Content2011 - PETRONAS Gas Berhad

ANNUAL REPORT 2011
In 2011, PGB is well positioned to move
into the new business of regasifying
Liquefi ed Natural Gas (LNG),
imported from across the globe
– ensuring a sustainable supply of clean
and green energy for the nation.
In our aspiration to be a world class
gas and utilities company,
we will continue to see beyond
the expected as we transform new
opportunities into invigorating growth.

LNG Regasifi cation Facilities Project
PGB will own and operate the country’s fi rst Liquefi ed Natural Gas (LNG)
Regasifi cation facility which will become commercially operational in 2012.
The facilities, strategically located on one of the world’s busiest shipping lane
– the Straits of Malacca, will be a key gateway for reinforcing the nation’s
energy requirements via regasifying LNG brought in from readily available
sources worldwide. Once converted to gas form, the molecules will then
be fl owed into PGB’s existing Peninsular Gas Utilisation (PGU)
pipeline to meet various energy demands.

Our Vision, Mission and Shared Values 2
Milestones in the Making 4
Five-Year Financial Highlights 6
Corporate Information 8
Our Operations 10
Our Presence 12
Organisational and Corporate Structure 14
Corporate and Management Directory 15
Board of Directors 16
Directors’ Profi les 18
Management Committee 26
Management Committee’s Profi les 28
Corporate Governance 110
Corporate Governance Statement 112
Internal Control Statement 120
Board Audit Committee Report 126
Board Audit Committee’s Terms of Reference 129
Statement of Directors’ Responsibility 131
Financial Statements 132
Other Information 195
Summary of Landed Property, Plant and Equipment 196
Training Programmes Attended by Directors 203
Analysis of Shareholdings 205
Corporate Directory 209
Notice of Annual General Meeting 210
Proxy Form
Performance Review 36
Q&A with the Chairman 38
CEO’s Business Review 48
Financial Review 64
Statement of Value Added 70
Performance of Shares 71
Financial Calendar 71
PGB People 72
LNG Regasifi cation Facilities 74
PGB in the News 76
Awards and Achievements 77
Corporate Responsibilities 78
Sustainability - The PGB Way 81
CR in the Marketplace 82
CR in the Workplace 86
CR in the Environment 96
CR in the Community 100
Calendar of Events 104
1 annual report 2011
Contents

2 petronas gas berhad (101671-h)

Our Vision
A World Class Gas and Utilities Company
Our Mission
• We are a business entity
• Gas is our core business
• Our primary responsibility is to
add value to this natural resource
3 annual report 2011
Our Shared Values
loyalty • professionalism • Integrity • Cohesiveness

Milestones
in the Making
PETRONAS Gas Berhad (PGB) has been in
business for 27 years and still counting. It has
come a long way since its incorporation in
1983 and it would not be an overstatement to
say that PGB has earned more stripes than it
could have possibly imagined in close to three
decades of existence.
Gas processing and gas transmission remain
the fl agship business of PGB. The process
begins at its six Gas Processing Plants located
in Kertih and Paka, operated by the Company’s
Plant Operations Division (POD). Natural gas
from the offshore fi elds of Terengganu is
processed there before being piped into PGB’s
Peninsular Gas Utilisation (PGU) pipeline
which is operated by the Transmission
Operations Division (TOD). TOD is responsible
for the transmission and delivery of sales gas
to customers in the power, industrial and
commercial sectors throughout Peninsular
and East Malaysia.
In 1998, the Company expanded and
diversifi ed the business into manufacturing,
supplying and marketing of industrial utility
products to customers in Kertih Integrated
Petrochemical Complex and Gebeng Industrial
Area through its Centralised Utility Facilities
Division (CUF).
PGB’s technical capability is acknowledged
when the Company, given a strong track record
in gas transmission operations and project
management, entered into an agreement with
PETRONAS Carigali Sdn. Bhd. for the provision
of project management and execution services
for the Sabah-Sarawak Gas Pipeline Project.
The Company’s vast experience in the
operations of industrial utility products which
included power generation via its CUF was the
key to unlock the door to the world of power
producing. In 2009, PGB’s business landscape
has further evolved to include the generation
of electricity with the formation of Kimanis
Power Sdn. Bhd., a joint venture company
with Yayasan Sabah. The entity was set up
to develop a 300 megawatt gas power plant
in Kimanis to meet the growing demand for
electricity in the state of Sabah.
PGB’s business and technical credentials were
further reaffi rmed when it entered into an
agreement with PETRONAS to construct the
country’s fi rst ever LNG Regasifi cation Facilities
in Sg. Udang, Melaka. The project is expected
to be completed and commercially operational
in mid 2012. The facilities would be a gateway
4 petronas gas berhad (101671-h)
for the entry of gas sourced worldwide, which
would address the nation’s energy supply
challenges. It is also a signifi cant factor to
complement the Company’s Third Party
Access (TPA) initiative where the PGU pipeline
will be opened for external gas shippers other
than PETRONAS to transport gas molecules
from readily available sources.
It will be interesting times ahead for PGB,
especially now that the Company has
entered into the 4th Term Gas Processing
and Transmission Agreement (GPTA) with
PETRONAS. This new and improved addendum
to the agreement ensures that the Company is
strategically positioned to leverage on current
and new ventures which promises an era of
invigorating and perennial growth.
Growth and progress for PGB also means
growth and progress for the nation. PGB new
ventures, particularly the LNG regasifi cation
and independent power producing, have
redefi ned PGB’s business portfolio. It is the
beginning of an evolution.

The Sabah-Sarawak Gas Pipeline (SSGP), a project
managed by PGB, is truly a sight to behold even
at construction stage. Rugged and mountainous
terrains really test PGB’s expertise in executing
the project. We at PGB see it as an opportunity for
us to really stretch the limits of our engineering
capabilities – paving the way forward, or upwards
– in the direction of perennial growth we so desire.
SSGP is a major milestone in PGB history
– and because of the geographical challenges
from one pipeline section to another,
each completed section is also a
milestone in itself.
5 annual report 2011

Five-Year
Financial
Highlights
6 petronas gas berhad (101671-h)
RM Million/Year Ended 31 March 2007 2008 2009 2010 2011
Revenue 2,982.3 3,125.7 3,415.1 3,221.8 3,525.0
Profi t Before Tax 1,281.2 1,394.1 1,231.4 1,243.8 1,900.3
Profi t After Tax 1,247.0 1,092.9 928.0 940.7 1,439.1
Total Assets 9,493.1 9,793.3 9,867.1 9,834.7 10,509.9
Total Equity 7,586.3 7,922.4 8,038.3 8,017.0 8,515.2
Long Term Liabilities 1,715.6 1,636.5 1,610.9 1,583.3 1,542.5
Profi t as % Revenue
- Before Tax 43.0 44.6 36.1 38.6 53.9
- After Tax 41.8 35.0 27.2 29.2 40.8
Earnings Per Share (sen) - Basic 63.0 55.2 46.9 47.6 72.7
Net Assets Per Share (sen) 383.4 400.4 406.3 405.1 430.3
Group

2,982.3
2007
1,281.2
1,247.0
2007
9,493.1
2007
��������������������
3,125.7
2008
1,394.1
1,092.9
2008
3,415.1
2009
3,221.8
�������������������
1,231.4
928.0
2009
2010
1,243.8
940.7
2010
Profit After Tax (PAT) Profit Before Tax (PBT)
�������������������������
9,793.3
2008
9,867.1
2009
9,834.7
2010
3,525.0
2011
1,900.3
1,439.1
2011
10,509.9
2011
����������������������������������
1,715.6
2007
1,636.5
2008
1,610.9
2009
1,583.3
2010
1,542.5
2011
63.0
2007
43.0
41.8
2007
7,586.3
2007
383.4
2007
������������������������
55.2
2008
46.9
2009
47.6
2010
������������������������������
44.6
35.0
2008
36.1
27.2
2009
38.6
29.2
2010
After Tax Before Tax
�������������������������
7,922.4
2008
8,038.3
2009
8,017.0
2010
��������������������������
400.4
2008
7 annual report 2011
406.3
2009
405.1
2010
72.7
2011
53.9
40.8
2011
8,515.2
2011
430.3
2011

8 petronas gas berhad (101671-h)
To us, the most precious capital is our people.
PGB has been blessed with a highly capable
workforce – dynamic, innovative and enthusiastic.
This winning formula, coupled with the right
blend of competencies and skills, have enabled us
to propel to greater heights in terms of business
and operational excellence. With a line up of high
impact ventures in our portfolio, it is imperative
that we have people who are ready, willing
and capable. It means doing it right the first time
and followed through with constant monitoring
to ensure efficiency and flawless execution.

Corporate Information
Our Operations 10
Our Presence 12
enhancing
effi ciency
& effective
execution
9 annual report 2011
Organisational and Corporate Structure 14
Corporate and Management Directory 15
Board of Directors 16
Directors’ Profi les 18
Management Committee 26
Management Committee’s Profi les 28

Our
Operations
10 petronas gas berhad (101671-h)
PGB’s main business portfolio is divided into four major divisions – Plant Operations;
Transmission Operations; Centralised Utility Facilities; and Technical & Facilities Development.
The fi rst two are directly related, the former responsible for processing the gas piped from
PETRONAS’ offshore fi elds while the latter is responsible for transporting the processed gas
via the Peninsular Gas Utilisation (PGU) pipeline network to PETRONAS’ customers nationwide.
The third division supports the gas value chain by supplying industrial utilities to the various
petrochemical plants operating in Kertih, Terengganu and Gebeng, Pahang. The fourth
division is a technical services outfi t for PGB, which also extends its expertise in engineering
and project management to other entities within the PETRONAS Group of Companies.
During the year under review, PGB also established a new division – the Liquefi ed Natural
Gas (LNG) Regasifi cation Division. This new division oversees and drives the engineering,
construction and commissioning of the country’s fi rst LNG Regasifi cation Facilities currently
underway within the vicinity of Sungai Udang Port in Melaka.

Gas Processing
Plant Operations Division (POD)
POD operates the six gas processing plants which are divided into
two complexes - Gas Processing Plant A and Gas Processing Plant B
located in Kertih and Paka, Terengganu, respectively. With total combined
sales gas processing capacity of over 2,000 million standard cubic feet per day,
these gas processing plants process natural gas into sales gas and other
by-products such as ethane, propane and butane to be transmitted
to PETRONAS’ customers in power and non-power sectors via the
gas pipeline network.
Gas Transmission
Transmission Operations Division (TOD)
TOD operates the Peninsular Gas Utilisation (PGU) pipeline network
by managing the supply of gas to all PETRONAS customers throughout
Malaysia and ensuring that it’s reliable, efficient and safe. The Segamat
Operations Centre which houses the PETRONAS Gas Control Centre acts
as mission control for the entire PGU network.
Industrial Utilities
11 annual report 2011
Centralised Utility Facilities Division (CUF)
CUF supplies a range of industrial utilities to the petrochemical businesses
in Kertih Integrated Petrochemical Complex in Terengganu and Gebeng
Industrial Area in Pahang. The industrial utilities include electricity, steam,
industrial gases and other by-products such as liquid oxygen,
liquid nitrogen, demineralised water, raw water, cooling water
and boiler feed water, as well as effluent treatment.
Engineering and Project
Management Services
Technical and Facilities Development Division (TFDD)
TFDD is the engineering and project management arm of PETRONAS
Gas Berhad. Having in place a solid technical resume, TFDD also provides
services to other companies within the PETRONAS Group such as
PETRONAS Carigali Sdn Bhd for the Sabah-Sarawak Gas Pipeline project.

PGB Total Pipeline Length
(in operation)
Main 1,658 km
lateral 374 km
C2, C3 and C4 357 km
GPP Interconnect 116 km
sarawak 45 km
total 2,550 km
Major Customers
1. tnb paka
2. Ytl paka
3. TNB Pasir Gudang
4. YTL Pasir Gudang
5. senoko energy
6. Keppel Gas
7. pahlawan power,
tg. Kling
8. panglima power,
Teluk Gong
9. powertek,
Teluk Gong
pgu I 32 km
Kertih - Teluk Kalong 1984
pgu II 685 km
Sector I : 233 km
Teluk Kalong - Segamat 1991
Sector II : 241 km
Segamat - Kapar 1991
Sector III : 211 km
Segamat - Singapore 1991
pgu III 450 km
Sector I : 184 km
Meru - Lumut 1996
Sector II : 176 km
Lumut - Gurun 1998
Sector III : 90 km
Gurun - Pauh 1998
Loop 1 265 km
Kertih - segamat 1999
Loop 2 226 km
Complex
gpp a
gpp b
GPP
Main Pipeline Gas - in
Segamat - Meru 2001
Capacity
mmscfd
1 310
2 250
3 250
4 250
5 500
6 500
Total 2,060
10. TNB Tuanku Jaafar
11. Port Dickson Power
12. genting sanyen power
13. tnb serdang
14. TNB Connaught Bridge
15. TNB Kapar
16. GB3 Lumut
17. Segari Energy Ventures
18. prai power
19. TNB Gelugor
20. Technology Tenaga
Perlis Consortium
PERLIS
20
PULAU
PINANG
19
18
16
17
KEDAH
PERAK
15
STRAITS
OF MELAKA
CUSTOMERS
Gas Processing Plant (GPP)
Centralised Utility
Facilities (CUF)
Compressor Station
Tenaga Nasional
Berhad Power Station
Independent Power
Producer Power Station
Proposed LNG
Regasifi cation Terminal
SELANGOR
14
12 petronas gas berhad (101671-h)
Our Presence
12
13
11
10
9
KELANTAN
8
PAHANG
NEGERI
SEMBILAN
MELAKA
7
TERENGGANU
GPP B
CUF Kertih
GPP A
CUF Gebeng
1
2
SOUTH
CHINA
SEA
JOHOR
4
6
5
SINGAPORE
3

Miri Pipeline System Network
Bintulu Pipeline
System Network
3
TG. KIDURONG
6
SOUTH
CHINA
SEA
SOUTH
CHINA
SEA
5
4
LUAK
MIRI TOWN
PIASAU
Taman Tunku
Teacher Training College
LUTONG
PUJUT
2
1
Bintulu
SARAWAK
Miri
SOUTH
CHINA
SEA
Kimanis
CUSTOMERS
1 SESCO Miri Power Station
2
3
4
5
6
13 annual report 2011
SABAH
Sarawak Gas Distribution System
Bintulu Edible Oils Sdn. Bhd.
Syarikat Sebangun Sdn. Bhd.
Sime Darby Austral Sdn. Bhd.
Biport Bulkers Sdn. Bhd.
FACILITIES
Pipeline
N
Power Station
Industry
Proposed Kimanis
Power Plant

Organisational Structure
BOARD AUDIT COMMITTEE
MANAGEMENT COMMITTEE
FINANCE
CORPORATE AND COMMERCIAL SERVICES
TECHNICAL AND FACILITIES DEVELOPMENT
LEGAL AND CORPORATE SECRETARIAT
HUMAN RESOURCE MANAGEMENT
BOARD OF DIRECTORS
MANAGING DIRECTOR/
CHIEF EXECUTIVE OFFICER
SUPPLY CHAIN MANAGEMENT LNG REGASIFICATION
Corporate Structure
60%
50%
20%
PLANT OPERATIONS
BUSINESS PLANNING
14 petRonAs gAs beRhAd (101671-h)
TRANSMISSION OPERATIONS
CENTRALISED UTILITY FACILITIES
HEALTH, SAFETY AND ENVIRONMENT
PETRONAS GAS BERHAD
Subsidiary
Kimanis Power Sdn. Bhd.
Jointly Controlled Entity
Industrial Gases Solutions Sdn. Bhd.
Associate Company
Gas Malaysia Sdn. Bhd.

Corporate and Management Directory
DIRECTORS
Datuk Anuar bin Ahmad
(Chairman)
Samsudin bin Miskon
(Managing Director/Chief Executive Offi cer)
Dato’ Sadasivan s/o N.N. Pillay
Dato’ Chew Kong Seng
Datuk Mohd Zain bin Haji Abdul Majid
Muri bin Muhammad
Mohammad Medan bin Abdullah
Lau Nai Tuang *
Ramlan bin Abdul Malek
Rosli bin Boni
* Resigned as Director of the Company on
30 June 2011
BOARD AUDIT COMMITTEE
Dato’ Sadasivan s/o N.N. Pillay
(Chairman)
Dato’ Chew Kong Seng
Muri bin Muhammad
Rosli bin Boni
SECRETARIES
Noryati binti Mohd Noor (LS0008877)
Yeap Kok Leong (MAICSA 0862549)
REGISTRAR
Symphony Share Registrars Sdn. Bhd.
(378993-D)
Level 6, Symphony House,
Pusat Dagangan Dana 1,
Jalan PJU 1A/46,
47301 Petaling Jaya,
Selangor Darul Ehsan
Tel : (+603) 7841 8000
Fax : (+603) 7841 8151
15 AnnuAl RepoRt 2011
REGISTERED OFFICE
AND BUSINESS ADDRESS
Tower 1, PETRONAS Twin Towers
Kuala Lumpur City Centre
50088 Kuala Lumpur
Tel : (+603) 2051 5000
Fax : (+603) 2051 6555
AUDITORS
KPMG Desa Megat & Co.
PRINCIPAL BANKER
CIMB Bank Berhad
STOCK EXCHANGE LISTING
Main Market of Bursa Malaysia
Securities Berhad

Board of
Directors
Datuk Anuar bin Ahmad
Chairman
16 petRonAs gAs beRhAd (101671-h)
Dato’ Chew Kong Seng
Samsudin bin Miskon
Managing Director/
Chief Executive Offi cer

Dato’ N. Sadasivan
s/o N.N. Pillay
Ramlan bin Abdul Malek
Rosli bin Boni
Datuk Mohd Zain
bin Haji Abdul Majid
17 AnnuAl RepoRt 2011
Muri bin Muhammad
Lau Nai Tuang
Mohammad Medan
bin Abdullah

Directors’
Profi les
18 petRonAs gAs beRhAd (101671-h)
Datuk Anuar bin Ahmad, a Malaysian aged 57, is a Non-Independent
Non-Executive Director. He was appointed as the Chairman of PETRONAS Gas
Berhad on 17 August 2010. He holds a Bachelor of Science Degree (Econs)
from the London School of Economics & Political Science, University of London
and had attended Harvard Business School’s Advanced Management
Programme (AMP), USA.
He joined PETRONAS in 1977 and is currently the Executive Vice President,
Gas and Power Business, PETRONAS. Before his appointment to this position,
he held various senior managerial positions in International Marketing
Division, Corporate Planning Unit, PETRONAS Trading Corporation Sdn. Bhd.,
PETRONAS Dagangan Berhad, Vice President of Oil Business and Vice President
of Human Resource Management, PETRONAS. He has been a member of
PETRONAS Management Committee since July 1998 and a PETRONAS Board
member since October 2002. He also sits on the Board of several other
companies within the PETRONAS Group.
He was appointed to the Board of PETRONAS Gas Berhad as Chairman on
17 August 2010 and has attended three Board meetings in the fi nancial year.

Samsudin bin Miskon, a Malaysian aged 50, 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 had held several positions in the PETRONAS Group including serving as
General Manager in the Plant Division of OGP Technical Services Sdn. Bhd.,
responsible for the project management of gas processing and petrochemical
plants until 2000. He then served as the General Manager of Malaysia LNG Dua
Sdn. Bhd., and later as Senior General Manager Malaysia LNG Sdn. Bhd. until 2005,
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 for steering the
development of leadership and capability of personnel throughout PETRONAS.
He obtained a Masters of Science in Project Management from Reading University,
UK in 1994. In 2005, Samsudin attended the Advanced Management Program at
Harvard Business School.
Samsudin is currently the Chairman of Kimanis Power Sdn. Bhd. and sits on the
Board of several companies in the PETRONAS Group. He is also a Director of
Gas Malaysia Sdn. Bhd. He has attended six Board meetings in the financial year.
19 AnnuAl RepoRt 2011
Dato’ N. Sadasivan s/o N.N. Pillay, a Malaysian aged 71, is a Senior
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 upon
graduation untill 1967.
In 1968, Dato’ Sadasivan joined the Malaysian Industrial Development Authority
(MIDA) and was appointed as the Director-General of MIDA in 1984. He served
in that capacity until his retirement in 1995. Upon retirement, he set up SKA
Management Consultants Sdn. Bhd. where he is the Executive Chairman.
Dato’ Sadasivan holds directorship in APM Automotive Holdings Berhad, Leader
Universal Holdings Berhad, Malaysian Airline System Berhad and Yeo Hiap Seng
(Malaysia) Berhad, eight private companies and one governmental financial
institution (Bank Negara Malaysia).
He was appointed to the Board of PETRONAS Gas Berhad on 29 August 1995
and has attended five Board and three BAC meetings in the financial year.

Directors’ Profiles
Dato’ Chew Kong Seng, a Malaysian aged 73, 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 the
Malaysian Institute of Accountants. He started his career as a tax officer in the
United Kingdom with the Inland Revenue Department and Stoy Hayward & Co.
from 1964 to 1970. He returned to Malaysia to join Turquand Young & Co.
(now known as Ernst & Young) and was subsequently transfered to the 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 years before he
retired 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 those relating to
banking and financial institutions, utilities, timber-based, manufacturing, trading
and advisory services to local and foreign investors. He is also an Independent
Director and Audit Committee Chairman of five public listed companies namely
PETRONAS Dagangan Berhad, AEON Co. (M) Bhd., PBA Holdings Berhad,
Encorp Bhd. and GW Plastics Holdings Bhd. He is an Audit Committee member
of PETRONAS Gas Berhad and GuocoLand Malaysia Berhad. He also acts as an
Independent Director in other public limited companies.
He was appointed to the Board on 18 March 1999 and attended six Board
and four BAC meetings during the financial year.
20 petRonAs gAs beRhAd (101671-h)
Datuk Mohd Zain bin Haji Abdul Majid, a Malaysian aged 72, is an
Independent Non-Executive Director and was a member of the Board Audit
Committee until 29 March 2011. He graduated in Economics from the University
of Glasgow and in Law from the University of London and 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 had 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 on the boards of Lembaga Letrik Negara, Bank Pertanian
Malaysia, Bank Pembangunan Malaysia and Employees Provident Fund.
He was also Executive and Non-Executive Director of various companies
including Malaysia LNG Sdn. Bhd., 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 five Board and three BAC meetings in the financial year.

Muri bin Muhammad, a Malaysian aged 68, is an Independent
Non-Executive Director and was appointed as a member of the Board Audit
Committee on 25 April 2011.
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 Offi cer of ASEAN Bintulu Fertilizer Sdn. Bhd., and Managing
Director/Chief Executive Offi cer of Malaysia LNG Sdn. Bhd., Muri retired as
Vice President, Gas Business of PETRONAS in 2002. On his retirement, he was
appointed as Advisor to Gas Business until end of March 2005.
On 1 September 2005, he was appointed by the government as a member of
the Energy Commission of Malaysia and served for the full term of four years
until August 2009.
He was appointed to the Board of Petromin PNG Holdings Limited, a Papua
New Guinea government owned Petroleum and Minerals Holding Company
in March 2009.
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 (TGN) and Transportadora de Gas del Mercosur
(TGM), both gas transmission companies of Argentina.
Muri was also on the Board of several PETRONAS subsidiaries and held the
position of the Chairman of the Board of the Gas District Cooling Group of
Companies, PETRONAS NGV Sdn. Bhd., Bekalan Air KIPC Sdn. Bhd. and
OGP Technical Services Sdn. Bhd.
He was appointed to the Board of PETRONAS Gas Berhad on 25 November 1996
and has attended four Board meetings in the fi nancial year.
21 AnnuAl RepoRt 2011

Directors’ Profi les
22 petRonAs gAs beRhAd (101671-h)
Mohammad Medan bin Abdullah, a Malaysian aged 52, is a
Non-Independent Non-Executive Director. He holds a Bachelor of Laws from
University Malaya and has attended the Advanced Management Program
from the Wharton School, University of Pennsylvania, Philadelphia.
He joined PETRONAS in 1982 and is currently the Senior General Manager of
Group Corporate Affairs Division, PETRONAS. Prior to assuming this position,
he held various senior positions in the PETRONAS Group such as the Managing
Director/Chief Executive Director of Malaysia LNG Sdn. Bhd., Senior General
Manager for Corporate Services Division of PETRONAS Carigali Sdn. Bhd., Senior
Manager of Group Tenders and Contracts of PETRONAS, General Counsel
for Petroleum Resources of E&P Business of PETRONAS, Senior Legal Counsel,
Legal Advisor for Baram Delta Operations, Legal Offi cer at the Legal Services
Department and Trainee Legal Offi cer at the Legal Services Department and
Executive Assistant to the President/Chief Executive Offi cer of PETRONAS.
He is a Board member of PETRONAS Dagangan Berhad and Bintulu Port Holdings
Berhad. He is also a member of the International Bar Association, a member
of the Institute of Chartered Secretaries & Administrators, and the PETRONAS
representative in the World Economics Forum - Partnering Against Corruption
Initiative.
He was appointed to the Board of PETRONAS Gas Berhad on 1 November 2010
and has attended two Board meetings in the fi nancial year.

