd Zain bin Haji Abdul Majid Non-Executive 36,000 8,400 44,400
Muri bin Muhammad Non-Executive 36,000 36,000
Datuk (Dr) Abdul Rahim bin Haji Hashim Non-Executive 36,000 36,000
Mohammed Azhar bin Osman Khairuddin Non-Executive 36,000 8,400 44,400
Farehana binti Hanapiah Non-Executive
TOTAL 289,500 37,200 326,700

The MD/CEO, an employee of PETRONAS, is
seconded to the Company as an Executive
Director. His presence as well as the
presence of other Directors representing
PETRONAS give the Board a deeper insight
into the Holding Companys operations with
greater accountability for the Companys
performance, both financial and operational.
In consideration of the service of the MD/CEO,
the Company is required to pay a management
fee to cover all payroll-related costs and
benefits ordinarily incurred by him in the
course of his employment. During the year,
the Company paid RM736,800 as management
fee. The Company also reimburses all
reasonable expenses incurred by the Directors Training
Directors, where relevant, in the course of
In compliance with the Bursa Malaysia Listing
carrying out their duties as Directors.
Requirements, the Directors are mindful that
they shall receive appropriate training which
In addition to the MD/CEO, other Management
may be required from time to time to keep
staff has been seconded from PETRONAS.
them abreast with the current developments
Their training and succession planning are
of the industry as well as the new statutory
aligned to the PETRONAS Human Resources
and regulatory requirements.
Division. The Board ensures that only
appropriate personnel with the relevant
During the financial year, the members of the
skills and experience are appointed to
Board have attended relevant development
Management positions of the Company. The
and training programmes to enhance their
Board further ensures that the members of
ability in discharging their duties and
the MC of the Company are rewarded based
responsibilities more effectively, the details
on performance.
of which are set out on page 167 to 168.

Corporate Governance Statement
Relationships with Shareholders
The Company recognises the importance of
timely and equal dissemination of information
to shareholders. In this regard, it adheres
strictly to the disclosure requirements of the
Bursa Malaysia Securities Berhad.
In accordance of the Companies Act, 1965
in Malaysia, the Company held its Annual
General Meeting (AGM) which also serves as a
medium to communicate to the shareholders.
Shareholders are notified of the meeting
and provided with a copy of the Companys
Annual Report 21 days before the meeting.
At each AGM, the Board provides shareholders
with an opportunity to ask questions on the
progress and performance of the Company,
prior to seeking approval by show of hands
from members and proxies on the Audited
Accounts.
During the meeting, the Chairman and Board
members respond to all queries and undertake
to provide sufficient clarification on issues
and concerns raised by the shareholders.
The external auditors are also present to
provide their professional and independent
clarification on issues and concerns raised by
the shareholders. The status of all resolutions
proposed at the AGM is submitted to the
Bursa Malaysia Securities Berhad at the
60 P E T R O N A S G A S B E R H A D (101671-H)
end of the meeting day. A summary of
the discussions at the AGM is kept by the
Management for future reference.
The Board has ensured that where there
is special business included in the notice
of the Annual or Extraordinary General
Meeting, each item of the special business
is accompanied by a full explanation of the
effects of the proposed resolution.
In providing shareholders with the
opportunity to gain first-hand exposure on
the Companys operations, several visits to
Gas Processing Plants located in Kertih and
Paka, Terengganu, as well as to Centralised
Utility Facilities located in Gebeng, Pahang,
were organised during the year. Shareholders
were briefed on the Companys operations
and given the opportunity to ask for
more information in respect of the plant
operations. Such two-way communication
increases corporate transparency and helps
shareholders take a longer term view of their
investment based on a better understanding
of the Companys corporate strategy and
operations.
Institutional investors and analysts were
also given the opportunity to meet with
the Management on performance, corporate
governance and other matters affecting the
shareholders interests.
In all circumstances, the Company preserves
confidentiality with regards to undisclosed
material information about the Company
and continuously stresses the importance
of timely and equal dissemination of
information to the shareholders.
Accountability and Audit
1. Financial Reporting
The Board aims to present a clean
assessment of the Companys position
and prospects. This also applies to other
price-sensitive public reports and reports
to regulators. The Statement of Directors
Responsibility is enclosed on page 71.
2. Internal Control
The Board continues to maintain a sound
system of internal control to safeguard
shareholders investment and the
Companys assets. The principle is further
elaborated under the Internal Control
Statement by the Directors on pages 62
to 65.
3. Relationship with the Auditors
The external auditors, Messrs. KPMG Desa
Megat & Co., have continued to report
to members of the Company on their
opinions which are included as part of the
Companys financial reports with respect
to their audit on each years statutory
 61 P E T R O N A S G A S B E R H A D (101671-H)

financial statements. In so doing, the Additional Compliance Information

Company has established a transparent
1. Non-Audit Fees A Deed of Novation was subsequently
arrangement with the auditors to meet
The amount of non-audit fees paid entered between the Company, Yayasan
the auditors professional requirements.
and payable to the external auditors Sabah and NRG Consortium (Sabah)
From time to time, the auditors highlight
by the Company for the financial year Sdn. Bhd., a subsidiary of Yayasan
to the BAC and the Board on matters that
ended 31 March 2009 was RM10,000 Sabah Group on 10 March 2009 to
require the Boards attention. The Board
(2008 - RM10,000). novate the SHA from Yayasan Sabah
Audit Committee Report is enclosed on
to NRG Consortium (Sabah) Sdn. Bhd.,
pages 66 to 68.
2. Sanctions in accordance with the terms and
During the financial year, there were no conditions of the SHA.
This statement is made in accordance with
sanctions and/or penalties imposed on
the resolution of the Board dated 21 May
the Company, Directors or Management Besides the SHA, the existing Gas
2009.
by the relevant regulatory bodies. Processing and Transmission Agreement
(GPTA) entered between the Company
3. Material Contracts and its substantial shareholder,
In line with the Companys strategy Petroliam Nasional Berhad (PETRONAS)
for business growth, on 24 November on 31 March 1995, which was made
2008, the Company entered into a effective from 1 April 1994, is for
Shareholders Agreement (SHA) with the provision of separating natural
Datuk Wan Zulkiflee bin Wan Ariffin
Yayasan Sabah to set up a joint venture gas into its components and storing,
Chairman
company (JVC) to develop a 300 transporting and distributing such
megawatt gas power plant and related components thereof for a fee.
facilities and infrastructure, in Kimanis,
District of Papar, Kota Kinabalu, Sabah The GPTA provides for revision of the
(Power Plant). terms and conditions every five (5)
years. The last revision of the GPTA
The JVC will also undertake the revised the throughput fee structure
Samsudin bin Miskon
operation and maintenance of the for the period from 1 April 2005 to
Managing Director/Chief Executive Officer
Power Plant and the sale and delivery 31 March 2010.
of electricity from the Power Plant to
meet the growing demand for electricity
in Sabah. The equity participation of
the Company and Yayasan Sabah in the
JVC is 60 : 40, respectively.

Internal Control Statement
Boards Responsibility
The Board is responsible for maintaining a
sound system of internal control to safeguard
shareholders investments and the Companys
assets, and for reviewing the adequacy and
integrity of the system. In view of the
limitations that are inherent in any system
of internal control, this system is designed
to manage, rather than eliminate, the risk of
failure of achieving the corporate objectives.
Accordingly, it can only provide reasonable
but not absolute assurance against material
misstatement or losses. The system of internal
control covers, inter alia, risk management,
financial, organisational, operational and
compliance controls. The Board confirms that
there is an ongoing process of identifying,
evaluating and managing all significant risks
faced by the Company, that has been in place
for the year and up to the date of approval of
the Annual Report and financial statements,
and that this process is regularly reviewed by
the Board so as to be in accordance with the
Statement on Internal Control: Guidance for
Directors of Public Listed Companies.
62 P E T R O N A S G A S B E R H A D (101671-H)
Risk Management interruptions due to disaster or crisis. The
BCP procedure focuses on BCP organisation
Risk management is firmly embedded in
structure, roles and responsibilities of BCP
the Companys management system. It is
team members and BCP activation and
the Companys policy to adopt an effective
implementation processes. During the
and progressive corporate risk management
year, as part of the Head Office (HO) BCP,
system to identify, analyse, appraise and
the Company identified Seremban Regional
monitor the risks facing the Company and to
Office as its Work Resumption Centre (WRC)
take specific measures to mitigate the risks.
in the event that the HO is not accessible
to HO personnel. Critical business functions,
The Company, through its Risk Management
key resources and personnel have also been
Department provides regular updates to
identified to ensure that vital business
the Board Audit Committee (BAC) on the
processes can immediately be recovered from
Companys risk profile and status of risk
the WRC. In addition to the usual BCP drills
mitigation implementation actions through
carried out, the Company also conducted
the Enterprise Risk Report. Detailed risk
an Avian Influenza Emergency Preparedness
events identified are discussed, highlighted
Exercise which tested the effectiveness
and approved by the BAC together with
of the Avian Influenza Preparedness Plan.
the appropriate risk mitigating measures,
During the year, actual crisis that resulted
efforts and control. Mitigating actions are
in business disruption occurred separately at
identified for significant risk events and
our Gas Processing Plants in Kertih and Paka.
are incorporated in the respective divisions
In both occurrences, the division BCP was
action plans.
activated and found to be effective.
The Company has developed its Business
The Company continues to implement
Continuity Plan (BCP) at both corporate and
project risk management processes on its
divisional levels. The objective of the BCP
critical projects. Project risk management
is to provide guidelines on key personnels
reports are submitted to the relevant heads
responsibilities and to ensure timely
of divisions together with the mitigation
business recovery in the event of business
plans to eliminate or reduce risk exposures

identified. During the year, to enhance
project risk management capability,
additional Project Risk Assessment (PRA)
facilitators were identified to attend the PRA
Facilitators training as well as the Project Risk
Management Database (PRMD) training. The
PRMD is designed to capture all information
relating to project risk management
activities, e.g. PRA, project independent
review and project lessons learnt in one
platform to be shared across the PETRONAS
Group as a knowledge management tool.
Contractors risk is managed through
contractor risk assessments, led by the
Supply Chain Management Department
whereby technical and commercial
evaluation exercises were conducted
prior to the award of contracts. To reduce
its credit risk exposure, the Company
continues to assess its customers based
on PETRONAS Credit Risk Rating System to
ensure alignment with the credit assessment
process adopted by the PETRONAS Group.
The system evaluates the credit worthiness
and assigns credit risk ratings to all the
Companys external customers. Periodic
reviews are conducted on the assigned credit
63 P E T R O N A S G A S B E R H A D (101671-H)
risk rating of these customers while the Moving Forward
financial trend of the customers are analysed
The Company continues to incorporate risk
to detect early signs of financial distress and
management practices within its business
provide early warning to the Management.
processes and activities. In light of the
In addition, Credit Value at Risk (CVaR)
global economic and financial crisis, the
which measures potential loss from
Company will continue to ensure that risks
customers overdues, is monitored against
are being mitigated through effective risk
the established Credit Risk Tolerance Limit
management practices. The Company will
(CRTL) to ensure that CVaR exceeding CRTL is
continue to conduct periodic reviews of its
promptly highlighted to the Management.
business processes and activities to assess
the effectiveness of its risk management
To further enhance risk management at
practices. Risk management trainings for
operational level, the Plant and Facilities
employees to ensure full understanding and
Risk Management process was implemented
commitment on risk management processes
during the year to evaluate risks affecting
will continue to be carried out.
the Companys plants and other facilities,
as well as risks that would disrupt business
In addition, the Company will continue with
continuity. The plant facilities risk profile and
its BCP drill exercises at the company and
status of mitigation actions are monitored
divisional levels to assess its readiness to
and reported at the divisional level.
address disaster or crisis situations and its
ability to effectively resume operations.
In enhancing risk management awareness
and knowledge as part of capability building
at the Company, the Company organised the
inaugural Risk Management Forum which
was attended by staff and risk practitioners
across the PETRONAS Group.

Internal Control Statement
Internal Audit Function
The internal audit function of the Company
is outsourced to the Group Internal Audit
Division of PETRONAS. They maintain their
impartiality, proficiency and due professional
care by having their plans and reports directly
under the purview of the Companys BAC.
Internal audits are undertaken to provide
independent assessments of the Companys
internal control systems in anticipating
potential risk exposures over certain business
processes and ascertaining the proper
conduct of business within the Company.
The BAC has full access to reports on all
audits performed by the internal auditors.
The internal audit function reviews the
internal controls of various activities of the
Companys businesses based on the annual
internal audit plan, which is presented to
the BAC for approval. The internal audit
function adopts a risk-based approach and
prepares its audit strategy and plan based on
the risk profiles of the operating divisions of
the Company.
64 P E T R O N A S G A S B E R H A D (101671-H)
The resulting reports from the audits
undertaken are reviewed by the BAC and
then forwarded to the Management for
attention and necessary corrective action.
The Management is responsible for ensuring
that appropriate corrective actions are taken
on the reported areas for improvement
within the required time frame. The status
of audit issues are submitted to the BAC on
a quarterly basis.
The internal audit cost incurred for the year
ended 31 March 2009 is RM259,000. The key
activities of the internal audit function are
set out in the Board Audit Committee Report
on pages 66 to 68.
Other Risks Control Processes
Apart from risk management and internal
audit, the Company has the following control
processes in place:
The Board meets at least quarterly in
order to maintain full and effective
supervision. The MD/CEO will lead the
presentation of Board papers and provide
comprehensive explanation on pertinent
issues. In arriving at any decisions
based on recommendations by the
Management, a thorough deliberation and
discussion by the Board is a prerequisite.
In addition, the Board is also kept
updated on the Companys activities and
its operations on a regular basis.
The Board reviews any significant issues
arising from changes in the business
environment, which may result in
significant risks to the Company. The
General Manager of Finance Division
provides the Board with quarterly
financial information. These include,
amongst others, the monitoring of results
against budget, with major variances
being followed up and Management
action taken, where necessary. Where
areas for improvement in the system are
identified, the Board considers the views
and recommendations made by the BAC
and the Management.
A documented Limits of Authority
with clear lines of accountability and
responsibility. It sets out the decisions
that need to be taken and the appropriate
approving authority at various levels
of Management including matters that
require the Boards approval.

An organisational structure, as set
out on page 9, with formally defined
lines of responsibility and delegation
of authority. A process of hierarchical
reporting has been established which
provides a documented and auditable
trail of accountability.
During the year, the Systems and Control
Section of Finance Division had conducted
attestation exercises on the procurement
and contract management activities
and staff advances and claims activities.
The attestation exercises were carried out
to provide assurance to the Management
on the Companys compliance to policies
and guidelines and on the integrity of
records and financial information. At the
end of each attestation exercise, reports
were presented to the Management
Committee highlighting findings and the
agreed corrective actions.
Tender Committees structure with
defined level of responsibilities to
review all major contracts. Subsequent
to the review by the relevant Tender
65 P E T R O N A S G A S B E R H A D (101671-H)
Committees, the contract will be subject Weaknesses in Internal Control
to approval by the relevant approving that Result in Material Losses
authority who is independent from the
There were no material losses incurred
Tender Committees. Tenders are called
during the current financial year as a
for and are awarded based on factors
result of weaknesses in internal control.
such as capability, quality, track record,
The Management continues to take measures
speed of delivery and cost.
to strengthen the internal control
Internal control procedures in standard environment.
operating procedures manuals with
established guidelines on business This statement is made in accordance with
planning, capital expenditure, financial the resolution of the Board dated 21 May
operations, performance reporting, plant 2009.
and transmission operations, supply
chain management, human resource,
information technology and health,
safety and environment.
The Five Quality Principles, which are:
- Conformance to Requirements
Datuk Wan Zulkiflee bin Wan Ariffin
- Prevention
Chairman
- Right Things Right Every Time
- Price of Non-conformance
- Proactive Leadership at All Levels
continue to be inculcated within the
Companys Quality Culture with strong
emphasis on risk assessment and
prevention. Samsudin bin Miskon
Managing Director/Chief Executive Officer
21 May 2009

Board Audit Committee Report
The BAC is pleased to present the Audit
Committee Report for the financial year
ended 31 March 2009.
Membership
The BAC was formed by the Board
pursuant to its meeting on 14 August
1995. Currently the BAC comprises four
directors as follows:
1. Dato Sadasivan s/o N.N. Pillay
- Chairman
(Independent Non-Executive Director)
2. Dato Chew Kong Seng
(Independent Non-Executive Director,
member of the Malaysian Institute of
Accountants)
3. Datuk Mohd Zain bin Haji Abdul Majid
(Independent Non-Executive Director)
4. Mohammed Azhar bin Osman Khairuddin
(Non-Independent Non-Executive Director)
The BAC is governed by the Terms of
Reference as stipulated on pages 69 to 70.
All the requirements under the Terms of
Reference were fully complied with and the
66 P E T R O N A S G A S B E R H A D (101671-H)
BAC did not see any matters in breach of the The following activities were carried out by
Listing Requirements of the Bursa Malaysia the BAC during the financial year ended 31
Securities Berhad that warrant reporting to March 2009:
Bursa Malaysia Securities Berhad. 1. Reviewed the annual internal audit plan
for the year including its scope, basis
Summary of Activities of the BAC of assessments and risk ratings of the
proposed areas of audit.
During the year, the BAC met four (4)
times. By invitation, the MD/CEO, Company 2. Reviewed and deliberated on reports of
Secretary, General Manager of Finance audits conducted by the Group Internal
Division, external and internal auditors were Audit Division of PETRONAS.
also present during deliberations which 3. Monitored all corrective actions on audit
required their inputs and advice. findings identified by the Group Internal
Audit Division of PETRONAS until all
Meeting attendance record of the members issues are resolved.
is as follows:
4. Reviewed the quarterly financial
Name of Directors Attendance results including quarterly financial
announcements to the Bursa Malaysia
Dato Sadasivan 3/4
Securities Berhad before recommending
s/o N.N. Pillay
the same for approval by the Board upon
Dato Chew Kong Seng 4/4 being satisfied that, the said financial
results and announcements comply with
Datuk Mohd Zain 4/4
Financial Reporting Standards, Bursa
bin Haji Abdul Majid
Malaysia Listing Requirements and
Mohammed Azhar 3/4 other relevant statutory and regulatory
bin Osman Khairuddin requirements.

5. Reviewed the Companys quarterly
management accounts.
6. Reviewed the appointment of external
auditors and their remuneration thereof.
7. Reviewed the external auditors audit
strategy and scope for the statutory
audit of the Company accounts for the
financial year ended 31 March 2009.
8. Reviewed with the external auditors
the results of the audit and the audit
report.
9. Reviewed the audited financial statements
of the Group and of the Company prior
to submission to the Board for their
consideration and approval, upon being
satisfied that, inter alia, they were
drawn up in accordance with Financial
Reporting Standards and the Companies
Act, 1965 in Malaysia. The review also
included relevant statements in relation
to the financial statements, being
the Corporate Governance Statement,
Internal Control Statement, Statement
of Directors Responsibilities and Audit
Committee Report.
67 P E T R O N A S G A S B E R H A D (101671-H)
FROM LEFT: Mohammed Azhar bin Osman Khairuddin, Dato Sadasivan s/o N.N. Pillay,
Datuk Mohd Zain bin Haji Abdul Majid, Dato Chew Kong Seng
10. Reviewed the Companys risk profile
report and deliberated on the risk
exposures and the required mitigation
plans.
11. Reviewed the Companys growth
opportunities within its core business
of gas processing and pipelines, power,
utilities and industrial gases.
Internal Audit
The internal audit function of the Company
was carried out by the Group Internal Audit
Division of PETRONAS. They maintained at
all times their impartiality, proficiency and
due professional care by having their plans
and reports directly under the purview of the
BAC.
The internal audits were undertaken to
provide independent assessments on the
adequacy, efficiency and effectiveness of
the Companys internal control systems in
anticipating potential risk exposures over key
business processes within the Company. The
BAC has full access to internal auditors and
received reports on all audits performed.
During the year, the internal auditors had
carried out audits according to the internal
audit plan which had been approved by the
BAC. Internal audits were carried out on:
GPP A and Export Terminal operations
and maintenance activities, providing
assurance that internal controls are
established and operating as intended to
achieve effective, efficient and economic
operations and adherence to applicable
policies, guidelines and procedures. The
audit scope includes review of overall
governance, operations and maintenance
management, production planning and
technical service activities.
Centralised Utility Facilities operations
and maintenance activities, providing
assurance that internal controls are
established and operating as intended to
achieve effective and efficient operations,
and adherence to applicable policies,
procedures, laws and regulations as well
as accurate, reliable and timely financial
reporting.

Audit Committee Report
Transmission Operations Division
inventory and warehousing activities,
providing assurance that internal
controls are established and operating
as intended to achieve effective and
efficient operations, adherence to
applicable policies, procedures, laws
and regulations and accurate, reliable
and timely management reporting. The
audit scope includes review of overall
management, inventory and warehouse
management and finance related
activities.
Human Resource Management (HRM)
Division activities, providing assurance
that internal controls are established and
operating as intended to achieve effective
and efficient operations, adherence
to applicable policies, procedures,
laws and regulations and reliability of
financial information. The audit scope
includes review of overall HRM planning,
management and development of staff
and employee relations.
68 P E T R O N A S G A S B E R H A D (101671-H)
General Information Technology (IT)
Controls, providing assurance that
internal controls are established and
operating as intended to achieve effective
and efficient operations, investments are
safeguarded and adherence to applicable
policies, procedures, laws and regulations.
The audit scope includes review of overall
IT management, delivery and support of
service providers and access controls
management.
The resulting reports from the audits were
reviewed by the BAC and subsequently
forwarded to the Management for action
wherever necessary.
Dato Sadasivan s/o N.N. Pillay
Chairman
Board Audit Committee
21 May 2009

Board Audit Committees Terms of Reference
Constitution
The BAC was formed by the Board pursuant
to its meeting on 14 August 1995.
Membership
The members of the BAC shall be appointed
by the Board from amongst their number
and shall consist of not less than three
(3) members. All BAC members shall be
Non-Executive Directors, the majority of
whom shall be Independent Directors. An
Independent Director shall be a director who
fulfills the requirements as provided in the
Bursa Malaysia Listing Requirements.
All BAC members must be financially literate
with at least one (1) of its member:
being a member of the Malaysian
Institute of Accountants (MIA); or
if not a member of the MIA he/she must
have at least three (3) years working
experience and
a) passed the examinations specified
in Part I of the 1st Schedule of the
Accountants Act 1967; or
b) is a member of one (1) of the
associations of accountants specified
in Part II of the 1st Schedule of the
Accountants Act 1967; and
69 P E T R O N A S G A S B E R H A D (101671-H)
having fulfilled such other requirements The Company Secretary or in his/her absence,
as prescribed or approved by the Bursa his/her deputy shall be the Secretary of the
Malaysia Securities Berhad. Audit Committee. Minutes of the meetings
shall be duly entered in the books provided.
The members of the BAC shall elect a
Chairman from amongst their number who Meetings shall be held not less than four (4)
shall be an Independent Director. times a year. The external auditors may request
for a meeting if they consider it necessary.
If a member of the BAC resigns, dies or for
The BAC Chairman shall convene the meeting
any other reason ceases to be a member
to consider any matters the external auditors
with the result that the number of members
believe should be brought to the attention
is reduced to below three (3), the Board
of the Board or shareholders.
shall within three (3) months of that event,
appoint such number of new members as may
be required to make up the minimum number Authority
of three (3) members. The BAC is authorised by the Board to
No alternate Director can be appointed as a investigate any activity within its Terms
member of the BAC. of Reference. It is authorised to seek any
information it requires from any employee
and all employees are directed to cooperate
Meeting
with any request made by the BAC.
To form a quorum, the majority of the members
The BAC is authorised by the Board to
present must be Independent Directors and
obtain outside legal or other independent
one (1) of whom shall be the Chairman of
professional advice and to secure the
the BAC. The BAC shall be able to convene
attendance of outsiders with relevant
meetings with the external auditors, internal
experience and expertise if it considers this
auditors or both without the presence of any
necessary.
other directors or employees whenever it
deems necessary. The external auditors and
internal auditors have the right to appear
and be heard at any BAC meeting.
 70 P E T R O N A S G A S B E R H A D (101671-H)

Board Audit Committees Terms of Reference

Duties And Functions
The duties and functions of the BAC
shall be:
to consider the appointment of the
external auditors, the audit fees, and
any question of resignation or dismissal
of the external auditors before making
recommendations to the Board;
to discuss with the external auditors,
before the audit commences, the nature
and scope of the audit, and ensure
coordination where more than one audit
firm is involved;
to review with the Management and the
external auditors the quarterly results
and year-end financial statements prior
to the approval by the Board, focusing
particularly on:
a) any changes in accounting policies
and practices;
b) significant and unusual events;
c) major judgmental areas;
d) significant adjustments resulting
from the audit;
e) the going concern assumption;
f) compliance with accounting
standards; and
g) compliance with Bursa Malaysia Listing
Requirements and other statutory
and regulatory requirements.
to arrange for periodic reports from
Management, the external auditors
and the internal auditors, to assess
the impact of significant regulatory
changes, and accounting or reporting
developments proposed by accounting
and other bodies, or any significant
matter that may have a bearing on the
annual examination;
to discuss problems and reservations
arising from the internal audit, interim
and final audits, and matters the internal
and external auditors may wish to discuss
(in the absence of Management where
necessary);
to review the internal audit programme,
consider the major findings of internal
audits and Managements responses, and
ensure coordination between the internal
and external auditors;
to review related party transactions
and conflict of interest situations that
may arise in the Company including
any transactions, procedures or course
of conduct that raises questions on the
Management integrity;
to keep under review the effectiveness of
internal control systems, and the internal
and/or external auditors evaluation of
these systems and in particular, review
the external auditors Management Letter
and the Managements responses;
to review the adequacy of the scope,
functions, competency and resources of
the internal audit functions and that it
has the necessary authority to carry out
its work;
to review the audit reports;
to direct and where appropriate, supervise
any special project or investigation
considered necessary;
to prepare periodic reports to the Board
summarising the work performed in
fulfilling the BAC primary responsibilities;
and
to consider other topics, as defined.
Reporting Procedures
The Secretary of the BAC shall circulate
the Minutes of Meetings of the BAC to all
members of the Board.
 71 P E T R O N A S G A S B E R H A D (101671-H)

Statement of Directors Responsibility

IN RELATION TO THE FINANCIAL STATEMENTS

The financial statements of the Group and
of the Company as set out on pages 107 to
158, are properly drawn up so as to give a
true and fair view of the state of affairs of
the Group and of the Company as at 31 March
2009 and of the results of its operations and
cash flows for the year ended on that date.
The Directors consider that in preparing the
financial statements of the Group and of the
Company,:
appropriate accounting policies have
been used and consistently applied;
reasonable and prudent judgements and
estimates have been; and
all Financial Reporting Standards and the
Companies Act, 1965 in Malaysia have
been followed.
The Directors are responsible for ensuring
that the accounting and other records and
registers required by the Companies Act,
1965 in Malaysia to be retained by the Group
have been properly kept in accordance with
the provisions of the said Act.
The Directors also have general responsibilities
for taking such steps that are reasonably
available to them to safeguard the assets of
the Group, and to prevent and detect fraud
and other irregularities.
 72 P E T R O N A S G A S B E R H A D (101671-H)

sharing
Every act of kindness instils the spirit of caring
for the communities we operate in, and this spirit
is best exemplified through initiatives such as
the Program Bakti Pendidikan PETRONAS.
 73 P E T R O N A S G A S B E R H A D (101671-H)

Corporate Responsibilities
Health, Safety and Environment 74 Human Resource 80 Corporate Social Responsibility 86

25 Years of Progress, Together 90 Calendar of Events 102


Health, Safety and Environment
Process Safety Aspects
Process Safety Information
Process Hazard Analysis
Pre-Activity Safety Review
Proprietary Licensed Technology
Assessment
Design Integrity
Mechanical Integrity
Operating Procedure and Practices
Management of Change
We continue to maintain
the high standards of
HSEMS which is evident
by our rating of 3.2 out
of a maximum of 4.0
during the year.
74 P E T R O N A S G A S B E R H A D (101671-H)
Leadership and Commitment
Policy and Strategic Objectives
Organisation, Responsibilities, Resources,
Standards and Documents
Hazards and Effects
Management Process
Planning and Procedures
Implementation
Assurance
Review
PETRONAS HSEMS
Health, Safety and Environment (HSE) has
always been at the core of our business.
In carrying out all business activities, the
Company leveraged on the PETRONAS HSE
Management System (HSEMS) to ensure
that our operations are in tandem with HSE
regulatory requirements.
HSEMS was developed to ensure full
implementation of the essential HSE elements
in a structured manner and to ensure that
the organisation, procedures and practices
are in place and can be shown to be working
effectively. This methodology is based on the
principle that all hazards within the business
must be identified, understood, assessed and
either eliminated or suitably controlled.
Corrective Action
Monitoring
Corrective Action
and Improvement
Corrective Action
and Improvement
In adopting HSEMS, the Company adheres to
the set standards by focusing on compliance
to the established procedures and processes
through the implementation of the HSEMS
Audits. Two (2) levels of audits were
conducted during the year. The HSEMS Tier 1
audit promotes continuous improvement in
HSE on a daily basis. The Tier 1 audit was
conducted by staff at all levels where they
conducted HSE observations and provided
suggestions for improvement to the relevant
action parties. For more thorough checking,
the HSEMS Tier 2 audit carried out by the
Companys internal HSEMS qualified auditors
confirmed that the HSEMS is effectively and
adequately implemented throughout the
organisation.