Lau Nai Tuang, a Malaysian aged 53, is a Non-Independent Non-Executive
Director. He was appointed as Director of PETRONAS Gas Berhad on 1 November
2010. He holds a Bachelor Degree in Engineering (Mechanical) (Hons) from
University Malaya.
He joined PETRONAS in 1984 and is currently the Vice President, Infrastructure
& Utilities, Gas and Power Business, PETRONAS. He has more than 25 years
experience working in various companies within PETRONAS Group of Companies
including Asean Bintulu Fertilizer, MLNG and PCSB. He was also the CEO of PASB
from 2006 to 2009.
He was appointed to the Board of PETRONAS Gas Berhad on 1 November 2010
and served the Board until 30 June 2011. He has attended two Board meetings
in the financial year.
23 AnnuAl RepoRt 2011
Ramlan bin Abdul Malek, a Malaysian aged 56, is a Non-Independent
Non-Executive Director. He is currently the Vice President, Petroleum
Management, E&P Business of PETRONAS. He graduated in Chemical
Engineering from United Kingdom.
As the head of Petroleum Management Unit (PMU), his present responsibilities
cover promotion and regulation of the upstream activities in Malaysia. PMU acts
as the petroleum resource owner and the Production Sharing Contracts manager
in Malaysia.
Upon completion of his degree in Chemical Engineering from United Kingdom,
he joined PETRONAS in 1979. His 31 years working experience is mainly in the
upstream E&P areas.
Prior to assuming his current position in June 2010, he was the Vice President,
E&P Business and had held several technical and general management positions
in PETRONAS, PETRONAS Carigali Sdn. Bhd., and PETRONAS Research & Scientific
Services. Ramlan sits on the PETRONAS Management Committee and is also the
Chairman of the Society of Petroleum Engineers (SPE) Asia-Pacific Sdn. Bhd. and
the Chairman of PETRONAS Research Sdn. Bhd.
Ramlan currently sits on the Board of several companies in the PETRONAS
Group. He has attended two Board meetings in the financial year.

Directors’ Profi les
Rosli bin Boni, a Malaysian aged 54, is a Non-Independent and
Non-Executive Director. He was appointed as a member of the Board
Audit Committee on 1 November 2010. He holds a Bachelor of Science in
Petroleum Engineering from the University of Wyoming, Laramie, Wyoming,
United States of America in 1979.
He has 30 years of experience in the petroleum industry. He started his career
with PETRONAS in 1980 in the area of sub-surface engineering, wireline
operations, well drilling and well-testing operations until 1994 as wellsite
engineer to team supervisor. From 1996, he spent 5 years as Field Asset Manager.
From July 2000 to March 2004 he was on overseas assignment in a top
management capacity in Premier Oil in UK, an oil development project in Chad
and exploration in Bahrain. From April 2004 to October 2007 he served as
General Manager in the Petroleum Management Unit in E&P Division,
PETRONAS. In October 2007 he was appointed as the Senior General Manager
of the Operations Division, reporting to the MD/CEO and VP, in charge of
all production operation both in Malaysia and overseas. From April 2009
to February 2010, he headed the HR Shared Services, reporting to VP of
Human Resources Division.
Currently, he serves as the Deputy Chief Executive Offi cer with Malaysia
Thailand Joint Authority (MTJA), on secondment from PETRONAS.
He is active in the Society of Petroleum Engineer (SPE) and jointly established
the SPE Terengganu Section in Malaysia in 1997. In 2003 he received the
prestigious award from SPE, the Regional Service Award for 2002 Northern
Asia Pacifi c Region, for his contribution, services and work to the causes
and advancement of SPE. He has served in the committee of various SPE
forums and workshops.
He was appointed to the Board of PETRONAS Gas Berhad on 1 November 2010
and has attended one Board and one BAC meeting in the fi nancial year.
24 petRonAs gAs beRhAd (101671-h)
Datuk Wan Zulkifl ee bin Wan Ariffi n, a Malaysian aged 50, was a
Non-Independent Non-Executive Director and currently he is the Chairman of
PETRONAS Dagangan Berhad.
He holds a Bachelor of Engineering Degree from the University of Adelaide,
South Australia. In 2000, he attended the INSEAD Senior Management
Development Program and in 2004 he attended the Advanced Management
Program at Harvard Business School, Harvard University. He was conferred the
Honorary Fellowship by the Institution of Chemical Engineers, United Kingdom
in November 2005.
Since joining PETRONAS in 1983, Datuk Wan Zulkifl ee has held
various positions within the PETRONAS Group including serving in the Offi ce
of the President as Executive Assistant to the President, General Manager,
International Projects Management Division of OGP Technical Services and
General Manager for the Strategy and Business Development Unit. He was
the Managing Director/Chief Executive Offi cer of PETRONAS Gas Berhad
from 2003 until 2007. He was also the Vice President of Gas Business from
April 2006 until April 2010
Datuk Wan Zulkifl ee bin Wan Ariffi n is currently the Executive Vice President,
Downstream Business of PETRONAS and is a member of PETRONAS Board
of Directors, the Executive Committee, Management Committee and serves
on various Boards of several Joint Ventures and Subsidiary Companies in the
PETRONAS Group.
Datuk Wan Zulkifl ee bin Wan Ariffi n is also the Chairman of PETRONAS
Chemicals Group Berhad. He is also a member of the Board of Directors
for MISC Berhad and the Industry Advisor to the Engineering Faculty,
University Putra Malaysia.
He attended three Board meetings during the fi nancial year and resigned as a
Director/Chairman on 17 August 2010.

Farehana binti Hanapiah, a Malaysian aged 43, was a Non-Independent
Non-Executive Director.
She holds a Bachelor 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 together with KPMG London.
She was also involved in many Corporate Strategic initiatives, including
the development of the Corporate Risk Management Framework, Corporate
Portfolio Management Framework and several key corporate strategic studies
as she served as Head of Methodologies in Corporate Risk Management unit,
Head of Portfolio Management and as the General Manger of Group Strategic
Planning where she was responsible for the Group’s Strategies, Business Plans &
Budget and also Peerformance Reviews.
She is currently serving as the Head of Commercial for Project RAPID,
a potential development of an integrated Refi nery and Petrochemical Complex,
an integral part of PETRONAS’ growth agenda.
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.
She has attended four Board meetings in the fi nancial year and resigned as
a Director on 1 November 2010.
25 AnnuAl RepoRt 2011
Dato’ Mohammed Azhar bin Osman Khairuddin, a Malaysian
aged 55, was a Non-Independent Non-Executive Director. He is currently the
Vice-President of PETRONAS’ Legal Division. He is also the Company
Secretary of PETRONAS since 1 April 2000, a member of its Management
Committee and serves on the Board of several companies within the
PETRONAS Group.
He holds a Bachelor of Law (Honours) degree from the University of Malaya
and is a member of the International Bar Association (IBA) as well as the
Inter-Pacifi c Bar Association (IPBA).
He has attended three Board meetings and two BAC meetings in the
fi nancial year and resigned as a Director and a Board Audit Committee member
on 1 November 2010.
None of the Directors has:
Any family relationship with any other Director and/or major shareholder
Any confl ict of interest with PETRONAS Gas Berhad
Any conviction for offences within the past 10 years other than traffi c offences

Management
Committee
Ahmad Nawawi bin Mohd Yatim
General Manager, Technical and
Facilities Development Division
Ir. Hudal Firdaus bin Dimyati
Head of LNG Regasifi cation Division
Noryati binti Mohd Noor
Senior Manager of Legal and
Corporate Secretariat Department
26 petRonAs gAs beRhAd (101671-h)
Samsudin bin Miskon
Managing Director/Chief Executive Offi cer
Muhamed Ali bin Hashim Mohamed
Managing Director of Kimanis Power Sdn. Bhd.
Wan Mohd Muzani bin Wan Muda
Senior Manager of Business
Planning Department

Karima binti M Noor
General Manager of Finance Division
Md Nasser bin Abdullah
General Manager of Corporate
and Commercial Services Division
Wan Mohamad bin Wan Mustoffa
Senior Manager of Health, Safety
and Environment Department
Rashid bin Muhamad
Senior General Manager of
Plant Operations Division
Zilfalilah binti Abdul Aziz
General Manager of Human Resource Division
27 AnnuAl RepoRt 2011
Nordin bin Ab Ghani
General Manager of Transmission
Operations Division
Mohd Sukri bin Ibrahim
General Manager of Centralised
Utility Facilities Division

Management
Committee’s
Profi les
Samsudin bin Miskon
28 petRonAs gAs beRhAd (101671-h)
Managing Director/Chief Executive Offi cer
Samsudin, aged 50, holds a Degree in Chemical Engineering from the University
of Aston, UK and obtained his Masters of Science in Project Management from
Reading University, UK. He also holds a Diploma in International Management
from INSEAD, France and attended the Advanced Management Programme at
Harvard Business School.
He has been with PETRONAS for more than 27 years, having held various
positions in the PETRONAS Group of Companies under various capacities.
He 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 the ensuing years, he served as the General Manager in the Plant
Division of OGP Technical Services Sdn. Bhd. and later as Senior General Manager
of Malaysia LNG Sdn. Bhd., where he was responsible for managing the operations
of the PETRONAS LNG Complex in Bintulu, Sarawak.
Prior to his current appointment, he was the Senior General Manager of Leadership
and Capability Development Department of Human Resource Management Division
where he was responsible to steer the leadership development and personnel
capability throughout PETRONAS.
Samsudin is currently the Chairman of Kimanis Power Sdn. Bhd. and sits on the
Board of several companies in the PETRONAS Group. He is also the Director of
Gas Malaysia Sdn. Bhd. He assumed his current position in March 2007.

Karima binti Mohd Noor
General Manager of Finance Division
Karima, aged 35, 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 member of the Malaysian Institute of
Certified Public Accountants and Malaysian Institute of Accountants.
Prior to joining PETRONAS, she pursued her articleship with Hanafiah Raslan &
Mohamad. She began her career in PETRONAS in 2002 as a Finance Executive
in PETRONAS Carigali Sdn. Bhd. and in the ensuing years, she served as an
analyst in the Office of the President.
She joined PETRONAS Gas Berhad In December 2008 and held various
positions in the Financial and Management Accounting Department.
She assumed her current position in February 2011.
29 AnnuAl RepoRt 2011
Nordin bin Ab Ghani
General Manager of Transmission Operations Division
Nordin, aged 54, holds a Degree in Civil Engineering from the University of
Malaya.
He started his career with the Public Works Department of Malaysia. After three years
of service, he moved to PETRONAS in September 1983 where he was involved in
the Project Implementation and Operations of the Peninsular Gas Transmission
System. He served in various capacities until December 2002.
Prior to his current position, he was appointed as the Director of Operations
of PT Transportasi Gas Indonesia, a joint venture company based in Jakarta,
Indonesia.
He assumed his current position in August 2005.

Management Committee’s Profi les
Rashid bin Muhamad
Senior General Manager of Plant Operations Division
Rashid, aged 52, graduated from Texas A & M University, USA with a Bachelor of
Science in Mechanical Engineering.
He started his career with PETRONAS Gas Berhad in January 1980 and was
involved in engineering, operations and projects relating to gas processing plants
and transmission pipelines. In 1994, he was appointed as Project and Technical
Service Manager of Gas District Cooling (M) Sdn. Bhd., and was responsible
to develop the centralised gas district cooling and cogeneration systems in
Kuala Lumpur City Centre, Kuala Lumpur International Airport and Putrajaya.
Subsequently in 1999, he was appointed as a Senior Project Manager and then
Senior Plant Manager with PETLIN (M) Sdn. Bhd., in which he managed the
development and operations of high pressure Low Density Polyethylene plant.
In 2003, he was assigned to an overseas posting for 1 1/2 years at SASOL
Polymer Business in Johannesburg, South Africa, and upon his return, he was
involved in developing the Mega Methanol Project in Labuan.
Prior to his current position, he served as Plant General Manager at PETRONAS
Fertilizer (Kedah) Sdn. Bhd. for three years. He assumed his current position in
January 2009.
Ir. Hudal Firdaus bin Dimyati
Head of LNG Regasifi cation Division
30 petRonAs gAs beRhAd (101671-h)
Hudal Firdaus, aged 47, holds a Degree in Civil Engineering from the University
of Toledo, Ohio, USA. He is a member of the Board of Engineers, Malaysia and
also the Institution of Engineers, Malaysia.
He 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 years. He was involved in the implementation of various crossborder
pipeline projects in Malaysia, Thailand and Sudan.
In 1999, he 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,
and was responsible for 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 (TFDD) and he was promoted as General Manager, TFDD, in January
2006. He assumed his current position in November, 2010.

Muhamed Ali bin Hashim Mohamed
Managing Director of Kimanis Power Sdn. Bhd.
Muhammed Ali, aged 54, holds a Bachelor of Science (Honours) in Civil
Engineering from Middlesex Polytechnic, UK in 1983.
He began his career in PETRONAS as a Project Engineer after graduation in 1983
and his experience includes the management of pipeline system integrity and
plant constructions. He also has had vast experience in managing projects
including the Malaysia LNG Tiga project in Bintulu, Sarawak, the Pars LNG project
in Iran and the Kakinada LNG project in India.
Prior to his current position, Muhamed Ali headed the Business Development
of LNG, in the Gas Business Unit of PETRONAS in which he was responsible
for managing the entry strategy for PETRONAS global LNG ventures through
joint venture partnerships or acquisitions of new assets. He assumed his current
position in January 2009.
Md Nasser bin Abdullah
31 AnnuAl RepoRt 2011
General Manager of Corporate and Commercial Services Division
Md Nasser, aged 54, holds a Degree in Civil Engineering from Newcastle University,
Newcastle upon Tyne, UK and Diploma in Engineering from Norwich City College,
Norwich, UK. He was also accredited as a Project Management Professional by
the Project Management Institute in 1995 and attended the INSEAD, Senior
Management Development Programme in 1998 in Kuala Lumpur.
He started his career as a Civil Engineer in the Government prior to joining
PETRONAS in 1983. His career in PETRONAS was mostly at PETRONAS Gas Berhad,
specifi cally the Pipeline Transmission Projects, where he was the Engineering
Manager in the Peninsular Gas Utilisation (PGU II) project. He led the PGU III and
Looping projects as its Project Manager.
In May 2000 he joined the Transmission Operations Division as its Technical Services
Manager and in 2003, he was made the Senior Manager for Operations.
In 2005, his career transcended international boundaries when he was appointed
as Director of Operations for PT Transportasi Gas Indonesia, a PETRONAS joint
venture company based in Jakarta, Indonesia.
He assumed his current position in October 2009 upon his return from Indonesia.
He is also a Director of Industrial Gases Solutions Sdn. Bhd., a joint-venture
company of PGB and Malaysian Oxygen Berhad.

Management Committee’s Profi les
Zilfalilah binti Abdul Aziz
General Manager of Human Resource Division
Zilfalilah, aged 44, graduated with a Degree in Computer Science and
Mathematics from New Mexico Institute of Mining and Technology,
New Mexico, USA in 1988.
She began her career in PETRONAS in 1990 as Management Executive,
where she was assigned to develop the Human Resource Information
System. Since then, Zilfalilah has served in various capacities in the fi eld of
human resource management, amongst others, she was 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.
Mohd Sukri bin Ibrahim
32 petRonAs gAs beRhAd (101671-h)
General Manager of Centralised Utility Facilities Division
Mohd Sukri, aged 47, holds a Bachelor Degree of Science in Petroleum
Engineering from the West Virginia University, USA.
Upon graduation, he started his career as a Service Engineer with a drilling
company serving Esso Production Malaysia Inc. and Sarawak Shell Berhad.
His career in PETRONAS started in 1991 as a shift supervisor in PGB where
he was involved in the project implementation of several gas plants. In 1997,
he was assigned to the project engineering, construction, commissioning
and operations at the Centralised Utilities Facilities (CUF). Prior to his current
position, he was assigned to Gas Processing Plant B as Senior Manager of
plant operations.
He assumed his current position in CUF in August 2009. In addition to his current
roles, he also serves as a Director for Kimanis Power Sdn. Bhd. and Industrial
Gases Solution Sdn. Bhd.

Ahmad Nawawi bin Mohd Yatim
General Manager of Technical and Facilities Development Division
Ahmad Nawawi, aged 47, is the General Manager, Technical & Facilities
Development Division. He holds a Degree in Mechanical Engineering from
University of New Brunswick, Canada.
Upon graduation, he joined PETRONAS Gas Berhad in October 1987 as a
trainee engineer and was soon elevated to Mechanical Engineer for the Gas
Processing Plant (GPP) 2 and 3 project the following year. In 1993, he was
reassigned by PETRONAS to OGP Technical Services Sdn. Bhd. for the GPP 5 and
6 Project, the Propane Dehydrogenation Project (PDH) and the District Cooling
Plant Projects. A decade later, he joined PETRONAS’ Gas Business Unit,
where he was responsible for business development for the Indonesian market and
following that, he was appointed as Head of Project Engineering for the
Sabah-Sarawak Integrated Oil & Gas Project in 2006.
Ahmad Nawawi returned to PETRONAS Gas Berhad in January 2011 to assume
his current position.
33 AnnuAl RepoRt 2011
Noryati binti Mohd Noor
Senior Manager of Legal and Corporate Secretariat Department
Noryati, aged 45, is the Senior Manager of Legal and Corporate Secretariat
Department. She holds a Bachelor of Law (Honours) from the International
Islamic University Malaysia.
Her career in PETRONAS started in 1990 as Legal Executive for PETRONAS
Dagangan Berhad. She continued to serve PETRONAS Dagangan Berhad
until 1997 when she joined Gas District Cooling (M) Sdn. Bhd. as the Senior
Legal Counsel. In the ensuring years, Noryati was involved in several illustrious
projects in Iran, Singapore and Indonesia.
Noryati assumed her current position in October 2005. She also holds
several other positions, namely Company Secretary to Industrial Gases Solutions
Sdn. Bhd. and Kimanis Power Sdn. Bhd.

Management Committee’s Profiles
Wan Mohd Muzani bin Wan Muda
Senior Manager of Business Planning Department
Wan Mohd Muzani, aged 46, graduated with a Bachelor of Science in
Chemical Engineering from California State University, Long Beach, USA
in 1987.
He started his career with PETRONAS in October 1988 as a process engineer at
Plant Operations Division. He spent a majority of his time in the plant holding
various position in areas of Plant Technical Services, Project Management and
Production Planning and acquired in-depth experience in plant design and
operation of gas plant. He was also involved in the start up and commissioning
of Gas Processing Plant (GPP) 2, 3 and 4 and plant rejuvenation project for
GPP 1.
Prior to his current position, he gained experience in business
management by serving as Manager of Plant Production Planning and
Senior Manager, Technical Services Department. He assumed his current position
in November 2009.
34 petRonAs gAs beRhAd (101671-h)
Wan Mohamad bin Wan Mustoffa
Senior Manager of Health, Safety and Environment Department
Wan Mohamad, aged 54, graduated from Iowa State University, USA with a
Bachelor of Science in Chemical Engineering.
He started his career with the Department of Environment of Malaysia
in 1980. He joined PETRONAS in 1987 as Environmental Engineer
where he was involved in planning and implementing an effective health and
environmental programs to safeguard employees’ health and the surrounding
environment for PETRONAS Offshore installations and its contractors.
He has held various positions within the Health, Safety and Environment
Department of several PETRONAS subsidiaries such as PETRONAS Carigali
Sdn. Bhd., PETRONAS Dagangan Sdn. Bhd., PETRONAS Penapisan (Terengganu)
Sdn. Bhd. and PETLIN (M) Sdn. Bhd. from 1990 to 2010.
He assumed his current position in June 2010.

Liza binti Mustapha
Liza, aged 40, served as General Manager of Finance Division from August 2007
to January 2011. 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 Certifi ed
Accountants.
Liza joined PETRONAS in 1995 as a Finance Executive in PETRONAS Carigali
Sdn. Bhd. and in the ensuing years, held various positions within the Finance
and Accounts Department of PETRONAS Carigali.
In 2005, she moved to PETRONAS Gas Berhad, where she fi rst served as
Senior Manager and subsequently as General Manager of the Finance Division.
She has since assumed the position of Senior General Manager of Group
Treasury Department, PETRONAS, effective February 2011.
35 AnnuAl RepoRt 2011

36 petronas gas berhad (101671-h)
leveraging
on innovation
to unlock
business value

Performance Review
Q&A with the Chairman 38
CEO’s Business Review 48
Financial Review 64
Statement of Value Added 70
Performance of Shares 71
Financial Calendar 71
PGB People 72
LNG Regasifi cation Facilities 74
PGB in the News 76
37 annual report 2011
Awards and Achievements 77
Innovation continues to be at the forefront of PGB’s culture,
simply because we want to explore new and unchartered
waters to grow our business. The Third Party Access (TPA)
system is the key to unleash new possibilities to ensure energy
supply security whereby it will enable third parties to access
PGB’s regasifi cation terminal and pipeline network to regasify
and transport their gas molecules. We believe it will be
a win-win situation – for us to become a market-driven
regasifi cation terminal and pipeline operator and for
the industry players to ensure reliability of gas supply
for their businesses.

Q&A
with the Chairman
REAFFIRMING BUSINESS AND TECHNICAL CREDENTIALS TOWARDS
INVIGORATING GROWTH
Y.Bhg. Datuk Anuar bin Ahmad was appointed as the new Chairman of
PETRONAS Gas Berhad (PGB) on 17 August 2010. Under his stewardship,
the Company has enhanced its fi nancial and operational performance
as well as strengthened its growth efforts. The year under review marked an
exciting growth for PGB, achieving record profi ts and embarking on projects
that not only invigorate the Company, but also the nation. An interview with
Y.Bhg. Datuk Anuar reveals the Company’s performance, aspirations and
commitment in growing the business and sustaining world class operations.
38 petronas gas berhad (101671-h)

39 annual report 2011
The Board of Directors is recommending
a final dividend of 35 sen per share. Together with the
interim dividend of 15 sen per share paid out on
29 December 2010, total gross and net dividend
for the financial year ended 31 March 2011
will amount to 50 sen per share which represents
a dividend payout ratio of 68.7%.

Q&A with the Chairman
The Company managed to maintain
reliability in its plant operations
at world class standards.
Q: How was the Company’s operational
and fi nancial performance during
the year under review in light of the
economic landscape?
The Malaysian economy grew by 7.2% in
2010 as it rode on global economic recovery. It
is projected to grow by 5% to 6% for the year
2011. Domestic electricity demand, which is a
good indicator of economic growth, increased
by 5.8% in 2010.
The past fi nancial year was challenging due to
declining gas production from domestic gas
fi elds. Despite the challenges, the Company
was able to achieve a commendable fi nancial
performance due to effective strategies in
increasing revenue as well as in decreasing
costs.
OPERATIONAL PERFORMANCE – GAS
PROCESSING & GAS TRANSMISSION
During the year under review, an average
of 2,080 million standard cubic feet per day
(mmscfd) of feedgas was processed by the
Company’s Gas Processing Plants (GPPs) in
Kertih and Paka, Terengganu. This represents
a 3.3% decline compared to 2,151 mmscfd
processed in the previous fi nancial year. The
decrease was mainly attributable to lower
feedgas supply from domestic gas fi elds.
Consequently, sales gas delivery to customers
was recorded lower at 2,146 mmscfd
compared to the previous fi nancial year at
2,178 mmscfd.
The Company managed to maintain reliability
in its plant operations at world class standards.
GPPs’ sales gas reliability was at 99.6%, ethane
plant reliability was 98.8% and propane and
butane plant reliability collectively was at
98.7%.
The Company’s PGU pipeline network also
continued to maintain its excellent record by
achieving 99.97% reliability.
OPERATIONAL PERFORMANCE
– UTILITIES
Our utilities business in Kertih, Terengganu
and Gebeng, Pahang continued to show
commendable improvements in reliability,
recording 99.5% and 99.6% for steam and
industrial gases, respectively. These collective
improvements and sustainability were the
result of continuous and comprehensive
scheduled maintenance activities.
40 petronas gas berhad (101671-h)
The year under review also saw new businesses
secured by Kertih Centralised Utility Facilities
(CUF) where it successfully commenced
the supply of Demineralised Water to the
Gas Processing Plants. In addition, CUF also
successfully commenced sludge drying services
for Ethylene Malaysia Sdn. Bhd.
FINANCIAL PERFORMANCE
The Group recorded a revenue of RM3,525.0
million, an increase of 9.4% or RM303.2
million compared to last year. The increase
was mainly due to the enhanced Processing
Remuneration Structure and Transportation
Remuneration Structure in the 4th Term Gas
Processing & Transmission Agreement (GPTA.
The Group’s overall profi t before tax increased
by 52.8% from RM1,243.8 million last year to
RM1,900.3 million, whilst profi t after tax also
increased by 53.0% from RM940.7 million last
year to RM1,439.1 million. Earnings per share
attributable to shareholders of the Company
were higher from 47.6 sen last year to 72.7
sen this year.

41 annual report 2011
PGB’s entry into full-fl edged independent power
producing business via the Kimanis Power Plant
project in Sabah signifi es the Company’s forward
looking business diversifi cation strategy.
The project site in Kimanis Bay is now ready
for full construction.

Q&A with the Chairman
The TPA initiative is a pro-active measure
by the Company in anticipation of the
gas market liberalisation by the
Malaysian Government. With TPA
in place, the Company is ready
to service new players.
The Board of Directors is recommending a
fi nal dividend of 35 sen per share. Together
with the interim dividend of 15 sen per share
paid out on 29 December 2010, total gross
and net dividend for the fi nancial year ended
31 March 2011 will amount to 50 sen per
share which represents a dividend payout
ratio of 68.7%.
Q: How does the Company ensure that
its workforce continues to be competent
to support the Company’s operations
and aspirations?
PGB will continue to invest in developing and
harnessing the functional and management
skills of its staff through diverse programmes
designed to equip them with the necessary
tools, capabilities and competencies
accordingly.
42 petronas gas berhad (101671-h)
Q: What is the growth story for PGB?
In April 2010, the Company entered into
the 4 th Addendum to the Gas Processing
and Transmission Agreement (GPTA) with
PETRONAS which provides a clearer
demarcation of terms and remuneration
structure between processing and transmission
business. This demarcation paves the way
for Third Party Access (TPA), allowing other
parties besides PETRONAS to utilise the PGU
gas pipeline system.
The TPA initiative is a pro-active measure by
the Company in anticipation of the gas market
liberalisation by the Malaysian Government.
With TPA in place, the Company is ready to
service new players.
During the year, the Company awarded the
Engineering, Procurement, Construction
and Commissiong (EPCC) contract to the
consortium of CTCI Corp. and the Contractual
Service Agreement to the consortium of
General Electric Power for the Kimanis
Power Plant project. With this initiative, the
Company has entered the independent power
producing business and plans are underway
for the Company to expand this business.

43 annual report 2011
The company is prolonging
its fl agship asset life by undertaking
Plant Rejuvenation and Revamp (PRR)2
on facilities at its Gas Processing
Plant (GPP) and Compressor station.
This is to ensure plant integrity,
reliability and existence will be
extended for another 20 years.

Q&A with the Chairman
With signifi cant expertise in gas infrastructure
projects and operations, the Company was
entrusted by PETRONAS to develop a Liquefi ed
Natural Gas (LNG) regasifi cation terminal in
Melaka.
In addition to new projects and developments,
the Company is also ensuring that integrity
and reliability of existing key infrastructures
are maintained. The Company has embarked
on the Plant Rejuvenation and Revamp (PRR) 2
project to ensure the life of its gas processing
plants is extended for another 20 years.
Q: Corporate Social Responsibility (CSR)
has always been eminent in PGB’s
credentials. What does CSR means to
PGB and how was this refl ected in the
year under review?
PGB will continue to focus on its corporate
social responsibility which is aligned with
The proudest achievement of
PBPP for the year under review was
the commendable results of the
Ujian Penilaian Sekolah Rendah (UPSR) 2010
wherein 92% out of the 94 PBPP students
passed the examination. In addition,
19 students obtained 5As while another
28 scored 4As.
PETRONAS’ spirit and philosophy of giving
back and aspiring the people wherever
it operates. Most of the Company’s CSR
initiatives are education-driven and the
Program Bakti Pendidikan PETRONAS (PBPP),
which focuses on developing the potential
of marginally performing school students to
excel in their studies, is a major programme
that PGB supports wholeheartedly. The
proudest achievement of PBPP for the year
under review was the commendable results
of the Ujian Penilaian Sekolah Rendah (UPSR)
2010 wherein 92% out of the 94 PBPP
students passed the examination. In addition,
19 students obtained 5As while another 28
scored 4As.
Another effort worthy of mention was a series
of “Bakti Dihulur, Kasih Disemai” programmes
conducted by Company personnel for the
less fortunate as well as for protection of the
environment.
44 petronas gas berhad (101671-h)
Q: What were the efforts undertaken
in ensuring the Company continues
to operate in a healthy, safe and
environmentally-friendly manner?
Many activities and programmes were carried
out to instil good HSE practices in the hearts
and minds of each and every staff. In addition
to process safety management programs,
health talks and seminars were conducted.
In the year under review, the Company also
launched the Environmental 4G initiative, a
comprehensive environmental sustainability
programme which symbolises Green Care,
Green Mind, Green Ownership and Green
Growth.

Clear and precise
communication
between staff is one
of the key factors
to effective execution.
45 annual report 2011

Q&A with the Chairman
Leveraging on our world class operations
and competent workforce, we want to grow
the Company not only domestically,
but also internationally. We intend to expand
our involvement in the power-producing
and regasifi cation business.
During the year under review, PGB was
accorded various awards and recognitions. The
Company was awarded the “2009 National
OSH Excellence Award” for Gas Utilities
category. The Company was also recognised
by Malaysian Society of Occupational Safety
and Health with eight awards. At PETRONAS
level, PGB once again received the Merit
Award in Sustainability Development category
for its success in conducting ‘Knowing TOD’
programme.
Q : We were made to understand that
PGB was also honoured with a number
of other awards?
PGB won the National Annual Corporate
Report Award (NACRA) 2010 for Best
Annual Report in the Industrial Products and
Technology category. We also gained a spot
in The Edge Billion Ringgit Club Award for
recording a turnover of more than RM1 billion
and was ranked 8th by the Asia Wall Street
Journal in the Top 10 Malaysian Companies
under its annual Asia 200 survey.
46 petronas gas berhad (101671-h)
Q: What is your vision and outlook for
PGB in the near future?
Leveraging on our world class operations
and competent workforce, we want to grow
the Company not only domestically, but also
internationally. We intend to expand our
involvement in the power-producing and
regasifi cation business.
Q: What is your message to our valued
stakeholders and staff?
I would like to take this opportunity to
express my sincere appreciation to all our
stakeholders, including the shareholders
and the Government, for their support and
confi dence in the Company. My special
appreciation also extends to the Board of
Directors for their guidance and counsel and
to the management and employees for their
professionalism and commitment.
Datuk Anuar bin Ahmad
Chairman

47 annual report 2011
The Company continues to be
recognised by the country’s
HSE fraternity by garnering numerous
awards for good safety practices.
It is a “must do, no compromise”
commitment by PGB to ensure
its staff are provided with a safe
and conducive work environment.

In its journey of transcending possibilities,
PGB has checked into an era of growth and
diversification within the gas and utilities realm,
multiplied in a quantum more than the
Company could possibly imagine.
48 petronas gas berhad (101671-h)

49 annUaL report 2011
CEO’s
Business
Review

CEO’s Business Review
INTRODUCTION
The Company’s perseverance
and appetite for business and
operational excellence in the year
under review have enabled it to live
up to its vision to be “A World Class
Poised For Perennial Growth
The fi nancial year 2010/2011 marks the
27th year of incorporation for PETRONAS
Gas Berhad (PGB), 36 months away from
celebrating its three decades of existence
in serving the nation’s energy needs. The
Company has weathered many challenges
since its inception to become what it is today
– stable, reliable and above all, resilient. After
a year of kaleidoscopic achievements in its
journey of transcending possibilities, PGB
has checked into an era it aspired to be – that
of monumental growth and diversifi cation
within the gas and utilities realm, multiplied
in a quantum more than the Company could
possibly imagine.
With a business platform tucked fi rmly under
its belt, which without doubt has reaffi rmed
its business credentials, the Company is now
raring to translate its current business and
Gas and Utilities Company”
technical portfolio into an era of invigorating
growth. The Company’s perseverance
and appetite for business and operational
excellence in the year under review have
enabled it to live up to its vision to be “A
World Class Gas and Utilities Company”
which was introduced to its shareholders and
public during the previous fi nancial year.
A key element which has enabled the
Company to soar to record heights for the
year under review was when it entered
into an Addendum to the Gas Processing
and Transmission Agreement (GPTA) with
Petroliam Nasional Berhad (PETRONAS). This is
the fourth series of the GPTA (4th Term GPTA)
signed between PGB and its holding company
PETRONAS.
The GPTA entered between PGB and
PETRONAS is for a duration of 20 years effective
from 1 April 1994, whereby PGB provides to
PETRONAS the services of processing and
50 petronas gas berhad (101671-h)
transmission of gas to PETRONAS’ customers
via the Peninsular Gas Utilisation (PGU)
pipeline system. The revised terms maintains
the throughput fee structure, which provides
for a guaranteed income from the Reservation
Charge and Flowrate Charge on incremental
volume above an agreed threshold. As in prior
terms stipulated in the master GPTA and it’s
three preceding Addendums, the Reservation
Charge and Flowrate Charge levels were
determined to ensure recovery of reasonable
capital costs and operating expenses.
The fourth Addendum entails clearer
demarcation of terms and remuneration
structure between processing and
transportation of gas by splitting the GPTA
into two sub-elements – the Gas Processing
Agreement (GPA) and Gas Transportation
Agreement (GTA). These separate subelements
of the GPTA will take the company
through highly interesting times from the
period of 1 April 2010 to 31 March 2014.

GATEWAY TO THE NEXT HORIZON
Unlocking the Business Value
The 4th Term GPTA is the perfect preamble
to three major ventures for PGB in the year
under review with capital expenditure of
approximately RM5 billion, namely the
progress of the Kimanis Power Plant project
in Sabah; the Plant Rejuvenation and Revamp
project at the Gas Processing Plants and Export
Terminal in Kertih and Kemaman respectively;
and the most ambitious one of all – the LNG
Regasifi cation Facilities project in Melaka. The
4th Term GPTA also opens the fl ood gates for
PGB to fully implement Third Party Access
(TPA), wherein the PGU pipeline system will
be opened to external parties (shippers) in
addition to PETRONAS for them to transport
their gas molecules for a specifi c fee under a
zonal tariff arrangement. TPA promises the
prospect of growth opportunities in PGB’s
Gas Transportation business by enabling
the Company to build its capacity towards
becoming a market-driven pipeline operator.
The Company continues to count its blessings
with its most precious asset – its workforce,
whom despite numerous challenges,
remained fi rmly intertwined across all
divisions nationwide, to continue delivering a
convincing and rock solid performance to its
shareholders and stakeholders.
With the capabilities, determination and
resilience of the Company’s dynamic
workforce, coupled with a higher dose of
vigour and innovation, I am convinced that we
will continue to be an entity with a sustained
superior performance and a commendable,
if not awesome reputation within the gas
processing, transmission and utilities fraternity
across boundaries; and remain relevant and
reliable both operationally and fi nancially.
51 annUaL report 2011
The 4 th Term GPTA entails
clearer demarcation of terms
and remuneration structure
between processing and
transportation of gas.

The Company maintains
reliability in its
plant operations
at world class standards.
FINANCIAL PERFORMANCE
- FUELLED BY 4TH TERM GPTA
Quantum Leaping Earnings
beyond Expectation
The year under review saw the Company
surfi ng the waves gallantly and steadily on
the 4th Term Gas Processing and Transmission
Agreement (GPTA) surfboard which is the
fourth and the fi nal series of the GPTA signed
between PGB and its holding company
PETRONAS. The GPTA was signed between
the Company and PETRONAS effective from
1 April 1994 for a 20-year period, expiring on
31 March 2014. This agreement is actually
the core of PGB’s existence, where PETRONAS
agrees to pay the Company a Throughput Fee
(TF) for the processing and transmission of gas
to PETRONAS customers.
The 4th Term GPTA paves the way to invigorate
the growth of gas and utilities business up to
the year 2014.
52 petronas gas berhad (101671-h)
The year under review saw the Company
emerging successfully from yet another
volatile economic front. The global economic
downturn which although has shown signs of
sustainable recovery, still resulted in, amongst
others, an upshift/downshift interval to the
nation’s economy, thus impacting customer
demand for both the throughput services
business and utilities business in a manner
which requires PGB to adopt ways and means
of strengthening its grip on the market share
beyond the conventional model.
Nonetheless, PGB achieved record fi nancial
performance in spite of huge challenges such
as slower than expected global economic
recovery, ever escalating cost environment and
continuous upstream reliability issues resulting
in lower feedgas supply from offshore which
have signifi cantly affected the amount of gas
processed and transported by the Company.
The Group recorded revenue of RM3,525.0
million, an increase of 9.4% or RM303.2
million compared to previous fi nancial year

mainly attributable to the enhanced 4 th Term
GPTA resulting in increase of revenue from
propane and butane volumes. Throughput
services revenue also increased by 10.1% to
RM2,724.0 million while revenue from the
utilities business also increased by 7.3% to
RM801.0 million.
Despite the increase in revenue by 9.4%,
the Group continued to operate diligently
by constantly attempting to bring down its
cost of revenue through continuous rigorous
cost optimisation initiatives at all levels of
the organisation. In pursuit of improving
the bottom line, cost saving initiatives on
manpower, materials sourcing, travelling
and purchased services have been carried
out diligently throughout the year by the
management and staff. The practice of being
prudent and doing ‘more with less’ has
become a corporate culture in PGB, befi tting
its status as a public-listed operating unit of
the PETRONAS Group.
Financial year 2010/2011 saw the Group’s
overall profi t before tax increased by
52.8% from RM1,243.8 million last year to
RM1,900.3 million, whilst profi t after tax also
increased by 53.0% from RM940.7 million last
year to RM1,439.1 million. Earnings per share
attributable to shareholders of the Company
were at a record high of 72.7 sen from 47.6
sen in the previous year.
GAS PROCESSING & GAS
TRANSPORTATION BUSINESS
Naturally and Faithfully Reliable
The Company’s Gas Processing Plants (GPPs)
operated by the Plant Operations Division
(POD) in Kertih and Paka endured a number of
operational challenges coupled with upstream
constraints which resulted in reduced feedgas
supply. During the year under review, an
average of 2,080 million standard cubic feet
per day (mmscfd) of feedgas was processed.
This represents a 3.3% decline compared
to 2,151 mmscfd which was processed in
the last fi nancial year. Our Peninsular Gas
53 annUaL report 2011
CEO’s Business Review
The Group’s overall profi t before tax
increased by 52.8% from RM1,243.8 million
last year to RM1,900.3 million,
whilst profi t after tax also increased
by 53.0% from RM940.7 million
last year to RM1,439.1 million.
Utilisation (PGU) pipeline network operated
by the Transmission Operations Division (TOD)
also received 336 mmscfd of gas from the
Malaysia-Thailand Joint Development Area,
lower by 2.0% compared to previous year.
As a result, sales gas delivered to customers
at 2,146 mmscfd was lower than the previous
fi nancial year of 2,178 mmscfd.
The Company managed to maintain reliability
in its plant operations at world class standards.
GPPs’ sales gas reliability was 99.6%. For
ethane, plant reliability was 98.8%, while
plant reliability for propane and butane was at
98.7%, collectively at world class level.
The Company’s product delivery reliability via
its GPPs also recorded convincing numbers
with propane and butane registering 100%
respectively for the year in review. Both
propane and butane recorded 98.7% product
delivery reliability in the previous fi nancial year.
At the same time, the Company’s PGU pipeline
network continued to maintain its excellent
record by achieving 99.97% reliability
exceeding world class standards by all means.

CEO’s Business Review
Our Centralised Utility Facilities Division
(CUF) plants in Kertih, Terengganu and
UTILITIES BUSINESS
Gebeng, Pahang continued to show
commendable improvements for both
Maximising the Gas Value Chain
The year under review also saw the Company
once again playing a prominent role in the
gas business value chain by fi rmly positioning
itself as a gas-based utility supplier to niche
and emerging markets. Our Centralised
Utility Facilities Division (CUF) plants in Kertih,
Terengganu and Gebeng, Pahang continued
to show commendable improvements for
both steam and industrial gases, with steam
reliability increasing 0.2% from 99.3% to
99.5%, and our industrial gases recording a
commendable reliability rate at 99.6%. These
collective improvements and sustainability
were hugely attributed to the continuous
and comprehensive scheduled maintenance
activities conducted at both CUFs.
The year under review also saw new businesses
secured by CUF where it successfully
concluded the agreement and commenced
the Demineralised Water supply from the CUF
plant in Kertih (CUFK) to the Gas Processing
Plants under POD. On top of that, CUF also
steam and industrial gases.
successfully commenced the sludge drying
services for Ethylene Malaysia Sdn. Bhd. which
raked in an additional RM3.2 million in income.
PLANT REJUVENATION AND REVAMP
Extending the Shelf life of PGB’s
Flagship Asset
The year under review also saw the Company
going full swing for Plant Rejuvenation
and Revamp (PRR) project known as PRR2
Project which comprises the rejuvenation
and revamp of facilities in PGB’s GPP 2 and
GPP 3 in Kertih, Terengganu; Export Terminal
(ET) Unit 3 and 4 in Kemaman, Terengganu;
and the Kertih Compressor Station A (KCS
A) located within the GPP Complex A in
Kertih. The main objective of this rejuvenation
exercise is to ensure that the plants’ integrity
and reliability can be sustained for a further
20 years of operation without having to
build a new plant, thus saving huge capital
investment. The work involves replacement,
refurbishment, upgrading and modifi cation
of the existing facilities and equipment during
planned prolonged shutdown.
54 petronas gas berhad (101671-h)
The year under review saw the project
progressing into the Detailed Engineering
stage with the appointment of the
Engineering, Procurement, Construction
and Commissioning (EPCC) Contractor in
September 2010. The project will involve
major construction during two prolonged
shutdown windows starting in 2012 with
target completion in 2013.
In addition to PRR2, PGB has also embarked
on the PRR4 Project which covers the GPP4,
Kertih Compressor Station B (KCS B), and
Dew Point Control Unit 2 (DPCU2) in GPP
Complex A, Kertih, Terengganu. The project
completed its Workscope Development phase
which comprises Plant Inspection, Asset Life
Study and workscope fi nalisation activities, in
September 2010. Subsequently, the project
advanced into the Basic Engineering Design
(BED) phase with the appointment of BED
Consultant in March 2011.

KIMANIS POWER PLANT
Power Play – Flicking the Ball
towards the IPP Goal
The Company marked a major milestone
by spreading its wings into the world of
full-fl edged power producing through its
subsidiary Kimanis Power Sdn. Bhd. (KPSB)
in FY2009/2010. The joint-venture company
between PGB and Yayasan Sabah was
incorporated to undertake the Kimanis Power
Plant (KPP) project in Kimanis, District of
Papar, Sabah. The proposed 300MW gas-fi red
power plant is being jointly developed through
a 60:40 joint venture between PGB and NRG
Consortium (Sabah) Sdn. Bhd., the energy
arm of Yayasan Sabah.
The year under review saw a range of
activities by KPSB to ensure the power plant
project remain on track, both technically and
commercially. A major milestone marked
by KPSB was the signing of the Contractual
Service Agreement with the consortium of
GE Power Systems Malaysia and GE Energy
Parts International on 23 December 2010.
On top of that, the Engineering, Procurement,
Construction and Commissioning (EPCC)
contract was also signed on 30 March
2011 between KPSB and the consortium of
CTCI Corp - CTCI Malaysia – Synerlitz –
SCHB Engineering.
Located on a land area of 21 hectares the
power plant is scheduled to be completed in
end 2013 and is expected to meet Sabah’s
increasing electricity demand - in tandem
with its industrial and economic growth - and
will be an important component of the state’s
electricity supply grid.
CORPORATE RESPONSIBILITY
IN THE ENVIRONMENT
Reciprocating Love to Mother Nature
The Company selfl essly continues to put
environmental conservation and preservation
at the highest of its priorities. The modus
operandi is simple and clear – must do,
no compromise. I am proud that all
PGB employees place strong emphasis on
environmental conservation and preservation.
The level of awareness and alertness among
the PGB workforce is admirable and has been
bench-marked internally within the PETRONAS
Group.
55 annUaL report 2011
FROM LEFT:
Comprehensive scheduled
maintenance activities are
conducted at CUF continuously.
The Plant Rejuvenation and
Revamp (PRR) project is to ensure
that the plant’s integrity and
reliability can be sustained for a
further 20 years.

CEO’s Business Review
FROM LEFT:
Various activities aimed towards
improving and inculcating staff
awareness and commitment in
environmental sustainability were
organised across all PGB divisions.
The Company will continously
develop its people by providing
them with the right capabilities,
competencies and leadership skills
to take advantage of opportunities
and thrust the Company forward.
For the year under review, the Company
launched a signifi cant environmental initiative,
known as the Environmental 4G Initiative. This
program, unique to PGB but very much aligned
to the PETRONAS Group’s environmental
aspirations is centred around 4 pillars, namely
Green Care, Green Mind, Green Ownership
and Green Growth. Various activities aimed
towards improving and inculcating staff
awareness and commitment in environmental
sustainability were organised across all PGB
divisions comprising the Head Offi ce, Plant
Operations Division (POD), Centralised Utility
Facilities (CUF) and Transmission Operations
Division (TOD). This includes a pilot 3R (reduce,
reuse and recycle) program at the Company’s
Head Offi ce with emphasis on paper reduction;
utilities usage reduction competition at TOD;
and general waste reduction competition at
CUF and POD.
On top of that, as in preceding years, PGB
continues give support and commitment
to the country’s walk-the-talk approach in
56 petronas gas berhad (101671-h)
reducing the emission of greenhouse gases
in tandem with the resolutions of the United
Nations Climate Change Conferences, namely
the 1997 Kyoto Protocol, the Bali Road Map
2007 and the 2009 Copenhagen Accord, of
which Malaysia is a signatory.
CORPORATE RESPONSIBILITY
IN THE WORK PLACE
Constant Reinvestment on Our Most
Precious Capital – Our Workforce
Human capital is defi nitely the main turbine
which generates capability and dynamism
in the Company. The Company’s record
achievements during the year under review
could not have been possibly achieved without
the drive, resilience and determination for
excellence of its workforce - all 2369 of them.
The year under review saw the Company
intensifying efforts to strengthen staff business
and technical capabilities and credentials
to drive the company towards the desired
destination of invigorating growth.

We can have the best equipment, the best
procedures, the most sound fi nancial portfolio,
the most visionary management team and
the like, but none of these can generate the
best value to the Company if not propelled
by a strong and capable workforce. Hence,
PGB will continuously develop its people by
providing them with the right capabilities,
competencies and leadership skills to take
advantage of opportunities and thrust the
Company forward.
Continuous learning remains at the forefront
of PGB’s Human Resource (HR) philosophy - the
Company places great emphasis and continues
to invest on developing and harnessing the
functional and leadership skills of its people
through diverse programmes designed to
provide them with the edge to bring PGB to
greater heights, as well as gearing them up
to assume bigger responsibilities when the
opportunities arise.
Capability-based development still tops the
list in the Company’s HR priorities in the neverending
quest to upskill and develop staff
across the workforce. Within the technical/
engineering disciplines, the Accelerated
Capability Development (ACD) for technical
executives (TEs) and PETRONAS Competency
Based Assessment (PECAS) for Technical Non-
Executives (NETs) are PETRONAS based systems
that allow identifi cation, development and
assessment of staff according to industrially
recognised standards.
This year saw a total of 438 Technical Executives
subjected to the ACD assessments, all of
which were assigned with Individual Coaching
Plan and paired with technical coaches to
guide them in closing their technical gaps.
With achieved competence coupled with
performance, all executives identifi ed were
duly promoted.
57 annUaL report 2011
CEO’s Business Review
The Company places great emphasis
and continues to invest on developing
and harnessing the functional
and leadership skills of its people.
Apart from leveraging on PETRONAS’
capability building programmes, PGB also
pro-actively designs in-house comprehensive
modules specifi cally to suit the requirements
of the Company’s business. One fi ne example
is the Building Leadership Programme (BLP)
designed specifi cally for PGB using set
PETRONAS criteria, to identify and groom
potential future leaders for the Company. To
date, 83 potential leaders have been identifi ed
across PGB whom are provided with intensifi ed
leadership development packages which
include coaching and structured trainings.
Another internally designed programme is
the Nurturing Leadership Programme which
provides new and existing Managers with
tools and techniques to become better leaders
within the middle management level of PGB.