We continue to maintain the high standards
of HSEMS which is evident by our rating
of 3.2 out of a maximum of 4.0 during
the year, despite the inclusion of Process
Safety Management as an additional HSEMS
element. This clearly shows that the HSEMS
internalisation has been successfully
sustained within the Company.
Safety
Up until November 2008, the Company had
recorded a commendable 43.79 million safe
work-hours the highest for the Company
since 2004. However, the year under review
saw two (2) Loss Time Injury (LTI) cases
involving contractor staff working at site.
The Company will strive to realign its efforts
75 P E T R O N A S G A S B E R H A D (101671-H)
to intensify the current behavioural-based
safety programme to address issues regarding
contractor safety.
The LTIs notwithstanding, the Company has
persisted with its safety programmes. One
such programme to promote staff enthusiasm
in HSE was the Centralised Utility Facilities
(CUF) HSE Week, held from 11 to 14 August
2008. On top of activities such as HSE quiz,
recycling campaign, series of talks and
exhibition by local authorities, the CUF HSE
Week also included a Tier 2 Emergency Drill at
CUF Gebeng. Such activities provided further
awareness and understanding to staff on the
importance of occupational and individual
health, safety at the workplace and at home,
and our role in conserving the environment.
Emphasis on safety applies not only to
our staff but also to our contractors.
During the year under review, HSE was
the main focus of the Companys annual
Contractors Forum themed Maintaining
HSE Excellence in High Cost Environment.
The forum, which was jointly organised by
both Supply Chain Management and HSE
Departments, put more emphasis on our
long term contractors in order to cultivate
a strong understanding on the Companys
expectations with regards to HSE. The
Technical and Facilities Development Division
(TFDD) also organised its first Contractors
Engagement Session to improve networking
and engagement with TFDD contractors in
achieving a common goal in terms of HSE as
well as technical performance.

Health, Safety and Environment
Health
Marked emphasis was given on health
awareness and improvement programmes
conducted throughout the organisation. In
the year under review, the Company was
the first PETRONAS subsidiary to conduct
a full scale Avian Influenza Emergency
Preparedness Exercise. Jointly organised with
the Terengganu State Health Department, the
exercise was held at the Gas Processing Plant
Complex A (GPP A) in Kertih on 23 November
2008. From the exercise, the Company was
able to identify areas for improvement with
regards to our emergency preparedness in
addressing pandemic risk. We will strive to
improve our preparedness in the coming year
after implementing the recommendations
arising from the exercise.
Our Healthy Lifestyle Programme, aptly titled
Love My Body, Cherish My Life, has also
progressed into Phase 2. Phase 1 of the
programme encompassed the establishment
of a baseline health database for all staff.
76 P E T R O N A S G A S B E R H A D (101671-H)
From this database, Phase 2 was implemented
by focusing on prevention of acquiring
chronic diseases via three main initiatives:
1. Stop Smoking Competition
The competition, which ran from
1 September 2008 to 28 February 2009,
garnered the participation of 140 out
of 480 declared smokers. 20 of the 140
(14.3%) participants had successfully
stopped smoking. We are confident that
through group motivation and support,
the smoking sobriety level achieved during
the competition can be sustained.
2. Weight Reduction Competition
for Obese Staff
This competition was carried out amongst
74 volunteers comprising obese staff who
were identified during the previous years
baseline health assessment. 35 of the
participants observed weight reductions
over the 6-month period with 16
participants achieving significant weight
loss of between 3 to 22 kilograms.
3. Exercise and Health Awareness Sessions
238 exercise sessions were conducted
throughout the organisation. Sessions
include senamrobik and interdepartmental
sports.
Active staff participation in all of these health
programmes has been very encouraging,
indicating growing health awareness
amongst staff.
In the year under review, the Company also
initiated a Stress Management Programme, the
first of its kind within the PETRONAS Group.
It was kick-started upon the completion of
a baseline stress survey undertaken for all
staff. 11 stress management sessions were
carried out during the year.
From the stress management sessions,
the Company then formulated the Al-Falah
Programme. The word falah is Arabic, which
means holistic success. The programme
encompasses physical, financial, emotional
and psychological health, all of which
are essential to enable an individual to
succeed.
 77 P E T R O N A S G A S B E R H A D (101671-H)

Various health activities and awareness

programmes are organised to promote
healthy lifestyle amongst staff.

A Health Risk Assessment (HRA) was carried Environment

out at Transmission Operations Division
In the year under review, the Company
(TOD) during the year under review. This is
has stepped up its efforts to improve staff
a continuation exercise from the previous
awareness on environmental conservation
year whereby HRAs were conducted at Plant
and preservation.
Operations Division (POD) and CUF. The
assessment is aimed to measure any health
The Clean Development Mechanism (CDM)
risks in our facilities work environment.
was introduced throughout the organisation
Through this assessment, the Company will
during the year under review. CDM is an
be able to identify occupational health
arrangement under the Kyoto Protocol
risks and carry out the required mitigation
that allows industrialised countries with
practices to ensure staff are well protected
greenhouse gas reduction commitment (also
from health hazards.
known as Annex B countries) to invest in
projects that reduce emissions in developing
The importance of HSE for the Company is
countries as an alternative to more expensive
not limited to plant and operational HSE.
emission reduction initiatives in their own
Of equal importance is HSE at our offices.
countries. CDM projects are measured based
As such, a HRA was also conducted on
on carbon credits attributed to the project.
workstation design for office-based staff at
our Head Office in Kuala Lumpur City Centre.
The Company believes that conservation and
The survey concluded that a significant
preservation of the environment should begin
number of respondents have shoulder, neck
from the design stage, and accordingly, our
and back problems that may be attributed
in-house engineering arm, TFDD, was given
to un-ergonomic working conditions.
the main responsibility of overseeing our
Recommended improvements have been
commitment to this effort. The TFDD sharing
deliberated and shall be implemented in the
next financial year.
 78 P E T R O N A S G A S B E R H A D (101671-H)
Health, Safety and Environment
The Company promotes preservation
of the environment and cleanliness
at all our offices and facilities.
session in May 2008 deliberated on how
consideration to CDM should be given during
the feasibility study stage of any project as
this is where we first assess the eligibility of
our projects to obtain carbon credits.
In the year under review, an inaugural
PETRONAS Climate Change and CDM Workshop
was held on 3 and 4 July 2008 where
PETRONAS has proposed its target for carbon
dioxide emission levels. As a continuation,
the Company held its own CDM Workshop
in December 2008, in collaboration with
PETRONAS Group HSE. During the workshop,
several future projects and initiatives were
identified as potential CDM projects. Staff
from PETRONAS Carigali Sdn. Bhd. and
Malaysia LNG Sdn. Bhd. were also invited
to the workshop to share ideas and best
practices across the PETRONAS Group.
With regards to our existing operations,
we have successfully completed several
environmental improvement projects as
follows:
1. Gas Processing Plant Complex B (GPP B)
Acid Gas Incinerator Upgrading
The successful modification of the
Acid Gas Incinerator (AGI) burner has
resulted in a reduction in fuel gas
consumed internally through increased
AGI efficiency.
2. GPP B Waste Minimisation Project
The project successfully recovered 70%
to 80% of waste solids from wet sludge,
hence reducing the amount of waste for
final disposal to Kualiti Alam.
3. Scheduled Waste Management for TOD
The project established a combined off-
site scheduled waste storage facility for
110 scheduled waste sources at TOD. With
this, there will be a reduction in operating,
maintenance and transportation costs.
 79 P E T R O N A S G A S B E R H A D (101671-H)

The Companys HSE practices

have been recognised with the
awards received during the year.

In support of environmental awareness at
all levels, CUF also organised its first Beach
Cleaning Project through its Environmental
Workgroup. The project involved CUF staff
and management, representatives from the
local Jawatankuasa Ketua Kampung Balok,
40 school children and four (4) teachers from
Sekolah Kebangsaan Balok Makmur, Pahang
and officers from the Department of
Environment, Pahang. Among the activities
carried out were collecting and segregating
rubbish from the beachfront, building
sandcastles and participation in the Sukaneka
Pantai. The project successfully collected
290 kg of waste in a period of an hour.
POD, in collaboration with HSE Department,
also conducted Operational Environmental
Awareness sessions in November 2008
and January 2009. The programme was
intended to educate staff from the various
departments in POD on plant environmental
issues such as scheduled waste management,
black smoke flaring and effluent discharge.
The overwhelming participation for both
sessions marked an increase in the level of
interest from staff which translated into the
success of our HSE awareness sessions.
The exemplary HSE practices implemented
by the Company were reflected by the
recognition received from various bodies
with the following accolades in the year
under review:
1. HSE Awards
Malaysian Society for Occupational
Safety and Health (MSOSH) Grand
Award for CUF in Kertih, Terengganu
MSOSH Grand Award for GPP B, Kertih,
Terengganu
MSOSH Gold Award for GPP A, Kertih,
Terengganu
2. Management System Certification
MSOSH Gold Merit Award for CUF in
Gebeng, Pahang
MSOSH Gold Merit Award for Export
Terminal, Kemaman, Terengganu
MSOSH Gold Merit Award for TOD,
Segamat, Johor
MSOSH Gold Merit Award for TFDD
Occupational Safety and Health (OSH)
Gold Award for Segamat Regional
Office
OSH Silver Award for Pasir Gudang
Regional Office
OSH Bronze Award for Kertih Regional
Office
PETRONAS Group HSE Merit Award
in Health
PETRONAS Group HSE Special
Category (HSE Awareness Team)
PETRONAS Group HSE HSE
Personality of the Year (Encik Kamal
Bahrin bin Ahmad, Senior General
Manager of POD)
Re-certification of International
Organization for Standardization
(ISO) 14001:2004, Occupational
Health and Safety Assessment Series
(OHSAS) 18001:1999 and Malaysian
Standards (MS) 1722:2005 for CUF in
Gebeng, Pahang (certified by SIRIM)
Certification of ISO 14001:2004,
OHSAS 18001:1999 and MS 1722:2005
for CUF in Kertih, Terengganu (certified
by SIRIM)

Human Resource
Various platforms have been put
in place to encourage the transfer
of knowledge and sharing of
lessons learnt.
80 P E T R O N A S G A S B E R H A D (101671-H)
The current global economic uncertainty
has resulted in effective management of
human capital becoming a more prominent
factor for an organisation to excel above the
rest. At PETRONAS Gas Berhad, we believe
continuous people development to build
and strengthen our employees leadership,
capabilities and competencies will give us
the edge by providing us the flexibility to
adapt to different business scenarios, thus
ensuring resilience in business performance
at all times.
In the previous year, through various
strategies, the Company had successfully
alleviated the negative effects of staff
exodus to the Middle East. The strategy
adopted by the Company with regards to
manning of critical functions resulted in the
availability of competent manpower to ensure
uninterrupted business operations at all
times. However, the global economic turmoil
which was felt in the second half of 2008,
resulted in organisations worldwide resorting
to various cost optimisation strategies
including manpower rationalisation.
Accordingly, the Company has re-focused
its energy towards optimising its existing
manpower to cater for growth, in line with
the Companys strategy of doing more with
the same. To ensure that our staff are ever
ready when opportunities surface, efforts
have been directed towards accelerating
capability development and strengthening
leadership values.
Accelerating People Capability
Accordingly, we continue to invest in
our employees functional and leadership
development through various programmes
designed to enable them to perform well.
The PETRONAS Accelerated Capability
Development (ACD) programme was
introduced during the year by the PETRONAS
Group. Through ACD, individuals are able
to systematically identify their competency
gaps, formulate a plan to overcome the
identified gaps and monitor their progress
regularly. These periodic assessments would
also measure the effectiveness of each
 81 P E T R O N A S G A S B E R H A D (101671-H)

We believe continuous people development

to build and strengthen our employees leadership,
capabilities and competencies will give us the edge
by providing us the exibility to adapt to different
business scenarios.
gap closure programme and shorten each Training programmes continue to be a major required to complete specific modules within
employees learning curve. The Company part of accelerating capability development. this programme. The SGDP provides a strong
believes that, through this programme, The Company places strong emphasis on foundation through structured training on
individuals would be able to achieve more holistic development of our staff, thus core technical and functional competencies
in a shorter time frame whilst allowing the our training programmes encompass both during the early developmental phase of
organisation to achieve a mature capability leadership and functional areas. During the each executives career. During the year
level more rapidly. year, the Company achieved 33,442 training under review, 388 executives attended the
days compared to 31,382 training days in SGDP, preparing them to assume greater
Specific to the Company, the PGB Accelerated the previous year. Furthermore, to reflect the responsibilities.
Capability Enhancement (PACE) committee Companys commitment to ensure staff long
continues to support employees capability term development is given sufficient focus, For the non-executives, the Company
development. The main objective of the staff training days have been incorporated continues to leverage on the PETRONAS
committee is to oversee and provide direction as part of all managers Key Performance Competency Based Assessment System
on overall competency development of Indicators (KPIs). Many of the structured (PECAS). PECAS aims to develop and
technical executives and non-executives. The training programmes are leveraged from enhance the competencies of technical non-
committee coordinates the progress of the courses organised by PETRONAS Management executives through a series of practical
PETRONAS ACD programme for the Company, Training Centre (PERMATA). and oral assessments to complete the
ensures the development of Trade Technical required modules. The system also promotes
Specialists (TTS), and facilitates the overall One such capability development programme multitasking where our technical non-
development of our technical staff to meet is the PETRONAS Skill Group Development executive staff are encouraged to expand
business needs. With the establishment of Programme (SGDP). The SGDP is a structured their accountability base. During the
the PACE committee, marked improvements training programme developed for all year under review, 182 staff successfully
were realised with an average 20% increase executives based on 20 different skill sets completed the assessment to progress in
in passing rates for TTS and other staff that PETRONAS has defined. Prior to assuming their career.
competency assessments. greater responsibilities, all executives are

Human Resource
In addition to PECAS, our non-executives
from both technical and non-technical lines
are also given the opportunity to enhance
their ability to lead and supervise through
the Non-Executive Supervisory Programme.
A total of 46 non-executives attended the
programme as part of preparation for their
future career progression during the year.
Institutionalisation and sharing of critical
knowledge and best practices are vital to
ensure the Companys resilience amidst a
challenging business setting. Community
of Practice (CoP) continues to serve as an
avenue for sharing of experiences, best
practices and critical knowledge amongst the
Companys business community to accelerate
their speed of learning. The Company was
one of the pioneers within the PETRONAS
Group to launch its own online knowledge
portal which serves as a platform to store
and disseminate knowledge company-wide.
The online platform allows for increased
collaboration capability and improves
accessibility of knowledge even at our
remote sites via secured internet access.
82 P E T R O N A S G A S B E R H A D (101671-H)
In addition to providing informal
knowledge sharing via the online portal,
our employees also benefit from the online
learning programme to further accelerate
their capability building. The PETRONAS
eLearning portal allows for self-learning at
each staffs own time and pace. Currently,
PETRONAS eLearning offers more than 500
modules spanning various work aspects
from technical, non-technical, management
and business development. A total of 861
employees of the Company have enrolled and
completed more than 2,567 modules from
the portal during the year.
The year under review also saw a 36%
mobility rate which was achieved through
staff movement within the Company and
the PETRONAS Group. The Company believes
that staff mobility promotes valuable career
enriching experiences for our employees
and an avenue for staff to embrace new
challenges and enhance motivation levels. In
addition, assuming different responsibilities
after reaching a maturity level in a given
role facilitates the transfer and sharing
of best practices across the organisation,
thus intensifying the speed of capability
development.
The Company believes that a pervasive
leadership culture is one of the key drivers
to steer the organisation in riding out the
current uncertainty in business landscape.
During the year, various programmes were
carried out to nurture, train and develop
newly appointed leaders to assume new
roles whilst enhancing the capability of
existing leaders to achieve breakthrough
performance.
The Company continues to leverage on
PETRONAS existing leadership programmes.
During the year, the Leadership Excellence
at PETRONAS (LEAP) and Maximising Your
Leadership Success (MYLS) programmes
were carried out to assist newly appointed
leaders to make a successful transition to
higher responsibilities. In the year under
review, eight (8) of our senior management,

comprising general managers and senior
managers attended the LEAP programme
whilst 20 of our newly appointed managers
attended the MYLS programme.
Another programme which is available for
identified senior managers is the Senior
Management Development programme.
The programme, conducted by PERMATA in
collaboration with INSEAD, is designed to
create visionary leaders and was attended
by five (5) members of the Companys senior
management during the year. The programme
further refines soft managerial skills whilst
enhancing business performance skills.
Other management programmes attended by
47 managers and senior executives of the
Company were the Management Development
programme, Business Management Excellence
programme and Managing Motivation for
Performance Improvement programme.
83 P E T R O N A S G A S B E R H A D (101671-H)
Young talents are paired with dedicated
mentors to provide guidance in their
early years in the Company.
Specific to the Company, the Building
Leadership Programme (BLP) remains the
key avenue for identifying and developing
potential leaders for the purpose of
succession planning. The objective of BLP
is to identify and groom potential leaders
in the Company and provide accelerated
leadership development through coaching
and mentoring, structured training and
provision of opportunities to learn and
gather experiences.
Mentoring continues to be an essential
component of the Companys culture to
provide an avenue for new executives to
acquire guidance and accelerate their
adaptability to PETRONAS common core
values. During the year, 65 new executives
were paired with experienced staff as
mentors. These mentors have been trained
to provide appropriate guidance through the
sharing of their experience and wisdom to
assist the new executives in their career.

Human Resource
Coaching is one of the tools that
the Company applies to develop
high performing employees.
High Performance Culture
The Company regards performance management
to be the key driver in supporting capability
and leadership building. The Intensified
Performance Management System (IPMS) has
been further enhanced during the year to
appraise employees efforts and contribution.
Through this system, employees performance
and leadership behaviour are reviewed on
a regular basis. Coaching by immediate
superiors are conducted to further enhance
employees performance and contribution to
the Company. In addition, the IPMS allows for
360 degrees feedback on leadership qualities
for all executives by providing an avenue for
superiors, subordinates and peers to assess
and provide feedback on ones leadership
behaviour. Resulting from these rigorous
reviews and feedback, the rewards and
remuneration system applied is based on clear
differentiation of performing employees who
achieved stretched targets and demonstrated
strong leadership behaviours. To support the
Companys high performance culture, IPMS
also helps the Company identify marginal
performers who need further development to
improve their performance.
84 P E T R O N A S G A S B E R H A D (101671-H)
To ensure the Companys key objectives are Engaging to Promote Conducive
achieved, each employees KPIs are set in line Work Environment
with the Companys targets by systematically
The Company continues to balance the need
cascading the CEOs KPIs down to every
for high performing culture whilst placing
level of the organisation. The KPI cascading
equal importance on the conduciveness of
effort also ensures that each individual
the working environment. In this regard,
staff understands the impact of his duties
much emphasis is given to face-to-face
in achieving the Companys objectives.
engagements and regular staff interactions.
Thorough KPI review and challenge sessions
conducted at the beginning of the year
During the year, communication sessions with
ensures that the Company continues to
the Management, town hall sessions, and shift
improve its performance.
communication sessions were conducted to
provide various avenues to communicate the
Throughout the year, monthly Human
Companys scorecard and performance to all
Resource Planning Committee (HRPC)
levels of staff at all locations. This promotes
sessions were held to monitor and track
greater understanding of the Companys
the development of our employees and to
shared vision amongst its employees. The
deliberate on matters pertaining to the
two-way communication sessions allow staff
Companys human capital. During the year,
to voice their concerns and put forward
a total of nine HRPC meetings have been
suggestions to further improve the Companys
conducted at the Companys facilities to
performance and working environment.
enable the Management to reach out to
the employees and enhance Management
visibility and commitment.

To strengthen relationship with the non-
executives, the Company initiated five
engagement sessions with Kesatuan
Kakitangan Petroliam Nasional Berhad
(KAPENAS), our non-executive union. These
engagements helped facilitate discussion
on matters pertaining to the non-executive
Collective Agreement to ensure fair
representation at all times.
The Company is also sensitive to the needs
of the different demographic facets of
its workforce. For this purpose, specific
activities were carried out to address their
different concerns. One such activity was the
Young Executive Forum which was conducted
twice during the year to engage specifically
with the many young executives within
the organisation. The Company also hosted
a Lady Engineers Forum for all the lady
engineers in PETRONAS Group to provide a
platform where they can share their concerns,
establish network, share experience and
provide encouragement to each other for the
betterment of the fraternity.
85 P E T R O N A S G A S B E R H A D (101671-H)
Our non-executives develop
technical competencies through the
comprehensive PETRONAS Competency
Based Assessment System (PECAS).
At the heart of our processes and performance
are the shared values which remain firmly
rooted in our business operations. The
Company subscribes to PETRONAS common
core values of loyalty, professionalism,
integrity and cohesiveness. To ensure
continued business excellence, the values of
cohesiveness amongst staff, loyalty to the
Company and nation, acting professionally
at all times and upholding high integrity are
embraced as a foundation for all employees.
These common core values, which are
consistently displayed by our employees,
reinforce and strengthen relationships
with all stakeholders, especially in these
challenging times.
 86 P E T R O N A S G A S B E R H A D (101671-H)
Corporate Social Responsibility
The Company continues to
actively participate in BAKTI.
In our aspiration to create sustainable value
for the society with the hope of aspiring
people everywhere, PETRONAS Gas Berhad
continues to implement a broad range
of Corporate Social Responsibility (CSR)
programmes where it operates. Among these
initiatives are the Program Bakti Pendidikan
PETRONAS (BAKTI), interaction activities
with the local authorities, public awareness
programmes and other social responsibility
programmes.
25 th Anniversary CSR Activities
The year under review marked a significant
milestone for the Company as we celebrate
the 25th anniversary of our incorporation. In
contrast to the usual celebratory activities,
we welcomed this significant milestone by
giving back and sharing with the society
in return for their continuous support
throughout the years. A series of CSR
programmes were carried out encompassing
a wide range of activities. From visiting
patients at hospitals, assisting single
mothers, to giving motivation and moral
support to orphans, our staff commitment
in working together contributing back to
the community where the Company operates
were exemplary.
Integrated and structured CSR activities were
introduced with the tagline Bakti Dihulur,
Kasih Disemai, which means every act of
kindness instills the spirit of caring for each
other. The Management and staff, together
with their family members, contributed
their personal time, energy and money for
these CSR activities. Through these personal
contributions, the Company was able to
conduct an average of one CSR activity per
week.

We welcomed this signicant milestone
by giving back and sharing with the society
in return for their continuous support
throughout the years.
One such CSR programme was carried out for
the local women and children at Kampung
Durian Mentangau, Paka, Terengganu,
which provided general health screening for
approximately 300 women and children. The
programmes intention was to create health
awareness and provide access to health
facilities for the community of the village.
The programme was successfully conducted
in collaboration with the Terengganu State
Health Department, Jawatankuasa Kampung
and employees of the Company along with
their family members. A similar programme
was also conducted with the local community
of Kampung Santong, Paka, Terengganu. This
session was carried out together with officers
from Agensi Anti Dadah Kebangsaan who
gave an awareness talk and set-up exhibition
booths to communicate the negative effects
of drugs to the youth and school children of
87 P E T R O N A S G A S B E R H A D (101671-H)
the village. Other activities such as visiting BAKTI
the childrens ward at local hospitals, gotong-
The Company has adopted three (3) schools
royong at orphanages and old folks homes
under BAKTI namely Sekolah Kebangsaan
and spending some time talking, listening,
Santong in Paka, Terengganu, Sekolah
encouraging and entertaining the occupants
Kebangsaan Kemasik in Kemasik, Terengganu
were participated by the Management, staff
and Sekolah Kebangsaan Pinang Tunggal in
as well as their family members. These
Kepala Batas, Pulau Pinang. The programme
community activities provided opportunities
was initiated in 2002 by PETRONAS, with
for staff to contribute to the less fortunate.
support and involvement by the Company
Apart from direct contribution to the
since 2006. Through our participation,
communities in the areas where we operate,
around 440 students from the three (3) PGB
the Companys CSR programmes also extended
adopted schools have benefited from this
to improving the environment. Beach cleaning
programme.
activities were carried out at beaches around
Kuantan, Kemasik and Paka to demonstrate
BAKTI is a structured and integrated long-
our staffs concern for the environment and
term education programme focusing on
hopefully encourage others to do the same.
borderline under performing school children.
These active initiatives have continued to
The programme enhances the teaching
strengthen our relationship not only with
approach to improve academic achievements
the communities but also between staff.