CEO’s Business Review
The year under review
saw the Company going
full steam ahead in giving back
and sharing with society.
CORPORATE RESPONSIBILITY
IN THE COMMUNITY
Gaining Higher Altitude in the CSR Skies
Being a fl ag-bearer of the PETRONAS Group
of Companies inducted into the country’s
public-listed companies with commendable
CSR practices fraternity, PGB continues to
climb to higher altitudes within the skies of
good CSR practices. The Company believes
in the concept of empowerment for those
benefi ting from the Company’s CSR efforts.
The Company’s aspiration is to create
sustainable value for the society with the hope
of aspiring people everywhere, particularly
in geographies where it operates. Hence,
most CSR initiatives undertaken by PGB are
education-driven, the most signifi cant being
the seasoned and proven Program Bakti
Pendidikan PETRONAS (PBPP) which focuses
on developing the potential of marginally
performing school students to excel in their
studies.
PBPP is a structured and integrated longterm
education programme focusing on
students categorised as borderline students
by the school and Education Department.
The programme includes special tuition
classes conducted by the school teachers to
improve academic achievements specifi cally in
Mathematics, English and Science for Year 4,
5 and 6 primary school students in which the
tuition fees were paid to the teachers via a
voucher scheme fully funded by the Company.
At the same time, the programme also gives
equal emphasis on soft skills via scheduled
fun learning sessions conducted by PGB staff
volunteers who selfl essly invest their time and
energy on a monthly basis.
The Company has undertaken four schools
under its wings, namely Sekolah Kebangsaan
Batu Anam in Segamat, Johor; Sekolah
Kebangsaan Santong in Paka, Terengganu;
Sekolah Kebangsaan Pinang Tunggal in Kepala
Batas, Pulau Pinang; and Sekolah Kebangsaan
Kemasik in Kertih, Terengganu. In the year
under review, Sekolah Kebangsaan Kemasik
58 petronas gas berhad (101671-h)
has been phased out to make way for PGB
to extend its wings to include another school
under its patronage and help deliver more
outstanding students in the selected school.
PBPP has long since yielded the desired results
and this year is one that the Company is proud
to announce. The greatest achievement of PBPP
for the year under review was the outstanding
results of the Ujian Penilaian Sekolah Rendah
(UPSR) 2010 for the PBPP students of the
four schools under the Company’s care.
This achievement is a priceless reward for
the tireless efforts undertaken by PGB staff
volunteers in that the quality of the results
improved tremendously of which out of the
94 PBPP students that sat for the examination,
92% passed. Even more overwhelming is the
fact that 19 students obtained 5As while
another 57 scored a combination of 4As and
3As. This is a highly encouraging achievement
compared to 2009 where 16 students obtained
5As and 12 students obtained 5As in 2008. The
ability of the students under PBPP to achieve
5As, 4As and even 3As scores is considered a

monumental success in spite of them being
initially categorised as marginal students. We
at PGB believe that the achievements of these
students, could be a life changer for them and
their families’ future which the Company is
proud to be a part of.
The year under review also saw the Company
going full steam ahead in 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, fi xing old and dilapidated homes
of the needy, to giving motivation and moral
support to orphans. Our staff commitment in
working together to contribute back to the
community was exemplary.
An integrated and structured series of CSR
activities under the tagline “Bakti Dihulur, Kasih
Disemai”, which means every act of kindness
instils the spirit of caring for each other were
implemented at a magnitude far greater than
in preceding years. The management and
staff contributed their personal time, energy
and money for these activities. Through
these personal contributions, the Company
was able to conduct an average of one CSR
activity per week covering numerous locations
throughout Malaysia where PGB operates.
WHAT’S IN STORE
THIRD PARTY ACCESS
The Queue Starts Here
The year under review also saw the Company
progressing steadily in preparing for Third Party
Access (TPA) for Peninsular Gas Utilisation
(PGU) pipeline system.
Implementing TPA will enable parties other
than PETRONAS to utilise available capacity
in the PGU gas pipeline system for gas
transportation to end customers. It will spur
growth opportunity for the company’s gas
transportation business, diversify its business
portfolio and support regional growth of
the industry including cross-nation gas
59 annUaL report 2011
FROM LEFT:
The Company’s staff tirelessly dedicate
time and money to assist the needy.
Implementing TPA will enable parties
other than PETRONAS to utilise
available capacity in the PGU gas
pipeline system for gas transportation
to end customers.

The LNG Regasifi cation Facilities
is targeted to be fully commissioned
by June 2012 and has been classifi ed
as a national interest project under
the National Key Economic Area (NKEA).
transportation. This is envisaged to facilitate
security of supply to the nation and provide
alternatives for gas users in securing their
gas supply. TPA will also unearth latest gas
demand from industry players who have been
taking a backseat in demanding for gas due
to scarceness of molecules. With gas being
brought in by multiple shippers utilising the
PGU network under TPA, these players can
now come forward to procure more gas for
their business expansion, while at the same
time promoting utilisation of clean fuel for a
greener environment.
To ensure fairness to all parties, PGB has
developed a code of conduct which defi nes
a standard for behaviour and disclosure for
the provision of third party access to PGU gas
pipeline system in Peninsular Malaysia. This
code of conduct which is called ‘PGB Network
Code’ is designed to provide a clear third party
access regime through wide, transparent and
uniform principles.
60 petronas gas berhad (101671-h)
The TPA initiative is a pro-active measure by
the Company in anticipation of the gas market
liberalisation by the Malaysian government.
When it takes place, PGB will gain fi rst mover
advantage to provide gas transportation
services to third parties.
This also augurs well for the LNG Regasifi cation
Facilities currently being constructed in Sg.
Udang Port, Melaka. The TPA implementation
will facilitate the transmission of gas generated
through the LNG regasifi cation facilities to the
end customers.
LNG REGASIFICATION FACILITIES
Greening The Nation’s Energy
Portfolio with Clean Fuel
The year under review also saw PGB
embarking on its most ambitious venture to
date – the construction of the world’s fi rstof-its-kind
Island Jetty Liquefi ed Natural Gas
(LNG) Regasifi cation Facilities in Sg. Udang
Port, Melaka.

Due to PGB’s extensive experience and
capability in gas infrastructure projects,
PGB was entrusted by its holding company
PETRONAS. The project has reaffi rmed the
Company’s technical credentials as it is targeted
to be completed in record time. The urgency
to complete and fully commission the LNG
Regasifi cation Facilities in Melaka is very much
linked to the nation’s energy supply situation
– with depleting gas molecules from offshore
Terengganu and the ever increasing demand
for electricity generated by Tenaga Nasional’s
and the independent power-producers’ gasfi
red power plants, this unique engineering
venture by PGB will alleviate the country’s
energy supply challenges. In view of the
declining gas production from domestic gas
fi elds and increasing demand for natural gas,
the only feasible option to mitigate the tight
gas supply situation is by increasing volume
of imported gas. With the LNG Regasifi cation
Facilities in existence, PETRONAS and other
shippers will be able to import LNG to
Malaysia from various LNG sources readily
available anywhere in the world and regasify
it in Melaka before piping it into the existing
PGU pipeline system.
The LNG Regasifi cation Facilities project in
Melaka will ensure continuous and reliable
supply of cleaner and greener energy for the
nation simply because gas is the safest and
most commercially attractive energy.
The project encompasses the following
facilities under three packages:
a) Two fl oating storage units (FSUs) to receive
and store LNG;
b) An island jetty equipped with regasifi cation
units to regasify LNG; and
c) Subsea and onshore pipelines to transport
the regasifi ed LNG to the PGU pipeline
system.
The integrated facilities, within the vicinity of
the Sg. Udang Port are designed to receive,
store and vaporise imported LNG with a
maximum capacity of 3.8 MTPA (up to 530
mmscfd).
61 annUaL report 2011
The LNG Regasifi cation Facilities is targeted to
be fully commissioned by June 2012 and has
been classifi ed as a national interest project. It
is well within the radar of the Prime Minister
of Malaysia and has been earmarked as one
of the key catalysts under the National Key
Economic Area (NKEA). The project was fi rst
mentioned by the Prime Minister when he
unveiled the 10th Malaysia Plan at Parliament
in June 2010.
RECOGNITIONS
CEO’s Business Review
The LNG Regasifi cation Facilities project
in Melaka will ensure continuous and
reliable supply of cleaner and greener
energy for the nation.
Counting Our Blessings,
and Accolades Too
The Company continues to add to its collection
of plaques and silverware by receiving a
signifi cant number of accolades and awards
for its good practices and achievements,
primarily in HSE and also for its Corporate
achievements. For the year under review, PGB
received eight awards from the Malaysian
Society of Occupational Safety and Health
(MSOSH), involving the Company’s facilities
across all divisions. This year, the Company’s
GPP B in Paka continues to achieve the

CEO’s Business Review
FROM LEFT:
The Company garnered eight
Malaysian Society for Occupational
Safety and Health (MSOSH) awards
during the year under review.
The network of pipelines within
the operational jurisdiction of the
Company’s Kertih Regional Offi ce.
Grand Award for the third consecutive year.
The Company’s Centralised Utilities Facilities
in Gebeng and the Technical Facilities
Development Division (TFDD) also bagged the
Grand Award from MSOSH, bringing the tally
of Grands secured by PGB to a total of three
Grand Awards altogether.
The Company also bagged four Gold Merit
Awards, garnered by Export Terminal under
POD, Centralised Utilities Facilities Kerteh,
Kerteh Regional Offi ce and Segamat Regional
Offi ce. Miri Regional Offi ce also contributed to
the tally of eight MSOSH Awards by clinching
the Gold Class 1 award. All the Regional
Offi ces are under the Transmission Operations
Division (TOD).
The year under review also saw PGB went up
stage to receive the National OSH Excellence
Award for Gas Utilities Category from the
Deputy Prime Minister YAB Tan Sri Dato’ Haji
Muhyiddin Mohd Yassin. PGB received the
award in recognition of excellent operational
practices at the Kuantan Regional Offi ce.
At PETRONAS level, PGB once again received
the Merit Award in Sustainability Development
(SD) Category for its success in conducting
the Knowing TOD Programme at all nine of its
Regional Offi ces nationwide.
On the Corporate front, the year under review
saw PGB scaling new heights by gaining
recognition from the domestic, regional
and international business fraternity. Our
transparency and comprehensive reporting
has enabled PGB to win the National Annual
Corporate Report Award (NACRA) 2010 for
Best Annual Report in the Industrial Products
and Technology Category. The Company was
also inducted into The Edge Billion Ringgit
Club Award for recording a turnover of more
than RM1 billion and also for achievements in
profi tability and shareholder wealth creation.
Asia Wall Street Journal also ranked PGB 8th in the Top 10 Malaysian companies list under
its annual Asia 200 survey where companies
where judged collectively by its readers for
good corporate governance, good return to
shareholders and corporate best practices.
The Company was also recognised further
by two distinguished bodies, the fi rst was
the Chartered Institute of Management
Accountants (CIMA) which awarded PGB with
two accolades – Overall Merit Award and
Best Return to Shareholders at the Malaysian
Business-CIMA Enterprise Governance
Awards; and the other being the Malaysian
Productivity Corporation which accredited the
Company with the Malaysian Productivity &
Innovation Class Membership Certifi cation.
62 petronas gas berhad (101671-h)
APPRECIATION
Continuing the Legacy
of Visionary Leadership
On behalf of the Management, I wish to take
this opportunity, fi rst and foremost to thank all
employees for remaining fi rmly “Together As
One” to deliver a record fi nancial performance
since PGB’s inception and more importantly,
in believing in the Company. Their undivided
faith ensured PGB remains strong and relevant
in a business environment which is fast moving
into “survival mode” due to a variety of reasons
affecting the global economic scenario which
is beyond our control parameters – escalating
upstream issues, rising costs, manpower and
talent constraints.
I wish to record my heartfelt gratitude and
appreciation to Y.Bhg. Datuk Anuar Ahmad,
our new Chairman, for his distinguished and
visionary leadership, which has ensured that
PGB remained on the right track for growth
and business diversifi cation. A special thanks
and utmost gratitude also goes to our former
Chairman Y.Bhg. Datuk Wan Zulkifl ee Wan
Ariffi n for his dynamic and forward-looking
leadership.

Apart from the Chairmanship, the year in
review also saw a signifi cant change in the
Company’s Board membership. I would like to
express my sincere appreciation to two board
members who have left us – Y.Bhg. Datuk
Mohamad Azhar Osman Khairuddin and
Puan Farehana Hanapiah. I wish them only
the best in their future endeavours within the
PETRONAS Group. I would also like to welcome
the Board’s new members – Encik Rosli Boni,
Encik Mohammad Medan Abdullah and Encik
Ramlan Abdul Malek. I am confi dent that their
experience and expertise will augur well for
the Company.
I would also like to thank Mr. Lau Nai Tuang for
his precious contributions as PGB new Board
member since November 2009, who has now
ventured outside the PETRONAS Group.
I also wish to register my sincere appreciation
to Y.Bhg. Datuk Mohd Zain Abdul Majid
whom has ended his tenure as PGB’s
Board Audit Committee (BAC) member and
welcome En. Muri Muhammad as the new
BAC member.
In addition to that, I would also like to
express our appreciation to our Management
Committee member, Puan Liza Mustapha,
who has moved to other parts of the
PETRONAS Group and I wish her continued
success.
I am confi dent that the
Company’s employees, with their strong
drive and resilience, would be able to
propel PGB to greater heights in the
pursuit of our aspiration to be
“A World Class Gas and Utilities Company.”
I would also like to welcome three new
Management Committee members, Cik Karima
Mohd Noor, Encik Ahmad Nawawi Mohd
Yatim and Encik Wan Mohamad Wan Mustoffa
to the Company as well.
To our customers, business partners,
valued contractors, regulatory bodies
and agencies; and our parent company,
PETRONAS, thank you for the trust given to
PGB all these years. We pledge to continue
to give further benefi t and value to your
undivided trust in the years to come.
To our shareholders, thank you so much
for the faith and confi dence in us. We will
continue to strive in making your investment
value accretive.
On top of that, the Company could not have
done it without the invaluable guidance and
wise counsel of the distinguished Board of
Directors. We look forward to leverage on
your strengths, experience and expertise to
steer us in our growth journey.
63 annUaL report 2011
The next few years will be an era of
invigorating growth driven by ambition to
maximize our potential. It will bring its fair
share of challenges, however, I am confi dent
that the Company’s employees, with their
strong drive and resilience, would be able to
propel PGB to greater heights in the pursuit of
our aspiration to be “A World Class Gas and
Utilities Company” and more importantly, to
live up to that reputation.
With a bowl of concerted effort; blended
with sound fi nancial and technical portfolios;
topped with innovative business and operating
approaches; and baked to perfection by
capable staff with blessings from the Almighty,
we will reach the desired state. It is already
within striking range – and the only possible
outcome for us at PGB is none other than to
strike. InsyaAllah.
Samsudin bin Miskon
Managing Director/Chief Executive Offi cer

overview
On 31 March 2010, the Company entered
into an Addendum to the Gas Processing
and Transmission Agreement (GPTA) with
Petroliam Nasional Berhad (PETRONAS) for a
period from 1 April 2010 to 31 March 2014.
The GPTA entered between the Company
and PETRONAS is for a duration of 20 years
effective 1 April 1994, whereby PETRONAS
agrees to pay the Company a throughput
fee for processing and transmission of gas to
PETRONAS customers.
The GPTA provides for revision of the
throughput fee terms at intervals to be agreed
upon by the Company and PETRONAS as follows:
Term Duration Effective Date
1st Term 6 years 1 April 1994 to
31 March 2000
2nd Term 5 years 1 April 2000 to
31 March 2005
3rd Term 5 years 1 April 2005 to
31 March 2010
4th Term 4 years 1 April 2010 to
31 March 2014
Financial
Review
64 petronas gas berhad (101671-h)
The 4th Term GPTA entails clearer demarcation
of terms and remuneration structure between
gas processing and gas transportation
business whilst maintaining a guaranteed
income via Reservation Charge and Capacity
Reservation Charge for processing and
transportation business, respectively. This is
to ensure recovery of reasonable capital costs
and operating expenses.
The 4th Term GPTA further enhances the
gas processing Performance-Based Structure
whereby the Company is rewarded for its
operational performance, which is based on
the production levels of ethane, and export
volumes of propane and butane. Previously,
the Company’s remuneration for ethane
was based on its ability to meet PETRONAS
customers’ requirement whereas for propane
and butane, the Company was remunerated
based on production volume above a threshold
of 140MT/hr and 100MT/hr, respectively.

Comparison between 3 rd Term GPTA and 4 th Term GPTA is as follows:
ProCessinG remUnerAtion
• Reservation Charge
• Flowrate Charge
3rd Term:
- Feedgas > 2.1bscfd and < 2.4bscfd
- Feedgas > 2.4bscfd
(1 st Apr 2005 – 31 Mar 2010)
3rd Term GPTA
(1 st Apr 2010 – 31 Mar 2014)
4th Term GPTA
RM2,064 Mil per annum RM1,242 Mil per annum
RM1.57/GJ
RM0.58/GJ
4th Term:
- Feedgas > 2.1bscfd – RM0.22/GJ
• Performance-Based Structure
- Ethane RM2.0 Mil per month if satisfy PETRONAS
customers’ requirements
RM43.47/MT of Ethane produced
- Propane
- Butane
30% of PETRONAS’ margin from
export sale of propane and butane for:
Production >140MT/hr
Production >100MT/hr
• Internal Gas Consumption (IGC) Gas for internal use to operate PGU system
was purchased at an agreed price
trAnsPortAtion remUnerAtion
• Capacity Reservation Charge based
on the following transportation tariff:
- Zone 1 (East)
- Zone 2 (South)
- Zone 3 (Central)
- Zone 4 (North)
The transportation charges were embedded
in the Reservation and Flowrate Charge
under Processing Remuneration
–
–
30% of PETRONAS’ margin from
export sale of propane and butane
Provided by PETRONAS within
the agreed operating parameters (AOP)
RM0.543/GJ
RM1.434/GJ
RM1.793/GJ
RM0.931/GJ
• Miri Operations
- Flowrate Charge RM1.82/mmBtu RM1.89/mmBtu
• Bintulu Operations
- Reservation Charge
- Flowrate Charge
RM0.63 Mil p.a.
RM1.12/mmBtu
• IGC Gas for internal use to operate PGU system
was purchased at an agreed price
65 annual report 2011
RM0.65 Mil p.a.
RM1.17/mmBtu
Provided by shipper

Financial Review
revenUe
In the year under review, the Group recorded
an all time high revenue of RM3,525.0 million,
representing a 9.4% (RM303.2 million)
increase from RM3,221.8 million recorded
in the previous year. This was due to higher
throughput services income, comprising gas
processing and gas transportation revenue,
and industrial utilities sales by 10.1%
(RM249.0 million) and 7.3% (RM54.2 million),
respectively.
Throughput services income had risen by
10.1% from RM2,475.0 million to RM2,724.0
million mainly due to the incorporation of
the revised commercial terms of the 4th Term
GPTA which was effective 1 April 2010
despite lower daily average volume of gas
delivered. Daily average volume of sales gas
delivered to PETRONAS customers decreased
by 1.5% (32 mmscfd) from 2,178 mmscfd to
2,146 mmscfd. This was mainly due to lower
feedgas supply from domestic gas fi elds.
The year saw the Group recording higher
income from Performance-Based Structure
through increase in extraction effi ciency of byproducts.
The production of ethane, propane
and butane increased by 3.7%, 2.6% and
0.5% respectively. Higher production of
these by-products was mainly contributed
by higher by-products composition in the
feedgas received from domestic gas fi elds and
feedgas realignment initiative which ensured
maximum extraction of by-products resulting
from operating at optimum plant conditions.
The increase is further contributed by higher
price realised from the export sales. Under the
4th Term GPTA, the Company receives 30%
share of PETRONAS’ margin from export sales
of propane and butane.
Utilities revenue increased by 7.3% (RM54.2 million) from RM746.8 million to RM801.0 million
mainly due to higher sales of steam and electricity as a result of higher sales volume by 15.3%
and 9.0% respectively. Industrial gases sales volume, on the other hand, decreased slightly by
2.7% compared to previous year mainly due to lower offtake by customers.
Feedgas processed at the
gas processing plants
2011
(mmscfd)
2010
(mmscfd)
Increase/
(Decrease)
(mmscfd) %
2,080 2,151 (71) (3.3)
Sales gas delivery from JDA 336 343 (7) (2.0)
Total gas injected into the system 2,416 2,494 (78) (3.1)
Total sales gas delivery 2,146 2,178 (32) (1.5)
Liquid by-products
66 petronas gas berhad (101671-h)
2011
(MT)
2010
(MT)
Increase/
(Decrease)
(MT) %
Ethane production 1,284,216 1,238,664 45,552 3.7
Propane production 1,264,944 1,232,532 32,412 2.6
Butane production 859,356 854,976 4,380 0.5
Utilities 2011 2010
Increase/
(Decrease) %
Electricity (kwh) 1,907,715,383 1,750,777,848 156,937,535 9.0
Steam (MT) 4,584,545 3,976,382 608,163 15.3
Industrial Gases (Nm 3 ) 619,413,281 636,465,757 (17,052,476) (2.7)

stAtements of ComPrehensive inCome
2011
RM million
Gas processing revenue 1,609.4 *
Gas transportation revenue 1,114.6 *
Group Increase/(Decrease)
2010
RM million RM million %
Throughput services income 2,724.0 2,475.0 249.0 10.1
Sale of industrial utilities 801.0 746.8 54.2 7.3
Revenue 3,525.0 3,221.8 303.2 9.4
Cost of gas processing (738.9) *
Cost of gas transportation (366.5) *
Cost of throughput service (1,105.4) (1,449.5) (344.1) (23.7)
Cost of industrial utilities (632.4) (594.0) 38.4 6.5
Cost of revenue (1,737.8) (2,043.5) (305.7) (15.0)
Gross profi t 1,787.2 1,178.3 608.9 51.7
Administration expenses (93.5) (79.1) 14.4 18.2
Other income and expenses 164.8 112.6 52.2 46.4
Operating profi t 1,858.5 1,211.8 646.7 53.4
Financing costs (20.1) (20.2) (0.1) (0.5)
Share of profi t after tax of equity
accounted associate and jointly
controlled entity
61.9 52.2 9.7 18.6
Profi t before tax 1,900.3 1,243.8 656.5 52.8
Taxation (461.2) (303.1) 158.1 52.2
Profi t after tax 1,439.1 940.7 498.4 53.0
Earnings per share (sen) 72.7 47.6 25.1 52.7
Profi t before tax / Revenue margin 53.9% 38.6%
Profi t after tax / Revenue margin 40.8% 29.2%
* Prior to 1 April 2010, the Company’s remuneration under the GPTA was classifi ed as throughput services
with no separation between gas processing and gas transportation remuneration.
Cost of revenUe
Cost of revenue for the Group decreased by 15.0% (RM305.7 million) from RM2,043.5 million
to RM1,737.8 million. This was due to lower operating cost incurred for throughput services by
23.7% (RM344.1 million) which was mainly attributable to lower Internal Gas Consumption
(IGC) as IGC is provided for by PETRONAS within the Agreed Operating Parameters (AOP)
under the 4th Term GPTA. However, operating cost for utilities business increased by 6.5%
(RM38.4 million) mainly due to higher fuel gas consumption in line with higher steam and
electricity production.
67 annual report 2011
During the year, the Group continued its cost
containment efforts, particularly in optimisation
of human resource cost, reduction in energy
consumption through operational effi ciency
and optimisation of material and supplies cost
through change in operational strategy.
The Group embarked on Inventory Value
Optimisation initiative to determine the
Group’s optimum inventory level and reduce
stock holding cost. Under this initiative,
obsolete and non-moving inventories were
identifi ed and written off during the year.
The Group will continuously monitor its stock
holding thus ensuring optimum inventory level
moving forward. In addition, the Group made
a provision for impairment of certain property,
plant and equipment during the year.
Gross Profit
Gross profi t for the Group in the year under
review showed a signifi cant increase of
RM608.9 million or 51.7% from RM1,178.3
million to RM1,787.2 million. Gross profi t
for throughput services increased by 57.8%
(RM593.1 million) from RM1,025.5 million
to RM1,618.6 million mainly due to higher
income from PBS and lower IGC for gas
processing. Similarly, gross profi t for the
utilities business increased by 10.3% (RM15.8
million) from RM152.8 million to RM168.6
million mainly due to higher revenue from
steam and electricity negated by higher fuel
gas cost in line with higher production.
other inCome And eXPenses
Other income and expenses for the Group
was higher by 46.4% (RM52.2 million). This
was mainly due to higher investment income
by RM31.2 million as a result of higher cash
and fund investment balance, coupled with
incentive payment of RM18.8 million from
PETRONAS for efficient usage of IGC.