Corporate Social Responsibility
specifically in Mathematics, English and
Science for standard four, five and six
students. The programme also gives equal
emphasis on soft skills through scheduled
fun learning sessions conducted by staff
volunteers who selflessly invest their time
and energy on a monthly basis.
Apart from these, the students were also
taken for yearly educational field trips to
PETRONAS experiential learning facilities
such as PETROSAINS, Aquaria, PETRONAS
Twin Towers, Kuala Lumpur City Centre Park
and Sepang International Circuit. Students
who will be sitting for the Ujian Penilaian
Sekolah Rendah (UPSR) also participated in
the motivational camp designed by our staff
volunteers. As recognition for the students
overall achievements, an annual prize giving
ceremony was organised by the Company
to acknowledge their efforts in achieving
outstanding results and demonstrating
significant improvements at school.
88 P E T R O N A S G A S B E R H A D (101671-H)
Our employees were actively involved
in CSR programmes during the year.
The year under review saw the graduation Ownership, Unity, Relationship and
of the pioneer batch of BAKTI students Satisfaction (OURS) Programme
through the Companys involvement. From
The Company continues to carry out the
the 93 students involved in BAKTI that sat
OURS programme where the employees
for the UPSR, 92% passed the examinations,
family members are given the opportunity
of which 12 students obtained 5As whilst
to observe the Company workplace and have
13 students scored more than 3As. This is
better understanding of our operations and
considered a remarkable achievement since
business. Participants were also taken on
these students were previously regarded as
a plant tour, giving them the chance to
borderline under performing students at
experience our staffs workplace environment.
school prior to their participation in BAKTI.
The programme realised its objective of
promoting ownership at the workplace for the
BAKTI was internationally recognised at
employees and at the same time showing the
the Platts Global Energy Award ceremony
Companys appreciation to family members
where PETRONAS was accorded with the
for their continuous support towards our
Community Development Program of the
employees in their pursuit for performance
Year Award. This was the first time such
excellence. A total of 12 OURS programmes
recognition was given to PETRONAS. In
were carried which was participated by 350
addition, the Companys efforts in supporting
of our employees and their family members.
BAKTI was also given due recognition at
national level during the Star Biz-ICR
Malaysia Corporate Social Responsibility
Award ceremony under the Community
Category.
 89 P E T R O N A S G A S B E R H A D (101671-H)

Our engagement with the community

involved all levels of staff and
a wide range of activities.

Other Stakeholder Engagements Another equally important group of

stakeholders are the Companys business
Our regional offices also conducted public
partners. Through the annual Contractors
awareness programmes to engage with the
Forum, the Company continues to strengthen
local communities within the vicinity of our
its relationship with its suppliers. This is the
pipelines. Through these engagements, we
fifth year the forum was conducted with
were able to create awareness on preventive
the aim to improve efficiency in supply
and safety control measures which need
chain management in order to support
to be carried out along our pipeline route.
our operations. The forum promotes open
The public was also made aware of how to
discussion between the Company and its
activate emergency procedures should the
suppliers to facilitate effective working
unexpected occur. This public awareness
relationship. During the forum both parties
programme is a joint effort between the
were able to openly surface and discuss areas
Company and relevant local authorities
for improvement. The forum was also used as
such as Bomba, representatives from the
a platform to recognise suppliers who have
Municipality Council and Land Department.
excelled in their provision of services and
product delivery, or who have demonstrated
The Company recognises the importance of
exemplary Health, Safety and Environment
fostering good relations with relevant local
practices. This encourages the suppliers to
authorities to promote better understanding
provide the highest quality of products and
of our business. Through this good relationship,
services at all times and to continuously
the Company was also able to understand
improve their performance.
the regulatory requirements of the different
agencies. Such activities to foster relationship
and enhance rapport include plant visits,
sporting activities and regular engagement
sessions.

25 years
of progress,
together
The full-scale commercial development of the gas
industry in Malaysia owes its origins to the discovery
of abundant gas reserves in the 1970s. Various studies
were explored to capitalise this discovery for the benefit
of the nation especially in its possible contribution to
power generation.
Accordingly, in 1984, PETRONAS Gas Berhad was
entrusted with the development of the Peninsular Gas
Utilisation (PGU) project to enable the processing
and transmission of gas supplied by the gas fields
offshore Terengganu to the entire peninsula. The
implementation of the PGU project was also expected
to provide opportunities for the transfer of technology
from international contractors to Malaysians, provide
impetus to the countrys industrial development, and
increase employment and opportunities for spin-off
industries.
In the 25 years of incorporation, the Company played a
prominent role in the gas business value chain providing
gas processing and transmission services to PETRONAS
through two of its divisions. The Plant Operations Division
(POD) handles all activities pertaining to the processing
of feed gas whilst the Transmission Operations Division
90 P E T R O N A S G A S B E R H A D (101671-H)
(TOD) is responsible for the transmission and delivery of
sales gas to end customers throughout the peninsula.
The Company also delivers sales gas to customers in
East Malaysia through a 45km pipeline in Sarawak.
In addition to the throughput services business, we
have also diversified our business into manufacturing,
supplying and marketing of industrial utility products
to the Kertih Integrated Petrochemical Complex and
Gebeng Industrial Area through our Centralised Utility
Facilities (CUF) Division.
Due to the integrated nature and interdependence of
both the throughput services and utilities business,
the Company continuously ensures that its operations
support the requirements of its customers at all times.
To achieve this, maintaining the reliability and efficiency
of our facilities with optimal utilisation of resources
remain a constant focus for the organisation.
The vital enabling force behind the Company was
undeniably the caliber of those responsible for guiding,
directing and managing it on its 25-year road of success
which has sparked the efforts that makes the Company
what it is today
 91 P E T R O N A S G A S B E R H A D (101671-H)

Quotes from amongst our leaders...

There is no doubt that the 1990s will be a gas era.
Gas has proved to be a viable and better alternative and has now
come into its own as a sustainable source of energy.
Allahyarham Tan Sri Azizan Zainul Abidin
(1989)

Chairman : 1988 to 1991

The Company will continue to leverage on its capabilities,

experience and expertise in the business to forge ahead
and deliver value to its stakeholders.
(2008)
Tan Sri Mohd Hassan Marican
Chairman : 1991 to 2008

The Company continues to place strong emphasis

on its systems of internal control and risk management
and carries out regular reviews of their effectiveness.
Datuk Wan Zulkiflee Wan Ariffin
(2004)

Chairman : 2008 to current,

MD/CEO : 2003 to 2007

We should strive to dispel the perceptions that our success

in technical management and operations depend on foreign expertise.
One sure way to achieve this is via effective technology transfer
on a continual basis, especially through our own peoples motivated drive
for excellence and achievement in technology.
(1991)
Dato Hashim Salleh
MD/CEO : 1983 to 1993

PGU II aims to diversify the countrys energy consumption

which is heavily dependent on oil. It is forecasted that by year 2000,

Allahyarham Dato Mohd Ali Yasin

natural gas will displace oil as the largest source of energy. (1993)

MD/CEO : 1993 to 1995

In continuing to achieve excellence in HSE, we have tied HSE

to Quality which in turn touches everything we do.
(1999)
Dato Ir. Abdul Rahim Abu Bakar
MD/CEO : 1995 to 1999

The Company believes in establishing mutual trust and a strong line

of communication with customers.
Encik Abd Hamid Ibrahim
(2002)

MD/CEO : 1999 to 2003

With gas being the preferred source of fuel in Malaysia,

the Company will strive to maintain world class operating standards
to maximise delivery within our existing capacity.
(2007)
Encik Samsudin Miskon
MD/CEO : 2007 to current
 92 P E T R O N A S G A S B E R H A D (101671-H)

Milestones
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) I. 1
Commissioning of Gas
Processing Plant (GPP) 1
and First Gas-in.
First sales gas delivery to
power customer.
First sales gas delivery to
industrial customer.
1987
Appointment as throughput
and servicing agent to
PETRONAS in relation to the
PGU project in Peninsular
Malaysia (Throughput
Agreement) on 2 November
1987.
1988
Appointment as throughput
and servicing agent to
PETRONAS in relation to the
PGU project in Miri, Sarawak
(Throughput Agreement) on
17 October 1988.
1991
Commissioning of PGU II. 2
Commissioning of Segamat Gas
Transmission Operation Centre.
Commissioning of Kertih
Compressor Station. 3
1992
First sales gas delivery to Senoko
Power Station in Singapore via
submarine pipelines. 4
Commissioning of GPP 2
and GPP 3. 5
Commissioning of Kuantan
Compressor Station.
1994
Commissioning of GPP 4 and Dew
Point Control Unit (DPCU) 2. 6

PGB Head Offices

See Hoy Chan Plaza

1983

Kompleks Dayabumi

1 2

1984

Faber Tower

3 4

5 6
1989

PETRONAS Twin Towers

1997

1995
Signed 20-year agreement with
PETRONAS for the provision
of services relating to Gas
Processing and Transmission
(GPTA) in Malaysia on 31
March 1995 effective date
1 April 1994.
Conversion of PGSB from
a private limited to public
limited company, known as
PETRONAS Gas Berhad (PGB).
Listed on the Main Board
of Kuala Lumpur Stock
Exchange (KLSE). 7
1996
Commissioning of PGU III
Sector 1 from Meru to Lumut.
1998
Commissioning of DPCU 3. 8
Completion of PGU III project
with the commissioning of
Sectors 2 and 3 pipelines from
Lumut to Pauh.
Received Grand Award
from Malaysian Society of
Occupational Safety and
Health (MSOSH). 9
7 8
10
93 P E T R O N A S G A S B E R H A D (101671-H)
Signing of first sale and First delivery of electricity
purchase agreement with from CUF Kertih and Gebeng
CUF customer for supply of to customers.
electricity. Received the Gold Award from
MSOSH.
1999
Received National Annual
Commissioning of GPP 5
Corporate Report Award
and GPP 6. 10
(NACRA) 1998 under Industrial
Commissioning of PGU Loop 1
Product Category for 1997
from Kertih to Segamat. 11
Annual Report.
Commissioning of CUF
Cogeneration and Natural Gas
Heater Unit (NGU) 1. 12
9
11
12

2000
First revision of GPTA
Throughput Fee (GPTA 2nd
Term).
Commissioning of CUF Heat
Recovery Steam Generator
System, Air Separation Unit 1,
Demineralised Water and
Waste Water Treatment plants.
First delivery of nitrogen from
CUF to customers.
TOD won RoSPA Gold Award
in the Oil and Gas Industry
Sector for Occupational Safety.
Received Gold Award from
MSOSH.
13
Received NACRA 1999 under
Industrial Product Category for
1998 Annual Report.
PGB adopted two (2) schools
in Terengganu.
2001
Commissioning of PGU Loop 2
from Segamat to Meru. 13
Launching of Remote
Operations of Segamat
Compressor Station.
Introduction of company song
Bersama Bagaikan Satu
(Together as One).
Received Gold Award from
MSOSH.
94 P E T R O N A S G A S B E R H A D (101671-H)
TOD won RoSPA commendation
in the Oil and Gas Industry
Sector Award for Occupational
Safety.
Received KLSE Corporate
Excellence Award 2000 under
Industrial Product Category.
Received NACRA 2000 under
Industrial Product Category for
1999 Annual Report.
2002
First delivery of steam from
CUF to customers.
Received NACRA 2001 under
Industrial Product Category for
2000 Annual Report. 14
14
15
17
16
2003
Commissioning of NGU 2.
Received MS ISO 9001:2000
certification.
Received Gold Award from
MSOSH. 15
Received NACRA 2002 under
Industrial Product Category for
2001 Annual Report.
Received KLSE Corporate
Award 2002 under Industrial
Product Category.
2004
Received KLSE Corporate
Award 2003 under Industrial
Product Category.

Received NACRA 2003 under
Industrial Product Category for
2002 Annual Report.
2005
Second revision of GPTA
Throughput Fee (GPTA 3rd
Term).
Completion of Plant Revamp
and Rejuvenation 1 and
Debottlenecking of GPP 1.
First Gas-in from the Malaysia-
Thailand Joint Development
Area. 16
Signing of Operation and
Maintenance Services
Agreement with Trans-Thai
Malaysia (M) Sdn. Bhd.
Received Gold Award from
MSOSH.
Received NACRA 2004 under
Industrial Product Category for
2003 Annual Report. 17
2006
Acquisition of 20% interest
in Gas Malaysia Sdn. Bhd.
from PETRONAS.
Implemented Programme Bakti
Pendidikan PETRONAS at PGB
adopted schools two (2) in
Terengganu, one (1) in
Pulau Pinang. 18
Awarded the Human Resource
Minister Award under Large
Industry Category.
20
95 P E T R O N A S G A S B E R H A D (101671-H)
Received Gold Award
from MSOSH.
Received Certificate of Merit at
NACRA 2005 under Industrial
Product Category for 2004
Annual Report.
2007
Signed Project Execution
Services Agreement with
PETRONAS Carigali Sdn. Bhd.
for Sabah Sarawak Gas Pipeline
project. 19
Incorporation of Industrial
Gas Solutions (IGS) Sdn. Bhd.,
a joint venture between MOX
Gases Sdn. Bhd. and PGB for
supply of industrial gases. 20
18 19
23 22
21
CUF received National
Occupational Safety and
Health Excellence Award. 21
Received Certificate of Merit at
NACRA 2006 under Industrial
Product Category for 2005
Annual Report.
2008
Received Gold Award
from MSOSH. 22
Received NACRA 2007 under
Industrial Product Category
and Silver Award for Best
Annual Report in Bahasa
Malaysia for 2006 Annual
Report. 23
 96 P E T R O N A S G A S B E R H A D (101671-H)

PETRONAS Gas
today...
During the first 15 years of its incorporation, the Company was predominantly
involved in gas processing and transmission activities.

Subsequently in 1998, as part of its business expansion and diversification plan,

the Company embarked on the Centralised Utility Facilities project to supply
value-added utilities to the Kertih Integrated Petrochemical Complex and
Gebeng Industrial Area.

Nine (9) years later in 2007, as part of the Companys endeavor to achieve higher
utilisation rate for its CUF plants, an alliancing with MOX Gases Sdn. Bhd. was
realised through a jointly controlled entity, Industrial Gases Solution Sdn. Bhd.
The Company also acquired 20% interest in Gas Malaysia Sdn. Bhd. from PETRONAS
during the same financial year.

In 2007, given our good operational track record in transmission business,

the Company also entered into an agreement with PETRONAS Carigali Sdn. Bhd.
for the provision of project execution services in respect of the 500 km Sabah
Sarawak Gas Pipeline project.

Today, after 25 years of incorporation, the Companys business landscape has

further evolved to include the generation of electricity through the Kimanis power
plant project whereby the Company has set up a joint venture company with
Yayasan Sabah to develop a 300 megawatt gas power plant in Kimanis, Sabah.
97 P E T R O N A S G A S B E R H A D (101671-H)
 98 P E T R O N A S G A S B E R H A D (101671-H)

from our
stakeholders
We are proud to partner PETRONAS As a shareholder, KWAP trusts that PGB
Gas Berhad (PGB) to develop a new will remain at the forefront of the gas
power source. This is an important industry in Malaysia. The capability of
project for the State of Sabah to meet PGB to add value to the shareholders
its development objectives. With without eluding its social responsibilities
PGBs leadership and solid backing to the nation proves PGB is able to
we have every confidence that this fulfill its aspirations in achieving its
project will be a resounding success. goals. This exemplary culture is in line
We look forward to future with the nations aspiration to instil a
collaborations with PGB to develop good corporate culture and governance
the states vast resources that amongst Malaysian organisations.
will contribute directly to nation KWAP hopes that PGB will maintain
building. this crucial balance in the future.

Dr. Johan Arriffin Samad Dato Azian Mohd. Noh

Deputy Director, Yayasan Sabah Group Chief Executive Officer,
Kumpulan Wang Persaraan
(Diperbadankan)

We continue to look forward PGB is a life line to our

to working with PGB as a gas OPTIMAL Complex, its continuous
processing company that would reliable operations add value to
continuously add value to the our image as a reliable producer
gas value chain. and supplier.

Dato Sri Che Khalib Dato Tengku Mahamad

Mohamad Noh Tengku Mahamut
President/Chief Executive Officer Chief Executive Officer,
Tenaga Nasional Berhad Optimal Olefins (M) Sdn. Bhd.,
Optimal Glycols (M) Sdn. Bhd.,
Optimal Chemicals (M) Sdn. Bhd.

With the assistance of PGB staff volunteers, PGB has consistently

the Sekolah Kebangsaan Pinang Tunggal exemplified professionalism and
students involved in the BAKTI programme integrity in the management
are more motivated to develop themselves of the Malaysian gas pipeline
and improve their studies. We look forward to transmission network. We hope
every session with the PGB staff volunteers. to build on this collaboration
and look forward to many more
Puan Hajjah Esah Wahab
years of partnership with them.
Pengetua, Sekolah Kebangsaan
Pinang Tunggal, Kepala Batas, Mr. Nicholas Lai
Seberang Prai, Pulau Pinang General Manager,
Keppel Gas Pte. Ltd.
 99 P E T R O N A S G A S B E R H A D (101671-H)

from our
staff
The Companys pursuit of With 25 years experience in this organisation,
operational and people excellence I value the quality and HSE culture that has become
is visibly reflected in the success a part of my daily life. I believe this culture will
of PGB as a gas processing and ensure that the organisation remain on the right
transmission, and utilities provider path to achieve its mission and objectives.
of choice.
Encik Hamuzan Hamzah
Encik M Hisham Hashim with PGB since 1984
with PGB since 1985

For the 17 years that I have been with the Company,

it has evolved from a Sdn. Bhd. to a public listed company.
Our business model and working culture has also changed
over the years. Despite the challenges that we have faced,
PGB still stays united with the spirit of Together As One.

Encik Maliki A Wahab

with PGB since 1991

The Company promotes a conducive PGB is unique in its own way.

work culture for us to develop It is a dynamic company that
ourselves. The empowerment and trust operates in most states in
nurtured within the company increases Malaysia. However far apart
our zest to overcome each challenge our offices are, we still manage
and also amplifies our capacity to to have a close relationship
accomplish common goals. amongst staff and other
stakeholders.
Encik Che Pin Othman
& Puan Malaini Chik Encik Jaya Ibrahim
both husband and wife have been with PGB from 1984 to 2000 and
with PGB since 1984 now on his second tour of duty

I am proud to be part of a company Ever since I left PGB, the Company

that strives for excellence while still has grown in size and stature from
values the importance of the well-being being a sole supplier of gas to the local
of its people, the society and nation TNB power plant at Paka into one that
that it serves. I hope to give back to provides essential clean fuel and raw
the Company as much as I am sure my materials for many industries throughout
father had done before me. Malaysia and Singapore.

Cik Hazlina Hussein Encik Hussein Rahmat

with PGB since 2003 father and ex-PGB staff, retired in 1998
 100 P E T R O N A S G A S B E R H A D (101671-H)

25th Anniversary
Sharing with
the Community
CSR ACTIVITY HIGHLIGHTS
5 May 2008 1 13 September 2008 11
Gotong-royong at Kampung Cabang, Program Sentuhan Kasih, 1
Kerteh, Terengganu. Kertih, Terengganu.

6 July 2008 2 22 September 2008 12

Penempatan Orang Asli, Rumah penduduk miskin, Kg. Geliga,
Kemaman, Terengganu. 1
Kg. Segamat Kecil, Segamat, Johor.

26 July 2008 3 13 October 2008 13

Pondok Penyayang Raudhah, Head Office Hari Raya Celebration with
Klang, Selangor. orphanage and stakeholders, Kuala Lumpur.

2 August 2008 4 25 October 2008 14

Sekolah Kebangsaan Perigi Acheh, Bengkel Seri Sembilan (OKU),
Pasir Gudang, Johor. Mambau, Negeri Sembilan.

2 August 2008 5 1 November 2008 15 6

Madrasah Darul Najah, Air Jerneh, Beach Cleanup at Pantai Balok, 10
Kemasik, Terengganu. Kuantan, Pahang.

9 August 2008 6 20 December 2008 16

Sekolah Agama An Najmi, Hospital Besar Tengku Ampuan Afzan,
Ketengah Jaya, Terengganu. Kuantan, Pahang.

9 August 2008 7 10 January 2009 17

Asrama Baitul Ummah, Rumah Ehsan Bandar Al Muktafi Billah Shah,
Setapak Indah, Kuala Lumpur. Dungun, Terengganu.

16 August 2008 8 7 February 2009 18

Pertubuhan Kebajikan Anak-Anak Yatim Rumah Amal Baitul Kasih, 11 12
dan Miskin Sungai Pinang, Klang, Selangor. Sungai Buloh, Selangor.

23 August 2008 9 21 March 2009 19

Sekolah Rendah Agama Batu Anam, Lembaga Kebajikan Anak-Anak Yatim,
Segamat, Johor. Miri, Sarawak.

23 August 2008 10
Rumah Silaturrahim Nurul Qanaah,
Gombak, Selangor.
 101 P E T R O N A S G A S B E R H A D (101671-H)

The community was the main focus of our 25th Year Anniversary
celebration. Through the years, the Company grew with the
community surrounding our operations, thus with the theme
of Bakti Dihulur, Kasih Disemai, staff and their family
members contributed their time, energy and resources through
programmes involving the community especially focusing on
those in need.
Altogether, 55 CSR activities were carried out with the young
and old alike contributing in their own way. Through these CSR
activities, we hope to create more awareness for the communities
in need and provide opportunities to strengthen the nurturing
culture amongst participants.
The events had a very positive impact, creating great
camaraderie among the management team, employees, their
family members and the communities. We were also uplifted by
the bright smiles and touched hearts every time a session was
completed. We truly hope that through the little contributions
that were made, a big difference would have affected the lives
that were touched.

4 5

2 3 8 9

15 16
14

13

17
18 19

Calendar of Events
A B
17 April 2008
To understand our Centralised Utility
Facilities (CUF) operations further, Dr Aznan
Ezraie Ariffin, the special officer to Tenaga
National Berhads President and Chief
Executive Officer, and his delegates visited
our facilities in Kertih.
21 April 2008
27 Sudanese students visited our CUF
operations in Kertih to have clearer
understanding of utilities operations.
26 April 2008 A
To foster good working relationship
and enable better understanding of our
business, a bowling activity was held
between the staff and media.
102 P E T R O N A S G A S B E R H A D (101671-H)
13 May 2008 B
Representatives from Tim Naziran
(Kumpulan Sasaran Penting Negara) visited
the Companys operations to carry out the
annual security inspection on our facilities
in Kertih, Terengganu.
24 - 25 May 2008 C
As part of our CSR programme,
CUF organised Kem Jati Diri Pelajar
for staffs children who will be sitting
for Sijil Pelajaran Malaysia, Penilaian
Menengah Rendah and Ujian Penilaian
Sekolah Rendah to help accelerate learning
and improve examination techniques.
C
27 May 2008
His Excellency Zubair Ahmed Hassan,
Sudanese Minister of Energy and Mining
together with his delegates visited the Gas
Processing Plant (GPP) A.
05 June 2008
Fund managers and investment analysts had
a closer look at our GPP and CUF in Kertih.
The event was part of our investor relations
yearly activities.
17 June 2008
The Director and Deputy Director of the
Department of Environment in Kemaman
and Kuantan, respectively visited our
utilities facilities in Kertih to gain better
understand of our operational activities.

D E
18 June 2008
A group of delegates from the Mauritanian
Government visited our CUF in Kertih
to enhance their understanding
of utilities operations.
D To raise awareness on HSE the CUF HSE Day
09 July 2008
The Company was accorded several HSE
awards for our good practice of HSE at the
National Occupational Safety and Health
Excellence Award 2007.
19 July 2008
The Companys Technical and Facilities
Development Division (TFDD) engaged with
contractors that served in TFDD projects
to improve networking in achieving a
common goal in terms of HSE and technical
performance.
103 P E T R O N A S G A S B E R H A D (101671-H)
21 July 2008 E
Tenaga Nasional Berhads President and
Chief Executive Officer, Dato Sri Che Khalib
Mohamad Noh together with his delegates
visited both our GPPs at Kertih and Paka,
Terengganu.
21 - 23 July 2008
Our Young Professionals Club (YPC)
organised a Starlight Movie Night at
Sekolah Kebangsaan Santong and Sekolah
Kebangsaan Kemasik where the students
were given the opportunity to experience
movie watching under the open sky.
F
23 July 2008 F
PGBs 25th Annual General Meeting at Nikko
Hotel, Kuala Lumpur.
11 August 2008
was held at our CUF in Gebeng. Activities
during the event included blood donation,
exhibitions, sukan bomba, a Tier-2 drill,
recycling campaign and talks by the
Kuantan Police department and Kuantan
Specialist Hospital.

Calendar of Events
G H
18 August 2008 G
A group of shareholders was given a guided
plant tour to plants and facilities in Kertih,
Terengganu to increase their knowledge
on the Companys throughput and utilities
operations.
25 August 2008 H
The Company was recognised to be
recipients of the Malaysian Society for
Occupational Safety and Health (MSOSH)
Grand Awards, Gold and Gold Merit Awards
for its operations.
13 September 2008
Not forgetting those in need, the Company
together with PETRONAS East Coast
Regional Office (ECRO) organised Majlis
Sentuhan Kasih and Majlis Berbuka Puasa
PETRONAS ECRO in Kertih, Terengganu.
At this event, staff were given the
opportunity to sponsor Eid preparations
for orphans living within the vicinity
of our operations.
104 P E T R O N A S G A S B E R H A D (101671-H)
19 October 2008
The Company was accorded three (3) awards
at the PETRONAS HSE Forum 2008. The
PETRONAS HSE Forum provided a platform
for sharing of HSE best practices, challenges
and interventions within the HSE fraternity
and industry.
18 November 2008
Delegates from the Mauritanian Government
including His Excellency Cheikna Ould El
Yass, the Secretary General of Ministry of
Petroleum and Mines visited the GPP B to
develop a better understanding of our gas
processing activities.
18 November 2008
Mr. Edwin De Prinse, the General Manager
of Transmission from APA Group of
Australia visited our GPP A to gain better
understanding of our operations.
I
23 November 2008
The ex-Sayap exercise was carried out
to assess the Companys preparedness in
responding to emergencies, PGB Avian
Influenza Emergency Preparedness Exercise
(AIEPE) was carried out in collaboration
with the Terengganu State Department of
Health.
24 November 2008 I
The Shareholders Agreement with Yayasan
Sabah was signed, witnessed by Chief
Minister of Sabah, Datuk Seri Panglima Musa
Haji Aman. On behalf of PGB, its Chairman,
Datuk Wan Zulkiflee Wan Ariffin was present
while Yayasan Sabah was represented
by its Director, Tan Sri Datu Khalil
Datu Hj Jamalul.
28 November 2008
A delegation from Petroleum Brunei was
received to facilitate their understanding
of the integrated gas value chain activities
that has been developed in the Kertih
Integrated Petrochemical Complex.