Financial Review
Profit
The Group recorded higher profi t before tax
by 52.8% (RM656.5 million) from RM1,243.8
million to RM1,900.3 million.
Our associate company, Gas Malaysia Sdn.
Bhd. (GMSB), contributed share of profi t
after tax of RM60.7 million whilst our jointly
controlled entity, Industrial Gases Solutions
Sdn. Bhd. (IGS), contributed share of profit
after tax of RM1.2 million. The total share of
profi t after tax of equity accounted associate
and jointly controlled entity amounted RM61.9
million, an increase of 18.6% (RM9.7 million)
compared to the previous year.
Our subsidiary, Kimanis Power Sdn. Bhd.
(KPSB) registered a RM0.5 million loss during
the year.
Taxation expense at RM461.2 million was
higher by 52.2% (RM158.1 million) from
RM303.1 million in the previous year. Effective
tax rate was at 25.1% compared to 25.4%
for the previous year, and approximates the
statutory corporate tax rate.
As a result, the Group recorded the highest
ever profi t after tax of RM1,439.1 million, an
increase by 53.0% (RM498.4 million) from
RM940.7 million in the previous year. Earnings
per share (EPS) for the Group increased by
52.7% (25.1 sen) from 47.6 sen to 72.7 sen,
with 3.1 sen attributed to our 20% interest
in GMSB.
dividends
Group Financial Performance (RM million)
3,415
3,222
3,525
2,194
2,044
Revenue Cost of Revenue Profit Before Tax Profit After Tax
During the year, the Company paid interim
dividend of 15 sen per share under the single
tier tax system amounting to RM296.8 million.
The Board of Directors is recommending a
fi nal dividend of 35 sen per share under the
single tier tax system, amounting to RM692.6
million in respect of the fi nancial year ended
31 March 2011. This, together with the
interim dividend, will result in total gross and
net dividend of 50 sen per share, representing
a payout ratio of 68.7% on the profi t after tax
for the fi nancial year ended 31 March 2011.
68 petronas gas berhad (101671-h)
1,738
1,231
2009 2010 2011
Assets
1,244 1,900
Total assets for the Group increased by 6.9%
(RM675.2 million) from RM9,834.7 million as
at 31 March 2010 to RM10,509.9 million as at
31 March 2011.
Property, plant and equipment decreased
by 1.1% (RM77.6 million) from RM6,908.2
million as at 31 March 2010 to RM6,830.6
million as at 31 March 2011. This was mainly
after depreciation charges for the year and
provision for impairment totalling RM724.8
million negated by net additions of RM647.2
million.
Investment in associate increased by 0.6%
(RM1.1 million) to RM175.1 million as at
31 March 2011 compared to RM174.0
million as at 31 March 2010, after taking
into consideration our share of profi t in
GMSB of RM60.7 million and dividend
received of RM59.6 million. On the other
hand, investment in jointly controlled entity
decreased by 42.2% (RM1.9 million) to RM2.6
million as at 31 March 2011 as compared to
RM4.5 million as at 31 March 2010 as result
of dividend received of RM3.1 million, offset
by share of profit in IGS of RM1.2 million.
928
941
1,439

Earnings Per Share and Net Dividends Per Share (Sen)
63.0
27.3
10.8
2007
Trade and other inventories decreased by
30.3% (RM43.6 million) from RM144.0 million
as at 31 March 2010 to RM100.4 million as
at 31 March 2011 mainly due to the writing
off of obsolete and non-moving inventories
identified under the Group’s Inventory Value
Optimisation initiative amounting to RM28.5
million.
Fund and other investments of RM275.1
million comprise investments in Malaysian
Government Securities and other unquoted
securities held as at 31 March 2011.
Cash and cash equivalents increased by 26.3%
(RM574.6 million) from RM2,181.5 million
as at 31 March 2010 to RM2,756.1 million
as at 31 March 2011. During the year, the
Company paid dividend of RM989.4 million
to shareholders.
LiABiLities
55.2
31.3
10.9
2008
46.9
33.7
11.3
2009
Total liabilities for the Group increased by
9.7% (RM177.0 million) from RM1,817.7
million as at 31 March 2010 to RM1,994.7
million as at 31 March 2011. The increase was
mainly due to higher trade and other payables
by 68.2% (RM137.9 million) and provision for
taxation by 248.1% (RM79.9 million).
47.6
35.0
15.0
2010
72.7
35.0*
15.0
2011
Interim Dividend Final Dividend Earnings Per Share
*To be approved at the Company’s Twenty Eighth Annual General Meeting on 22 July 2011.
The increase in trade and other payables by
68.2% was in line with increase in capital
expenditure for the Group.
Provision for taxation increased by 248.1%
(RM79.9 million) from RM32.2 million as at
31 March 2010 to RM112.1 million as at 31
March 2011. This increase was mainly due to
increase in tax instalment in line with higher
profi t before tax for the fi nancial year ended
31 March 2011.
Borrowings decreased by 3.2% (RM14.1
million) from RM437.7 million as at 31 March
2010 to RM423.6 million as at 31 March 2011.
The decrease was due to the retranslation of
the unsecured term loan of RM587.3 million,
offset by the revaluation of the Currency
Exchange Agreement of RM163.7 million, as
a result of FRS 139 adoption.
Deferred income balance of RM11.9 million
as at 31 March 2011 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 20 years
from 9 February 2006. The former was for the
69 annual report 2011
purpose of constructing and operating their
pipeline system whilst the latter was for the
purpose of constructing and operating their
fi ber optic network.
eQUitY
At the Group level, total equity attributable to
the shareholders of the Company increased
by 5.6% (RM449.9 million) from RM8,015.9
million as at 31 March 2010 to RM8,465.8
million. The increase was due to net profi t
attributable to the shareholders of the
Company of RM1,439.3 million, less dividend
paid in the fi nancial year of RM989.4 million.
Total equity was increased by minority interest
of RM49.4 million to RM8,515.2 million as at
31 March 2011. The minority interest consists
of the minority shareholder’s proportion of
the share capital and reserves of KPSB.
siGnifiCAnt event
On 1 December 2010, the Company entered
into a Heads of Agreement with PETRONAS
for the development of Liquefi ed Natural Gas
(LNG) Regasification Facilities (the Project) by
the Company and the subsequent provision of
LNG regasifi cation services by the Company to
PETRONAS.
The Project will be located in the vicinity
of Sungai Udang Port, Melaka and will
encompass the following facilities:
(i) 2 floating storage units (FSUs) to receive
and store LNG;
(ii) An island jetty and regasifi cation unit (JRU)
to regasify LNG; and
(iii) Subsea and onshore pipelines to transport
the regasifi ed LNG from the JRU to the
Peninsular Gas Utilisation (PGU) pipeline
network.
The Regasification Facilities will have a
maximum send-out capacity of 3.8 million
tonnes per annum and is expected to be
completed in July 2012.

Statement of Value Added
11%
2011
RM mil
Revenue 3,525.0 3,221.8
Group
2010
RM mil
Purchase of goods and services (782.4) (1,177.9)
Value added 2,742.6 2,043.9
Other Income and Expenses 164.8 112.6
Financing costs (20.1) (20.2)
Share of profi t after tax of equity accounted associate
and jointly controlled entity
61.9 52.2
Value added available for distribution 2,949.2 2,188.5
distriBUtion
40%
16%
2011
33%
Group
To shareholders Retained for reinvestment
and future growth
To employees To government
To employees – Employment costs 323.9 321.7
To government – Taxation 461.2 303.1
To shareholders – Dividends 989.4 964.0
– Minority Interest
Retained for reinvestment and future growth
(0.2) (0.2)
Depreciation and amortisation 725.0 623.0
Retained profi t 449.9 (23.1)
2,949.2 2,188.5
15%
70 petronas gas berhad (101671-h)
27%
14%
2010
44%

Performance of Shares
For the Year Ended 31 March April-May
2010 2011 2011
Highest price 10.40 11.50 13.48
Lowest price 9.40 11.42 9.63
Closing Price (sen)/
Composite Index
1800
1600
1400
1200
1000
800
600
400
200
0
Financial Calendar
FInanCIal Year FroM 1 aprIl 2010 to 31 MarCh 2011
resULts
Composite Index Closing Price Volume
First Quarter ended 30 June 2010 Announced On 27 August 2010
Second Quarter ended 30 September 2010 Announced On 30 November 2010
Third Quarter ended 31 December 2010 Announced On 22 February 2011
Fourth Quarter ended 31 March 2011 Announced On 11 May 2011
dividends
71 annual report 2011
Shares Volume
Apr May June Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May
2010
2011
Interim Entitlement Date 15 December 2010
Paid On 29 December 2010
Final Entitlement Date 29 July 2011
Payable On 17 August 2011
NOTICE OF ANNUAL GENERAL MEETING 30 June 2011
TWENTY EIGHTH ANNUAL GENERAL MEETING 22 July 2011
60000
50000
40000
30000
20000
10000
0

72 petronas gas berhad (101671-h)

Drive + Innovation +
Technology = PGB People
With a range of high-profi le ventures under
our belt, it is imperative that we, the people
of PGB, be equally up to mark in terms of
skills and capabilities to realise the Company’s
vision. But that is not all. Equally crucial are
strong drive, resilience and perseverance and
a can-do attitude to ensure fl awless execution
of these projects.
Even so, we are not happy just resting on our
laurels. That is why we place high importance
on being innovative and thinking out of the
box. We are constantly thinking of new ways
to do things to grow the Company and propel
it to new heights.
73 annual report 2011
Given that the nature of our projects is highly
technical, choosing the right technology is
essential. Notwithstanding, all the newest
technologies, equipments and processes
are merely tools to execute the job, they do
not replace sound judgement built upon
experience and knowledge of our people.
It’s not really the hardware or software, not
really the high tech nuts and bolts, but in
all truth and honesty – it’s the people, PGB
people, who made PGB what it is today and
what it will be tomorrow…

Gateway to
Invigorating Growth
LNG Regasification Facilities
In just one year since the last annual
report, PETRONAS Gas Berhad (PGB) has
embarked on the Liquefi ed Natural Gas (LNG)
Regasification Facilities project. The project is
a spin-off from the Company’s core business
of gas processing in the Company’s efforts to
explore new business opportunities.
Located within the vicinity of the Sungai
Udang Port area in Melaka, this engineering
marvel, slated to be completed in record time,
will soon become an energy gateway on one
of the world’s busiest shipping lanes – the
Straits of Malacca. Comprising three main
components, this will be Malaysia’s fi rst ever
LNG Regasification Facilities which will address
the country’s energy supply challenges.
The three main components of this state-of
the-art terminal are:
1. Two permanently berthed Floating Storage
Units (FSU)
2. One Jetty Regasifi cation Unit (JRU) which
is the world’s fi rst-of-its-kind island jetty
regasifi cation system connected to the
mainland via a sub-sea pipeline
3. Onshore pipeline which will connect with
PGB’s existing Peninsular Gas Utilisation
(PGU) pipeline network.
LNG imported from various sources
worldwide will be regasifi ed at this terminal.
The process entails that the LNG tankers
dock at the facility, transfer and store the
LNG into one of the two FSUs, and the
FSU then transfers the LNG to the JRU for
the liquids to be vapourised into its original
gas form. The gas then fl ows into the
3km-long sub-sea pipeline and resurfaces via
a dedicated onshore pipeline which travels
another 30 km across the state of Melaka
where it merges with the existing gas stream
fl owing through the PGU pipeline network.
It will be the much needed boost for the
ever-increasing demand for gas, from both
the power and non-power sector.
Dock, transfer, store, regas and deliver.
A multifaceted process made effi cient through
state-of the-art technology.
Best of all, we get to reaffi rm our business and
technical credentials through and through.
And at the same time, we’re also ensuring the
nation’s clean energy supply remains reliable
for us and our future generations…
74 petronas gas berhad (101671-h)

75 annual report 2011

76 petronas gas berhad (101671-h)
PGB in the
News

Awards and
Achievements
With collective commitment of staff from all levels in ensuring PETRONAS Gas
Berhad (PGB) continues to maintain high standards in its operations, the Company
was accredited with the following awards and recognitions during the year
under review:
AwArds:
1. Malaysian Society of Occupational Safety and Health (MSOSH) 2009 Grand
Award for Gas Processing Plant GPP B, Plant Operations Division (POD);
2. MSOSH 2009 Grand Award for Centralised Utility Facilities (CUF) Gebeng;
3. MSOSH 2009 Grand Award for Technical and Facilities Development Division
(TFDD);
4. MSOSH 2009 Gold Merit Award for CUF Kertih;
5. MSOSH 2009 Gold Merit Award for Export Terminal, Kemaman;
6. MSOSH 2009 Gold Merit Award for Kertih Regional Office;
7. MSOSH 2009 Gold Merit Award for Segamat Regional Office;
8. MSOSH 2009 Gold Class 1 Award for Miri Regional Office;
9. PETRONAS Merit Award - Sustainability Development Category for Knowing
TOD Program, 2009; and
10. National Occupational Safety and Health (OSH) Excellence Award for
Kuantan Regional Office, TOD for Gas Utilities Category, 2009.
77 annual report 2011
CertifiCAtions:
1. CUF (Kerteh & Gebeng) and TOD sustained certifications for:
a. Occupational Health and Safety Assessment Series (OHSAS) 18001:2007
Occupational Health and Safety Management Systems;
b. Malaysian Standards (MS) 1722:Part 1:2005 Occupational Health and
Safety Management Systems (2008 version); and
c. MS ISO 14001:2004 Environmental Management Systems (2007 version).
2. POD:
a. MS ISO 14001:2004 Environmental Management Systems.
3. National OSH Excellence Award, 2009 – Certificate of Participation; and
4. Malaysian Productivity & Innovation Class Membership Certification
AChievements:
1. National Annual Corporate Report Award (NACRA) 2010 Gold Award
under the Industrial Products and Technology;
2. Malaysian Business - the Chartered Institute of Management Accountants
(CIMA) Enterprise Governance Award - Overall Merit;
3. Malaysian Business - the Chartered Institute of Management Accountants
(CIMA) Enterprise Governance Award - Best Return to Shareholders;
4. The Edge Billion Ringgit Club Award for turnover of more than RM1 billion
and also for achievements in profitability and shareholder wealth creation;
and
5. Eighth ranking among top 10 companies in the world in the Wall Street
Journal’s Asia 200 Survey.

78 petronas gas berhad (101671-h)
Many people measure contributing back
to the community by cash or in kind.
Try this – energy. Our venture as a full-fledged
independent power producer via the
Kimanis Power Plant will play a vital role
in providing clean and green energy to power
the progress of Sabah and the well being
of its people. And it doesn’t stop there.
Similar business models may be replicated
in other places and at the end of the day;
the community at large will be the
primary beneficiary.

79 annUaL report 2011
Corporate Responsibilities
Sustainability - The PGB Way 81
CR in the Marketplace 82
CR in the Workplace 86
CR in the Environment 96
CR in the Community 100
Calendar of Events 104
contributing to the
future of clean and
green energy

80 petronas gas berhad (101671-h)

Sustainability - The PGB Way
As a responsible corporate citizen,
we continuously seek ways to contribute
to the communities wherever we operate.
After 27 years of existence, we at PETRONAS
Gas Berhad (PGB) have elevated our Corporate
Responsibility (CR) standards a few notches
up, and still counting. It’s all in the name of
living up to our vision as A World Class Gas &
Utilities Company.
As a responsible corporate citizen with an
expanding business portfolio, we continuously
seek ways to contribute to the communities
wherever we operate; ranging from local
communities, authorities, regulators, nongovernmental
organisations, shareholders
and our workforce.
People development remains at the forefront
of our CR approach with education being the
core element, driving most of the activities
conducted under the Company’s CR banner.
The goal is for benefi ciaries and participants
of these initiatives or activities to amass new
skills and build capabilities that will hopefully
enrich their lives and encourage them to
become better individuals in the long run.
Our fl agship Program Bakti Pendidikan
PETRONAS (PBPP) for example, is testimony
of our long-term engagement through
education. How this unique programme has
evolved over the years and how the Company
progressively, proactively and positively
contributes to children under this programme
are described in the upcoming pages.
Staff development via continuous learning,
upskilling and training is also central in the
Company’s CR approach. We are constantly
reshaping our workforce by helping them
realise their maximum potential capabilities
and talents by equipping them with all the
necessary knowledge, competency tools and
know-how to adapt to the ever changing
trends in a very dynamic and competitive
industry.
Innovation among staff continues to be
highly encouraged, to generate new ideas
or initiatives which can help the Company
grow, as well as optimise whatever available
resources possible.
81 annUaL report 2011
Health, Safety and Environment (HSE) culture
is fi rmly embedded among us at PGB.
HSE practices of the highest order are naturally
and faithfully observed by us. We dare not
think otherwise.
Last but not least, to our shareholders, we
are committed to creating high value for your
investments through sound and informed
business strategies and guidance from the
Company’s Management, coupled with
effective and fl awless execution that strive
to display exemplary corporate governance
practices at all levels.
And that, in a nutshell, is how we reaffi rm our
pledge to you…

CR in the Marketplace
We are committed to doing business the
responsible way. We are committed to being
a good corporate citizen, helping the Nation,
contributing to the Industry and its community
and adding value for our shareholders and
stakeholders. We are focused on accountability
towards corporate conduct within the
Company as well as in industries we operate
in, both of which are pillars towards long term
sustainability of our business.
BUILDING BLOCKS FOR A GOOD
CORPORATE CITIZEN STARTS
WITH GOOD CORPORATE
GOVERNANCE AND SUPERIOR
PRODUCT QUALITY
We are a socially responsible corporate citizen
in our pursuit to establish a sustainable and
profi table business model.
Our commitment to corporate governance
is evidenced by securing the top spot for
Corporate Reputation in Malaysia for 2010
ranked by the Wall Street Journal. In addition,
we were ranked No. 9 for Quality and No.10
for Financial Reputation. Overall, PGB was
ranked at No.8 by the magazine.
The Company further demonstrated its
commitment to good corporate governance
by emerging as recipient of the Merit Awards
for `Enterprise Governance’ and `Best Return
to Shareholders’ categories by Malaysian
Business-CIMA Enterprise Governance
Awards 2010.
Our corporate governance in the area of
corporate reporting has also been accredited
the Industry Excellence Awards for exemplary
performance in the Industrial Products &
Technology industry by the National Annual
Corporate Report Awards 2010.
Our products are our facilities and utilities we
offer. We are committed to ensure our facilities
are operating reliably. Our commitment
to exceptional operational standards is a
continuous process that forms part of our
corporate culture.
Our facilities; gas processing plants and
pipeline network, are of world class
operational standards. Reliability for sales gas,
ethane, propane and butane for the fi nancial
year are at 99.9%, 98.8%, 98.7% and 98.7%
respectively. PGB’s gas transmission business
82 petronas gas berhad (101671-h)
through the Company’s peninsular pipeline
network continues to maintain remarkable
system reliability of 99.97% for the year,
ensuring secure and continuous fl ow of gas
to end customers throughout Malaysia. Plant
reliability for our utilities business for electricity,
steam and industrial gases of 99.5%, 99.5%
and 99.6% respectively, are of exceptional
performance levels as well.
FULFILLING OUR DUTY TO
CONTRIBUTE TO THE NATION
As at 28 February 2011, gas contributes to
half of the Malaysian power generation mix,
indicating the nation’s high dependency on
gas supply. To address the critical energy
needs of the nation, PGB is embarking on the
development of Liquefi ed Natural Gas (LNG)
regasifi cation facilities in the vicinity of Sungai
Udang Port, Melaka. The LNG regassifi cation
facilities will enable Malaysia to take in more
gas supply from abroad to be piped to the
existing Peninsular Gas Utilisation system for
end-users.

PGB continues to invest for the future in
order to contribute to the nation. Under our
ongoing Plant Rejuvenation and Revamp
exercise, the useful life of our gas processing
plants in Kertih will be extended for the next
20 years. This is testament to our commitment
to stay, serve and grow with the nation.
The Company plays a signifi cant role to
support the gas, power and utility industry in
pursuit of providing clean and effi cient energy
to the nation. Cleaner than coal, cheaper than
diesel and safer than nuclear, gas is clearly the
frontrunner as the most commercially attractive
energy source. On top of alleviating our
nation’s future energy supply concerns, PGB is
committed to Malaysia’s long-term economic
development, particularly in meeting Sabah’s
increasing electricity demands arising from
the State’s economic growth via our 300MW
gas power plant project in Kimanis.
CONTRIBUTING KNOWLEDGE AND
RESOURCES TO CREATE VALUE TO THE
GAS INDUSTRY AND ITS COMMUNITY
PGB supports the advancement of knowledge
in the area of gas technology, promotes safe
practices, stimulates development of the
gas industry in Malaysia and enhances the
understanding of the general public of the
role of gas as a clean and effi cient choice of
energy to the nation. As such, we engage and
share knowledge with our peers, government
agencies, academia, foreign oil & gas ministries
and the public. The following are some of the
engagement and knowledge sharing sessions
the Company had been involved in:
Knowledge sharing sessions through
presentation of technical papers by staff:
• 3rd Indonesia Pipeline Conference; 9 June
2010, Indonesia. Paper titled “An Effective
Tool to Manage Pipeline Integrity: A Risk
and Integrity Management Software”.
• 4th Annual International Gas Turbines; 22
to 25 June 2010, Singapore. Paper titled
“Upgrading Cable Specifi cation for Gas
Turbine Control System”.
FROM LEFT:
The Company is committed to ensure
its facilities are operating reliably with
exceptional operational standards that
forms part of our corporate culture.
The construction of the Liquefi ed Natural Gas
(LNG) regasifi cation facilities is under way.
83 annUaL report 2011
Our commitment to
corporate governance
is evidenced by securing
the top spot for
Corporate Reputation
in Malaysia for 2010
ranked by the
Wall Street Journal.

CR in the Marketplace
PGB supports the
advancement of
knowledge in gas
technology, promotes
safe practices and
enhances public
understanding of the
role of gas as a clean
and effi cient choice
of energy source
to the nation.
FROM LEFT:
A PGB engineer briefi ng a delegation from
Tenaga Nasional Berhad during a visit to
Gas Processing Plant A in Kertih.
The Company believes that strong support
from our business partners is vital to the
business in order to achieve effective
working relationship.
• 8 th International Occupational Hygiene
•
Conference; 28 September to 2 October
2010, Italy. Paper titled “Strategy &
Challenges in Managing Health Risks in a
Gas Pipeline Project”.
Pipeline Integrity Maintenance Forum
2010; 11 to 13 October 2010,
Netherlands. Paper titled “Pipeline
Integrity Management: How to Measure
its Effectiveness?”.
• 1st Edition of Innovative
International Composites Summit;
•
14 October 2010, Singapore. Paper
titled “Composite Pipe Installation in Gas
Processing Plant A”.
2nd Annual 2010 Global Gas Processing
Praxis Interactive Technology Workshop;
24 to 27 October 2010, Turkey. Paper
titled “Mercury Management in Gas
Processing Plant”.
• Technical Talk Sessions organised by
The Institution of Engineers Malaysia;
19 March 2011, Selangor. Paper titled
”Marine Loading Arms Replacement
Project Experience”.
84 petronas gas berhad (101671-h)
Engagement with universities through visits
by students to our gas processing plants:
• Universiti Teknologi Malaysia;
26 April 2010 and 8 July 2010
• Universiti Teknologi Mara;
22 September 2010
• Universiti Malaysia Pahang;
20 October 2010
• Universiti Sains Islam Malaysia;
6 December 2010
• Politeknik Sultan Mizan Zainal Abidin;
3 March 2011
Engagement with international and local
authorities through delegation visits to our gas
processing plants and central utility facilities:
• Uzbekistan’s Ministry of Finance;
5 April 2010
• Vice President, Malaysian Gas
Association; 3 August 2010
• Malaysian Industrial Development
Authority; 27 April 2010 and
3 November 2010
• Royal Malaysian Customs;
3 November 2010
• Iraq’s Deputy Oil Minister;
9 November 2010

Engagement with international and domestic
corporations through delegation visits to
our gas processing plants and transmission
operation centre:
• President of Hyundai Engineering of Korea;
10 November 2010
• PT. Trans Gas Indonesia; 10 November 2010
• Tenaga Nasional Berhad; 21 July 2010,
2 November 2010 and 17 March 2011
Engagement with fi nancial institutions
through investment analysts visits to our gas
processing plants and central utility facilities:
• Malaysian Industrial Development Finance
Berhad; 23 June 2010
• Maybank Berhad; 9 March 2011
Engagement and knowledge sharing sessions
through organising an educational workshop
titled “Practical Environmental, Safety and
Industrial Guidance for Student Engineers
(PRESTIGE)” for 58 fi nal year engineering
students from three universities and college;
TATI University College, University Malaysia
Pahang and Institut Teknologi Petroleum
PETRONAS from 18 to 19 December 2010,
Terengganu.
ADDING VALUE FOR
OUR SHAREHOLDERS
The Management of PGB is committed to
delivering strong earnings and achieving
sustainable long-term shareholders’ value
growth guided by the Company’s vision and
mission. Strategies executed and business
decisions made by the Management shall be
to the best interest of the shareholders and
guided by exemplary corporate governance
practice at all times.
PGB has achieved a profi t after tax of
RM1,439.1 million which is the highest in the
company’s history. On top of that, our growth
efforts through LNG regasifi cation facility in
Sungai Udang, Melaka and gas power plant in
Kimanis, Sabah will bring additional revenue
in the future.
With the company’s stellar performance,
growth efforts, coupled with the many
accolades received on good corporate
governance, the Management believes that
these are fundamental factors that will
contribute positively in maximising the
Company’s value in the capital markets.
85 annUaL report 2011
At the company’s 27th Annual General Meeting
held on 22 July 2010, there was a healthy
engagement session between the Chairman
and the shareholders of the Company in which
many shareholders’ queries, concerns and
suggestions were brought up and addressed
by the Board of Directors.
PGB believes in educating its shareholders.
To that end, the Company had arranged a
series of shareholders visitation programs
on 18 October 2010, 22 November 2010
and 28 February 2011 to the Company’s
gas processing plants in Terengganu and
centralised utility facilities in Pahang.
GARNERING SUPPORT FROM
OUR BUSINESS PARTNERS
The Company believes that strong support
from our business partners is vital to the
business. Through the annual Contractors
Forum, the Company continues to strengthen
its relationship with its suppliers. This is the
fi fth year the forum has been conducted with
the aim to improve effi ciency in supply chain
management to support our operations. The
forum promotes open discussion between the
Company and its suppliers in order to achieve
effective working relationship whereby during
the forum, both parties were able to openly
surface and discuss areas of improvement. The
forum was also used as a platform to recognise
suppliers who have excelled in their provision
of services and product delivery, or who
have demonstrated exemplary Health Safety
and Environment practice. This recognition
encourages the suppliers to provide the
highest quality of products and services at all
times and to improve their performance on a
continuous basis.

CR in the Workplace
INNOVATION IN THE FACE
OF CHALLENGES
PETRONAS Gas Berhad (PGB) has relentlessly
pursued the development of its most
precious capital - human capital, now made
even more critical with PGB fi nding itself in
a position of strategic advantage during the
year under review. The sustainability of PGB’s
performance and growth is the result of the
“Together As One” spirit demonstrated by its
staff at all levels. PGB believes in continuously
building and developing its people with the
right capabilities, competencies and leadership
skills to take advantage of opportunities and
propel the Company forward.
The economics scenario both locally and
internationally now require us to develop
capabilities for regasifi cation, gas transmission
under the Open Access regime and sustaining
reliability, availability and integrity of gas
processing and utilities facilities. In the year
under review and going forward, one of
PGB’s strategic advantages lies in reaffi rming
business and technical credentials of our
people in creating customer confi dence in our
offerings.
FROM LEFT:
PGB believes in continuously building
and developing its people with the right
capabilities, competencies and leadership
skills to take advantage of opportunities
and propel the Company forward.
The Company’s Structured Attachment
Programs allow staff to be attached
to operational facilities and projects in
obtaining the right functional and hands-on
skills to be competent in their fi elds.
PGB operates at 98.75% of its current
manpower capacity of 2,275 positions. In the
year under review, PGB’s Human Resource (HR)
strategy focuses on manpower optimisation as
well as leadership and capability development.
In addition, targeted engagements, continued
efforts on internalising Health, Safety and
Environment (HSE) values and smooth
implementation of HR schemes introduced by
PETRONAS are some of the highlights of this
year’s activities.
REPLENISHING OUR BRAIN SHELVES
WITH KNOWLEDGE
Encouraging the Learning Culture
In the increasingly fi erce global energy race,
innovation, capabilities and good governance
are recognised as key contributors to business
expansion and growth. Recognising the
importance of innovation, the focus on the
Company’s human capital throughout the
year was to optimise and re-energise the
staff by providing meaningful yet challenging
work and providing them with the tools and
platforms to practice innovation. The Company
places great emphasis and continues to invest
86 petronas gas berhad (101671-h)
in developing and harnessing the functional
and leadership skills of its people through
diverse programmes designed to provide them
with the edge to bring PGB to greater heights,
as well as gearing them up to assume bigger
responsibilities when the opportunities arise.
Capability-based development is still the
company’s main philosophy in the training and
development of staff across the workforce.
Within the technical/engineering disciplines,
the Accelerated Capability Development (ACD)
for technical executives (TE) and PETRONAS
Competency Based Assessment (PECAS) for
technical non-executives (NET) are PETRONAS
systems that allow identifi cation, development
and assessment of staff according to
industrially recognised standards.
Under ACD, TEs are assessed and monitored
on their functional skill gaps through a
systematic coaching and assessment plan.
The Company’s training approach is further
supported by regular checks in making sure
that the necessary and critical knowledge is
being utilised, retained and cascaded to other
staff that can benefi t from the lessons learned.

This includes the annual ACD assessments
and other functional-based assessments
which require a predetermined passing level
as one of the main criteria for the staff to be
promoted and to gear up to Management
level and above.
Within the structured capability development
framework, the Company spearheaded
accelerated capability development in 3
fronts:
• a Pilot Structured Attachment Programs
(SAPTE) that allows TEs to be attached
to operational facilities and projects
in obtaining the right functional and
hands-on skills to be competent in their
fi elds;
• a companywide intervention group called
PGB Accelerated Capability Development
(PACD) that plans for capability
development enhancements for all TEs
and NETs by leveraging on the expertise
of its different technical experts as well as
PGB’s extensive operational facilities;
• development of in-house training
programmes; where in-house trainings
(as opposed to costly vendor or 3rd
party technical trainings) are conducted
within PGB’s own training facilities by
the Company’s Technical Professionals
(TP) who are certifi ed technical trainers
for technical and engineering subjects in
PETRONAS.
The year under review saw a total of 438 TEs
subjected to the PACD assessments, all of
which were equipped with Individual Coaching
Plan and paired with technical coaches to
guide them in closing their technical gaps.
With the enhanced competence, all executives
identifi ed were promoted timely.
PECAS continues to be the development system
for enhancing the functional competencies
of NETs through a series of assessments. In
similar fashion to ACD, staff are promoted
when they reach the functional competence
needed to perform the job at a higher level.
87 annUaL report 2011
Capability-based
development is
still the Company’s
main philosophy
in the training and
development of staff
across the workforce.

CR in the Workplace
The Company
believes that staff
mobility plays
a vital role in
creating competitive
advantage in
developing its talents
in different areas and
geographical locations.
FROM LEFT:
The Company focused its learning
approach to develop current engineers and
technicians into Technical Professionals and
Technical Trade Specialists.
PETRONAS eLearning portal, an interactive
self-learning tool, has proven to be successful
in encouraging staff to upskill themselves.
In providing continuity of career development
for NETs, a structured programme to assess
potential NETs to be appointed as executives
(NET Management) was introduced. Under
NET Management, PECAS completion and
NET Competency Based Interview (CBI) were
used to gauge the readiness of the staff. For
the year under review, a total of 70 NETs
successfully completed PECAS to progress in
their career, out of which, 4 NETs underwent
the NET Management programme and are
pending appointment as executives. The nontechnical
non-executives (NENT) were given
similar opportunities to progress through
the NENT Assessment, resulting in 11 NENT
promotions.
Apart from assessments, the Company also
focused its learning approach in developing
current engineers and technicians into TPs
and Technical Trade Specialists (TTS). The TP
and TTS programmes are aimed at creating
internal subject matter experts with specialised
technical/engineering know-how at both
executive and non-executive levels.
With the relentless efforts by staff and the
encouragement from the Company, PGB’s TP
manning is fully fi lled at 25 people, while the
planned sourcing of 13 TTS saw a quorum of
14 TTS.
88 petronas gas berhad (101671-h)
While the period before the year under
review introduced the Career Enhancement
Opportunity (CEO) programme to give new
exposure and challenges for staff within
and outside PGB, now the Value Proposition
(VP) programme further enhances career
development via cross division transfers. In
achieving world class effi ciency and capability
in gas processing, the Plant Operations
Division conducted a Manpower Optimisation
Study which was completed in early 2011.
From there, identifi ed staff were planned
for movement to new and more challenging
jobs. A total of 36 staff were planned for
mobilisation to PGB’s regasifi cation terminal
project in establishing an operations and
maintenance base for the terminal upon
commencement of operations.
PGB has surpassed its planned training
man days by recording an average of 10.38
training mandays per staff, accumulating to
22,465 training man days for the year. This
has been achieved even with the emphasis
on internal training to optimise costs, where
the Company managed to save 8% of its
allocated training budget.

The Company’s training programmes
holistically blend elements of technical/
functional, HSE, quality, and leadership
trainings, which are implemented via traditional
classroom learning, on-the-job attachments,
taskforce participation and PETRONAS
web-based learning portal (eLearning).
Each employee is required to fulfi ll compulsory
training days, and the completion of at least
two eLearning modules. To further strengthen
the Company’s commitment to ensure staff
development is given top priority, staff training
days is continued to be incorporated in all
managers’ Key Performance Indicators (KPIs).
The PETRONAS eLearning, which offers a
wide range of self-learning modules had seen
employees completing 11,703 modules in
the year; averaging fi ve modules per person.
This interactive self learning has proved to
be successful in encouraging staff to upskill
themselves without attending classroom or
planned trainings. This allows PGB to maintain
its staff development momentum and quality
while optimising costs.
Attention was also given to managers in
managing the capability development efforts
of their subordinates. Line managers need to
have hands-on knowledge on using available
mechanism to track their subordinates’
progress. This was accomplished through
the Capability Workshops for line managers
which were conducted to develop easy-to-use
tracking and measurement mechanisms and
references based on established PETRONAS
tools for capability building. A total of 40 line
managers attended.
On top of these, the Company also leverages
on the various structured training programmes
organised by PETRONAS Management
Training Centre (PERMATA) and PETRONAS
Technology Institute (INSTEP). In supporting
staff to enrich their knowledge and upgrade
their academic qualifi cations, the Company
also encourages its staff to broaden their
perspective of outlook by extending fi nancial
assistance for higher education under the
Staff Development Programme (SDP). This
fi nancial assistance is awarded to deserving
staff pursuing their diploma, degree or postgraduate
programmes in related fi elds at
institutes of higher learning acknowledged
by PETRONAS. As this self-driven learning is
initiated by the staff, both the Company and
staff win by having staff still contributing their
best to the Company, while new ideas and
knowledge are brought from the academic
fi elds into the workforce.
89 annUaL report 2011
LOOKING AHEAD
Preparing Today’s Talent for
the Challenges of Tomorrow
The year under review recorded a staff job
rotation or “mobility” rate of 31% through
the movement of staff within the Company as
well as the PETRONAS Group. The Company
believes that staff mobility plays a vital role in
creating competitive advantage in developing
its talents in different areas and geographical
locations apart from enriching and motivating
the employees.
In supporting the mobility exercise, it is the
responsibility of the Company to ensure longterm
succession for the sustainability of the
business. The year in review saw collaborative
efforts by line departments and HR in carrying
out Talent Review sessions for the technical
managers to identify top talents in order to
have a pool of leaders being developed for
succession in critical positions within the
company. A Succession Planning exercise
was conducted to discuss a total of 180
talents and their specifi c career development
plans to prepare them for over 120 Technical
Managerial and TP positions company-wide.

CR in the Workplace
In line with the above, the Building Leadership
Programme (BLP) developed specifi cally for
PGB using set PETRONAS criteria, remains as
the main platform in identifying and grooming
potential future leaders for the Company.
Currently, a total of 83 potential leaders
have been identifi ed across the Company,
who are provided with intensifi ed leadership
development programmes, coaching and
structured trainings.
Development and enhancements of Leadership
Programmes include the continuation of
the annual Managers’ Forum, Motivation
Programme, Business Enablers’ Forum,
Ladies’ Forum and Emerging Leaders
Programme to collectively identify and
address leadership issues within each of the
major target groups within the Company.
When surveyed, participants noted an “above
average” response as to the programmes’
effectiveness.
Preparing middle and senior
management for the future
In engaging PGB’s middle Management during
the Management Forum, “Back to Basics”
was the theme in reinforcing the message
of innovation in leadership; the ability of the
organisation’s leaders in taking charge, as well
as embracing new challenges and innovation
in achieving breakthrough performance.
Based on survey responses that middle
Management require further support
in managing their people, an internally
designed Nurturing Leadership Programme
was developed and piloted involving 22
managers. The programme provided them
with tools and techniques to manage their
own careers and develop a practical and
action oriented approach towards becoming
better managers.
For the senior and middle Management
level, the Company continues to leverage on
PETRONAS’s existing leadership programmes.
During the year under review, 5 of PGB’s
Management staff attended the PETRONAS
Management leadership training programmes,
with the aim of refi ning the soft skills of the
Management apart from enhancing their
business excellence. For newly appointed and
potential managers, PGB’s tailored leadership
programmes were conducted in-house to
assist them to make a successful transition
to higher responsibilities. For the year under
review, a total of 350 staff attended the said
programmes.
Humility
& Respect
Others
Development
Plan
Leadership
Talk
90 petronas gas berhad (101671-h)
Foundation
Behaviour
ELP
Mentoring continues to be a key component
of the Company’s culture to provide a platform
for new executives and potential leaders under
BLP to learn and acquire guidance through a
mentoring relationship which will enable them
to familiarise and adapt to business working
environment and PETRONAS values. The
Company further supported the mentoring
programmes by organising mentor-mentee
sessions and in-house trainings in ensuring its
success.
RAISING THE BAR
Monitoring and Enhancing
Staff Performance
The Company vigilantly monitors the
performance and well being of staff, where
the Management Committee members
regularly sit together with HR personnel at
Human Resource Planning Committee (HRPC)
meetings, both at corporate and divisional
levels, to discuss human capital matters.
During the year in review, a total of 18 HRPCs
were conducted at various Company locations
to allow staff at location to get to know PGB’s
top Management personally.
Coaching
Experiential
Learning
Feedback

The regular monitoring sessions are
further complemented by the Intensifi ed
Performance Management System (IPMS),
which is a holistic and transparent appraisal
system based on periodic reviews on the
employees’ performance and leadership
behaviours, coaching by immediate superiors
and leadership qualities feedback for all
executives. The PETRONAS rewards and
consequence management system provides
clear differentiation of employees with strong
performance and outstanding leadership (to
be identifi ed as potential leaders) against
marginal performers who need specifi c
development plans to improve. This system
proved to be essential in supporting the
Company’s high performance culture.
CREATING A HARMONIOUS,
SAFE WORKING ENVIRONMENT
Staff Engagement and
Management Commitment
Regular staff communication and engagement
are important to the Company to allow
management visibility and to maintain
a harmonious working environment.
Engagement sessions with the staff were
conducted in all its business locations
with the aims of being near to staff and to
be transparent and open on the business
scenario, the Company’s performance and
current ongoings. Throughout the year,
the Company conducted regular formal
engagements along with numerous informal
sessions in both large and small groups to give
the opportunity for staff to directly share their
ideas and concerns as well as keeping abreast
with the latest happenings in the Company.
Even PETRONAS Senior Management were
involved in engagements such as the Executive
Vice President’s town hall session.
Regular weekly tazkirah or refl ection sessions
were also conducted within departments,
serving as small-group platforms for
employees to refl ect on values and share
lessons learned.
91 annUaL report 2011
Regular staff
communication
and engagement
are important to the
Company to maintain
a harmonious working
environment.
Mentoring continues to be a key
component of the Company’s culture to
provide a platform for new executives
and potential leaders to learn
and acquire guidance.

CR in the Workplace
PGB continues its
holistic approach
in maintaining the
high standards of
PETRONAS’ Health,
Safety and Environment
Management
System (HSEMS) by
implementing proactive
measures, focusing
on compliance to
established procedures
and processes.
FROM LEFT:
Continuous awareness and
engagement sessions between
PGB management and staff are conducted
as part of people management activities.
PETRONAS ZeTo (Zero Tolerance) Rules
spell out the mandatory rules
to be complied to at all times by
all employees and contractors.
In managing the welfare and development of
unionised non-executives under the ‘Kesatuan
Kakitangan Petroliam Nasional Berhad’
(KAPENAS), the Company coordinated
quarterly engagement sessions between the
Management and KAPENAS. A total of four
company level sessions were carried out
in the year under review to address union
staff issues in a strategic manner, enhance
the good relationship with non-executives
and facilitate immediate action on issues
to be resolved quickly and amicably. On
top of that, the Company also takes extra
effort in having regular engagements with
regulatory bodies and supporting agencies to
foster good relations, develop working level
networking and update each other on the
latest developments.
All the communication and engagement will
not be successful without the support from its
people. The Company has been blessed with
the undying and continuous commitment
from the Management and line departments
who act as advocates to the human resource
practices, whether as speakers, mentors,
interview panel members or assessors. In
the year under review, people management
92 petronas gas berhad (101671-h)
activities have been incorporated as part of all
managers’ KPI. It is encouraging to note that
the Management took it upon themselves to
delve into and to support these activities as
part of their roles.
Effi ciency in Managing Staff Welfare
PETRONAS has introduced differentiated
remuneration for technical and business
enabler executives, which also affected over
800 executives in PGB. This was done in
fairly compensating executives according to
criticality of their respective skills and aligning
towards market competitiveness.
PETRONAS implemented a group-wide
HR Transformation Journey in making HR
a strategic partner to the business. A key
component of the transformation is the
introduction of an online HR transaction and
information system and a global HR shared
services offi ce for PETRONAS staff. Still in
its design stage, efforts are now focused
on system design, system localisation to the
specifi c needs of PGB’s business locations
and knowledge transfer to line departments
to ensure seamless transfer of selected HR
processes into the control of line staff.

KEEPING SAFE, KEEPING HEALTHY
PGB continues its holistic approach
in maintaining the high standards of
PETRONAS’ Health, Safety and Environment
Management System (HSEMS) by
implementing proactive measures, focusing
on compliance to established procedures
and processes. The revised HSE Policy signed
by Managing Director/Chief Executive Offi cer
(MD/CEO) on 17 December 2009 translates
the commitment of PGB to give priority to
HSE wherever it operates. The collective
effort of PGB Management, staff, vendors
and contractors was critical in ensuring
mitigation and remedy of HSE issues as well as
continuous improvement in HSE management
and performance.
Being Proactively Safe
Up until March 2011, PGB maintained 21
million safe work man-hours without Loss
Time Injury (LTI) incident as well as zero
compoundable cases for regulation noncompliance.
PGB’s HSE Culture Transformation journey
continues through Behavioural Safety
programmes, focusing on common HSE
KPIs for all staff, continuous promotion and
awareness campaigns, enhanced training and
coaching, utilisation of PGB’s online safety
observation tracking system i.e. e-Safety
Observation Safety Audit (eSOSA) as well as
appointment of HSE Culture Change Agents.
In particular, by measuring safety observation
frequency, staff have demonstrated efforts
in conducting safety observations and in the
process learned the implication of unsafe
acts or unsafe behaviours. Change agents
leverage on already established sessions
such as Toolbox Talks, Turnaround daily
meetings, HSE Committee meetings and
HSE Day to communicate HSE updates.
Not forgetting the signifi cant presence of
3rd parties, PGB introduced the Contractor
Safety Management Work Group to ensure
contractors, both old and new, comply with
PETRONAS requirements towards promoting
HSE culture.
In August 2010, PGB launched and
communicated the PETRONAS ZeTo Rules
(Zero Tolerance) company-wide. The 10
ZeTo rules spell out 10 mandatory rules to
be complied to at all times by all employees
and contractors. ZeTo rules are a principle to
ensure all activities are carried out safely and
any non-compliance is not tolerated. HSE work
procedures on misconduct were also revised
in accordance with ZeTo rules requirement.
93 annUaL report 2011
By complying with this work procedure, it
is hoped that staff and contractors alike will
be aware of and remind each other on the
consequences of non-compliance that, aside
from endangering themselves and others, can
also lead to disciplinary action or termination
of contract.
A PGB Tier 3 Emergency response exercise
conducted by the Company was aimed at
testing the implementation of PGB and its
divisional contingency planning and Business
Continuity Plan (BCP), the coordination
amongst responders both internally and
externally as well as the reporting and
communication links between the participating
parties. Related Government authorities
including Polis Di Raja Malaysia (PDRM),
Jabatan Bomba & Penyelamat Malaysia
(JBPM) and Ministry of Health (MOH) as well
as PETRONAS East Coast Regional Offi ce
(ECRO), Central Emergency and Fire Services
(CEFS) and Kertih Integrated Petrochemical
Complex (KIPC) Clinic participated. It was an
overall success.

CR in the Workplace
Divisions MSOSH Award Category
Our Vigilance Is Rewarded
With Recognition
During the year under review, a HSE Tier 3
Assurance Exercise, conducted every three
years was conducted by PGB. Overall, HSE
risk control measures are generally in place
across PGB’s business activities. However
the Company is taking steps to improve on
operational and control gaps identifi ed.
PGB once again with a good HSE track record
and collective commitment from staff and
contractors alike, have won 8 Malaysian
Society for Occupational Safety and Health
(MSOSH) awards. This year, it was a special
achievement for PGB after successfully
Grand Gold
Merit
Plant Operations 1 1 –
Transmission Operations – 2 1
Centralised Utility Facilities 1 1 –
Technical and Facilities Development 1 – –
Total 3 4 1
Gold
Class I
clinching Grand Awards for Gas Processing
Plant B, Centralised Utilities Facilities Gebeng
and Technical Facilities Development Division.
Also in the year under review, the Company
won an award in the “National OSH Excellence
Award” for Gas Utilities Category which was
presented to the MD/CEO, En. Samsudin bin
Miskon by YAB Tan Sri Dato’ Haji Muhyiddin
bin Haji Mohd Yassin, the Deputy Prime
Minister of Malaysia on 21 December 2010 at
the Putrajaya International Convention Centre.
PGB received the award in recognition of the
excellent practice at the Kuantan Regional
Operations under the Company’s Transmission
Operation Division.
94 petronas gas berhad (101671-h)
Going Beyond Physical Health
In sustaining the PGB Healthy Lifestyle
Programme, Healthy Choices Practices was
introduced Company-wide, stressing on
importance of physical exercise and healthy
diet in our lifestyles. Supporting the Practices
are programmes conducted at PGB locations,
including measurement of health parameters
(blood pressure and body mass index), Diet
Management Programme, Biggest Loser
Challenge, Weekly Physical Exercise and
Special Health Intervention For Stroke and
Heart Problems. Specifi cally for ladies were the
Cervical Cancer Vaccination and Awareness
Campaign.
The Company-developed Al-Falah Programme
which aims to enhance employees’ holistic
health comprising of physical, fi nancial,
emotional and psychological health, has
seen 297 employees attended a total of
13 sessions throughout the year. In addition to
this programme, a special monthly counseling
programme was introduced for employees
in the effort to provide an avenue for
one-to-one counseling with appointed internal
counselors.