J K
10 December 2008 J
The Director General of Department of
Safety and Health (DOSH), Dato Ir. Dr.
Johari Basri together with his delegates
visited our GPP A and B. The visit provided
an avenue to better understand DOSHs
requirements and how it can be best
implemented at our facilities.
14 December 2008 K
The annual PGB Contractors Forum
conducted this year centred on the subject
of HSE. During this forum, contractors were
given an opportunity to voice suggestions
for improvement and share best practices
amongst their peers.
16 December 2008
Representatives from the Kongres Kesatuan
Pekerja-Pekerja Dalam Perkhidmatan Awam
(CUEPACS) and Ahli Pihak Pekerja Majlis
Bersama Kebangsaan (MBK) visited our POD
to experience a plant working environment.
105 P E T R O N A S G A S B E R H A D (101671-H)
L
21 February 2009
A prize giving ceremony was held for
students from our adopted schools under
BAKTI who had demonstrated significant
improvements in academic achievements
at the Majlis Anugerah Cemerlang BAKTI
Zon Utara.
07 March 2009 L
To foster better working relationship
with customers and local authorities,
the Company organised a golf tournament
at the Kelab Golf Sultan Abdul Aziz Shah
in Shah Alam.
08 March 2009
Our GPP received a visit from Yang
Dipertua Dato Tengku Putera Tengku
Awang to develop better awareness
of the Companys activities in the state.
106 P E T R O N A S G A S B E R H A D (101671-H)
107 P E T R O N A S G A S B E R H A D (101671-H)

nancial
statements
108 Directors Report
112 Statement by Directors
112 Statutory Declaration
113 Report of the Auditors
114 Balance Sheets
115 Income Statements
116 Statements of Changes in Equity
117 Cash Flow Statements
118 Notes to the Financial Statements
 108 p e t ro n a s ga s b e r h a d (101671-H)

Directors Report
FOR THE YEAR ENDED 31 MARCH 2009

The Directors have pleasure in submitting their report and the audited financial statements of the Group and of the Company for the year
ended 31 March 2009.

Principal Activities
The principal activities of the Company in the course of the financial year remained unchanged and consist of separating natural gas into its
components and storing, transporting and distributing such components thereof for a fee and the sale of industrial utilities.

The principal activities of the subsidiary, associate and jointly controlled entity are stated in Note 5, Note 6 and Note 7 to the financial
statements respectively.

There have been no changes in the principal activities during the financial year.

Results
Group Company
RM000 RM000

Profit for the year 928,030 937,655

Attributable to:
Shareholders of the Company 928,692 937,655
Minority interest (662)

Dividends
The amounts paid by way of dividends by the Company since the end of the previous financial year are as follows:
(i) as proposed in last years report, a final dividend of 20% per share tax exempt and 15% per share less 25% tax, altogether amounting
to RM618,354,000 in respect of the financial year ended 31 March 2008 was paid on 20 August 2008; and

(ii) an interim dividend of 15% per share less 25% tax amounting to RM222,607,000 in respect of the financial year ended 31 March 2009
was paid on 18 December 2008.

The Directors propose a final dividend of 20% per share tax exempt, 5.1% per share less 25% tax and 9.9% per share tax exempt under the
single tier tax system, altogether amounting to RM667,180,000 in respect of the financial year ended 31 March 2009. The proposed final
dividend of 20% per share tax exempt, 5.1% per share less 25% tax and 9.9% per share tax exempt under the single tier tax system has not
been accounted for in the financial statements.

Reserves and Provisions

There were no material movements to or from reserves and provisions during the year other than as disclosed in the financial statements.
 109 p e t ro n a s ga s b e r h a d (101671-H)

Directors Report
FOR THE YEAR ENDED 31 MARCH 2009

Directors of the Company

Directors who served since the date of the last report are:
Directors
Datuk Wan Zulkiflee bin Wan Ariffin
Dato Sadasivan s/o N.N. Pillay
Dato Chew Kong Seng
Datuk Mohd Zain bin Haji Abdul Majid
Muri bin Muhammad
Mohammed Azhar bin Osman Khairuddin
Samsudin bin Miskon
Farehana binti Hanapiah (Appointed on 27 April 2009)
Tan Sri Mohd Hassan bin Marican (Resigned on 15 August 2008)
Datuk (Dr) Abdul Rahim bin Haji Hashim (Resigned on 27 April 2009)

In accordance with Article 93 of the Companys Articles of Association, Datuk Wan Zulkiflee bin Wan Ariffin, Mohammed Azhar bin Osman
Khairuddin and Samsudin bin Miskon retire by rotation from the Board at the forthcoming Annual General Meeting, and being eligible, offer
themselves for re-election.

In accordance with Section 129(6) of the Companies Act, 1965 in Malaysia, Dato Chew Kong Seng and Datuk Mohd Zain bin Haji Abdul Majid
who are retiring at the forthcoming Annual General Meeting, and being eligible, offer themselves for re-appointment.

Directors Interests
The Directors in office at the end of the year who have interests in the shares of the Company and of its related corporations other than
wholly-owned subsidiaries as recorded in the Register of Directors Shareholdings are as follows:
Number of shares in the Company
Balance at Balance at
Name 1.4.2008 Bought Sold 31.3.2009

Muri bin Muhammad 7,000 7,000

Mohammed Azhar bin Osman Khairuddin 5,000 5,000

Number of shares in PETRONAS Dagangan Berhad

Balance at Balance at
Name 1.4.2008 Bought Sold 31.3.2009

Muri bin Muhammad 10,000 10,000

Datuk (Dr) Abdul Rahim bin Haji Hashim 2,000 2,000
Mohammed Azhar bin Osman Khairuddin 2,000 (2,000)

None of the other Directors holding office at 31 March 2009 had any interest in the ordinary shares of the Company and of its related corporations
during the financial year.
 110 p e t ro n a s ga s b e r h a d (101671-H)

Directors Report
FOR THE YEAR ENDED 31 MARCH 2009

Directors Benefits
Since the end of the previous financial year, no Director of the Company has received nor become entitled to receive any benefit (other than
the benefit included in the aggregate amount of emoluments received or due and receivable by Directors as shown in the financial statements
of the Company or of a related corporation or the fixed salary of a full time employee of the Company or of a related corporation), by reason of
a contract made by the Company or a related corporation with the Director or with a firm of which the Director is a member, or with a company
in which the Director has a substantial financial interest.

There were no arrangements during and at the end of the financial year which had the object of enabling Directors of the Company to acquire
benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate.

Issue of Shares
There were no changes in the issued and paid-up capital of the Company during the financial year.

Options Granted Over Unissued Shares

No options were granted to any person to take up unissued shares of the Company during the financial year.

Other Statutory Information

Before the financial statements of the Group and of the Company were made out, the Directors took reasonable steps to ascertain that:
(i) all known bad debts have been written off and adequate provision made for doubtful debts, and

(ii) any current assets which were unlikely to realise their value as shown in the accounting records in the ordinary course of business had
been written down to an amount which they might be expected so to realise.

At the date of this report, the Directors are not aware of any circumstances:
(i) that would render the amount written off for bad debts or the amount of the provision for doubtful debts, in the Group and in the
Company inadequate to any substantial extent, or

(ii) that would render the value attributed to the current assets in the financial statements of the Group and of the Company misleading,
or

(iii) which have arisen which render adherence to the existing method of valuation of assets or liabilities of the Group and of the Company
misleading or inappropriate, or

(iv) not otherwise dealt with in this report or the financial statements, that would render any amount stated in the financial statements of
the Group and of the Company misleading.
 111 p e t ro n a s ga s b e r h a d (101671-H)

Directors Report
FOR THE YEAR ENDED 31 MARCH 2009

Other Statutory Information (Contd)

At the date of this report, there does not exist:
(i) any charge on the assets of the Group and of the Company that has arisen since the end of the financial year and which secures the
liabilities of any other person, or

(ii) any contingent liability in respect of the Group or of the Company that has arisen since the end of the financial year.

No contingent liability or other liability of any company in the Group has become enforceable, or is likely to become enforceable within the
period of twelve months after the end of the financial year which, in the opinion of the Directors, will or may substantially affect the ability
of the Group and of the Company to meet their obligations as and when they fall due.

In the opinion of the Directors, the results of the operations of the Group and of the Company for the financial year ended 31 March 2009
have not been substantially affected by any item, transaction or event of a material and unusual nature nor has any such item, transaction or
event occurred in the interval between the end of that financial year and the date of this report.

Significant Event
The significant event during the financial year is in relation to the Companys venture into generation and sale of electricity through a joint
venture company set up with Yayasan Sabah. The joint venture company is known as Kimanis Energy Venture Sdn. Bhd. (formerly known as
Unik Kuasa Sdn. Bhd.) (KEVSB) as disclosed in Note 5.

Auditors
The auditors, Messrs KPMG Desa Megat & Co., have indicated their willingness to accept re-appointment.

Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:

Datuk Wan Zulkiflee bin Wan Ariffin

Samsudin bin Miskon

Kuala Lumpur,
21 May 2009
 112 p e t ro n a s ga s b e r h a d (101671-H)

Statement by Directors

In the opinion of the Directors, the financial statements set out on pages 114 to 158, are drawn up in accordance with Financial Reporting
Standards and the Companies Act, 1965 in Malaysia so as to give a true and fair view of the state of affairs of the Group and of the Company
at 31 March 2009 and of the results of their operations and cash flows for the year ended on that date.

Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:

Datuk Wan zulkiflee bin wan ariffin

Samsudin bin miskon

Kuala Lumpur,
21 May 2009

Statutory Declaration
I, Liza bt Mustapha, the officer primarily responsible for the financial management of PETRONAS GAS BERHAD, do solemnly and sincerely
declare that the financial statements set out on pages 114 to 158, are, to the best of my knowledge and belief, correct and I make this solemn
declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act, 1960.

Subscribed and solemnly declared by the abovenamed

Liza bt Mustapha in Kuala Lumpur on 21 May 2009

BEFORE ME:
 113 p e t ro n a s ga s b e r h a d (101671-H)

Report of the Auditors

TO THE MEMBERS

Report on the Financial Statements

We have audited the financial statements of PETRONAS GAS BERHAD, which comprise the balance sheets as at 31 March 2009 of the Group
and of the Company, and the income statements, statements of changes in equity and cash flow statements of the Group and of the Company
for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 114 to 158.
Directors Responsibility for the Financial Statements
The Directors of the Company are responsible for the preparation and fair presentation of these financial statements in accordance with Financial
Reporting Standards and the Companies Act, 1965 in Malaysia. This responsibility includes: designing, implementing and maintaining internal
control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud
or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with
approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures
selected depend on our judgement, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, we consider internal control relevant to the Companys preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Companys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting Standards and the Companies
Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as of 31 March 2009 and of
their financial performance and cash flows for the year then ended.

Report on Other Legal and Regulatory Requirements

In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the following:
(a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company and its subsidiary have
been properly kept in accordance with the provisions of the Act.
(b) We are satisfied that the accounts of the subsidiary that have been consolidated with the Companys financial statements are in form
and content appropriate and proper for the purposes of the preparation of the financial statements of the Group and we have received
satisfactory information and explanations required by us for those purposes.
(c) Our audit report on the accounts of the subsidiary did not contain any qualification or any adverse comment made under Section 174(3)
of the Act.

Other Matters
This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act, 1965 in Malaysia
and for no other purpose. We do not assume responsibility to any other person for the content of this report.

KPMG Desa Megat & Co. Hasman Yusri Yusoff

Firm Number: AF 0759 Approval Number: 2583/08/10(J)
Chartered Accountants Chartered Accountant
Petaling Jaya,
21 May 2009
 114 p e t ro n a s ga s b e r h a d (101671-H)

Balance Sheets
AT 31 MARCH 2009

Group Company
Note 2009 2008 2009 2008
RM000 RM000 RM000 RM000

ASSETS
Property, plant and equipment 3 6,759,762 7,050,793 6,757,081 7,050,793
Prepaid lease payments 4 452,563 443,491 452,563 443,491
Investment in subsidiary 5
Investment in associate 6 169,341 178,291 103,336 103,336
Investment in jointly controlled entity 7 3,162 1,530 250 250
TOTAL NON-CURRENT ASSETS 7,384,828 7,674,105 7,313,230 7,597,870

Trade and other inventories 8 146,413 149,550 146,413 149,550

Trade and other receivables 9 319,810 261,843 325,190 261,843
Fund and other investments 10 70,863 70,863
Cash and cash equivalents 11 1,945,136 1,707,805 1,945,136 1,707,805
TOTAL CURRENT ASSETS 2,482,222 2,119,198 2,487,602 2,119,198
TOTAL ASSETS 9,867,050 9,793,303 9,800,832 9,717,068

EQUITY
Share capital 12 1,978,732 1,978,732 1,978,732 1,978,732
Reserves 13 6,060,231 5,943,663 5,992,959 5,867,428
Total equity attributable to the shareholders
of the Company 8,038,963 7,922,395 7,971,691 7,846,160
MINORITY SHAREHOLDERS INTERESTS 14 (662)
TOTAL EQUITY 8,038,301 7,922,395 7,971,691 7,846,160

LIABILITIES
Borrowings 15 449,625 454,100 449,625 454,100
Deferred tax liabilities 16 1,146,000 1,163,000 1,146,000 1,163,000
Deferred income 17 15,331 19,438 15,331 19,438
TOTAL NON-CURRENT LIABILITIES 1,610,956 1,636,538 1,610,956 1,636,538

Trade and other payables 18 195,262 146,975 195,654 146,975
Taxation 22,531 87,395 22,531 87,395
TOTAL CURRENT LIABILITIES 217,793 234,370 218,185 234,370
TOTAL LIABILITIES 1,828,749 1,870,908 1,829,141 1,870,908
TOTAL EQUITY AND LIABILITIES 9,867,050 9,793,303 9,800,832 9,717,068

The notes set out on pages 118 to 158 form an integral part of, and should be read in conjunction with, these financial statements.
 115 p e t ro n a s ga s b e r h a d (101671-H)

Income Statements
FOR THE YEAR ENDED 31 MARCH 2009

Group Company
Note 2009 2008 2009 2008
RM000 RM000 RM000 RM000

Revenue 19 3,415,141 3,125,745 3,415,141 3,125,745

Cost of revenue 19 (2,194,403) (1,779,998) (2,194,403) (1,779,998)
Gross profit 19 1,220,738 1,345,747 1,220,738 1,345,747
Administration expenses (60,893) (52,000) (60,363) (52,000)
Other expenses (87,312) (1,505) (87,312) (1,505)
Other income 122,857 70,436 187,409 90,122
Operating profit 20 1,195,390 1,362,678 1,260,472 1,382,364
Financing costs 23 (19,402) (16,344) (19,402) (16,344)
Share of profit after tax of equity
accounted associate and jointly
controlled entity 55,457 47,799
Profit before taxation 1,231,445 1,394,133 1,241,070 1,366,020
Tax expense 24 (303,415) (301,184) (303,415) (301,184)
PROFIT FOR THE YEAR 928,030 1,092,949 937,655 1,064,836

Attributable to:
Shareholders of the Company 928,692 1,092,949 937,655 1,064,836
Minority interest 14 (662)

Dividends per ordinary share net 25 45.0 sen 42.2 sen 45.0 sen 42.2 sen

Basic and diluted earnings per ordinary share 26 46.9 sen 55.2 sen 47.4 sen 53.8 sen

The notes set out on pages 118 to 158 form an integral part of, and should be read in conjunction with, these financial statements.
 116 p e t ro n a s ga s b e r h a d (101671-H)

Statements of Changes in Equity

FOR THE YEAR ENDED 31 MARCH 2009

Attributable to shareholders of the Company

Non-distributable Distributable
Share Share Retained Minority Total
Note Capital Premium Profits Total Interest Equity
RM000 RM000 RM000 RM000 RM000 RM000

Group
Balance at 1 April 2007 1,978,732 1,186,472 4,421,107 7 ,586,311 7,586,311
Profit for the year 1,092,949 1,092,949 1,092,949
Dividends 2007 final 25 (540,194) (540,194) (540,194)
2008 interim 25 (216,671) (216,671) (216,671)
Balance at 31 March 2008 1,978,732 1,186,472 4,757,191 7,922,395 7,922,395
Balance at 1 April 2008
as previously reported 1,978,732 1,186,472 4,757,191 7,922,395 7,922,395
effects of adopting FRS 139 27 28,837 28,837 28,837
Balance at 1 April 2008, restated 1,978,732 1,186,472 4,786,028 7,951,232 7,951,232
Profit for the year 928,692 928,692 (662) 928,030
Dividends 2008 final 25 (618,354) (618,354) (618,354)
2009 interim 25 (222,607) (222,607) (222,607)
Balance at 31 March 2009 1,978,732 1,186,472 4,873,759 8,038,963 (662) 8,038,301

Note 12 Note 13 Note 13 Note 14

Attributable to shareholders of the Company

Non-distributable Distributable
Share Share Retained
Note Capital Premium Profits Total
RM000 RM000 RM000 RM000

Company
Balance at 1 April 2007 1,978,732 1,186,472 4,372,985 7,538,189
Profit for the year 1,064,836 1,064,836
Dividends 2007 final 25 (540,194) (540,194)
2008 interim 25 (216,671) (216,671)
Balance at 31 March 2008 1,978,732 1,186,472 4,680,956 7,846,160
Balance at 1 April 2008
as previously reported 1,978,732 1,186,472 4,680,956 7,846,160
effects of adopting FRS 139 27 28,837 28,837
Balance at 1 April 2008, restated 1,978,732 1,186,472 4,709,793 7,874,997
Profit for the year 937,655 937,655
Dividends 2008 final 25 (618,354) (618,354)
2009 interim 25 (222,607) (222,607)
Balance at 31 March 2009 1,978,732 1,186,472 4,806,487 7,971,691

Note 12 Note 13 Note 13

The notes set out on pages 118 to 158 form an integral part of, and should be read in conjunction with, these financial statements.
 117 p e t ro n a s ga s b e r h a d (101671-H)

Cash Flow Statements

FOR THE YEAR ENDED 31 MARCH 2009

Group Company
Note 2009 2008 2009 2008
RM000 RM000 RM000 RM000

CASH FLOWS FROM OPERATING ACTIVITIES

Cash receipts from customers 3,353,137 3,120,523 3,354,187 3,120,523
Cash paid to suppliers and employees (1,611,314) (1,253,018) (1,607,342) (1,253,018)
1,741,823 1,867,505 1,746,845 1,867,505
Interest income from fund and other investments 68,268 45,216 68,195 45,216
Taxation paid (389,348) (328,188) (389,348) (328,188)
Net cash generated from operating activities 1,420,743 1,584,533 1,425,692 1,584,533

CASH FLOWS FROM INVESTING ACTIVITIES

Investment in jointly controlled entity (125) (125)
Advance to subsidiary (4,578)
Purchase of fund and other investments (69,699) (69,699)
Dividends received 57,231 19,686 57,231 19,686
Purchase of property, plant and equipment (298,442) (187,197) (295,761) (187,197)
Proceeds from disposal of property, plant and equipment 17 62 17 62
Payment for prepaid lease (15,646) (10,333) (15,646) (10,333)
Proceeds from sale of prepaid lease 671 671
Net cash used in investing activities (326,539) (177,236) (328,436) (177,236)

CASH FLOWS FROM FINANCING ACTIVITIES

Financing costs paid (18,964) (16,011) (18,964) (16,011)
Dividends paid (840,961) (756,865) (840,961) (756,865)
Advance from minority shareholder 3,052
Net cash used in financing activities (856,873) (772,876) (859,925) (772,876)

NET INCREASE IN CASH AND CASH EQUIVALENTS 237,331 634,421 237,331 634,421

CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR 1,707,805 1,073,384 1,707,805 1,073,384
CASH AND CASH EQUIVALENTS AT END OF THE YEAR 11 1,945,136 1,707,805 1,945,136 1,707,805

The notes set out on pages 118 to 158 form an integral part of, and should be read in conjunction with, these financial statements.
 118 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 MARCH 2009

PETRONAS Gas Berhad is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main Board of the
Bursa Malaysia Securities Berhad. The address of its registered office and principal place of business is:
Registered office and principal place of business
Tower 1, PETRONAS Twin Towers
Kuala Lumpur City Centre
50088 Kuala Lumpur

The Company is principally engaged in separating natural gas into its components and storing, transporting and distributing such components
thereof for a fee and the sale of industrial utilities. The principal activities of its subsidiary, associate and jointly controlled entity are stated
in Note 5, Note 6 and Note 7 to the financial statements respectively.

The holding company as well as the ultimate holding company during the financial year is Petroliam Nasional Berhad (PETRONAS), a company
incorporated in Malaysia.

The consolidated financial statements as at and for the financial year ended 31 March 2009 comprise the Company and its subsidiary, and the
Groups interest in an associate and a jointly controlled entity.

1. Basis of Preparation
1.1 Statement of compliance
The financial statements of the Group and of the Company have been prepared in accordance with Financial Reporting Standards
(FRSs), generally accepted accounting principles and the Companies Act, 1965 in Malaysia. These financial statements also comply
with the applicable disclosure provisions of the Listing Requirements of the Bursa Malaysia Securities Berhad.

At the beginning of the current financial year, the Group and the Company had adopted the following FRSs:
FRSs Effective date
FRS 107, Cash Flow Statements 1 July 2007
FRS 112, Income Taxes 1 July 2007
FRS 118, Revenue 1 July 2007
FRS 134, Interim Financial Reporting 1 July 2007
FRS 137, Provisions, Contingent Liabilities and Contingent Assets 1 July 2007

The Group and the Company have also early adopted the following FRSs and Statement of Interpretations (ICs) for the annual
period beginning 1 April 2008:
FRSs / IC Interpretations Effective date
FRS 139, Financial Instruments 1 January 2010
IC Interpretation 9, Reassessment of Embedded Derivatives 1 January 2010
IC Interpretation 10, Interim Financial Reporting and Impairment 1 January 2010

The principal changes in accounting policies resulting from the adoption of FRS 112 and FRS 139 are set out in Note 27.

The adoption of FRS 107, FRS 118, FRS 134, FRS 137, IC Interpretation 9 and IC Interpretation 10, where applicable, does not
result in significant changes in accounting policies.
 119 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 MARCH 2009

1. Basis of Preparation (Contd)

1.1 Statement of compliance (Contd)
The Group and the Company have not chosen to early adopt the following FRSs:

FRSs Effective date

FRS 4, Insurance Contracts 1 January 2010
FRS 7, Financial Instruments: Disclosures 1 January 2010
FRS 8, Operating Segments 1 July 2009
FRS 123, Borrowing Costs 1 January 2010
Amendments to FRS 1, First-time Adoption of Financial Reporting Standards and FRS 127, 1 January 2010
Consolidated and Separate Financial Statements: Cost of an Investment
in a Subsidiary, Jointly Controlled Entity or Associate

Initial application of FRS 4, FRS 7, FRS 8, FRS 123, Amendments to FRS 1 and FRS 127, where applicable, for the Group and the
Company will be effective from annual period beginning 1 April 2010. By virtue of the exemption in paragraph 41AA of FRS 4 and
paragraph 41AB of FRS 7, the impact of applying FRS 4 and FRS 7 respectively on the financial statements upon first adoption of
these standards as required by paragraph 30(b) of FRS 108 is not disclosed.

FRS 8 addresses the presentation of financial information to management. It requires identification and reporting of operating
segments based on internal reports regularly reviewed by the entitys chief operating decision maker in order to allocate resources
to the segment and to assess its performance. Currently, the Group presents segment information in respect of its business
segments. Upon adoption of FRS 8, the Group is not expected to have any material changes from the current segmental reporting
other than potential extended disclosure as required by FRS 8.

The adoption of FRS 123 and Amendments to FRS 1 and FRS 127 do not have any material impact on the financial statements of
the Group and of the Company in the period of initial application.

The Malaysian Accounting Standards Board has also issued the following amendment to FRSs and ICs which are not relevant to
the operations of the Group and the Company and hence, no further disclosure is warranted:

FRSs / ICs Effective date

Amendment to FRS 2, Share-based Payment; Vesting Conditions and Cancellations 1 January 2010
IC Interpretation 11 FRS 2, Group and Treasury Transactions 1 January 2010
IC Interpretation 13, Customer Loyalty Programme 1 January 2010
IC Interpretation 14 FRS 119, The Limit on a Defined Benefit Assets, Minimum,
Funding Requirements and Their Interaction 1 January 2010

The financial statements were approved and authorised for issue by the Board of Directors on 21 May 2009.

 120 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 march 2009

1. Basis of Preparation (Contd)

1.2 Basis of measurement
The financial statements of the Group and the Company have been prepared on historical cost basis, unless otherwise stated.

The methods used to measure fair value are stated in Note 2.5.

1.3 Functional and presentation currency

The individual financial statements of each entity in the Group are measured using the currency of the primary economic environment
in which the entity operates (the functional currency).

The Group and the Companys financial statements are presented in Ringgit Malaysia (RM), which is the Companys functional
currency.

All financial information presented in RM has been rounded to the nearest thousand, unless otherwise stated.

1.4 Use of estimates and judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ
from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised and in any future periods affected.

In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies
that have the most significant effect on the amount recognised in the financial statements are described in Note 32 Financial
Instruments.

2. Significant Accounting Policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements, and have
been applied consistently by Group entities, unless otherwise stated or as disclosed in Note 27 to the financial statements.

2.1 Basis of consolidation

A subsidiary is an entity controlled by the Group. Control exists when the Group has the power, directly or indirectly, to govern
the financial and operating policies of an entity so as to obtain benefits from its activities.

The financial statements of the subsidiary are included in the consolidated financial statements from the date that control
commences until the date that control ceases.

All inter-company transactions are eliminated on consolidation and revenue and profits relate to external transactions only.
Unrealised losses resulting from inter-company transactions are also eliminated unless cost cannot be recovered.
 121 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 MARCH 2009

2. Significant Accounting Policies (Contd)

2.1 Basis of consolidation (Contd)
Minority interests at the balance sheet date, being the portion of the net assets of the subsidiary attributable to equity interests
that is not owned by the Company, whether directly or indirectly through the subsidiary, is presented in the consolidated balance
sheet and statement of changes in equity within equity, separately from equity attributable to the equity shareholders of the
Company. Minority interests in the results of the Group are presented on the face of the consolidated income statement as an
allocation of the total income statement for the year between minority interests and the equity shareholders of the Company.

Where losses applicable to the minority exceed the minoritys interest in the equity of a subsidiary, the excess, and any further
losses applicable to the minority are charged against the Groups interest except to the extent that the minority has a binding
obligation to, and is able to, make additional investment to cover the losses. If the subsidiary subsequently reports profits, all such
profits are allocated to the Group until the minoritys share of losses previously absorbed by the Group has been recovered.

Investment in subsidiary is stated at cost less impairment losses, where applicable, in the Companys separate financial
statements.

2.2 Associate
An associate is an entity in which the Group has significant influence, including representation on the Board of Directors, but
not control or joint control, over the financial and operating policy decisions of the associate.

An associate is accounted for in the consolidated financial statements of the Group using the equity method unless it is classified
as held for sale (or included in a disposal group that is classified as held for sale). The consolidated financial statements include
the Groups share of post-acquisition profits or losses of the equity accounted associate, after adjustments to align the accounting
policies with those of the Group from the date that significant influence commences until the date that significant influence
ceases.

The Groups share of post-acquisition reserves and retained profits less losses is added to the carrying value of the investment in
the consolidated balance sheet. These amounts are taken from the latest audited financial statements and management financial
statements of the associate.

When the Groups share of post-acquisition losses exceeds its interest in an equity accounted associate, the carrying amount of
that interest (including any long-term investments) is reduced to nil and the recognition of further losses is discontinued except
to the extent that the Group has an obligation or has made payments on behalf of the associate.

Unrealised profits arising from transactions between the Group and its associate are eliminated to the extent of the Groups
interests in the associate. Unrealised losses on such transaction are also eliminated partially, unless cost cannot be recovered.

Investment in associate is stated at cost less impairment losses, where applicable, in the Companys separate financial
statements.
 122 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 march 2009

2. Significant Accounting Policies (Contd)

2.3 Jointly controlled entity
The Group has an interest in a joint venture which is a jointly controlled entity. A jointly controlled entity is a contractual
arrangement whereby the Group and other parties undertake an economic activity that is subject to joint control, established
by contractual agreement and requiring unanimous consent for strategic, financial and operating decisions. A jointly controlled
entity involves the establishment of a separate entity in which each venturer has an interest.

Investment in the jointly controlled entity is accounted for in the consolidated financial statements using the equity method of
accounting as described in Note 2.2.

Investment in jointly controlled entity is stated at cost less impairment losses, where applicable, in the Companys separate
financial statements.

2.4 Intangible asset goodwill

Goodwill arises on the acquisition of subsidiaries, associates and jointly controlled entities.

Goodwill arising from acquisitions represents the excess of the cost of the acquisition over the Groups interest in the fair values
of the net identifiable assets and liabilities and contingent liabilities of the acquiree.

Goodwill is initially measured at cost. Following the initial recognition, goodwill is measured at cost less any accumulated
impairment losses. Goodwill is not amortised but instead, it is reviewed for impairment, annually or more frequently if events or
changes in circumstances indicate that the carrying value may be impaired. When the excess is negative (negative goodwill), it
is recognised immediately in the income statement.

In respect of equity accounted investee, the carrying amount of goodwill is included in the carrying amount of the investment.
The entire carrying amount of the investment is reviewed for impairment when there is objective evidence of impairment.

Any excess of the Groups interest in the net fair value of acquirees identifiable assets, liabilities and contingent liabilities over
the cost of acquisition is recognised immediately in income statement.

2.5 Financial instruments

Financial assets or financial liabilities are recognised in the balance sheet when, and only when, the Group or the Company
becomes a party to the contractual provisions of the instrument.

Financial assets are derecognised if the Groups and the Companys contractual rights to the cash flows from the financial assets
expire or if the Group and the Company transfer the financial asset to another party without retaining control or substantially all
risks and rewards of the assets.

Regular way purchases and sales of financial assets are accounted for at trade date, i.e. the date that the Group and the Company
commit to purchase or sell the asset.

Financial liabilities are derecognised if the Groups and the Companys obligations specified in the contract expire or are discharged
or cancelled.
 123 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 MARCH 2009

2. Significant Accounting Policies (Contd)

2.5 Financial instruments (Contd)
(i) Financial assets
Initial recognition
Financial assets within the scope of FRS 139 are classified as financial assets at fair value through profit or loss, loans and
receivables, held-to-maturity investments or available-for-sale financial assets. The Group and the Company determine the
classification of its financial assets at initial recognition.

Financial assets are recognised initially at fair value plus, in the case of financial assets not at fair value through profit or
loss, transactions costs that are directly attributable to the acquisition of the financial asset.

Subsequent measurement
The subsequent measurement of financial assets depends on their classification as follows:

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated
upon initial recognition at fair value through profit or loss. Financial assets at fair value through profit or loss are carried
in the balance sheet at fair value with gains or losses recognised in the income statement.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market. Such financial assets are carried at amortised cost using the effective interest rate method less impairment
losses. This method uses an effective interest rate that exactly discounts estimated future cash receipts through the expected
life of the financial asset to the net carrying amount of the financial asset.

(ii) Financial liabilities

Initial recognition
Financial liabilities are recognised initially at fair value less, in the case of financial liabilities not at fair value through
profit or loss, transaction costs that are directly attributable to the issue of the financial liabilities.

Subsequent measurement
The measurement of financial liabilities depends on their classification as follow:

Loans and borrowings

After initial recognition, loans and borrowings are subsequently measured at amortised cost using the effective interest
rate method.
 124 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 march 2009

2. Significant Accounting Policies (Contd)

2.5 Financial instruments (Contd)
(iii) Derivative financial instruments
Initial recognition and subsequent measurement
The Group and the Company use derivative financial instruments such as forward currency contracts to hedge its foreign
market risks. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative
contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the
fair value is positive and as financial liabilities when the fair value is negative.

Any gains and losses arising from changes in fair value on derivatives during the year are taken directly to the income
statement.

The fair value of forward currency contracts is the difference between the present value of the forward exchange rate and
the contracted rate. The forward exchange rate is referenced to current forward exchange rates for contracts with similar
maturity profiles.

Financial assets and financial liabilities are offset and the net amount reported in the consolidated balance sheet if, and
only if, there is a currently enforceable legal right to offset the recognition amounts and there is an intention to settle on
a net basis, or to realise the assets and settle the liabilities simultaneously.

The effect resulting from the adoption of FRS 139 is set out in Note 27.

2.6 Property, plant and equipment and depreciation

Freehold land are stated at cost and are not depreciated. Projects-in-progress are stated at cost and are not depreciated. Other
property, plant and equipment are stated at cost or valuation less accumulated depreciation and accumulated impairment
losses.

Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes
the cost of materials and direct labour, any other costs directly attributable to bringing the asset to working condition for its
intended use, and the estimated costs of dismantling and removing the items and restoring the site on which they are located.
Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

When significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate
items (major components) of property, plant and equipment.

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is
probable that the future economic benefits embodied within the part will flow to the Group and its cost can be measured reliably.
The net book value of the replaced item of property, plant and equipment is derecognised with any corresponding gain or loss
recognised in the income statement accordingly. The costs of the day-to-day servicing of property, plant and equipment are
recognised in the income statement as incurred.
 125 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 MARCH 2009

2. Significant Accounting Policies (Contd)

2.6 Property, plant and equipment and depreciation (Contd)
Depreciation for property, plant and equipment other than freehold land and projects in progress, is recognised in the income
statement on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment.

Buildings are depreciated over 50 years or over the remaining land lease period, whichever is shorter.

The estimated useful lives of the other property, plant and equipment are as follows:
Plant and pipelines 5 30 years
Expendable capital improvements 3 years
Office equipment, furniture and fittings 6 7 years
Other plant and equipment 5 7 years
Computer hardware and software 5 years
Motor vehicles 4 years
Plant turnaround/major inspection 3 7 years

Expenditure for routine replacements and repairs is written off immediately in the income statement as and when incurred.

Property, plant and equipment individually costing less than RM5,000 are expensed off in the year of purchase.

T he depreciable amount is determined after deducting the residual value. The residual values, useful life and depreciation method
are reviewed at each financial year end to ensure that the amount, method and period of depreciation are consistent with previous
estimates and the expected pattern of consumption of the future economic benefits embodied in the items of property, plant and
equipment.

An item of property, plant and equipment is derecognised upon disposal or when no future economics benefits are expected from
its use or disposal. The difference between the net disposal proceeds, if any, and the net carrying amount is recognised in the
income statement.

2.7 Leased assets operating lease

Leasehold land that normally has an indefinite economic life and title is not expected to pass to the lessee by the end of the
lease term is treated as an operating lease. The payment made on entering into or acquiring a leasehold land is accounted for as
prepaid lease payments, that are amortised over the lease term in accordance with the pattern of benefits provided.

Leasehold land is categorised into long lease and short lease. Long lease is defined as a lease with an unexpired lease period of
fifty years or more. Short lease is defined as a lease with an unexpired lease period of less than fifty years.

Payments made under operating leases are recognised in the income statement on a straight-line basis over the term of the
lease.
 126 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 march 2009

2. Significant Accounting Policies (Contd)

2.8 Impairment of assets
(i) Financial assets
A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative
effect on the estimated future cash flows of that asset. For an equity instrument, a significant or prolonged decline in fair
value below its cost is also considered objective evidence of impairment.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its
carrying amount, and the present value of the estimated future cash flows discounted at the original effective interest
rate.

Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets are
assessed collectively in groups that share similar credit risk characteristics.

All impairment losses are recognised in the income statement. An impairment loss is reversed if the reversal can be related
objectively to an event occurring after the impairment loss was recognised. Such reversal is recognised in the income
statement.

(ii) Non-financial assets

The carrying amount of assets, other than inventories (refer Note 2.9), deferred tax assets (refer Note 2.13) and financial
assets (financial assets in this context exclude investments in subsidiary, associate and jointly controlled entity), are
generally reviewed at each reporting date to determine whether there is any indication of impairment. The carrying amounts
of certain classes of assets are reviewed whenever events or changes in circumstances indicate that the carrying value may
be impaired, as described in the respective assets accounting policies.

When indication of assets impairment exists, the assets recoverable amount is estimated. For goodwill and intangible assets
that have indefinite useful lives or that are not yet available for use, recoverable amount is estimated at each reporting
date.

An impairment loss is recognised if the carrying amount of an asset or the cash-generating unit to which it belongs exceeds
its recoverable amount. Impairment losses are recognised in the income statement, unless the asset is carried at a revalued
amount, in which case the impairment loss is recognised directly against any revaluation surplus for the asset to the extent
that the impairment loss does not exceed the amount in the revaluation surplus for that same asset.

A cash-generating unit is the smallest identifiable asset group that generates cash flows that are largely independent from
other assets and groups. Impairment losses recognised in respect of cash-generating units are allocated first to reduce the
carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in the
unit on a pro-rata basis.
 127 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 MARCH 2009

2. Significant Accounting Policies (Contd)

2.8 Impairment of assets (Contd)
(ii) Non-financial assets (Contd)
The recoverable amount is the greater of the assets fair value less cost to sell and its value in use. In assessing value in
use, estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate
largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset
belongs.

An impairment loss in respect of goodwill is not reversed in a subsequent period. In respect of other assets, impairment
losses are reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment
loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have
been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

Reversals of impairment losses are credited to the income statement in the year in which the reversals are recognised,
unless it reverses an impairment loss on a revalued asset, in which case it is credited directly to revaluation surplus. Where
an impairment loss on the same revalued asset was previously recognised in the income statement, a reversal of that
impairment loss is also recognised in the income statement.

2.9 Inventories
Inventories are stated at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the
ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

Cost of material stores and spares consists of the invoiced value from suppliers and import duty charges and is determined on a
weighted average basis.

Cost of liquefied gases and water is determined on a weighted average basis.

2.10 Trade and other receivables

Trade and other receivables are categorised as loans and receivables under the financial assets classification and apply the
accounting policy as stated in Note 2.5.

Receivables are not held for the purpose of trading.

2.11 Cash and cash equivalents

Cash and cash equivalents consist of cash on hand and bank balances, deposits with licensed financial institutions and highly
liquid investments which have insignificant risk of changes in value.
 128 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 march 2009

2. Significant Accounting Policies (Contd)

2.12 Employee benefits
(i) Short term benefits
Wages and salaries, bonuses and social security contributions are recognised as an expense in the year in which the
associated services are rendered by employees of the Group and the Company.

(ii) Defined contribution plans

As required by law, companies in Malaysia make contributions to the state pension scheme, the Employees Provident Fund
(EPF). Such contributions are recognised as an expense in the income statement as incurred.

(iii) Defined benefit plans

The Group and the Company contribute monthly to the PETRONAS Retirement Benefit Fund (The Scheme). The Scheme is a
funded defined benefit plan.

Contributions to the Scheme are based on eligible employees monthly emoluments less statutory contribution, to finance
the retirement benefits payable to eligible employees. The monthly maximum tax allowable contribution is paid to the
Scheme by the Company. The excess is paid by the Company to a special account in PETRONAS, the holding company, as a
provision for retirement benefits.

As the eligible members of the Scheme are mainly contracted to the holding company, any shortfall of the Scheme will be
borne by the holding company.

The Group and the Company have agreed with the holding company as well as the Trustees of the Scheme to undertake
such liability in respect of future contributions to the Scheme which may be adjusted by the Trustees to recover such
shortfall.

Actuarial valuations of the Scheme are conducted by independent actuaries at regular intervals. The last valuation performed
for the Scheme was on 31 March 2008.

During the financial year, the trustees commenced dissolution of the Scheme and the Group and the Company ceased to
contribute to the Scheme.

2.13 Taxation
Tax on the profit and loss for the year comprises current and deferred tax. Income tax is recognised in the income statement
except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

(i) Current tax

Current tax expense is the expected tax payable on the taxable income for the year, using the statutory tax rates at the
balance sheet date, and any adjustment to tax payable in respect of previous years.
 129 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 MARCH 2009

2. Significant Accounting Policies (Contd)

2.13 Taxation (Contd)
(ii) Deferred tax
Deferred tax is provided for, using the liability method, on temporary differences at the balance sheet date between the tax
bases of assets and liabilities and their carrying amounts in the financial statements. In principle, deferred tax liabilities
are recognised for all taxable temporary differences and deferred tax assets are recognised for all deductible temporary
differences, unabsorbed capital allowances, unused tax losses and unused tax credits to the extent that it is probable that
future taxable profit will be available against which the deductible temporary differences, unabsorbed capital allowances,
unused tax losses and unused tax credits can be utilised.

Deferred tax is not recognised if the temporary difference arises from goodwill or negative goodwill or from the initial
recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction,
affects neither accounting profit nor taxable profit.

Deferred tax is measured at the tax rates that are expected to apply in the period when the asset is realised or the liability
is settled, based on statutory tax rates at the balance sheet date.

Deferred tax assets are reviewed at each reporting date and are reduced to the extent that is no longer probable that the
related tax benefits will be realised.

In the previous year, reinvestment allowance was not recognised as a deferred tax asset. Following the adoption of the FRS
112, this tax incentive has been accounted for by applying the anology of the accounting treatment for unused tax losses.
Any unutilised portion are recognised as a deferred tax asset to the extent that it is probable that future taxable profits
will be available against which the unutilised tax incentive can be utilised. This change in accounting policy is applied
retrospectively and the effects are set out in Note 27.

2.14 Foreign currency transactions

In preparing financial statements of individual entities in the Group, transactions in currencies other than the entitys functional
currency are translated to the functional currency at rates of exchange ruling on the transaction dates.

Monetary assets and liabilities in foreign currencies at balance sheet date have been retranslated to the functional currency at
rates of exchange ruling on the balance sheet date. Gains and losses on exchange arising from translation of monetary assets and
liabilities are dealt with in the income statement.

Non-monetary assets and liabilities denominated in foreign currencies, which are measured at fair value, are retranslated to the
functional currency at the foreign exchange rates ruling at the date when the fair value was determined. Non-monetary items
that are measured in terms of historical cost in foreign currency are not retranslated.

2.15 Provisions
A provision is recognised if, as a result of a past event, the Group or the Company has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.

The amount recognised as a provision is the best estimate of the expenditure required to settle the present obligation at the
balance sheet date. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate.
 130 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 march 2009

2. Significant Accounting Policies (Contd)

2.16 Liabilities
Trade and other payables are categorised as loans and borrowings under the financial liabilities classification and apply the
accounting policy as stated in Note 2.5.

Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably,
the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible
obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events are also
disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote.

2.17 Revenue
Revenue from throughput fees is recognised in the income statement based on actual and estimates of work done in respect of services
rendered for separating natural gas into its components and the storing, transporting and distributing such components.

Revenue from sale of industrial utilities is recognised in the income statement based on certification of utilities distributed to
the buyer at pre-determined rates.

2.18 Financing costs

Financing costs comprise interest payable on borrowings.

All interest, finance charges and other costs incurred in connection with borrowings are expensed as incurred.

2.19 Deferred income

Deferred income is recognised in the income statement on a time proportion basis over the agreed contract period or applicable
period.

2.20 Earnings per share

The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares.

Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average
number of ordinary shares outstanding during the year.

Diluted EPS is determined by adjusting the profit and loss attributable to ordinary shareholders of the Company by the weighted
average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, which comprise convertible
notes and share options granted to employees, if any.

2.21 Segment reporting

A segment is a distinguishable component of the Group that is engaged either in providing products or services (business segment),
or in providing products or services within a particular economic environment (geographical segment), which is subject to risks
and rewards that are different from those of other segments.
 131 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 MARCH 2009

3. Property, Plant and Equipment

At Disposals/ At
1.4.2008 Additions Write offs Transfers 31.3.2009
Group RM000 RM000 RM000 RM000 RM000

At cost
Freehold land 1,224 1,224
Buildings 172,823 753 13,770 187,346
Plant and pipelines 13,077,850 6,867 (1,500) 179,907 13,263,124
Expendable capital improvements 800 800
Office equipment, furniture and fittings 58,141 531 (325) 1,668 60,015
Other plant and equipment 69,314 11,313 (428) 566 80,765
Computer hardware and software 47,078 1,387 (249) 3,103 51,319
Motor vehicles 22,843 5,475 (173) 28,145
Plant turnaround/major inspection 83,016 83,639 166,655
Projects-in-progress 366,079 311,360 (283,400) 394,039
13,899,168 337,686 (2,675) (747)(a) 14,233,432

At Charge for Disposals/ At

1.4.2008 the year Write offs Transfers Impairment 31.3.2009
RM000 RM000 RM000 RM000 RM000 RM000

Accumulated depreciation
Freehold land
Buildings 40,334 4,156 44,490
Plant and pipelines 6,626,860 565,946 (1,173) (1,038) 12,241 7,202,836
Expendable capital
improvements 800 800
Office equipment,
furniture and fittings 53,176 1,601 (325) 54,452
Other plant and equipment 45,857 6,535 (420) (4) 51,968
Computer hardware and software 40,034 3,390 (237) 306 43,493
Motor vehicles 20,931 1,540 (146) 22,325
Plant turnaround/major
inspection 20,383 32,187 736 53,306
Projects-in-progress
6,848,375 615,355 (2,301) 12,241 7,473,670

(a) This is in relation to capitalisation of projects-in-progress to prepaid lease payments of RM29,000 (2008 - RM322,000) and
property, plant and equipment expensed off of RM718,000 (2008 - RM330,000).
 132 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 march 2009

3. Property, Plant and Equipment (Contd)

At Disposals/ At
1.4.2007 Additions Write offs Transfers 31.3.2008
Group RM000 RM000 RM000 RM000 RM000

At cost
Freehold land 1,224 1,224
Buildings 169,219 1,147 2,457 172,823
Plant and pipelines 13,000,038 4,438 (5,000) 78,374 13,077,850
Expendable capital improvements 800 800
Office equipment, furniture and fittings 56,934 1,088 (218) 337 58,141
Other plant and equipment 66,148 2,760 (85) 491 69,314
Computer hardware and software 43,768 976 (203) 2,537 47,078
Motor vehicles 22,378 797 (332) 22,843
Plant turnaround/major inspection 29,789 53,227 83,016
Projects-in-progress 295,635 208,519 (138,075) 366,079
13,685,933 219,725 (5,838) (652)(a) 13,899,168

At Charge for Disposals/ At

1.4.2007 the year Write offs Transfers 31.3.2008
RM000 RM000 RM000 RM000 RM000

Accumulated depreciation
Freehold land
Buildings 36,893 3,440 1 40,334
Plant and pipelines 6,041,772 589,094 (3,520) (486) 6,626,860
Expendable capital improvements 800 800
Office equipment, furniture and fittings 52,034 1,405 (205) (58) 53,176
Other plant and equipment 40,642 5,281 (70) 4 45,857
Computer hardware and software 36,852 3,328 (203) 57 40,034
Motor vehicles 20,135 1,129 (333) 20,931
Plant turnaround/major inspection 4,656 15,245 482 20,383
Projects-in-progress
6,233,784 618,922 (4,331) 6,848,375
 133 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 MARCH 2009

3. Property, Plant and Equipment (Contd)

At Disposals/ At
1.4.2008 Additions Write offs Transfers 31.3.2009
Company RM000 RM000 RM000 RM000 RM000

At cost
Freehold land 1,224 1,224
Buildings 172,823 753 13,770 187,346
Plant and pipelines 13,077,850 6,867 (1,500) 179,907 13,263,124
Expendable capital improvements 800 800
Office equipment, furniture and fittings 58,141 531 (325) 1,668 60,015
Other plant and equipment 69,314 11,313 (428) 566 80,765
Computer hardware and software 47,078 1,387 (249) 3,103 51,319
Motor vehicles 22,843 5,475 (173) 28,145
Plant turnaround/major inspection 83,016 83,639 166,655
Projects-in-progress 366,079 308,679 (283,400) 391,358
13,899,168 335,005 (2,675) (747)(a) 14,230,751

At Charge for Disposals/ At

1.4.2008 the year Write offs Transfers Impairment 31.3.2009
RM000 RM000 RM000 RM000 RM000 RM000

Accumulated depreciation
Freehold land
Buildings 40,334 4,156 44,490
Plant and pipelines 6,626,860 565,946 (1,173) (1,038) 12,241 7,202,836
Expendable capital
improvements 800 800
Office equipment,
furniture and fittings 53,176 1,601 (325) 54,452
Other plant and equipment 45,857 6,535 (420) (4) 51,968
Computer hardware
and software 40,034 3,390 (237) 306 43,493
Motor vehicles 20,931 1,540 (146) 22,325
Plant turnaround/major
inspection 20,383 32,187 736 53,306
Projects-in-progress
6,848,375 615,355 (2,301) 12,241 7,473,670
 134 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 march 2009

3. Property, Plant and Equipment (Contd)

At Disposals/ At
1.4.2007 Additions Write offs Transfers 31.3.2008
Company RM000 RM000 RM000 RM000 RM000

At cost
Freehold land 1,224 1,224
Buildings 169,219 1,147 2,457 172,823
Plant and pipelines 13,000,038 4,438 (5,000) 78,374 13,077,850
Expendable capital improvements 800 800
Office equipment, furniture and fittings 56,934 1,088 (218) 337 58,141
Other plant and equipment 66,148 2,760 (85) 491 69,314
Computer hardware and software 43,768 976 (203) 2,537 47,078
Motor vehicles 22,378 797 (332) 22,843
Plant turnaround/major inspection 29,789 53,227 83,016
Projects-in-progress 295,635 208,519 (138,075) 366,079
13,685,933 219,725 (5,838) (652)(a) 13,899,168

At Charge for Disposals/ At

1.4.2007 the year Write offs Transfers 31.3.2008
RM000 RM000 RM000 RM000 RM000

Accumulated depreciation
Freehold land
Buildings 36,893 3,440 1 40,334
Plant and pipelines 6,041,772 589,094 (3,520) (486) 6,626,860
Expendable capital improvements 800 800
Office equipment, furniture and fittings 52,034 1,405 (205) (58) 53,176
Other plant and equipment 40,642 5,281 (70) 4 45,857
Computer hardware and software 36,852 3,328 (203) 57 40,034
Motor vehicles 20,135 1,129 (333) 20,931
Plant turnaround/major inspection 4,656 15,245 482 20,383
Projects-in-progress
6,233,784 618,922 (4,331) 6,848,375
 135 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 MARCH 2009

3. Property, Plant and Equipment (Contd)

Carrying Amount
Group 2009 2008
RM000 RM000

Freehold land 1,224 1,224

Buildings 142,856 132,489
Plant and pipelines 6,060,288 6,450,990
Expendable capital improvements
Office equipment, furniture and fittings 5,563 4,965
Other plant and equipment 28,797 23,457
Computer hardware and software 7,826 7,044
Motor vehicles 5,820 1,912
Plant turnaround/major inspection 113,349 62,633
Projects-in-progress 394,039 366,079
6,759,762 7,050,793

Carrying Amount
Company 2009 2008
RM000 RM000

Freehold land 1,224 1,224

Buildings 142,856 132,489
Plant and pipelines 6,060,288 6,450,990
Expendable capital improvements
Office equipment, furniture and fittings 5,563 4,965
Other plant and equipment 28,797 23,457
Computer hardware and software 7,826 7,044
Motor vehicles 5,820 1,912
Plant turnaround/major inspection 113,349 62,633
Projects-in-progress 391,358 366,079
6,757,081 7,050,793
 136 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 march 2009

4. Prepaid Lease Payments

At Disposals/ At
1.4.2008 Additions Write offs Transfers 31.3.2009
Group/Company RM000 RM000 RM000 RM000 RM000

At cost
Leasehold land
long lease 484,627 15,646 (112,313) 387,960
short lease 29,400 112,342 141,742
514,027 15,646 29 529,702

At Charge for Disposals/ At

1.4.2008 the year Write offs Transfers 31.3.2009
RM000 RM000 RM000 RM000 RM000

Accumulated amortisation
Leasehold land
long lease 62,868 6,457 (20,350) 48,975
short lease 7,668 146 20,350 28,164
70,536 6,603 77,139

At Disposals/ At
1.4.2007 Additions Write offs Transfers 31.3.2008
Group/Company RM000 RM000 RM000 RM000 RM000

At cost
Leasehold land
long lease 497,584 10,333 (84) (23,206) 484,627
short lease 5,872 23,528 29,400
503,456 10,333 (84) 322 514,027

At Charge for Disposals/ At

1.4.2007 the year Write offs Transfers 31.3.2008
RM000 RM000 RM000 RM000 RM000

Accumulated amortisation
Leasehold land
long lease 61,098 5,998 (10) (4,218) 62,868
short lease 3,063 387 4,218 7,668
64,161 6,385 (10) 70,536
 137 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 MARCH 2009

4. Prepaid Lease Payments (Contd)

Carrying Amount
Group/Company 2009 2008
RM000 RM000

Leasehold land:
long lease 338,985 421,759
short lease 113,578 21,732
452,563 443,491

The titles to certain leasehold lands are in the process of being registered in the Companys name.