The Company continuously manages health
risks arising from its operations through a
structured Health Risk Assessment (HRA)
programme. The scope of the HRA encompass
fi ve major health hazards, which are hazardous
chemicals, physical (noise, vibration, thermal
stress, radiation and pressure), ergonomics,
biological and psychosocial. The HRA is carried
out during routine plant and transmission
operations, turnaround, offi ce works, as well
as during the stages of project implementation.
During the year under review, the Company
completed HRAs for all its established plants,
pipeline and utility facilities and will move
forward with the implementation of agreed
interventions in the coming fi nancial year
onwards.
FROM LEFT:
WHERE DO WE GO FROM HERE?
Charting the Way Forward
In line with the Company’s vision of being
a world class gas and utilities company, the
three-year PGB Leadership and Capability
Roadmap drawn to support expansion
and growth, is now in its second year of
implementation. This roadmap charts the
way forward and sets the Company’s target
in capability and leadership development, as
well as mindset and behaviour change needed
to be world class.
PGB faithfully adheres to the core PETRONAS
values of Loyalty to the Company, high
Integrity, Professionalism and Cohesiveness
amongst employees to achieve the Company’s
goals and ensuring that PGB can continue to
harvest the fruits of its labour. This, coupled
with the relentless efforts in continuous
development of its human capital, will not
only ensure the Company’s future growth
and operational excellence but also reinforce
its relationship with stakeholders current and
new, in years to come.
The Company continuously manages health
risks arising from its operations through
a structured Health Risk Assessment
programme which measures the levels
of hazardous chemicals, noise, vibration,
thermal stress, radiation and pressure.
In sustaining the PGB Healthy Lifestyle
Programme, Healthy Choice Practices
was introduced Company-wide, stressing
on importance of physical exercise
and healthy diet.
95 annUaL report 2011
PGB Leadership
and Capability Roadmap
charts the way forward
and sets the Company’s
target in capability and
leadership development
as well as mindset
and behaviour change
needed to be world class.

CR in the Environment
A COMMITMENT TOWARDS
A SAFE, HEALTHY AND
SUSTAINABLE ENVIRONMENT
PETRONAS Gas Berhad (PGB) continues to
demonstrate its full commitment and effort in
sustaining its Health, Safety and Environment
(HSE) performance. As one of the main
components under HSE, environment has
always been the focus for the Company
wherever it operates and the importance of
environmental conservation and preservation
for future generation is continued to be
instilled in the heart of its employees at all
times.
During the year under review, the Company
through HSE Department has outlined four
strategic objectives to achieve the vision
“Internalisation of HSE Culture through
Green practices are
encouraged to inculcate
a strong commitment
towards a safe, healthy and
sustainable environment.
comprehensive implementation of HSE
Management System (HSEMS)”. With this aim,
the strategic objectives outlined include:
1. to strengthen HSE system through
compliance with relevant Legislations,
PETRONAS and industry’s standards;
2. to identify HSE risks effectively and these
risks were assessed and prioritised for
controls;
3. to inculcate HSE culture through
implementation of risks-based Health
and Behavioural Safety, Environmental
programs and promotions; and
4. to strengthen staff capability and
competency on prioritized HSE focus
area. These strategic HSE objectives are
broad-based towards achieving Health,
Safety and Environment excellence in the
Company’s business operations and in the
preservation of environment.
96 petronas gas berhad (101671-h)
Through the endorsed PETRONAS sustainable
framework, the Company focuses its efforts
towards realising a sustainable environment
by launching the 4G Initiative (Green Care,
Green Mind, Green Ownership and Green
Growth) on 25 October 2010 as part of its
5 year Environmental Sustainability Roadmap
(2010-2015).
4G INITIATIVE : GREEN CARE,
GREEN MIND, GREEN OWNERSHIP
AND GREEN GROWTH
4G Initiative is a programme aimed to improve
staff awareness and commitment towards
environmental sustainability and inculcate
the importance of appreciating green issues
and nature at their workplace and their
daily life. This is to support the Company’s
aspiration, as well as to comply with the
ISO 14001 (Environmental Management
Systems) requirement where PGB is currently
heading for.

The green initiative used pilot 3R (Reduce,
Reuse and Recycle) concepts at PGB Head
Offi ce, zooming on paper consumption
reduction in an effort to instil awareness
and embrace sustainability on waste issues.
At other PGB divisions, leveraging on waste
management as PETRONAS group-wide
central issue this year, four other main
activities were deployed. The activities include
waste recycle programme, minimising water
use and electricity consumption, scheduled
waste management and electrical system
improvement. Competition programmes
zooming in on paper consumption reduction
was held at PGB Head Offi ce; water and
electricity consumption reduction competition
at Transmission Operations Division (TOD);
and general waste reduction competition at
Centralised Utilities Facilities (CUF) and Plant
Operations Divisions (POD) were also carried
out.
Various avenues were utilised to promote
the 3R activities and programmes in order to
inculcate awareness and sense of ownership
of waste issues at sites. For PGB Head Offi ce,
initiative on paper consumption reduction,
an initial set target reduction based on
last year’s consumption pattern was also
communicated.
The campaign met its objective of creating
general awareness on the importance of paper
consumption reduction. Similar campaign will
be constantly organised in the near future
as testimony of the Company’s commitment
towards environmental preservation.
For TOD, the campaigns generated positive
results with a signifi cant improvement especially
in the electricity savings after considering the
greener and more sustainable options such
as replacement to LED bulbs from the normal
conventional bulbs. Notwithstanding that,
other activities conducted simultaneously also
generated positive results. This was particularly
seen in the electricity and water resource
savings as a result of awareness sessions being
conducted to all staff.
For CUF and POD, the campaigns went on
to inculcate more awareness to staff where
activities related to conserving environmental
resources like car-pooling instead of single
driver to and from offi ce, greening offi ce
buildings by planting more trees at open or
unoccupied spaces to minimise heat-island
effects (a phenomenon which has accompanied
and increased with urbanization, and it refers
to the fact that man-made structures tend to
attract and retain heat at a higher rate than
normal in nature. This results in an increase
in ground-level ozone production by as much
as 30%. Hence, energy saving campaigns
by switching off lights at unutilised areas,
electrical devices such as computers and
utilising offi ce blinds to reduce internal heat
were conducted. On top of that, talks on
energy saving were conducted regularly to
instil awareness among staff.
ENVIRONMENTAL RISK REPORTING
The year under review also showed an
increasing improvement of the environmental
risk reporting via PGB Health Safety and
Environmental Management System such
as Environmental Aspect Impact exercises,
Environmental Impact Assessment (EIA)/
Quantitative Risk Assessment (QRA) report
preparations as well as internal audits. With
POD being the latest division to be certifi ed with
ISO 14000:2004 (Environmental Management
Systems), prompt reviews of consultants’ draft
reports by HSE staff ensures the feedback
will be given on time to further support asset
owner on any potentially damaging risks to
the environment. Many projects were covered
effectively this year, which include the PGU 1
8 Butane Pipeline Replacement and Relocation
project (PGURE), LNG Regasifi cation Facilities
project, CO2 Supply to MOX Linde (COSMO),
Retrofi tting Works for Turbotronic 4 Upgrade
at Kerteh Compressor Station at GPPA
KCS-A, GPP-A (Turbotronic), Export Terminal’s
Loading Arm project, PasirGudang/Gambang
and Tronoh City Gates projects.
97 annUaL report 2011
4G Initiative is a
programme which
aims to improve
staff awareness and
commitment towards
environmental
sustainability.

CR in the Environment
PGB continues
to improve its
management of
scheduled waste
through existing
PGB Scheduled Waste
Request System.
FROM LEFT:
With good HSE track records
and collective commitment from staff
and contractors alike, PGB received the
National Occupational Safety and Health
Excellence Award from the
Deputy Prime Minister of Malaysia.
Prompt closures of action items highlighted
in the Environmental Risk Reporting
contributes towards excellence in
plant operations.
Prompt closures for action items raised in
the exercises conducted on each project
were also seen via walkabouts as well as
progress meetings. This indicates effective and
suffi cient internal controls were put in place
to mitigate the environmental risks further.
PGB continues to improve its management
of scheduled waste through existing PGB
Scheduled Waste Request System (e-POWERS)
via information technology by reviewing and
further enhancing the system.
The Company also continued its commitment
towards excellence in operations with the
compliance to the latest revised Environment
Quality Act such as EQ (Industrial Effl uent
Treatment System) Regulations, 2009 and EQ
(Sewage) Regulations, 2009 by identifying
and endorsing relevant competent persons
at each affected divisions as well as on-time
submission of scheduled reporting to the
Department of Environment in order to meet
the new revised law’s requirements.
98 petronas gas berhad (101671-h)
In spite of that, improvement on the internal
reporting of environmental performance
remained as central focus. PGB continued
this effort under the year of review by
supporting PETRONAS Group Health, Safety
and Environment’s (GHSE) new environmental
performance reporting format. New additional
parameters included resource use, waste
management and emission data reporting.
The Company worked hard to ensure the
reporting is complied with by integrating all
divisional performance on the new monthly
reporting format. By doing so, we continue to
ensure PGB is not lagging in our commitment
to sustainability, as pledged by Malaysia,
which is a signatory of CoP15 Copenhagen
2009, in our effort to reduce climate change
via establishment of greenhouse gas (GHG)
baseline reporting.

AWARDS AND RECOGNITIONS RECEIVED
To further emerge as a world class organization
focusing on environmental issues as identifi ed
in PGB environmental fi ve year roadmap (2010-
2015), emphasis on getting environmental
certifi cations were implemented.
During the fi nancial year under review, two
out of three PGB’s divisions were recertifi ed
based on the Environmental Management
Systems (EMS, ISO 14000). They were CUF
(November 2010) and TOD (January 2011).
During the year under review also, POD
embarked on environmental management
systems (ISO14000) certifi cation in May 2010
and was certifi ed in January 2011.
The year under review also saw PGB once again
receiving the Merit Award in Sustainability
Development (SD) category at PETRONAS
level. This is through its success in conducting
“Knowing TOD programme” which was
submitted as a paper during the PETRONAS
Group HSE Forum 2010 held at Kota Kinabalu,
Sabah in July 2010.
With good HSE track records and collective
commitment by staff and contractors alike,
PGB was accredited with eight MSOSH
awards. This year, it was a special achievement
for PGB after successfully clinching three
Grand Awards, four Gold Merit and a Gold
Class I Award.
1. MSOSH Grand Award for Gas Processing
Plant (GPP) B, POD;
2. MSOSH Grand Award for Centralised
Utility Facilities (CUF) in Gebeng;
3. MSOSH Grand Award for Technical &
Facilities Development (TFDD);
4. MSOSH Gold Merit Award for Export
Terminal, POD;
5. MSOSH Gold Merit Award for Centralised
Utility Facilities (CUF) in Kertih;
99 annUaL report 2011
6. MSOSH Gold Merit Award for Kertih
Regional Offi ce, TOD;
7. MSOSH Gold Merit Award for Segamat
Regional Offi ce, TOD; and
8. MSOSH Gold Class 1 Award for Miri
Regional Offi ce, TOD.
Also in the year under review, the Company
won an award in the “2009 National OSH
Excellence Award” for Gas Utilities category
which was presented to the MD/CEO,
En. Samsudin Miskon by YAB Tan Sri Dato’
Haji Muhyiddin bin Haji Mohd Yassin,
the Deputy Prime Minister of Malaysia.
PGB received the award in recognition of the
excellent practice at the Kuantan Regional
Operations, Transmission Operation Division.

CR in the Community
FROM LEFT:
PBPP is a programme that also gives equal
emphasis on soft skills through scheduled
Fun Learning sessions conducted by PGB staff
volunteers who selfl essly invest their time
and energy on a monthly basis.
PBPP students experiencing the wonders of
science at PETROSAINS, KLCC.
PGB continues to create sustainable value
for the society with the hope of aspiring
people everywhere. The Company continues
to implement a broad range of Corporate
Social Responsibility (CSR) programmes in
geographies where it operates. Among these
initiatives are the fl agship Program BAKTI
Pendidikan PETRONAS (PBPP), interaction
activities with the local authorities, public
awareness programmes as well as other social
responsibility programmes aimed at enriching
the livelihood of its stakeholders in tandem
with the PETRONAS Group’s CSR aspiration.
PROGRAM BAKTI
PENDIDIKAN PETRONAS
– OUR PRIDE AND JOY
The Company maintained four schools under
the PBPP during the year under review,
namely Sekolah Kebangsaan Santong in Paka
and Sekolah Kebangsaan Kemasik in Kemasik,
100 petronas gas berhad (101671-h)
Terengganu; Sekolah Kebangsaan Batu Anam
in Segamat, Johor; and Sekolah Kebangsaan
Pinang Tunggal in Kepala Batas, Pulau Pinang.
The programme was initiated in 2002 by
PETRONAS, with support and involvement
by the Company since 2006. Through our
participation, around 640 students have
benefi ted from this programme.
PBPP is a structured and integrated long-term
education programme focusing on marginally
performing school children. The programme
enhances the teaching approach to improve
academic achievements specifi cally in
Mathematics, English and Science of standard
four, fi ve and six students. The programme
also gives equal emphasis on soft skills through
scheduled Fun Learning sessions conducted
by PGB staff volunteers who selfl essly invest
their time and energy on a monthly basis.

Apart from these, the students were also
taken for yearly educational fi eld trips to
PETRONAS’ experiential learning facilities such
as PETROSAINS where they get to experience
science and knowledge within the oil and gas
realm in a fun and interactive manner, Dewan
Filharmonik PETRONAS where the students are
given the opportunity to appreciate classical
music and Galeri PETRONAS where they get
to amplify their appreciation for fi ne arts. The
students were also taken to the PETRONAS
Twin Towers and KLCC Park as part of their
educational fi eld trip.
Students who will be sitting for the Standard
Six Ujian Penilaian Sekolah Rendah (UPSR)
examination also participated in the
motivational camp designed by our staff
volunteers. As recognition for the students’
overall achievements, an annual prize giving
ceremony was organized by the Company to
acknowledge the students’ efforts in achieving
outstanding results and demonstrating
improvements at school.
The year under review saw the graduation
of the second batch of PBPP students. From
the 94 students involved in the PBPP that sat
for the UPSR examination, 92% passed the
examination of which 19 students obtained
5As whilst 57 students scored a combination of
4As and 3As. This is a signifi cant improvement
in comparison with 2009 result, with higher
number of students obtaining 5As compared
to previous years. The remarkable achievement
of the students under PBPP is a success that
the Company is proud to be part of.
The Company’s efforts in supporting the
PBPP was once again given due recognition
at national level where PGB was short-listed
for the Star Biz-ICR Malaysia Corporate Social
Responsibility Award under the Community
Category.
101 annUaL report 2011
PGB continues to
create sustainable value
for society with
the hope of aspiring
people everywhere.

CR in the Community
The Company conducted
public awareness programmes
to engage with the local
communities within the vicinity
of its plants, facilities and vast
network of gas pipelines.
102 petronas gas berhad (101671-h)
REACHING OUT TO THE NEEDY
The Company continues to carry out a series
of CSR programmes encompassing a wide
range of activities. From assisting the physically
challenged, to giving motivation and moral
support to orphans and the underprivileged,
our staff commitment in working together to
contribute to the community was exemplary.
Under the tagline Bakti Dihulur, Kasih
Disemai which means every act of kindness,
instills the spirit of caring for each other,
CSR activities were intensifi ed and saw a
larger participation. Senior 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 and average of one
CSR activity per week.

A total of 65 CSR activities were carried out
with the communities in the areas where
the Company operates. These activities
focused mainly on improving the well-being
of orphans, single mothers and families
within the poverty bracket. The total amount
contributed by Senior Management and staff
was RM129,603.
PROACTIVELY YOURS
The Company also conducted public
awareness programmes to engage with the
local communities within the vicinity of its
plants, facilities and vast network of gas
pipelines. Through these engagements, we
were able to create awareness on preventive
and safety control measures which need to be
carried out, for example, along our pipeline
routes. The public was also made aware of
how to activate emergency procedures should
the unexpected occur. These awareness
programmes are jointly conducted by the
Company and relevant authorities such
as the Fire & Rescue Services Department,
representatives from the local authorities and
the Department of Environment.
The Company also recognises the importance
of fostering good relations with relevant local
authorities and media to promote better
understanding of its business. Through this
good relationship, the Company was also able
to understand the regulatory requirements of
the different agencies. Such activities to foster
relationship and enhance rapport include plant
visits, sport activities and regular engagement
sessions.
103 annUaL report 2011
FROM LEFT:
Regular engagement sessions with
communities within the vicinity of PGB’s
operational installations are conducted
to create awareness on safety control measures.
The Company conducts at least
three shareholders visit programmes in a year
to expose them to the Company’s business
and operations.

Calendar of Events
2 April 2010
Under Program Bakti Pendidikan PETRONAS
(PBPP), the Company organised Fun
Learning activity at Sekolah Kebangsaan
Kemasik in Kemaman, Terengganu.
PGB staff who volunteered as facilitators
led the programme.
3 April 2010
The Company organized ‘Meet the Parents’
session under PBPP at its new adopted
school, Sekolah Kebangsaan Batu Anam
in Segamat, Johor.
5 April 2010
A group of staff from Uzbekistan’s Ministry
of Finance visited PGB’s Gas Processing
Plant (GPP) A in Kertih, Terengganu to further
understand the Company’s gas processing
and transmission operations.
8 April 2010
A
A
A delegation comprising 20 members of
TIM NAZIRAN (Kumpulan Sasaran Penting
Negara under Majlis Keselamtan Negara)
visited the Company’s Export Terminal
in Kemaman, Terengganu to carry out
security inspection on the facilities.
24 April 2010
PGB volunteers organised ‘Fun Learning’
programme at Sekolah Kebangsaan Pinang
Tunggal in Penang under the PBPP.
26 April 2010
A group of 50 students and lecturers
from Universiti Teknologi Malaysia (UTM)
Skudai, Johor visited the Company’s
GPP A to increase their knowledge on
gas processing operations.
27 April 2010
Staff from Ministry of Finance visited PGB’s
Segamat Operations Centre (SOC).
27 April 2010
Three staff from Malaysian Industrial
Development Authority (MIDA) Terengganu
visited the Company’s Centralised Utility
Facilities (CUF) Kertih in Terengganu to
learn more about its operations.
28 April 2010
Department of Environment (DOE) from
Kemaman Office, Terengganu visited and
undertook audit activities at the Company’s
GPP B in Paka, Terengganu.
B
104 petronas gas berhad (101671-h)
29 April 2010
A delegation of investment analysts from
various capital management institutions
visited the Company’s SOC in Segamat,
Johor to learn more about gas transmission
operations.
8 MAy 2010
PGB PBPP facilitators organised monthly
PBPP Fun Learning session at Sekolah
Kebangsaan Santong in Paka,
Terengganu.
10 MAy 2010
B
Engagement session between staff at
GPP B with PGB Chairman, Y.Bhg.
Datuk Wan Zulkiflee bin Wan Ariffin
held in conjunction with PGB Board
of Directors visit and meeting at Plant
Operations Division (POD) in Kertih and
Paka, Terengganu.

C D
16 MAy 2010
Signing Ceremony for Demin Water Supply
from CUF Kertih to GPP A between POD
and CUF divisions held in Kemaman,
Terengganu.
18 MAy 2010
10 members of TIM NAZIRAN visited GPP
complexes A and B in Kertih and Paka,
Terengganu.
19 MAy 2010
Eight members of BASF Board of Directors
visited GPP A in Kertih, Terengganu to
have a clear view and understanding of
gas processing operations.
21 MAy 2010
The Company’s CUF Division from Kertih
organised CUF Bowling Invitation game
with Jabatan Bomba dan Penyelamat
Malaysia (Bomba), Department of Safety
and Health (DOSH) and Department of
Environment (DOE) at Mesra Mall in
Kemaman, Terengganu.
22 MAy 2010
PGB PBPP facilitators organised monthly
Fun Learning session at Sekolah Kebangsaan
Pinang Tunggal in Penang.
23 MAy 2010
Visit and inspection by Jabatan Bomba dan
Penyelamat Johor for Fire Department’s
Certificate of Approval.
11 - 13 JuNe 2010
POD GASNITA organised Students’
Excellence Workshop for UPSR, PMR and
SPM students from schools around Kerteh
and Paka, Terengganu at De Rhu Beach
Resort, Kuantan, Pahang.
22 JuNe 2010
The Company organised Quarterly town
hall communication session for Quarter
4 Financial Year 2010/2011 at Level 41,
Tower 1, PETRONAS Twin Towers for staff
at PBG Head Office.
23 JuNe 2010
Ten analysts from MIDF visited GPPA and
CUF Kertih in Kertih, Terengganu
C
105 annual report 2011
24 - 26 JuNe 2010
As part of the Company’s Corporate
Social Responsibility (CSR) activities, PGB
organised UPSR Motivation Camp for
students under PBPP at Kelab Golf Rantau
PETRONAS in Kertih, Terengganu.
26 JuNe 2010
Interaction Golf Tournament organised by
CUF Gebeng, participated by representatives
from Kaneka, Polyplastic, and Flexys at
Awana Kijal Golf & Country Club.
26 JuNe 2010
Under PBPP, the Company organised Fun
Learning Sessions at its two adopted
schools, Sekolah Kebangsaan Batu Anam
in Segamat, Johor and Sekolah Kebangsaan
Pinang Tunggal in Penang.
D

Calendar of Events
2 - 4 July 2010
The Company organised Ujian Penilaian
Sekolah Rendah (UPSR) Motivational
Camp 2010 for students from Sekolah
Kebangsaan Pinang Tunggal at Pendang
Lake Resort in Pendang, Kedah.
5 July 2010
E F
Vice President, Infrastructure and Utilities,
Gas and Power Business of PETRONAS,
Mr Lau Nai Tuang visited GPP A and B in
Kertih and Paka, Terengganu.
7 July 2010
A delegation of DOE and DOSH Kuantan
visited CUF Gebeng, followed by Bowling
Interaction Game held at Kuantan
Megalane, Kuantan.
8 July 2010
40 Universiti Teknologi Malaysia (UTM)
students visited PGB GPP A in Kertih,
Terengganu.
17 July 2010
POD organised CSR programme and
activities at Felda Kertih 1 and Sekolah
Kebangsaan Tg Tengah in Kemaman,
Terengganu.
22 July 2010
E
The Company’s 27th Annual General
Meeting was held at Kuala Lumpur
Convention Centre, Kuala Lumpur City
Centre.
G
106 petronas gas berhad (101671-h)
30 July 2010
With full commitment from all staff,
the Company won eight Malaysian Society
for Occupational Safety and Health
(MSOSH) awards, which was presented
at the “2009 MSOSH Award Presentation
Ceremony” organised by MSOSH at
Dewan Perdana Felda, Kuala Lumpur.
5 & 7 AuGuSt 2010
POD organised CSR programmes at Sekolah
Kebangsaan Ayer Jerneh and Surau Kg.
Binjai in Kemaman, Terengganu.
31 AuGuSt 2010
F
The Company’s TOD joined Merdeka
celebration ceremony for Segamat district
at Dewan Jubli Intan Segamat, Johor.
3 SepteMber 2010
PGB organised Iftar or breaking of fast
with orphans and old folks at its SOC in
Segamat, Johor.
G

H
6 SepteMber 2010
A CSR programme was held by staff from
CUF Kertih for unfortunate families in
Paka, Terengganu.
18 SepteMber 2010
The Company celebrated Hari Raya Aidilfitri
with PBPP students and their families at
Sekolah Kebangsaan Pinang Tunggal in
Kepala Batas, Penang.
24 SepteMber 2010
Signing Ceremony of the Sale and Purchase
Agreement of Raw Carbon Dioxide between
Petronas, IGS and Mox Linde.
I J
24 SepteMber 2010
The Company celebrated Hari Raya Aidilfitri
celebration with staff, customers, authority
and orphanages at Restoran Seri Melayu,
Kuala Lumpur.
1 OctOber 2010
PGB was honoured with two merit
awards in the Overall and Best Return to
Shareholder categories at the Malaysian
Business - the Chartered Institute of
Management Accountants (CIMA) Enterprise
Governance Awards 2010.
2 OctOber 2010
Staff from CUF Kertih organised a CSR
programme with orphans at their hostel,
Asrama Darul Falah, Bukit Payong,
Terengganu.
H
107 annual report 2011
6 OctOber 2010
TOD organised HSE Day programme
at Legend Water Chalet, Port Dickson,
Negeri Sembilan.
18 OctOber 2010
A group of shareholders visited PGB’s
facilities in Gebeng, Pahang, Kertih and
Paka, Terengganu, to learn about the
Company’s operations.
19 OctOber 2010
PGB signed Letter of Intent for Supply
Agreement with Flexsys at Swiss Garden
Resort & Spa, Kuantan, Pahang.
25 OctOber 2010
The Company Organised Health, Safety
and Environment Day with the theme
“4G: Greening Your Life – You Decide”
for PGB Head Office staff at PETRONAS
Twin Towers.
I
J

Calendar of Events
K L
2 NOveMber 2010
Tenaga Nasional Berhad visited PGB’s SOC
in Segamat, Johor to learn more about
gas transmission operations.
9 NOveMber 2010
The Company signed an agreement with
the Consortium of Hyundai Engineering Co.
Ltd. for Plant Revamp and Rejuvenation
project.
10 NOveMber 2010
A delegation from Trans Gas Indonesia
visited PGB’s SOC in Segamat, Johor.
27 NOveMber 2010
The Company’s CSR programme was held
at Kampung Pulau Manis Gambang by
staff from SOC.
K
L
28 NOveMber 2010
The Company’s Plant Operation Division
(POD) organised CSR activity at Surau
Kampung Tok Kah, Dungun Terengganu,
led by GPP A.
2 DeceMber 2010
PGB’s TOD organised Golf Interaction
Game at Black Forest & Country Club,
Bukit Kayu Hitam with its customers and
local authorities.
5 DeceMber 2010
The Company organised the “Ownership,
Unity, Respect and Satisfaction” (OURS)
programme at CUF Gebeng in Pahang to
create the ownership mind set among
employees and their family members.
Employee’s family members were given
the opportunity to observe workplace
environment and learn the Company’s
operations.
108 petronas gas berhad (101671-h)
10 DeceMber 2010
PGB Segamat Regional Office organised
CSR programme at Rumah Warga Emas
Kg. Tunku Tiga in Segamat, Johor.
11 DeceMber 2010
The Company organised OURS Programme
at CUF Kertih in Terengganu.
15 DeceMber 2010
Deputy Director of Department of Safety
and Health (DOSH) Selangor and his
delegation visited GPP A.
21 DeceMber 2010
National Occupational Safety and Health
(OSH) Award Presentation Ceremony
was held at Putrajaya International
Convention Centre. The Company’s
K u a n t a n R e g i o n a l O ff i c e w o n t h e
“2009 National OSH Excellence Award”
under Gas Facilities Category.
9 JANuAry 2011
The Company’s, Corporate and Commercial
Services Division (CCSD) organised a CSR
programme at Kampung Paya Jaras Hilir
in Sungai Buloh, Selangor.