5. Investment in Subsidiary
On 24 November 2008, the Company entered into a Shareholders Agreement with Yayasan Sabah to set up a joint venture company to
develop a 300 megawatt gas power plant and related facilities and infrastructure in Kimanis, District of Papar, Kota Kinabalu, Sabah.
The equity participation of the Company and Yayasan Sabah under the Shareholders Agreement is 60:40, respectively.

The joint venture company, known as Kimanis Energy Venture Sdn. Bhd. (formerly known as Unik Kuasa Sdn. Bhd.) (KEVSB) was incorporated
on 22 December 2008 with an authorised capital of RM100,000 comprising 100,000 ordinary shares of RM1 each and initial paid up
capital of RM2 divided into 2 ordinary shares of RM1 each.

A Deed of Novation was entered between the Company, Yayasan Sabah and NRG Consortium (Sabah) Sdn. Bhd. (NRG), a subsidiary of
Yayasan Sabah Group on 10 March 2009 to novate the Shareholders Agreement from Yayasan Sabah to NRG, in accordance with the terms
and conditions of the Shareholders Agreement. As at 31 March 2009, both the Company and NRG held 1 ordinary share each in KEVSB.

Details of the subsidiary are as follows:

Effective
ownership
Country of interest
Name of company Principal activities incorporation 2009 2008
% %

Kimanis Energy Venture Sdn. Bhd. Generation and sale Malaysia 50

(formerly known as Unik Kuasa Sdn. Bhd.) of electricity

Although the Company owns only half of the voting power, it is able to govern the financial and operating policies of KEVSB by virtue
of the Shareholders Agreement.

As at 31 March 2009, both the Company and NRG had contributed RM4,578,000 and RM3,052,000, respectively, in the form of shareholders
advances. The advances as referred to in Note 9 and Note 18, will be converted to ordinary share capital, upon obtaining necessary
approvals from shareholders.
 138 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 march 2009

5. Investment in Subsidiary (Contd)

Subsequent to year end, KEVSB Board has recommended that the shareholders of KEVSB approve the increase in authorised share capital
from RM100,000 to RM500,000,000, issued share capital from RM2 to RM5,000,000 and allotment of new ordinary shares on 60:40
basis to both the Company and NRG. Subject to the shareholders approval, this will result in the Company and NRG owning 60:40 of
the equity participation in KEVSB.

6. Investment in an Associate
Group Company
2009 2008 2009 2008
RM000 RM000 RM000 RM000

Investment at cost:
unquoted shares 103,336 103,336 103,336 103,336
Share of post-acquisition profits and reserves 66,005 74,955
169,341 178,291 103,336 103,336

Details of the associate are as follows:

Effective
Country of Accounting ownership
Name of company Principal activities incorporation period ended interest
2009 2008
% %

Gas Malaysia Sdn. Bhd. Selling, marketing, Malaysia 31 December 20 20

distribution and promotion
of natural gas

Summary of financial information on associate as per the audited financial statements for accounting period ended 31 December
is as follows:
Total Total
Revenue Profit assets liabilities
(100%) (100%) (100%) (100%)
RM000 RM000 RM000 RM000

2008
Gas Malaysia Sdn. Bhd. 1,879,617 269,326 1,409,272 422,158

2007
Gas Malaysia Sdn. Bhd. 1,381,663 230,038 1,182,866 366,638
 139 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 MARCH 2009

6. Investment in an Associate (Contd)

Contingent liabilities
Group
2009 2008
RM000 RM000

Share of associates contingent liabilities incurred jointly with other investors

Bank guarantees 1,631 652

7. Investment in Jointly Controlled Entity

Group Company
2009 2008 2009 2008
RM000 RM000 RM000 RM000

Investment at cost:
unquoted shares 250 250 250 250
Share of post-acquisition profits and reserves 2,912 1,280
3,162 1,530 250 250

Details of the jointly controlled entity are as follows:

Effective
Country of Accounting ownership
Name of company Principal activities incorporation period ended interest
2009 2008
% %

Industrial Gases Solutions Selling, marketing, Malaysia 31 December 50 50

Sdn. Bhd. distribution and promotion
of industrial gas

Summary of financial information on jointly controlled entity as per the audited financial statements for accounting period
ended 31 December is as follows:
Total Total
Revenue Profit assets liabilities
(100%) (100%) (100%) (100%)
RM000 RM000 RM000 RM000

2008
Industrial Gases Solutions Sdn. Bhd. 10,360 1,960 6,024 1,466

2007
Industrial Gases Solutions Sdn. Bhd. 7,990 2,098 3,525 926

There are no contingent liabilities from the jointly controlled entity.

 140 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 march 2009

8. Trade and Other Inventories

Group Company
2009 2008 2009 2008
RM000 RM000 RM000 RM000

At cost:
Liquefied gases and water 379 373 379 373
Maintenance materials and spares 146,034 149,177 146,034 149,177
146,413 149,550 146,413 149,550

Maintenance materials and spares amounting to RM4,168,000 were written off during the financial year (2008 RM2,639,000).

9. Trade and Other Receivables

Group Company
Note 2009 2008 2009 2008
RM000 RM000 RM000 RM000

Trade receivables 5,619 2,596 5,619 2,596

Other receivables 9.1 5,661 11,634 5,661 11,634
Deposits 1,001 1,002 1,001 1,002
Prepayments 14,164 4,750 14,164 4,750
Amounts due from:
Holding company 9.2 111,118 136,681 111,118 136,681
Related companies 9.3 82,384 55,007 82,384 55,007
Subsidiary 802
Jointly controlled entity
Trade 1,275 1,035 1,275 1,035
Related parties
Trade 9.4 98,588 49,138 98,588 49,138
Advance to subsidiary 9.5 4,578
319,810 261,843 325,190 261,843

9.1 Included in other receivables of the Company is interest receivable of RM1,853,000 (2008 RM8,452,000).
 141 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 MARCH 2009

9. Trade and Other Receivables (Contd)

9.2 The amount due from holding company relates to:
Group Company
2009 2008 2009 2008
RM000 RM000 RM000 RM000

Trade 178,394 187,875 178,394 187,875

Non-trade (67,276) (51,194) (67,276) (51,194)
111,118 136,681 111,118 136,681

9.3 The amounts due from related companies relate to:

Group Company
2009 2008 2009 2008
RM000 RM000 RM000 RM000

Trade 74,334 48,324 74,334 48,324

Non-trade 8,050 6,683 8,050 6,683
82,384 55,007 82,384 55,007

9.4 The amounts due from related parties are in relation to associate companies and jointly controlled entity of the holding
company.

9.5 The advance to subsidiary relates to capital contribution which will be converted to ordinary shares in KEVSB, upon obtaining
necessary approvals from the shareholders of KEVSB.

The credit period granted for trade receivables is 30 days (2008 30 days). The trade and non-trade receivables arose from the normal
course of business.

10. Fund and Other Investments

Group Company
2009 2008 2009 2008
RM000 RM000 RM000 RM000

Current
Fair value through profit or loss financial assets:
Malaysian Government Securities 45,539 45,539
Other unquoted securities 25,324 25,324
70,863 70,863
 142 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 march 2009

11. Cash and Cash Equivalents

Group Company
2009 2008 2009 2008
RM000 RM000 RM000 RM000

Deposits 1,944,889 1,703,456 1,944,889 1,703,456

Cash and bank balances 247 4,349 247 4,349
1,945,136 1,707,805 1,945,136 1,707,805

Deposits with licensed financial institutions:

Banks 1,939,796 1,119,073 1,939,796 1,119,073
Other corporations 5,093 584,383 5,093 584,383
1,944,889 1,703,456 1,944,889 1,703,456

12. Share Capital

Group Company
2009 2008 2009 2008
RM000 RM000 RM000 RM000

Authorised:
2,000,000,000 ordinary shares of RM1 each 2,000,000 2,000,000 2,000,000 2,000,000

Issued and fully paid:

1,978,732,000 ordinary shares of RM1 each 1,978,732 1,978,732 1,978,732 1,978,732

13. Reserves
Group Company
2009 2008 2009 2008
RM000 RM000 RM000 RM000

Non-distributable:
Share premium 1,186,472 1,186,472 1,186,472 1,186,472
Distributable:
Unappropriated profits 4,873,759 4,757,191 4,806,487 4,680,956
6,060,231 5,943,663 5,992,959 5,867,428

Subject to agreement by the Inland Revenue Board, the Company has sufficient tax exempt account and Section 108 tax credit to
distribute approximately RM516,695,000 of its unappropriated profits at 31 March 2009, if paid out as dividends.

The Finance Act, 2007 introduced a single tier company income tax system with effect from year of assessment 2008. As such, the Section
108 tax credit as at 31 December 2007 will be available to the Company until such time the credit is fully utilised or upon expiry of the
six-year transitional period on 31 December 2013, whichever is earlier.
 143 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 MARCH 2009

14. Minority Shareholders Interest

This consists of the minority shareholders proportion of share capital and reserves of the subsidiary. The losses attributable to the minority
exceeded the minoritys interest, resulting in a deficit. As at 31 March 2009, the minority shareholder had contributed RM3,052,000 in
the form of shareholders advance, as referred to in Note 18. The advance will be converted to ordinary share capital, upon obtaining
necessary approvals from the shareholders of KEVSB. As the additional potential investment is sufficient to cover the deficit, the losses
applicable to the minority shareholder are not absorbed by the Group.

15. Borrowings
Group Company
2009 2008 2009 2008
RM000 RM000 RM000 RM000

Non-current
Term loan unsecured 591,432 454,100 591,432 454,100
Derivative asset Currency Exchange Agreement (CEA) (141,807) (141,807)
Total 449,625 454,100 449,625 454,100

Terms and debt repayment schedule

Total 2 5 years
RM000 RM000

Unsecured term loan (net of derivative asset)

2009 3.4% 449,625 449,625
2008 3.4% 454,100 454,100

The early adoption of FRS 139 affects the unsecured term loan comprising the 6th series 3.4% Samurai Bond which was on lent from
PETRONAS to the Company on 21 April 1997. The term loan represents an amount equivalent to Yen 16 billion. Under the CEA with
PETRONAS, the repayment of the principal amount is at a fixed exchange rate of 100 Yen RM2.838. The loan is due for payment in
year 2013.

In the previous year, the CEA was not fair valued and was treated as the hedging instrument of the term loan. Consequently, the term
loan was translated at the CEA contracted rate of 100 Yen RM2.838. Hence, the figure as at 31 March 2009 is not directly comparable
to the comparative figure as at 31 March 2008.

Under FRS 139, the underlying Yen 16 billion term loan and the CEA are to be valued and accounted separately at each reporting date.
The term loan will be translated at the spot rate at the reporting date whereas the CEA, being a derivative asset, will be fair valued.
The fair value of the CEA is determined based on the difference in discounted cash flow using forward exchange rate and contracted
rate. Any increase or decrease in the translation or valuation is recorded accordingly in the financial statements. The volatility and the
impact to the financial statements are dependent on the exchange rate and interest rate movement.

For the purpose of presentation of the financial statements, both the term loan and the CEA are netted off since the conditions of legally
enforceable right and the intention to settle on net basis are met.

The net unrealised loss arising from retranslation of term loan and revaluation of CEA during the year was RM33,973,000 (2008 - Nil).
 144 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 march 2009

16. Deferred Tax Liabilities

The components and movements of deferred tax liabilities and assets during the financial year prior to offsetting are as follows:
Effect Charged/
of (Credited)
As at adopting to Income As at
1.4.2008 FRS 139 Statement 31.3.2009
Group/Company RM000 RM000 RM000 RM000

Deferred tax liabilities

Property, plant and equipment 1,167,900 (19,082) 1,148,818
Financial instrument valuation 25,299 10,443 35,742
Total 1,167,900 25,299 (8,639) 1,184,560

Deferred tax assets

Deferred income (4,900) 672 (4,228)
Foreign currency translation (15,687) (18,645) (34,332)
Total (4,900) (15,687) (17,973) (38,560)

Effect Charged/
of (Credited)
As at adopting to Income As at
1.4.2007 FRS 139 Statement 31.3.2008
Group/Company RM000 RM000 RM000 RM000

Deferred tax liabilities

Property, plant and equipment 1,243,700 (75,800) 1,167,900

Deferred tax assets

Deferred income (5,700) 800 (4,900)

Deferred tax liabilities and deferred tax assets are offset when there is a legally enforceable right to set off current tax assets against
current tax liabilities and when the deferred taxes relate to the same tax authority. The following amounts determined after appropriate
offsetting, are as follows:
Group Company
2009 2008 2009 2008
RM000 RM000 RM000 RM000

Deferred tax liabilities

Deferred tax liabilities 1,184,560 1,167,900 1,184,560 1,167,900
Deferred tax assets (38,560) (4,900) (38,560) (4,900)
At 31 March 1,146,000 1,163,000 1,146,000 1,163,000
 145 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 MARCH 2009

17. Deferred Income

Group Company
Note 2009 2008 2009 2008
RM000 RM000 RM000 RM000

At 1 April 23,545 27,652 23,545 27,652

Less: Recognised in the income statement (4,107) (4,107) (4,107) (4,107)
At 31 March 19,438 23,545 19,438 23,545

Analysis of deferred income:

Current 18 4,107 4,107 4,107 4,107
Non-current 15,331 19,438 15,331 19,438
19,438 23,545 19,438 23,545

Deferred income mainly refers to the payment received in advance from third party, related companies and related parties for the rights
given to these parties to use the Companys property, plant and equipment over a period of time. The deferred income is recognised on
a time apportionment basis over the period.

18. Trade and Other Payables

Group Company
Note 2009 2008 2009 2008
RM000 RM000 RM000 RM000

Trade payables 18.1 143 138 143 138

Other payables 18.2 87,145 63,331 87,104 63,331
Accruals 18.2 93,908 77,993 93,908 77,993
Amount due to related companies 18.3 6,907 1,406 6,907 1,406
Amount due to subsidiary 18.4 3,485
Advance from minority shareholder 18.5 3,052
Deferred income 17 4,107 4,107 4,107 4,107
195,262 146,975 195,654 146,975

18.1 The credit period granted to the Company is 30 days (2008 30 days).

18.2 Included in other payables and accruals are amounts owing to suppliers and contractors for purchase of property, plant and
equipment of approximately RM176,314,000 (2008 RM137,070,000). Also included in other payables are interest payable of
RM3,862,000 (2008 RM3,424,000).

18.3 The amounts due to related companies are non-trade in nature. These payables arose from the normal course of business.

18.4 The amount due to subsidiary relates to cash held by the Company on behalf of the subsidiary.

18.5 The advance from minority shareholder relates to capital contribution which will be converted to ordinary share capital, upon
obtaining necessary approvals from shareholders of KEVSB.
 146 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 march 2009

19. Gross Profit

Group Company
2009 2008 2009 2008
RM000 RM000 RM000 RM000

Revenue
throughput fees 2,657,990 2,513,521 2,657,990 2,513,521
sale of industrial utilities 757,151 612,224 757,151 612,224
3,415,141 3,125,745 3,415,141 3,125,745

Cost of revenue
cost of throughput 1,565,432 1,335,461 1,565,432 1,335,461
cost of industrial utilities 628,971 444,537 628,971 444,537
2,194,403 1,779,998 2,194,403 1,779,998
Gross profit 1,220,738 1,345,747 1,220,738 1,345,747

20. Operating Profit
Group Company
2009 2008 2009 2008
RM000 RM000 RM000 RM000

Operating profit is arrived at after charging:

Audit fees 177 154 177 154
Contribution to retirement benefits 7,294 7,839 7,294 7,839
Contribution to Employees Provident Fund 26,523 19,228 26,523 19,228
Depreciation of property, plant and equipment 615,355 618,922 615,355 618,922
Amortisation of prepaid lease payments 6,603 6,385 6,603 6,385
Impairment loss on property, plant and equipment 12,241 12,241
Maintenance materials and spares written off 4,168 2,639 4,168 2,639
Property, plant and equipment expensed off 1,607 1,318 1,607 1,318
Property, plant and equipment written off 374 1,505 374 1,505
Rental of equipment and motor vehicles 7,930 6,731 7,930 6,731
Rental of land and buildings 5,302 5,664 5,302 5,664
Unrealised loss on retranslation of term loan 74,582 74,582

and crediting:
Dividend income from associate 62,774 19,686
Gain on realised foreign exchange 180 167 180 167
Gain on disposal of property, plant and equipment 17 60 17 60
Gain on disposal of prepaid lease 597 597
Interest income from fund and other investments 60,506 47,569 60,433 47,569
Rental income on land and buildings 235 227 235 227
Unrealised gain on CEA revaluation 40,609 40,609
Unrealised gain on changes in values of Malaysia
Government Securities and other unquoted securities 1,163 1,163
 147 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 MARCH 2009

21. Employee Information

Group Company
2009 2008 2009 2008
RM000 RM000 RM000 RM000

Staff costs 317,546 268,364 317,546 268,364

Included in staff costs are manpower expenses capitalised to projects-in-progress of RM37,463,000 (2008 RM30,556,000).

22. Key Management Personnel Compensation

Group Company
2009 2008 2009 2008
RM000 RM000 RM000 RM000

Directors
Fees 327 349 327 349
Other short term employee benefits
(including estimated monetary
value of benefits-in-kind) 46 17 46 17
373 366 373 366

The Company pays management fee to the holding company in relation to services of key management personnel of the Company as
disclosed in Note 29.

23. Financing Costs

Group Company
2009 2008 2009 2008
RM000 RM000 RM000 RM000

Interest expense on:

Term loan unsecured 19,402 16,344 19,402 16,344
 148 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 march 2009

24. Tax Expenses

Group Company
2009 2008 2009 2008
RM000 RM000 RM000 RM000

Current tax expense

current year 324,224 377,000 324,224 377,000
under/(over) provision in prior year 5,803 (816) 5,803 (816)
330,027 376,184 330,027 376,184

Deferred tax expense

reversal of temporary differences (26,131) (31,726) (26,131) (31,726)
effect of difference in tax rate (46,520) (46,520)
under/(over) provision in prior year (481) 3,246 (481) 3,246
(26,612) (75,000) (26,612) (75,000)

Tax expense 303,415 301,184 303,415 301,184

Tax expense on share of profit of associate 17,411 10,894

Tax expense on share of profit of jointly controlled entity 407 471

Total tax expense 321,233 312,549 303,415 301,184

With effect from year of assessment 2009, corporate tax rate is at 25% (2008 26%). Deferred tax assets and liabilities are measured
using this tax rate.

A reconciliation of income tax expense applicable to profit before taxation at the statutory income tax rate to income tax expense at
the effective income tax rate of the Group and of the Company is as follows:
Group Company
2009 2008 2009 2008
RM000 RM000 RM000 RM000

Profit before taxation 1,231,445 1,394,133 1,241,070 1,366,020

Income tax using Malaysian statutory

tax rate at 25% (2008 26%) 307,861 362,475 310,268 355,165
Non-deductible expenses 15,560 4,019 4,016 3,891
Income not subject to tax (10,151) (5,118)
Utilisation of reinvestment allowance (6,040) (8,664) (6,040) (8,664)
Utilisation of investment tax allowance (1,464) (884)
Current year tax losses not recognised 402 32
Effect of changes in Malaysian statutory tax rate on deferred tax (1,234) (46,859) (46,520)
315,085 310,119 298,093 298,754
Under provision in prior years 6,148 2,430 5,322 2,430
Tax expense 321,233 312,549 303,415 301,184

 149 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 MARCH 2009

25. Dividends
Group Company
2009 2008 2009 2008
RM000 RM000 RM000 RM000

Ordinary
Final paid:
2008 20% per share tax exempt and 15% per share
less 25% tax (2007 20% per share tax exempt
and 10% per share less 27% tax) 618,354 540,194 618,354 540,194

Interim paid:
15% per share less 25% tax
(2008 15% per share less 27% tax) 222,607 216,671 222,607 216,671
840,961 756,865 840,961 756,865

The proposed final dividend of 20% per share tax exempt, 5.1% per share less 25% tax and 9.9% per share tax exempt under the single tier
tax system (2008 20% per share tax exempt and 15% per share less 25% tax) amounting to RM667,180,000 (2008 RM618,354,000)
has not been accounted for in the financial statements.

The net dividend per ordinary share as disclosed in the income statement for the financial year ended 31 March 2009 on page 115 takes
into account the total interim and proposed final dividends for the financial year as follows:
Group Company
2009 2008 2009 2008
Sen Sen Sen Sen

Interim dividend per ordinary share paid net 11.3 10.9 11.3 10.9
Final dividend per ordinary share proposed net 33.7 31.3 33.7 31.3
45.0 42.2 45.0 42.2

26. Earnings Per Share
Basic earnings per share
The earnings per share (EPS) is derived based on the net profit attributable to ordinary shareholders of RM928,692,000 (2008
RM1,092,949,000) and on the number of ordinary shares outstanding during the year of 1,978,732,000 (2008 1,978,732,000).

Diluted earnings per share

The Company has not issued any dilutive potential ordinary shares, hence, the diluted EPS is the same as the basic EPS.
 150 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 march 2009

27. Changes in Accounting Policies

At the beginning of the current financial year, the Group and the Company had adopted new and revised FRSs issued by MASB as disclosed
in Note 1.1.

The principal changes in accounting policies and their effects resulting from the above are as follows:
FRS 112, Income Taxes
The adoption of FRS 112 during the year has resulted in a change in the accounting policy in relation to treatment of reinvestment
allowance. Prior to the adoption of FRS 112, the Group and the Company have not recognised reinvestment allowance as deferred tax asset.
Following the adoption of FRS 112, this tax incentive had been accounted for by applying the analogy of the accounting treatment for
unused tax losses. The effect of adopting FRS 112 had been accounted for retrospectively in accordance with the transitional provisions
in the revised FRS 112 and does not have material impact on the Groups and the Companys financial statements.

FRS 139, Financial Instruments

The adoption of FRS 139 has resulted in a change in the accounting policy in relation to recognition and measurement of financial
instruments.

Prior to the adoption of FRS 139, the accounting policies for certain financial assets, financial liabilities and derivative financial
instruments were as follows:
derivative financial instrument in relation to the CEA was treated as a hedging instruments and was not recorded in the financial
statements;
the term loan was translated at the contracted rate as agreed in the CEA;
trade and other receivables were stated at cost less allowance for doubtful debts; and
trade and other payables were measured initially and subsequently at cost.

On adoption of FRS 139, the Group and the Company have recognised financial assets and financial liabilities in the balance sheet when
the Group and the Company become parties to the contractual provisions of the instruments. The Group and the Company have measured
financial assets and financial liabilities at its fair value upon initial recognition.

The subsequent measurement of financial assets, financial liabilities and derivative financial instruments depends on their classification
determined by the Group and the Company upon initial recognition, as detailed in Note 2.5.

The effect of the adoption of FRS 139 on the opening retained profits as at 1 April 2008 is analysed as follows:
Group Company
RM000 RM000

Retained profits
Opening balance as previously disclosed 4,757,191 4,680,956
Effect of adopting FRS 139 28,837 28,837
Opening balance, restated 4,786,028 4,709,793

 151 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 MARCH 2009

28. Capital Commitments

Outstanding commitments in respect of capital expenditure at balance sheet date not provided for in the financial statements are:
Group Company
2009 2008 2009 2008
RM000 RM000 RM000 RM000

Property, plant and equipment:

Approved and contracted for
Less than one year 86,865 94,060 79,403 94,060
Between one and five years 18,022 2,311 18,022 2,311

Approved but not contracted for
Less than one year 48,554 77,651 48,554 77,651
Between one and five years 63,919 84,684 63,919 84,684
217,360 258,706 209,898 258,706

29. Related Party Transactions
The Company has a controlling related party relationship with the holding company as disclosed in Note 31.

For the purposes of these financial statements, parties are considered to be related to the Group or the Company if the Group or the
Company has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial
and operating decisions, or vice versa, or where the Group or the Company and the party are subject to common control or common
significant influence. Related parties may be individuals or other entities.

In addition to the transactions detailed elsewhere in the financial statements, the Company had the following transactions with related
parties during the financial year:
2009 2008
Group/Company RM000 RM000

Holding company:
Throughput fee income 2,657,990 2,513,521
Purchase of fuel gas (882,223) (524,895)
Rental of office premises (4,905) (5,271)
Management fees (737) (737)
 152 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 march 2009

29. Related Party Transactions (Contd)

Group/Company 2009 2008
RM000 RM000
Related companies:
Aromatics Malaysia Sdn. Bhd.
Sale of industrial utilities 37,721 27,079
Vinyl Chloride (Malaysia) Sdn. Bhd.
Sale of industrial utilities 51,703 48,492
PETRONAS Ammonia Sdn. Bhd.
Sale of industrial utilities 94,511 79,463
MTBE Malaysia Sdn. Bhd.
Sale of industrial utilities 94,716 84,273
Petlin (Malaysia) Sdn. Bhd.
Sale of industrial utilities 56,534 44,338
Bekalan Air KIPC Sdn. Bhd.
Purchase of treated water (14,836) (5,382)
Management fee income 500 500
PETRONAS Carigali Sdn. Bhd.
Lease income on equipment 1,441 1,441
Project management fee 9,995 11,063
CEFS Response
Contribution for emergency response services (8,435) (5,840)

Jointly controlled entity:
Industrial Gases Solutions Sdn. Bhd.
Sale of industrial utilities 6,444 5,694

Associate companies and jointly controlled entity of the holding company:

Kertih Terminal Sdn. Bhd.
Sale of industrial utilities 6,069 4,625

BASF PETRONAS Chemicals Sdn. Bhd.
Sale of industrial utilities 69,775 60,795

BP PETRONAS Acetyls Sdn. Bhd.
Sale of industrial utilities 31,726 33,787

Optimal Group of Companies
Sale of industrial utilities 257,569 177,808

Trans Thai-Malaysia (Malaysia) Sdn. Bhd.
Access right of way fee 945 949
Annual operations and maintenance fee 1,000 1,000
 153 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 MARCH 2009

29. Related Party Transactions (Contd)

Company 2009 2008
RM000 RM000
Subsidiary company:
Project management services 2,212

The terms and conditions for the above transactions are based on normal trade terms. All the amounts outstanding are unsecured and
expected to be settled with cash. The balances may also be subjected to interest charge ranging from 6.55% to 9.05% (2008 - 7.75%
to 9.75%) per annum.

Included in the management fees paid to the holding company is payment for services of certain key management personnel of the
Company.

Information regarding outstanding balances arising from related party transactions as at 31 March 2009 is disclosed in Note 9 and Note
18.

30. Segmental Information

Segment information is presented in respect of the Groups business segments which are based on the internal reporting structure
presented to the management of the Company.

The Groups principal business segments are services rendered for separating natural gas into its components and the storing, transporting
and distributing such components, and sale of industrial utilities.

The Group operates only in Malaysia and accordingly, information by geographical location of the Groups operations is not presented.

The segmental information in respect of the associate and jointly controlled entity is not presented as the contribution of the associate
and jointly controlled entity and the carrying amount of investment in the associate and jointly controlled entity are not material and
have been reflected in the income statement and balance sheet of the Group. Details of the associate and jointly controlled entity are
disclosed in Note 6 and Note 7 to the financial statements respectively.
 154 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 march 2009

30. Segmental Information (Contd)

Throughput
Services Utilities Total
2009 2008 2009 2008 2009 2008
RM000 RM000 RM000 RM000 RM000 RM000

Business segments
Revenue 2,657,990 2,513,521 757,151 612,224 3,415,141 3,125,745

Segment results 1,092,558 1,178,060 128,180 167,687 1,220,738 1,345,747

Unallocated (expenses)/income (25,348) 16,931

Operating profit 1,195,390 1,362,678

Financing costs (19,402) (16,344)

Share of profit after tax of
equity accounted associate
and jointly controlled entity 55,457 47,799
Profit before taxation 1,231,445 1,394,133
Tax expense (303,415) (301,184)
Profit for the year 928,030 1,092,949

Segment assets 5,724,093 5,868,850 1,962,515 2,043,590 7,686,608 7,912,440

Investment in associate 169,341 178,291

Investment in jointly
controlled entity 3,162 1,530
Unallocated assets 2,007,939 1,701,042
Total assets 9,867,050 9,793,303

Segment liabilities 151,809 199,545 38,333 25,083 190,142 224,628

Unallocated liabilities 1,638,607 1,646,280

Total liabilities 1,828,749 1,870,908

Capital expenditure 323,503 183,836 27,148 46,222 350,651 230,058

Unallocated capital
expenditure 2,681
Depreciation and amortisation 469,185 477,801 152,773 147,506 621,958 625,307
Other unallocated
non-cash expenses 46,214
 155 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 MARCH 2009

30. Segmental Information (Contd)

Other unallocated non-cash expenses consist of net unrealised loss from the retranslation of term loan and revaluation of CEA and
impairment of assets.

The Group does not have significant non-cash expenses other than those disclosed above.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a
reasonable basis. Unallocated items mainly comprise interest-earning assets and income, interest-bearing loans, borrowings and expenses,
and corporate assets and expenses.

Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for
more than one period.

31. Holding Company

The holding company as well as the ultimate holding company is Petroliam Nasional Berhad (PETRONAS), a company incorporated in
Malaysia.

32. Financial Instruments

Financial risk management
The holding company has a Group Risk Management Framework and Guideline that sets the foundation for the establishment of effective
risk management across PETRONAS Group. The Group has adopted PETRONAS Group Risk Management Framework and Guideline in its
Risk Management policies and guidelines.

The Group is exposed to various risks that are particular to its core business which consists of separating natural gas into its components
and storing, transporting and distributing such components thereof for a fee and the sale of industrial utilities. These risks arise in the
normal course of the Groups business.

The Group has written Risk Management policies and guidelines which have been approved by the Board of Directors. The policies and
guidelines set the overall business strategy, philosophy, tolerance to risk and established process to monitor and control transactions
in a timely and accurate manner. The business decision reflects appropriate balance between risk and reward to protect the Groups
personnel, business, operations, assets and corporate image. The Group is driven by its goal to create and maximise value in its core
activities and therefore will strive for improvement in providing the necessary resources, organisation, systems, training and needed
communication to ensure that risk management is institutionalised across the Group.

The main financial risks faced by the Group through its normal activities are credit risk, interest risk, foreign currency risk and liquidity
risk.
 156 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 march 2009

32. Financial Instruments (Contd)

Credit risk
Credit risk is the potential exposure of the Group to losses in the event of non-performance by its counterparties. The Group assigns and
monitors credit rating of its customers as per its Risk Management policies and guidelines.

The Groups major credit risk arises from trade transactions with utilities customers. There is no exposure to external credit risk in respect
of throughput customers.

The Group has a credit policy in place to monitor utilities customers on an ongoing basis. Credit evaluations are required to be performed
on all new customers to establish the credit limit and credit period. The Group requires bank guarantee on all third party utilities
customers.

At the balance sheet date, the significant concentration of credit risk is represented by the amount due from holding company, related
companies, jointly controlled entity and related parties arising from the normal course of business. This constitutes more than 90% of
the total trade and other receivables of the Group.

The maximum exposure to credit risk for the Group is represented by the carrying amount of each financial asset.

Interest rate risk

The Group is exposed to interest rate risk on short and long term floating rate instruments as a result of its investing and financing
activities.

For investing activities, all interest rate risks are monitored and managed proactively by PETRONAS Group Treasury Division based on
the PETRONAS Group Risk Management Framework and Guideline.

For financing activities, the Group ensures all long term loans are on a fixed interest rate. This will eliminate any risk of interest rate
fluctuation.

Foreign currency risk

Exposure to foreign currency exchange risk arises as a natural consequence of the Group engaging in business activities. The Group
practices hedging of its borrowings denominated in foreign currency.

As at 31 March 2009, the Group has outstanding term loan denominated in Japanese Yen secured via an on-lending agreement with
the holding company as disclosed in Note 15. The Group has mitigated the risk arising from foreign exchange rate movement by way of
entering into a Currency Exchange Agreement with the holding company. Under the Currency Exchange Agreement, the holding company
has agreed to make available Japanese Yen equivalent to the principal amount due on the repayment due date at the rate of 100 Yen
RM2.838. The agreed exchange rate represents the prevailing exchange rate when the loans were taken.
 157 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 MARCH 2009

32. Financial Instruments (Contd)

Liquidity risk
Liquidity risk arises due to inability to liquidate an asset from the requirement to raise funds for the business on an ongoing basis as
a result of existing and future commitments which are not funded from internal resources.

The Group monitors and maintains a level of cash and cash equivalents deemed adequate by management to finance the Groups operations
and to mitigate the effects of fluctuations in cash flows.

Fair value
The Groups financial instruments consist of cash and cash equivalents, investments, trade and other receivables, borrowings, trade and
other payables and currency management instrument.

The carrying amounts in respect of cash and cash equivalents, trade and other receivables, trade and other payables, approximate their
fair values due to the relatively short term nature of these financial instruments.

The aggregate fair values of the other financial assets and liabilities carried on the balance sheet as at 31 March 2009 are represented
in the following table:

Group/Company 2009 2008
Carrying Fair Carrying Fair
Amount Value Amount Value
RM000 RM000 RM000 RM000

Financial Assets
Fair value through profit or loss financial assets:
Malaysian Government Securities 45,539 45,539
Other unquoted securities 25,324 25,324

Loans and receivables financial assets:
Deposits with licensed financial institutions 1,944,889 1,944,889 1,703,456 1,703,456

Financial Liabilities
Term loan unsecured (net of CEA) 449,625 434,425 454,100 491,701

The fair value of financial instruments that are actively traded in organised financial markets is determined by reference to quoted market
bid prices at the close of business on the balance sheet date.

As at 31 March 2009, due to the adoption of FRS 139, the term loan and the CEA are fair valued separately. The fair value of the term
loan is derived from the price sourced from third party and translated at the spot rate at the balance sheet date. The fair value of the
CEA (i.e. Note 15) is netted off against the fair value of the term loan. In the prior year, the term loan was based on the contracted
rate of 100 Yen RM2.838 and fair valued using the price sourced from third party. The CEA being an embedded derivative, was not
separately valued. Hence, the figures are not directly comparable.
 158 p e t ro n a s ga s b e r h a d (101671-H)

Notes to the Financial Statements

31 march 2009

32. Financial Instruments (Contd)

In respect of interest-earning financial asset and interest-bearing financial liability, the following table indicates their effective interest
rates at the balance sheet date and the periods, in which they reprice or mature, whichever is earlier.

Group/Company Effective
Interest Within 2 3 34
rate Total 1 year years years
% RM000 RM000 RM000 RM000

2009
Financial Assets
Fair value through profit or loss financial assets:
Malaysian Government Securities 3.6 45,539 30,682 14,857
Other unquoted securities 4.1 25,324 15,059 10,265

Loans and receivables financial assets:

Deposits with licensed financial institutions 2.1 1,944,889 1,944,889

Financial Liabilities
Term loan unsecured (net of CEA) 3.4 449,625 449,625

2008
Financial Assets
Loans and receivables financial assets:
Deposits with licensed financial institutions 3.6 1,703,456 1,703,456

Financial Liabilities
Term loan unsecured 3.4 454,100 454,100
 159 p e t ro n a s ga s b e r h a d (101671-H)

other
information
160 Summary of Landed Property, Plant and Equipment
167 Training Programmes Attended by Directors
169 Analysis of Shareholdings
172 Corporate Directory
173 Notice of Annual General Meeting
174 Statement Accompanying Notice of Annual General Meeting
Proxy Form
 160 p e t ro n a s ga s b e r h a d (101671-H)

Summary of Landed Property, Plant and Equipment

A summary of the landed property, plant and equipment of PETRONAS Gas Berhad as at 31 March 2009 as set out below:

Carrying
Amount
Age of Plant Build-up as at 31
Acquisition Description Land Area and Building Area March 2009
Location Date Tenure and usage (hectare) (years) (sq. m) (RM000)

TERENGGANU
Gas Processing Plants, Leasehold Leasehold land 1,046,171
Kertih Expiry:
Km 105, Jalan Kuantan-
Kuala Terengganu
24300 Kertih, Kemaman
Terengganu
Lot No. 1903 30.09.1991 28.02.2043 Plant 87.7
(Sub-Lease GPP 1 24.5 95,998
60 years) GPP 2 16.6 123,310
GPP 3 16.4 123,310
Lot No. 3541 30.09.1991 03.04.2050 GPP 4 / DPCU 2 34.6 14.7 266,400
(60 years) Compressor 17.3 65,010
Station
Lot No. 1902 30.09.1991 26.02.2082 Office 2.7
(99 years) Administration
building 1 23.6 1,282
Administration
building 2 18.9 6,892
Fire station 21.0 3,248
Gas Processing Plants, Leasehold Leasehold land 1,428,743
Paka Expiry:
Km 8, Kg. Tok Arun,
Off Jalan Santong
23100 Paka, Dungun
Terengganu
Lot No. 7346 03.08.1997 13.07.2058 Plant 189.6 10.1 200,000
(60 years) GPP 5 9.4 220,000
GPP 6 10.6 60,000
DPCU 3
Office
Administration 11.4 12,220
building
Lot No. 7220 03.08.1997 20.06.2058 (Vacant) 27.0
(60 years)
 161 p e t ro n a s ga s b e r h a d (101671-H)

Summary of Landed Property, Plant and Equipment

A summary of the landed property, plant and equipment of PETRONAS Gas Berhad as at 31 March 2009 as set out below (Contd):

Carrying
Amount
Age of Plant Build-up as at 31
Acquisition Description Land Area and Building Area March 2009
Location Date Tenure and usage (hectare) (years) (sq. m) (RM000)

Export Terminal Operation Leasehold Leasehold land 158,883

Tanjung Sulong, Expiry:
24000 Kemaman
Terengganu Darul Iman
Lot No. 1314 24.07.1993 19.03.2025 Plant 9.7 24.4 1,146
(40 years) Unit 1, 2, 3, 4
Office
Administration
building
Lot No. 1333 24.07.1993 11.03.2027 Marine facility 2.7 24.4
(40 years) Breakwater
Jetty
Centralised Utility Leasehold Leasehold land 1,174,605
Facilities (CUF) Expiry:
Operations, Kertih Plant
Kertih Integrated CGN B 9.3 667
Petrochemical Complex, CGN C 9.3 667
Km 105, Jalan Kuantan CGN D, E, F 8.8 2,000
- Kuala Terengganu, Water Plant 8.8 2,000
24300 Kertih, Kemaman, CGN G 7.9 667
Terengganu Darul Iman ASU 8.0 15,451
Lab & Workshop 8.0 729
Lot No. PT8970 21.12.1999 19.08.2060 Control Room 37.1 7.8 1,820
(60 years) Office
Administration 8.1 514
building

PAHANG
Kuantan Regional Leasehold Leasehold land 9,109
Operations Office Expiry:
Lot 1, Sector 1,
Bandar Indera Mahkota
25200 Kuantan
Pahang Darul Makmur
Lot No. PT16756 04.01.1989 04.01.2088 Office 11.2 17.4 2,428
(99 years) Regional Office
 162 p e t ro n a s ga s b e r h a d (101671-H)

Summary of Landed Property, Plant and Equipment

A summary of the landed property, plant and equipment of PETRONAS Gas Berhad as at 31 March 2009 as set out below (Contd):

Carrying
Amount
Age of Plant Build-up as at 31
Acquisition Description Land Area and Building Area March 2009
Location Date Tenure and usage (hectare) (years) (sq. m) (RM000)

Kuantan Compressor Leasehold Leasehold land 46,238

Station, Expiry:
Kampung Mahkota,
Km 19, Jalan Gambang,
26070 Kuantan,
Pahang Darul Makmur
Lot No. PT60398 04.01.1989 26.08.2101 Plant 20.1
(99 years) Compressor 15.3 1,142
Station
Centralised Utility 17.11.1999 Leasehold Leasehold land 18.8 557,966
Facilities (CUF) Expiry:
Operations, Gebeng To be Plant
Lot 139A, determined CGN A 9.3 667
Gebeng Industrial Area, (possibly 99 CGN B 9.3 667
Phase III, 26080 Kuantan, years) CGN C 9.3 667
Pahang Darul Makmur N2GEN 9.3 360
Water Plant 8.8 2,000
Office
Maintenance 7.8 1,015
building
Warehouse 7.8 1,004

JOHOR
Segamat Operation Centre, Leasehold Leasehold land 85,216
Gas Transmission System, Expiry:
Km 10, Lebuhraya
Segamat-Kuantan
85000 Segamat,
Johor Darul Takzim
Lot No. PTD564 22.09.1991 18.02.2102 Plant 61.3
(99 years) Compressor 11.2 2,792
Station
Office
Operation Centre 17.6 8,080
Pasir Gudang Regional Leasehold Leasehold land 6,521
Operations Office, Expiry:
PLO 332, Jalan Perak 4,
Pasir Gudang Industrial
Area, 81700 Pasir Gudang,
Johor Darul Takzim
Lot No. PTD84942 23.04.1989 22.04.2088 Office 4.1
(99 years) Regional Office 17.7 2,428
 163 p e t ro n a s ga s b e r h a d (101671-H)

Summary of Landed Property, Plant and Equipment

A summary of the landed property, plant and equipment of PETRONAS Gas Berhad as at 31 March 2009 as set out below (Contd):

Carrying
Amount
Age of Plant Build-up as at 31
Acquisition Description Land Area and Building Area March 2009
Location Date Tenure and usage (hectare) (years) (sq. m) (RM000)

NEGERI SEMBILAN
Seremban Regional Freehold land 7,696
Operations Office,
Km 11, Jalan Seremban
-Tampin, 71450 Sg. Gadut,
Seremban,
Negeri Sembilan Darul
Khusus
Lot No. PT1131 16.02.1994 Freehold Office 15.1
Regional Office 17.6 2,428

SELANGOR
Shah Alam Regional Leasehold Leasehold land 7,855
Operations Office, Expiry:
Lot 1, Jalan Jemuju
Lima 16/13E, Shah Alam
Industrial Area
Section 16
40200 Shah Alam
Selangor Darul Ehsan
Lot No. PT606 12.10.1990 11.10.2089 Office 2.9
(99 years) Regional Office 17.3 2,428
Meru Compressor Station, Leasehold Leasehold land 5.4 N/A N/A 1,187
Lot 1586 (G3907) Expiry: (Vacant)
Mukim of Jeram
District of Kuala Selangor
Selangor Darul Ehsan
Lot No. PT6875 04.08.1998 10.08.2107
(99 years)

PERAK
Sitiawan Regional Leasehold Leasehold land 4,995
Operations Office, Expiry:
Lot 33263,
Jalan Dato Ahmad Yunus,
32000 Sitiawan,
Perak Darul Ridzuan
Lot No. PT4535 04.11.1997 27.06.2101 Office 3.2
(99 years) Regional Office 11.4 1,604
 164 p e t ro n a s ga s b e r h a d (101671-H)

Summary of Landed Property, Plant and Equipment

A summary of the landed property, plant and equipment of PETRONAS Gas Berhad as at 31 March 2009 as set out below (Contd):

Carrying
Amount
Age of Plant Build-up as at 31
Acquisition Description Land Area and Building Area March 2009
Location Date Tenure and usage (hectare) (years) (sq. m) (RM000)

KEDAH
Gurun Regional Leasehold Leasehold land 5,283
Operations Office, Expiry:
Km 1, Jalan Jeniang,
P.O. Box 31,
08300 Gurun,
Kedah Darul Aman
Lot No. PT584 18.12.1997 22.04.2102 Office 2.9
(99 years) Regional Office 10.5 1,604

SARAWAK
Miri Operations Office, N/A Pipeline N/A 10,185
Lot 2075, Block 4, Meter Station located 19.0 2,066
Jalan Cattleya 2B, Pipeline across along road
Piasau Industrial Area, 42.2 km reserve area
P.O. Box 1504, 98008 Miri,
Sarawak
Bintulu Gas Meter Station, Pipeline 0.1 3,867
Kidurong Industrial Area, Meter Station 12.4 630
Part of Lot 155 Pipeline across
Block 20 4.2 km
Kemena Land District,
97007 Bintulu, Sarawak
Lot No. 1646 21.10.2004 16.07.2067
(60 years)

PIPELINES
PGU I total gas 20.03.1985 Leasehold Pipelines 24.5 N/A 30,347
pipeline comprises 6 Expiry: Pipelines in
km from Kertih to Paka, (40.60.99 leasehold land
Terengganu & 32 km from years)
Kertih to Teluk Kalong, Terengganu: Terengganu:
Terengganu and two 49 lots 272.1
40kms of lateral line from
the GPPs to the Export
Terminal in Tanjung
Sulong, Terengganu.
 165 p e t ro n a s ga s b e r h a d (101671-H)

Summary of Landed Property, Plant and Equipment

A summary of the landed property, plant and equipment of PETRONAS Gas Berhad as at 31 March 2009 as set out below (Contd):

Carrying
Amount
Age of Plant Build-up as at 31
Acquisition Description Land Area and Building Area March 2009
Location Date Tenure and usage (hectare) (years) (sq. m) (RM000)

PGU II total gas 01.01.1992 Leasehold Pipelines 17.3 N/A 581,225

pipeline comprises Expiry: Pipelines in
Sector 1 233 km from (99 years) leasehold land
Teluk Kalong, Terengganu
to Segamat, Johor, Terengganu: Terengganu:
Sector 2 241 km from 20 lots 81.1
Segamat, Johor to Kapar,
Selangor, & Pahang: Pahang:
Sector 3 - 211 km from 325 lots 516.0
Segamat, Johor to
Singapore. Johor: Johor:
639 lots 901.6
(Inclusive Loop 1
& Loop 2)

Melaka: Melaka:
141 lots 192.4

Negeri Negeri
Sembilan: Sembilan:
267 lots 462.7

Selangor: Selangor:
137 lots 278.9
PGU III total gas 06.01.1996 Leasehold Pipelines Sector 1: N/A 651,584
pipeline comprises Expiry: Pipelines in 13.3
Sector 1 - 184 km from (99 years) leasehold land
Meru, Selangor to Lumut, Sector 2&3: N/A
Perak, Selangor: Selangor: 11.4
Sector 2 - 176 km from 92 lots 178.6
Lumut, Perak to Gurun,
Kedah, WP Kuala WP Kuala
Sector 3 - 90 km of NPS Lumpur: Lumpur:
36 mainline from Gurun 14 lots 17.9
to Pauh, Perlis.
 166 p e t ro n a s ga s b e r h a d (101671-H)

Summary of Landed Property, Plant and Equipment

A summary of the landed property, plant and equipment of PETRONAS Gas Berhad as at 31 March 2009 as set out below (Contd):

Carrying
Amount
Age of Plant Build-up as at 31
Acquisition Description Land Area and Building Area March 2009
Location Date Tenure and usage (hectare) (years) (sq. m) (RM000)

Perak: Perak:
360 lots 543.6

Penang: Penang:
97 lots 119.4

Kedah: Kedah:
264 lots 492.2

Perlis: Perlis:
74 lots 87.3
PGU Loop 1 total gas 04.10.1999 Pipelines 9.6 N/A 402,837
pipeline of Pipelines in
265 km from Kertih, leasehold land
Terengganu to Segamat,
Johor. Terengganu: Terengganu:
77 lots 142.2

Pahang: Pahang:
363 lots 127.6
PGU Loop 2 total gas 01.11.2000 Pipelines 8.6 N/A 436,418
pipeline of Pipelines in
226 km from Segamat, leasehold land
Johor to Meru, Selangor. (Part of PGUs
document of title)

TOTAL 6,656,931

Abbreviations:
CGN : Cogenerator Plant
DPCU : Dew Point Control Unit Plant
GPP : Gas Processing Plant
N2GEN : Nitrogen Generator
ASU : Air Separation Unit
 167 p e t ro n a s ga s b e r h a d (101671-H)

Training Programmes Attended by Directors

1. Datuk Wan Zulkiflee bin Wan Ariffin

13th AOGC (Asia Oil and Gas Conference) June 2008

Panel Chairman of Natural Gas Session
Persidangan Perkhidmatan Awam (PPA) ke 13 (INTAN) August 2008
Panel: Taking Charge Courage, Integrity and Result Based Leadership
PETRONAS Group Health, Safety and Environment Forum October 2008
GASEX 2008, Hanoi November 2008
Presenting Country Report Plenary I General Economic Outlook
Demand and Supply Forecast and Business Opportunities
2008 IPTC (International Petroleum Technology Conference) December 2008
Panel Sustaining Production Rates to meet Future Demand

2. Samsudin bin Miskon

Gas Business Portfolio of Initiatives Workshop April 2008

PETRONAS Henley Aspiration Workshop April 2008
Corporate Board in a Challenging Environment May 2008
PETRONAS MD/CEO Away Day July 2008
Workshop for Lead Advocates: Communication on Changes in Employment Terms August 2008
PETRONAS Group Health, Safety and Environment Forum October 2008
GASEX 2008, Hanoi November 2008
PETRONAS Project Management Annual Forum January 2009
PETRONAS Gas Berhad Risk Management Forum March 2009

3. Dato N. Sadasivan s/o N.N. Pillay

ACG UK Environment Seminar March 2008

Corporate Boards in a Challenging Environment May 2008
Talk on Risk Management October 2008
PETRONAS Group Health, Safety and Environment Forum October 2008
Business Performance Management, Corporate Governance and Risk Management Updates November 2008
Seminar on Asia Pacific Emerging Pharma Markets December 2008
3rd PETRONAS Board Audit Committee Forum February 2009
 168 p e t ro n a s ga s b e r h a d (101671-H)

Training Programmes Attended by Directors

4. Dato Chew Kong Seng

Compliance and Enforcement of Bursa Securities Listing Requirements: Updates and Case Studies May 2008
Corporate Board in a Challenging Environment May 2008
PETRONAS Group Health, Safety and Environment Forum October 2008
3 PETRONAS Board Audit Committee Forum
rd
February 2009

5. Datuk Mohd Zain bin Haji Abdul Majid

Corporate Board in a Challenging Environment May 2008

Improving Board of Directors Performance Leadership to Government May 2008
PETRONAS Group Health, Safety and Environment Forum October 2008
3 PETRONAS Board Audit Committee Forum
rd
February 2009

6. Muri bin Muhammad

The Australian Pipeline Conference in Perth October 2008

7. Datuk (Dr) Abdul Rahim bin Haji Hashim

GasTech 2008 March 2008

5th Asian Gas Partnership Summit April 2008
National Association of Corrosion Engineers Conference May 2008
13th AOGC (Asia Oil and Gas Conference) June 2008

8. Mohammed Azhar bin Osman Khairuddin

Corporate Board in a Challenging Environment May 2008

13 AOGC (Asia Oil and Gas Conference)
th
June 2008
The Changing Geopolitics of Oil and Gas Identifying and Managing Political Risk June 2008
Corporate Responsibility and Poverty Reduction Workshop August 2008
Presenter for Paper entitled Corporate Responsibility and the Oil and Gas Sector
PETRONAS Group Health, Safety and Environment Forum October 2008
21 Lawasia Conference
st
November 2008
3 PETRONAS Board Audit Committee Forum
rd
February 2009
Anti-Corruption Summit March 2009
Presenter for Paper entitled Creating a Corporate Culture for Combating Bribery
 169 p e t ro n a s ga s b e r h a d (101671-H)

Analysis of Shareholdings
as at 31 May 2009

No. of % of Total % of Total

Category Shareholders Shareholders No. of Shares Shareholdings

Less than 100 89 0.79 1,138 0.00

100 - 1,000 8,303 74.01 8,060,967 0.41
1,001 - 10,000 2,341 20.87 7,803,366 0.39
10,001 - 100,000 332 2.96 11,572,517 0.58
100,001 to less than 5% of issued shares 150 1.34 234,004,027 11.83
5% and above of issued shares 3 0.03 1,717,289,900 86.79
Total 11,218 100 1,978,731,915 100

Classification of Shareholders
No. of Shareholders No. of Shares % of Total Shareholdings
Category of Shareholders Malaysian Foreign Malaysian Foreign Malaysian Foreign

INDIVIDUAL 9,995 100 15,983,991 453,100 0.81 0.02

BODY CORPORATE
Banks/finance companies 23 546,352,400 27.61 0.00
Investments trusts/foundation/charities 7 174,000 0.01 0.00
Other types of companies 241 8 8,693,002 246,500 0.44 0.01
GOVERNMENT AGENCIES/INSTITUTIONS 13 4,433,200 0.23 0.00
NOMINEES 592 239 1,361,812,715 40,583,007 68.82 2.05
OTHERS
Total 10,871 347 1,937,449,308 41,282,607 97.92 2.08

List of Directors Shareholdings

% of Total
No. Name No. of shares Shareholdings

1 Tan Sri Mohd Hassan bin Marican* 5,166 0.00

2 Datuk Wan Zulkiflee bin Wan Ariffin
3 Samsudin bin Miskon
4 Dato Sadasivan s/o N.N. Pillay
5 Dato Chew Kong Seng
6 Datuk Mohd Zain bin Haji Abdul Majid
7 Muri bin Muhammad - **Mayban Securities Nominees (Tempatan) Sdn. Bhd. 7,000 0.00
8 Datuk (Dr) Abdul Rahim bin Haji Hashim***
9 Mohammed Azhar bin Osman Khairuddin 5,000 0.00
10 Farehana binti Hanapiah***
* Resigned as Chairman/Company Director as at 15 August 2008
** Shares held in nominees name
*** Resigned as Director of the Company on 27 April 2009 and Farehana binti Hanapiah appointed in his stead
 170 p e t ro n a s ga s b e r h a d (101671-H)

Analysis of Shareholdings
as at 31 May 2009

List of Directors Shareholdings in Petronas Dagangan Berhad

% of Total
No. Name No. of shares Shareholdings
1 Tan Sri Mohd Hassan bin Marican* 2,000 0.00
2 Datuk Wan Zulkiflee bin Wan Ariffin
3 Samsudin bin Miskon
4 Dato Sadasivan s/o N.N. Pillay
5 Dato Chew Kong Seng
6 Datuk Mohd Zain bin Haji Abdul Majid
7 Muri bin Muhammad - **Mayban Securities Nominees (Tempatan) Sdn. Bhd. 10,000 0.00
8 Datuk (Dr) Abdul Rahim bin Haji Hashim*** 2,000 0.00
9 Mohammed Azhar bin Osman Khairuddin 2,000 0.00
10 Farehana binti Hanapiah***

List of Directors Shareholdings in KLCC Property Holdings Berhad

% of Total
No. Name No. of shares Shareholdings
1 Tan Sri Mohd Hassan bin Marican* 50,000 0.00
2 Datuk Wan Zulkiflee bin Wan Ariffin
3 Samsudin bin Miskon
4 Dato Sadasivan s/o N.N. Pillay
5 Dato Chew Kong Seng
6 Datuk Mohd Zain bin Haji Abdul Majid
7 Muri bin Muhammad
8 Datuk (Dr) Abdul Rahim bin Haji Hashim***
9 Mohammed Azhar bin Osman Khairuddin
10 Farehana binti Hanapiah***

List of Top 30 Shareholders

% of Total
No. Name No. of shares Shareholdings

1 Cartaban Nominees (Tempatan) Sdn. Bhd. 1,199,768,000 60.63

(Petroliam Nasional Berhad (Strategic Inv))
2 Employees Provident Fund Board 282,282,000 14.27
3 Kumpulan Wang Persaraan (Diperbadankan) 235,239,900 11.89
4 Amanah Raya Nominees (Tempatan) Sdn. Bhd. 53,009,200 2.68
(Skim Amanah Saham Bumiputera)
5 Valuecap Sdn. Bhd. 21,692,200 1.10
6 Malaysia Nominees (Tempatan) Sendirian Berhad 16,874,800 0.85
(Great Eastern Life Assurance (Malaysia) Berhad (PAR 1))
7 Amanah Raya Nominees (Tempatan) Sdn. Bhd. 14,776,900 0.75
(Amanah Saham Wawasan 2020)
8 Amanah Raya Nominees (Tempatan) Sdn. Bhd. 10,543,600 0.53
(Amanah Saham Malaysia)
9 Citigroup Nominees (Tempatan) Sdn. Bhd. 10,508,000 0.53
(Exempt An For Prudential Fund Management Berhad)
 171 p e t ro n a s ga s b e r h a d (101671-H)

Analysis of Shareholdings
as at 31 May 2009

List of Top 30 Shareholders (Contd)

% of Total
No. Name No. of shares Shareholdings
10 HSBC Nominees (Tempatan) Sdn. Bhd. 6,136,600 0.31
(Nomura Asset Mgmt Malaysia For Employees Provident Fund)
11 Amanah Raya Nominees (Tempatan) Sdn. Bhd. 5,941,500 0.30
(Amanah Saham Didik)
12 Citigroup Nominees (Tempatan) Sdn. Bhd. 5,768,500 0.29
(Exempt An For American International Assurance Company Limited)
13 Khazanah Nasional Berhad 4,676,800 0.24
14 HSBC Nominees (Asing) Sdn. Bhd. 4,330,565 0.22
(Exempt An For JPMorgan Chase Bank, National Association (U.A.E))
15 Pertubuhan Keselamatan Sosial 4,009,800 0.20
16 HSBC Nominees (Asing) Sdn. Bhd. 3,791,428 0.19
(BBH and Co. Boston for Vanguard Emerging Markets Stock Index Fund)
17 Amanah Raya Nominees (Tempatan) Sdn. Bhd. 3,424,400 0.17
(Public Islamic Dividend Fund)
18 Amanah Raya Nominees (Tempatan) Sdn. Bhd. 3,054,200 0.15
(Public Islamic Equity Fund)
19 Cartaban Nominees (Asing) Sdn. Bhd. 2,964,500 0.15
(State Street For Ishares, Inc.)
20 Malaysia Nominees (Tempatan) Sendirian Berhad 2,240,100 0.11
(Great Eastern Life Assurance (Malaysia) Berhad (PAR 2))
21 Am Nominees (Tempatan) Sdn. Bhd. 1,880,500 0.10
(Employees Provident Fund Board (A/C1))
22 Cartaban Nominees (Asing) Sdn. Bhd. 1,851,160 0.09
(State Street for MSCI Equity Index Fund B Malaysia (Barclays G Inv))
23 Mayban Nominess (Tempatan) Sdn. Bhd. 1,770,800 0.09
(Mayban Trustees Berhad For Public Ittikal Fund (N14011970240))
24 HSBC Nominees (Asing) Sdn. Bhd. 1,650,300 0.08
(Exempt An For USB AG)
25 Permodalan Nasional Berhad 1,552,400 0.08
26 HSBC Nominees (Asing) Sdn. Bhd. 1,537,000 0.08
(Exempt An For JPMorgan Chase Bank, National Association (Norges Bank))
27 Kumpulan Wang Simpanan Pekerja 1,500,000 0.08
28 DB (Malaysia) Nominee (Tempatan) Sendirian Berhad 1,447,100 0.07
(Exempt An For Deutsche Trustees Malaysia Berhad (MYETF-DJIM25))
29 RHB Nominess (Tempatan) Sdn. Bhd. 1,400,000 0.07
(RHB Investment Management Sdn. Bhd. For Kumpulan Wang Simpanan Pekerja)
30 SBB Nominees (Tempatan) Sdn. Bhd. 1,369,500 0.07
(Employees Provident Fund Board)
1,906,991,753 96.37

List of Substantial Shareholders

% of Total
No. Name No. of shares Shareholdings
1 Cartaban Nominees (Tempatan) Sdn. Bhd. 1,199,768,000 60.63
(Petroliam Nasional Berhad (Strategic Inv))
2 Employees Provident Fund Board 297,768,800 15.05
3 Kumpulan Wang Persaraan (Diperbadankan) 235,489,900 11.90

Corporate Directory
Petronas Gas Berhad
Level 49-51, Tower 1
PETRONAS Twin Towers
Kuala Lumpur City Centre
50088 Kuala Lumpur
Telephone : + 6 03 2051 5000
Fax : + 6 03 2051 6987 (Corporate Secretary)
+ 6 03 2051 6992 (General)
Operations / Regional Offices
Gas Processing Plants, Kertih
Km 105, Jalan Kuantan-Kuala Terengganu
24300 Kertih, Kemaman
Terengganu Darul Iman
Telephone : + 6 09 831 2345
Fax : + 6 09 827 1710
Gas Processing Plants, Paka
Km 8, Kg. Tok Arun, Off Jalan Santong
23100 Paka, Dungun
Terengganu Darul Iman
Telephone : + 6 09 831 5656
Fax : + 6 09 827 4578
Export Terminal Operation
Tanjung Sulong
24000 Kemaman
Terengganu Darul Iman
Telephone : + 6 09 862 4321
Fax : + 6 09 863 1146
Centralised Utility Facilities (CUF)
Operations, Kertih
Kertih Integrated Petrochemical Complex
Km 105, Jalan Kuantan-Kuala Terengganu
24300 Kertih, Kemaman
Terengganu Darul Iman
Telephone : + 6 09 830 5500
Fax : + 6 09 830 5514
Centralised Utility Facilities (CUF)
Operations, Gebeng
Lot 139A, Gebeng Industrial Area
Fasa III, 26080 Kuantan
Pahang Darul Makmur
Telephone : + 6 09 586 3300
Fax : + 6 09 586 3311
172
Segamat Operation Centre,
Gas Transmission System
Km 10, Lebuhraya Segamat-Kuantan
85000 Segamat
Johor Darul Takzim
Telephone : + 6 07 935 3000
Fax : + 6 07 931 6521
Pasir Gudang Regional Operations Office
PLO 332, Jalan Perak 4
Pasir Gudang Industrial Area
81700 Pasir Gudang
Johor Darul Takzim
Telephone : + 6 07 251 0333
Fax : + 6 07 251 0400
Seremban Regional Operations Office
Km 11, Jalan Seremban-Tampin
71450 Sg. Gadut, Seremban
Negeri Sembilan Darul Khusus
Telephone : + 6 06 677 6777
Fax : + 6 06 677 7799
Shah Alam Regional Operations Office
Lot 1, Jalan Jemuju Lima 16/13E
Shah Alam Industrial Area, Section 16
40200 Shah Alam
Selangor Darul Ehsan
Telephone : + 6 03 5510 6222
Fax : + 6 03 5510 1528
Sitiawan Regional Operations Office
Lot 33263, Jalan Dato Ahmad Yunus
32000 Sitiawan
Perak Darul Ridzuan
Telephone : + 6 05 692 5611/12/13/14
Fax : + 6 05 692 5615
p e t ro n a s ga s b e r h a d (101671-H)
Gurun Regional Operations Office
Km 1, Jalan Jeniang, P.O. Box 31
08300 Gurun
Kedah Darul Aman
Telephone : + 6 04 468 5518
Fax : + 6 04 468 5519
Kuantan Regional Operations Office
Lot 1, Sector 1, Bandar Indera Mahkota
25200 Kuantan
Pahang Darul Makmur
Telephone : + 6 09 573 2802
Fax : + 6 09 573 2813
Kertih Regional Operations Office
Level 1, PETRONAS East Coast Regional
Office, 24300 Kertih, Kemaman
Terengganu Darul Iman
Telephone: + 6 09 867 3500
Fax: + 6 09 864 0375
Miri Operations Office
Lot 2075, Block 4, Jalan Cattleya 2B
Piasau Industrial Area, P.O. Box 1504
98008 Miri
Sarawak
Telephone : + 6 085 661 144
Fax : + 6 085 656 362
Bintulu Operations Office
Lot 1622 & 1623, Ground Floor
Jalan Sommerville, P.O. Box 2190
97011 Bintulu
Sarawak
Telephone : + 6 086 316 517
Fax : + 6 086 311 960
 173 p e t ro n a s ga s b e r h a d (101671-H)

Notice of Annual General Meeting

NOTICE IS HEREBY GIVEN THAT the Twenty Sixth Annual General THAT Datuk Mohd Zain bin Haji Abdul Majid retiring in accordance
Meeting of the Company will be held at Ballroom 1 and 2, Level 2, with Section 129 of the Companies Act, 1965 in Malaysia be
Nikko Hotel, 165, Jalan Ampang, 50450 Kuala Lumpur on Wednesday, and is hereby re-appointed a Director of the Company to hold
22 July 2009 at 10.00 a.m. to consider the following matters: office until the conclusion of next Annual General Meeting of the
Company. (Resolution 9)
Agenda
As Ordinary Business 7. To transact any other business for which due notice has been
1. To receive the Audited Financial Statements for the financial year given.
ended 31 March 2009 together with the Reports of the Directors
and Auditors thereon. (Resolution 1) Notice of Dividend Entitlement and Payment
2. To approve the payment of final dividend of 20% per ordinary NOTICE IS ALSO HEREBY GIVEN that subject to the approval
share tax exempt, 5.1% per ordinary share less 25% tax and 9.9% per of members at the Twenty Sixth Annual General Meeting to
ordinary share tax exempt under the single tier tax system in be held on 22 July 2009, a final dividend of 20% per ordinary
respect of the financial year ended 31 March 2009. share tax exempt, 5.1% per ordinary share less 25% tax and 9.9%
(Resolution 2) per ordinary share tax exempt under the single tier tax system will be
paid on 19 August 2009 to shareholders whose names appear in the
3. To re-elect the following Directors pursuant to Article 93 of the Register of Depositors on 3 August 2009.
Companys Articles of Association:
(a) Datuk Wan Zulkiflee bin Wan Ariffin (Resolution 3) A Depositor shall qualify for entitlement only in respect of:
(b) Mohammed Azhar bin Osman Khairuddin (Resolution 4) (a) Shares transferred into the Depositors Securities Account before
(c) Samsudin bin Miskon (Resolution 5) 4.00 p.m. on 3 August 2009 in respect of ordinary transfers.
4. To approve the Directors fees in respect of the financial year (b) Shares bought on Bursa Malaysia Securities Berhad on a cum
ended 31 March 2009. (Resolution 6) entitlement basis according to the Rules of Bursa Malaysia
Securities Berhad.
5. To re-appoint Messrs. KPMG Desa Megat & Co. as Auditors
of the Company and to authorise the Directors to fix their By Order of the Board
remuneration. (Resolution 7)

As Special Business Noryati binti Mohd Noor (LS 0008877)

6. To consider and, if thought fit, to pass the following Resolutions Yeap Kok Leong (MAICSA 0862549)
in accordance with Section 129 (6) of the Companies Act, 1965 Company Secretaries
in Malaysia:

THAT Dato Chew Kong Seng retiring in accordance with Section Kuala Lumpur
129 of the Companies Act, 1965 in Malaysia be and is hereby 30 June 2009
re-appointed a Director of the Company to hold office until the
conclusion of next Annual General Meeting of the Company.
(Resolution 8)

Notes:
1. A member of the Company who is entitled to attend and vote at the meeting is entitled to appoint not more than two proxies to attend and vote in his stead and where a holder
appoints two proxies, he shall specify the proportion of his shareholdings to be represented by each proxy. A proxy may but need not be a member of the Company, an advocate,
an approved Company auditor, or a person approved by the Registrar, and shall be entitled to vote on a show of hands on any question at any General Meeting.
2. Where a member of the Company is an authorised nominee as defined under the Securities Industry (Central Depositories) Act, 1991, it may appoint at least one proxy but not more
than two proxies in respect of each securities account it holds with ordinary shares of the company standing to the credit of the said securities account.
3. The instrument appointing a proxy shall be in writing under the hand of the appointer or if the member is a corporation, either under seal or under the hand of an officer or attorney
duly authorised and shall be deposited at the office of the Companys Share Registrar, Symphony Share Registrars Sdn Bhd., Level 26, Menara Multi-Purpose, Capital Square, No. 8,
Jalan Munshi Abdullah, 50100 Kuala Lumpur, at least 48 hours before the meeting, or if the meeting is adjourned at least 48 hours before the time fixed for the adjourned meeting.
If this Proxy Form is signed under the hand of an officer duly authorised, it should be accompanied by a statement reading signed as authorised officer under Authorisation Document
which is still in force, no notice of revocation having been received. If this Proxy Form is signed by an attorney duly appointed under a power of attorney, it should be accompanied
by a statement reading signed under Power of Attorney which is still in force, no notice of revocation having been received. A copy of the Authorisation Document or the Power of
Attorney, which should be valid in accordance with the laws of the jurisdiction in which it was created and is exercised, should be enclosed with this Proxy Form.
4. Explanatory Notes on Special Business:
Section 129 of the Companies Act, 1965 in Malaysia
Pursuant to Section 129 of the Companies Act, 1965 in Malaysia, the proposed Resolution 8 and Resolution 9 are to seek shareholders approval on the re-appointment of Directors
who are over the age of seventy.
 174 p e t ro n a s ga s b e r h a d (101671-H)

Statement Accompanying Notice of Annual General Meeting

Pursuant to Paragraph 8.28(2) of the Bursa Malaysia Listing Requirements appended hereunder are:

Directors Standing for Re-election and Re-appointment

Directors who are standing for re-election and re-appointment at the Twenty Sixth Annual General Meeting of the Company which will be
held at Ballroom 1 and 2, Level 2, Nikko Hotel, 165, Jalan Ampang, 50450 Kuala Lumpur on Wednesday, 22 July 2009 at 10.00 a.m. of the
Company are:
(a) Datuk Wan Zulkiflee bin Wan Ariffin
(b) Mohammed Azhar bin Osman Khairuddin
(c) Samsudin bin Miskon
(d) Dato Chew Kong Seng
(e) Datuk Mohd Zain bin Haji Abdul Majid

Details of Directors standing for re-election as in Agenda 3 of the Notice of Annual General Meeting

(a) Datuk Wan Zulkiflee bin Wan Ariffin

Age
Nationality
Qualification
Position in the Company
Number of board meetings
attended during the year
Working experience
Directorships in other PETRONAS
public companies
Securities holdings Nil
in the Company
Family relationships with
any directors and/or major
shareholders of the Company
Conflict of interest Nil
with the Company
List of conviction for offences
within the past 10 years other
than traffic offences
48
Malaysian
Chemical Engineering, University of Adelaide, South Australia
Member of the Executive Committee of the International Gas Union
Honorary Fellowship by the Institution of Chemical Engineering United Kingdom
Council for the Project Management Institute, Malaysia Chapter
Advance Management Program, Harvard Business School
Industry Advisor, Engineering Faculty, University Putra Malaysia
Non-Independent Non-Executive Director
4/4 (100%)
Chairman of PETRONAS Gas Berhad
Vice President of Gas Business of PETRONAS
Managing Director/Chief Executive Officer of PETRONAS Gas Berhad
General Manager, Strategy and Business Development Unit of PETRONAS
General Manager, International Projects Management Division of OGP Technical Services Sdn. Bhd.
Senior Manager (Downstream Business)/Executive Assistant to the President
Process Engineer in PETRONAS
Nil
Nil
 175 p e t ro n a s ga s b e r h a d (101671-H)

Statement Accompanying Notice of Annual General Meeting

Details of Directors standing for re-election as in Agenda 3 of the Notice of Annual General Meeting (Contd)

(b) Mohammed Azhar bin Osman Khairuddin

Age 53
Nationality Malaysian
Qualification Bachelor of Law (Honours) Degree, University of Malaya
Member of the International Bar Association (IBA)
Member of the Inter-Pacific Bar Association (IPBA)
Position in the Company Non-Independent Non-Executive Director
Number of board meetings 4/4 (100%)
attended during the year
Working experience Senior General Manager, Legal and Group Corporate Affairs Division, PETRONAS
Group General Counsel, PETRONAS
General Counsel Petroleum Resources Sector, PETRONAS
Senior Legal Counsel/Company Secretary, PETRONAS Carigali Sdn. Bhd.
Legal Officer, PETRONAS
Directorships in other Nil
public companies
Securities holdings 5,000
in the Company
Family relationships with Nil
any directors and/or major
shareholders of the Company
Conflict of interest Nil
with the Company
List of conviction for offences Nil
within the past 10 years other
than traffic offences
 176 p e t ro n a s ga s b e r h a d (101671-H)

Statement Accompanying Notice of Annual General Meeting

Details of Directors standing for re-election as in Agenda 3 of the Notice of Annual General Meeting (Contd)

(c) Samsudin bin Miskon

Age 48
Nationality Malaysian
Qualification Chemical Engineering, University of Aston, United Kingdom
Masters of Science in Project Management, Reading University, United Kingdom
Diploma in International Management, INSEAD, France
Advanced Management Program, Harvard Business School
Position in the Company Managing Director/Chief Executive Officer
Number of board meetings 4/4 (100%)
attended during the year
Working experience Managing Director/Chief Executive Officer of PETRONAS Gas Berhad
Senior General Manager, Leadership and Capability Development Department of Human Resource
Management Division in PETRONAS
Senior General Manager, Malaysia LNG Sdn. Bhd.
General Manager, Malaysia LNG Dua Sdn. Bhd.
General Manager, Plant Division of OGP Technical Services Sdn. Bhd.
Process Engineer in PETRONAS
Directorships in other Nil
public companies
Securities holdings Nil
in the Company
Family relationships with Nil
any directors and/or major
shareholders of the Company
Conflict of interest Nil
with the Company
List of conviction for offences Nil
within the past 10 years other
than traffic offences
 177 p e t ro n a s ga s b e r h a d (101671-H)

Statement Accompanying Notice of Annual General Meeting

Details of Directors standing for re-appointment as in Agenda 6 of the Notice of Annual General Meeting

(a) Dato Chew Kong Seng

Age 71
Nationality Malaysian
Qualification Fellow of the Institute of Chartered Accountants in England and Wales
Member of the Malaysian Institute of Certified Public Accountants
Member of the Malaysian Institute of Accountants
Position in the Company Independent Non-Executive Director
Number of board meetings 4/4 (100%)
attended during the year
Working experience Executive Director of Sarawak Enterprise Corporation Bhd
Managing Partner of Ernst & Young
Partner-in-charge of Turquand Young & Co. (now known as Ernst & Young), Sarawak Office
Tax Officer in the Inland Revenue Department and Stoy Hayward & Co. in UK
Directorships in other PETRONAS Dagangan Berhad
public companies AEON Co. (M) Bhd
PBA Holdings Berhad
Securities holdings Nil
in the Company
Family relationships with Nil
any directors and/or major
shareholders of the Company
Conflict of interest Nil
with the Company
List of conviction for offences Nil
within the past 10 years other
than traffic offences
 178 p e t ro n a s ga s b e r h a d (101671-H)

Statement Accompanying Notice of Annual General Meeting

Details of Directors standing for re-appointment as in Agenda 6 of the Notice of Annual General Meeting (Contd)

(b) Datuk Mohd Zain bin Haji Abdul Majid

Age 70
Nationality Malaysian
Qualification Economics, University of Glasgow
Law, University of London
Fellow of the Economic Development Institute of the World Bank, Washington
Senior Executive Programme, London Business School
Position in the Company Independent Non-Executive Director

Number of board meetings 4/4 (100%)

attended during the year
Working experience Director-General of the Malaysia Industrial Development Authority (MIDA)
Executive Chairman of the Urban Development Authority
Chief Executive of the Malaysian Employers Federation
Directorships in other Nil
public companies
Securities holdings in the Nil
Company
Family relationships with Nil
any directors and/or major
shareholders of the Company
Conflict of interest Nil
with the Company
List of conviction for offences Nil
within the past 10 years other
than traffic offences
petrona s ga s b e r h a d (101671-H)

Proxy Form No. of Shares Held

I/We
(Full Name In Capital Letters)

of
(Full Address)

being a *Member/Members of PETRONAS GAS BERHAD, do hereby appoint

(Full Name In Capital Letters)

of
(Full Address)

or failing him
(Full Name In Capital Letters)

of
(Full Address)

or failing him, the CHAIRMAN OF MEETING, as *my/our proxy to vote for *me/us and on *my/our behalf at the Twenty Sixth Annual General
Meeting to be held at Ballroom 1 and 2, Level 2, Nikko Hotel, 165, Jalan Ampang, 50450 Kuala Lumpur, on Wednesday, 22 July 2009 at
10.00 a.m. and at any adjournment thereof.
Please indicate with an X in the space provided below how you wish your votes to be casted. If no specific direction as to voting is
given, the Proxy will vote or abstain from voting at his discretion.

No. Resolutions For Against

ORDINARY BUSINESS
1. To receive the Audited Financial Statements for the financial year ended 31 March 2009
together with the Reports of the Directors and Auditors
2. To approve the payment of final dividend of 20% per ordinary share tax exempt, 5.1% per ordinary share less
25% tax and 9.9% per ordinary share tax exempt under the single tier tax system in respect of the financial
year ended 31 March 2009
3. To re-elect Director under Article 93 of the Companys Articles of Association:
Datuk Wan Zulkiflee bin Wan Ariffin
4. To re-elect Director under Article 93 of the Companys Articles of Association:
Mohammed Azhar bin Osman Khairuddin
5. To re-elect Director under Article 93 of the Companys Articles of Association:
Samsudin bin Miskon
6. To approve the Directors fees in respect of the financial year ended 31 March 2009
7. To re-appoint Messrs. KPMG Desa Megat & Co. as Auditors of the Company
and to authorise the Directors to fix their remuneration
SPECIAL BUSINESS
8. To consider and, if thought fit, to pass the following Resolution in accordance
with Section 129 (6) of the Companies Act, 1965 in Malaysia:
THAT Dato Chew Kong Seng retiring in accordance with Section 129 of the Companies Act,
1965 in Malaysia be and is hereby re-appointed a Director of the Company to hold office until the
conclusion of next Annual General Meeting of the Company.
9. To consider and, if thought fit, to pass the following Resolution in accordance with Section 129 (6) of the
Companies Act, 1965 in Malaysia:
THAT Datuk Mohd Zain bin Haji Abdul Majid retiring in accordance with Section 129 of the Companies Act,
1965 in Malaysia be and is hereby re-appointed a Director of the Company to hold office until the conclusion
of next Annual General Meeting of the Company.
10. To transact any other business for which due notice has been given

* Strike out whichever not applicable.

As witness my/our hand this day of 2009.

Signature of Member/Common Seal
Notes:
1. A member of the Company who is entitled to attend and vote at the meeting is entitled to appoint not more than two proxies to attend and vote in his stead and where a holder appoints
two proxies, he shall specify the proportion of his shareholdings to be represented by each proxy. A proxy may but need not be a member of the Company, an advocate, an approved Company
auditor, or a person approved by the Registrar, and shall be entitled to vote on a show of hands on any questions at any General Meeting.
2. Where a member of the Company is an authorized nominee as defined under the Securities Industry (Central Depositories) Act, 1991, it may appoint at least one proxy but not more that two
proxies in respect of each securities account it holds with ordinary shares of the company standing to the credit of the said securities account.
3. The instrument appointing a proxy shall be in writing under the hand of the appointer or if the member is a corporation, either under seal or under the hand of an officer or attorney duly
authorized and shall be deposited at the office of the Companys Share Registrar, Symphony Share Registrars Sdn Bhd, Level 26, Menara Multi-Purpose, Capital Square, No. 8, Jalan Munshi
Abdullah, 50100 Kuala Lumpur, at least 48 hours before the meeting, or if the meeting is adjourned at least 48 hours before the time fixed for the adjourned meeting.
If this Proxy Form is signed under the hand of an officer duly authorised, it should be accompanied by a statement reading signed as authorised officer under Authorisation Document which
is still in force, no notice of revocation having been received. If this Proxy Form is signed by an attorney duly appointed under a power of attorney, it should be accompanied by a statement
reading signed under Power of Attorney which is still in force, no notice of revocation having been received. A copy of the Authorisation Document or the Power of Attorney, which should
be valid in accordance with the laws of the jurisdiction in which it was created and is exercised, should be enclosed with this Proxy Form.
fold here

Affix
Stamp

Symphony Share Registrars Sdn Bhd

Level 26, Menara Multi-Purpose, Capital Square
No. 8, Jalan Munshi Abdullah
50100 Kuala Lumpur, Malaysia

fold here
PETRONAS Gas Berhad (101671-H)

Tower 1, PETRONAS Twin Towers

Kuala Lumpur City Centre
50088 Kuala Lumpur
Tel : (03) 2051 5000
Fax : (03) 2051 6987

www.petronasgas.com