M N O
12 JANuAry 2011
To test the Company’s preparedness during
emergency situations, PGB Emergency
Response Exercise (Ex-Sengat Bara) was
carried out at PGB Head Office, GPP A
and B and CUF.
19 JANuAry 2011
PGB, through its Public Affairs and
General Services Department organised
a CSR programme at Hospital Dungun
in Terengganu.
27 JANuAry 2011
The Company was the sole PETRONAS
public listed subsidiary to win the National
Annual Corporate Report Award (NACRA)
2010 for Best Annual Report in the Industrial
Products and Technology Category held
at the Sime Darby Convention Centre in
Bukit Kiara, Kuala Lumpur.
29 - 30 JANuAry 2011
M
PGB organised a Family Day programme
at Bukit Gambang Resort City in Kuantan,
Pahang.
2 FebruAry 2011
The Company organised Program Bantuan
Mangsa Banjir to assist staff from
SOC affected by the flood in Segamat,
Johor.
19 FebruAry 2011
Hari Anugerah Cemerlang PBPP was
held at Kertih Regional Office in Kertih,
Terengganu to celebrate students who
received good results in UPSR during
the year.
25 FebruAry 2011
The Company signed Engineering,
Procurement, Construction, Installation &
Commissioning Alliance agreement with
consortium of contractors for Liquefied
Natural Gas (LNG) Regasification Facilities
Project.
26 FebruAry 2011
The Company organised PGB Golf Invitation
game between PGB’s customers and local
authorities at Awana Kijal, Kemaman
Terengganu.
N
109 annual report 2011
15 - 16 MArcH 2011
The Executive Vice President of PETRONAS
and PGB Chairman, Y.Bhg. Datuk Anuar
bin Ahmad visited CUF Kertih, GPP A and
GPP B in Kertih and Paka, Terengganu.
20 MArcH 2011
PGB Golf Invitation 2010 with local
authorities, customers and PETRONAS
was held at Glenmarie Golf & Country
Club, Shah Alam, Selangor.
26 MArcH 2011
The Company organised Hari Anugerah
Cemerlang PBPP at Hotel Seri Malaysia
in Kepala Batas, Penang.
O

110 petronas gas berhad (101671-h)
bridging
forward &
growing
sustainably
The Company continues to ensure our business and
operations are conducted in almost perfect harmony
with our surroundings. Our Green Care, Green Mind,
Green Ownership and Green Growth Initiative,
or simply known as 4G, is a testimony of our efforts
in bridging the mindset of our personnel with
the culture of environmental conservation and
preservation across all divisions towards environmental
excellence and sustainable growth.

111 annual report 2011
Corporate Governance
Corporate Governance Statement 112
Internal Control Statement 120
Board Audit Committee Report 126
Board Audit Committee’s Terms of Reference 129
Statement of Directors’ Responsibility 131

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 continuously strives and is fully committed in maintaining
high standards of corporate governance throughout the organisation
and to safeguard the interests of its shareholders.
The Board in this Corporate Governance Statement complies with
paragraph 15.25 of the Main Market Listing Requirements (MMLR) and
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).
the bOArd And bOArd COMMItteeS
1. Principal Responsibilities of the Board
The Board is generally entrusted with the responsibility to exercise
reasonable and proper care of the Company’s resources for the
best interests of its shareholders and to safeguard the Company’s
assets.
The Board is also accountable under the law for the Company’s
activities, strategy and fi nancial performance. The Board plays
an active role in the strategy development and planning process
whereby the Company through its Management presents to the
Board the proposed strategies for a particular fi nancial year and
the ensuing years for Board’s approval. 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. In discharging their duties with reasonable care, skill and
diligence, the Directors will be accorded with suffi cient information
on any subject matter so as to enable the Directors to make sound
business decisions in the best interest of the Company.
112 petronas gas berhad (101671-h)
The Board will, in advance, approve the Company’s Plans and
Budget including cash fl ow forecast for the year and projections
for four subsequent years. These are prepared by the respective
operating units and support services units and reviewed by the
Company’s Management Committee (MC) before submission for
the Board’s approval. The Company’s business performance results
are reviewed periodically by both the Management and the Board.
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.
Another dimension of the responsibility entrusted on the Board
is overseeing the risk framework of the Company whereby the
Company advises the Board Audit Committee (BAC) and the Board
on areas of risks faced by the Company from the high to low level,
and adequacy of control and mitigation throughout the Company.
2. An Effective Board Composition
The Board comprises of ten Directors including the Independent
Non-Executive Directors who 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 Board is satisfi ed with its existing number and composition. It is
also of the view that its members have the mix of skills, knowledge,
experience and strength in qualities which are relevant to enable the
Board to carry out its responsibilities in an effective and competent
manner as well as providing balance and independence of the
Board.

As at the date of this report, the Board comprises the following:
Executive Director
(also the MD/CEO)
1/10 (10%)
Independent Non-Executive Directors 4/10 (40%)
Non-Independent Non-Executive Directors
(including the Chairman)
5/10 (50%)
The profile of each Director is presented in the Board of Directors’
Profile on pages 18 to 25 of the Annual Report.
There is a clear demarcation of responsibilities within the Company
to ensure a balance of power and authority. The positions of
Chairman and Managing Director are separately held. The
Chairman is primarily responsible for running the Board and
ensuring that all Directors have full and timely access to all relevant
information, which is necessary for informed decision making. The
Managing Director who is also the Chief Executive Officer oversees
the implementation of Board policies, the day-to-day running
of the business and operational decision making. The MD/CEO
also manages the respective responsibilities of the divisions and
departments in the Company and he is assisted in the management
of the business by the MC, which he consults regularly. The distinct
and separate roles of the Chairman and the MD/CEO ensure a
balance of power and authority, such that no one individual has
unfettered powers of decision making.
113 annual report 2011
All Non-Executive Directors have the necessary expertise and skill
to ensure that the strategies proposed by the Management are
fully evaluated, taking into account the long-term interests of
the shareholders. They review and engage with the Management
and provide input to the strategy development and the planning
process of the Company. In doing so, the Non-Executive Directors
considered and rationalised the initiatives and priorities towards
developing value proposition for the Company to enhance its
competitiveness in achieving the Company’s target.
In addition, they contribute to policy formulation and are actively
involved in decision-making. They provide guidance and promote
professionalism and competence among Management and
employees.
The Directors who are nominated as the representatives of Petroliam
Nasional Berhad (PETRONAS) when making any decisions, always
act in the best interest of the Company in line with Section 132 (1E)
of the Companies Act 1965.
During deliberation of the Board papers at the Board meetings,
any director who is faced with any conflict of duties or conflict of
interests declares his interests and refrains himself from participating
in the discussions of such Board papers.
The Board continuously strives and is fully
committed to maintaining high standards of
corporate governance throughout the organisation
and to safeguard the interests of shareholders.

Corporate Governance Statement
The presence of the Independent Non-Executive Directors is
essential in providing unbiased and independent views, advice and
judgement, as well as safeguarding the interests of other parties
such as minority shareholders of the Company. The concept of
independence adopted by the Board is in accordance with the
defi nition of an Independent Director in Paragraph 1.01 of the
MMLR. Any new Director is given a comprehensive understanding
of the operations of the Company through regular briefi ngs on
Company history and fi nancial control systems. In addition, plant
visits are arranged to provide understanding of the Company’s
operations.
Dato’ Sadasivan s/o N.N. Pillay has been appointed as the Senior
Independent Non-Executive Director to whom any concerns
pertaining to the Company may be conveyed.
3. Board Structures and Procedures
a. Board and Board Committee Meetings
Board meetings are scheduled in advance before the beginning
of the new fi nancial year to enable the Directors to plan ahead
their schedules to fi t the series of meetings in the year. Board
meetings are held at quarterly intervals with additional meetings
held whenever necessary. The Board met six times during the
year under review. Most of the Directors attended all the Board
meetings. The details of the attendance of the Directors for the
year under review are as follows:-
114 petronas gas berhad (101671-h)
Table 1 : Attendance Record
Name of Directors Attendance
Datuk Anuar bin Ahmad* 3/3
Dato’ Sadasivan s/o N.N. Pillay 5/6
Dato’ Chew Kong Seng 6/6
Datuk Mohd Zain bin Haji Abdul Majid 5/6
Muri bin Muhammad 4/6
Samsudin bin Miskon 6/6
Ramlan bin Abdul Malek** 2/2
Rosli bin Boni** 1/2
Lau Nai Tuang** , ***** 2/2
Mohammad Medan bin Abdullah** 2/2
Datuk Wan Zulkifl ee bin Wan Ariffi n*** 3/3
Dato’ Mohammed Azhar bin Osman
Khairuddin****
3/4
Farehana binti Hanapiah**** 4/4
* Appointed as Director of the Company on 17 August 2010
** Appointed as Director of the Company on 1 November 2010
*** Resigned as Director of the Company on 17 August 2010
**** Resigned as Director of the Company on 1 November 2010
***** Resigned as Director of the Company on 30 June 2011

. Supply of and Access to Information
Prior to the Board meetings, every Director is given an agenda
and a set of Board papers covering the agenda items to
facilitate informed decision making. The Board papers contain
quantitative information and other related performance factors
which will enable the Directors to have a good assessment of
the subject in hand prior to arriving to the decision.
The MD/CEO leads the presentation of Board papers and provides
comprehensive explanation on pertinent issues. All proceedings
of Board meetings are minuted and signed by the Chairman of
the meeting in accordance with the provisions of Companies
Act, 1965 in Malaysia. Minutes of the Board meetings which
include a record of the decisions and resolutions of the Board
meetings are properly maintained by the Company Secretary.
The Board is kept updated on the Company’s activities and
operations on a regular basis. All Directors have full access to
information, including monthly reports on Company activities,
both fi nancial and operational.
In addition, whenever independent professional advice is
required by the Directors, outside experts may, and have been
engaged at the Company’s expense.
The Directors have access to the advice and services of the
Company Secretaries, whose appointments and resignations
are subject to the Board’s approval. The Chairman is always
accorded with strong and positive support of the Company
Secretaries in ensuring the effective functioning of the Board.
115 annual report 2011
The Board is fully aware of, and acts on any matters for decision
to ensure proper direction and control of the Company. Such
matters, outlined in the Company’s Limits of Authority, clearly
establish the authority of the Board and the Management.
The Board may, whenever required, as provided by the Articles
of Association, set up Board Committees delegated with
specifi c powers and responsibilities.
c. Training of Directors
In compliance with the MMLR, the Directors are mindful that
they shall receive appropriate training which may be required
from time to time to keep them abreast with the current
developments of the industry as well as the new statutory and
regulatory requirements.
During the fi nancial year, the members of the Board have
attended relevant development and training programmes,
either attended by the Directors according to their individual
needs or as arranged by the Company Secretaries, to enhance
their ability in discharging their duties and responsibilities more
effectively. The details of which are set out on pages 203 to 204
of the Annual Report.
4. Re-election of Directors
Pursuant to Article 93 of the Company’s Articles of Association,
an election of Directors shall take place each year at the Annual
General Meeting (AGM) of the Company where one-third of the
Directors who are longest in offi ce shall retire and, if eligible, may
offer themselves for re-election. In accordance with the Company’s
Articles of Association, at the 27th AGM held on 22 July 2010, two
Directors retired by rotation and were re-elected to the Board by
the shareholders.

Corporate Governance Statement
Pursuant to Section 129 of the Companies Act 1965, in Malaysia, a
Director who is over 70 years of age must retire at the AGM of the
Company, and may be reappointed by shareholders with not less
than a three-fourth majority. At the 27th AGM held on 22 July 2010,
three Directors were re-appointed pursuant to this provision.
The Directors’ who attained the age of 70 years have thus far
been re-elected and re-appointed as they are highly regarded
personalities in the business community. They have demonstrated
to the Board that they exercise independent judgement and have
acted in the best interest of the Company and ensured that the
varied competing interests of all stakeholders are respected
without compromising fi nancial performance and accountability
of the Company.
116 petronas gas berhad (101671-h)
dIreCtOrS’ nOMInAtIOn And reMunerAtIOn
The Board as a whole also acts as the Nomination and Remuneration
Committee and in this respect undertakes the following functions:
• to assess and recommend new Directors to the Board;
• to review annually 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 Non-Executive Directors are paid Directors’ fees as approved by the shareholders at the AGM, based on the
recommendation of the Board. For the year under review, the breakdown of fees received by each Director is as follows:
Table 2: Details of Directors’ Fees
Directors’ Name
Directors’ Fees
(RM)
Board Meeting
Attendance Fees
(RM)
BAC Meeting
Attendance Fees
(RM)
Dato’ Sadasivan s/o N.N. Pillay Non-Executive 72,000.00 15,000.00 9,000.00 96,000.00
Dato’ Chew Kong Seng Non-Executive 72,000.00 18,000.00 8,000.00 98,000.00
Datuk Mohd Zain bin Haji Abdul Majid Non-Executive 72,000.00 15,000.00 6,000.00 93,000.00
Muri bin Muhammad Non-Executive 72,000.00 12,000.00 – 84,000.00
Rosli bin Boni* Non-Executive 30,000.00 3,000.00 2,000.00 35,000.00
Mohammad Medan bin Abdullah* Non-Executive 30,000.00 6,000.00 – 36,000.00
Datuk Wan Zulkifl ee bin Wan Ariffi n** Non-Executive 27,000.00 4,000.00 – 31,000.00
Dato’ Mohammed Azhar
bin Osman Khairuddin***
Total
(RM)
Non-Executive 18,000.00 3,000.00 2,000.00 23,000.00
Farehana binti Hanapiah*** Non-Executive 42,000.00 12,000.00 – 54,000.00
Total 435,000.00 88,000.00 27,000.00 550,000.00
* Appointed as Director of the Company on 1 November 2010
** Resigned as Director of the Company on 17 August 2010
*** Resigned as Director of the Company on 1 November 2010

Fees for certain directors appointed by PETRONAS are paid directly to
PETRONAS as Board of Directors representation fees. During the year,
the Company paid RM205,000 as Board of Directors representation
fees to PETRONAS.
The MD/CEO, an employee of PETRONAS, is seconded to the Company
as an Executive Director. The MD/CEO as well as the other Directors
representing PETRONAS, possess a mix of skills, knowledge, expertise
and experience, each contributing towards safeguarding the interests
of the Company. At the same time, their presence gives the Board a
deeper insight into the Holding Company’s operations with greater
accountability for the Company’s performance, both fi nancial and
operational. In consideration of the service of the MD/CEO, the
Company pays a management fee to cover all payroll-related costs and
benefi ts 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, where relevant, in the course of carrying out their duties as
Directors.
In addition to the MD/CEO, other Management staff have been
seconded from PETRONAS. Their training and succession planning
are aligned to the PETRONAS’ Human Resources Division. The Board
ensures that only appropriate personnel with the relevant skills and
experience are appointed to Management positions of the Company.
The Board further ensures that the members of the MC of the Company
are rewarded based on performance.
AudIt COMMIttee
117 annual report 2011
The Audit Committee comprises mainly the Independent
Non-Executive Directors has specifi c terms of reference including
the review of the interim and full year fi nancial statements and
preliminary announcements, internal fi nancial controls and the reports
of the Group Internal Audit Division of PETRONAS. It ensures the
adequacy and integrity of the Company’s internal control system and
management information system and that they are in compliance
with the Company’s policies and procedures, applicable laws and
regulations and MMLR. The Audit Committee monitors the effective
implementation of programmes to ensure compliance to the Company’s
Risk Management Policy. It will continue to ensure that the principal
risks facing the Company are identifi ed and monitored and appropriate
measures are undertaken to manage these risks. The Audit Committee
Report and the Audit Committee Terms of Reference are detailed out in
pages 126 to 130 in the Annual Report.
relAtIOnShIpS WIth ShArehOlderS
1. Engagements with Shareholders
The Company recognises the importance of timely, fair and equal
dissemination of information to shareholders and public generally.
In this regard, it adheres strictly to the disclosure requirements
of Bursa Malaysia Securities Berhad. Besides the announcement
via Bursa LINK, the Company communicates regularly with the
shareholders through the annual report and the quarterly fi nancial
reports.

Corporate Governance Statement
Institutional investors and analysts are also given the opportunity to
meet with the Management on performance, corporate governance
and other matters affecting the shareholders’ interests.
In providing shareholders with the opportunity to gain fi rst-hand
exposure on the Company’s operations, several visits to Gas
Processing Plants located in Kertih and Paka, Terengganu, as well
as its Centralised Utility Facilities located in Kertih, Terengganu and
Gebeng, Pahang, were organised during the year. Shareholders
were given a presentation on the Company’s operations and
were provided the opportunity to learn more about the plant
operations. The Management believes that shareholders, by
having a better understanding of the Company’s activities, will
have a greater sense of belonging to the Company. Such twoway
communication increases corporate transparency and helps
shareholders take a longer term view of their investment based on
a better understanding of the Company’s corporate strategy and
operations.
The Company has long established its website to allow the public
particularly the shareholders, investors and analysts to have
access to information such as corporate profi le, contact details of
designated persons and announcements made to Bursa Malaysia
Securities Berhad.
In all circumstances, the Company preserves confi dentiality with
regard to undisclosed material information about the Company
and continuously stresses the importance of timely, fair and equal
dissemination of information to the shareholders and the public
generally.
118 petronas gas berhad (101671-h)
2. AGM
The AGM is a crucial mechanism in shareholders communication.
Shareholders are notifi ed of the meeting and provided with a copy
of the Company’s 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,
without limiting the time and types of questions asked, 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 suffi cient clarifi cation on issues
and concerns raised by the shareholders. The external auditors
are also present to provide their professional and independent
clarifi cation on issues and concerns raised by the shareholders.
The status of all resolutions proposed at the AGM is submitted to
Bursa Malaysia Securities Berhad at the 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.

ACCOuntAbIlIty And AudIt
1. Financial Reporting
The Board aims to present a balanced and understandable
assessment of the Company’s position and prospects. This also
applies to other price-sensitive public reports and reports to
regulators. The Statement of Directors’ Responsibility is enclosed in
page 131 of the Annual Report.
2. Internal Control
The Board continues to maintain a sound system of internal
control to safeguard shareholders’ investment and the Company’s
assets. The principle is further elaborated under the Internal
Control Statement by the Directors in pages 120 to 125 of the
Annual Report.
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 Company’s financial reports with
respect to their audit on each year’s statutory financial statements. In
so doing, the Company has established a transparent arrangement
with the auditors to meet the auditors’ professional requirements.
From time to time, the auditors highlight to the BAC and the Board
on matters that require the Board’s attention. The Board Audit
Committee Report on the review of audit reports is enclosed in
pages 126 and 128 of the Annual Report.
This statement is made in accordance with the resolution of the Board
of Directors dated 11 May 2011.
Datuk Anuar bin Ahmad
Chairman
Samsudin bin Miskon
Managing Director/Chief Executive Officer
119 annual report 2011
AddItIOnAl COMplIAnCe InfOrMAtIOn
1. Non-Audit fees
The amount of non-audit fees paid and payable to the
external auditors by the Company for the financial year
ended 31 March 2011 was RM10,000.(2010: RM15,835)
2. Sanctions
During the financial year, there were no sanctions and/
or penalties imposed on the Company, Directors or
Management by the relevant regulatory bodies.
3. Material Contracts
There were no material contracts entered into or subsisting
between the Company and its Directors/substantial
shareholders during the financial year, other than the Gas
Processing and Transmission Agreement (GPTA) entered
since 1 April 1994 between the Company and its substantial
shareholder, PETRONAS, for the provision of separating
natural gas into its components and the storing, transporting
and distributing such components thereof for a fee.
The GPTA provides for revision of the terms and conditions
based on an agreed interval by both parties. The last revision
of the GPTA was made on 31 March 2010 which revised the
throughput fee structure for the period from 1 April 2010
to 31 March 2014 and also entailed clearer demarcation of
terms and remuneration structure between processing and
transportation of gas.

Internal Control Statement
The Malaysian Code of Corporate Governance requires Public Listed
Companies to maintain a sound system of internal controls to safeguard
shareholders’ investment and the Company’s assets. Bursa Malaysia
Securities Berhad Main Market Listing Requirements requires the Board
to make a statement about the Company’s state of internal control in
the Annual Report.
The Board is committed to maintain and continuously improve the
Company’s system of internal control and is pleased to provide the
following statement.
bOArd’S ACCOuntAbIlIty
The Board acknowledges its overall responsibility for maintaining
a sound system of internal control to safeguard shareholders’
petrOnAS GAS berhAd (pGb) enterprISe rISk MAnAGeMent
Pursue Profitable Growth
PGB Enterprise Risk Management system
PGB Strategic Thrusts
Deliver World Class Operational
Performance
enterprise risk profiling
risk Mitigation Implementation
enterprise risk reporting
120 petronas gas berhad (101671-h)
Achieve People Excellence
risk Management Framework
event Mitigation risk Initiatives
Implementation
• Mitigation follow-up and
determination of residual risk
• New business venture risk
event mitigation
• Project Risk
• Contractor Risk
• Credit Risk
• Plant & Facilities Risk with BCP
• HSE Risk
• Finance Risk
investments and the Company’s 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
and mitigate, 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.
• Risk Management Forum
• Risk Management
Effectiveness Assessment
• BCP drill

Risk management is fi rmly embedded in the Company’s management
system. It is the Company’s policy to adopt an effective and progressive
enterprise risk management system to identify, analyse, appraise and
monitor the risks facing the Company and to take specifi c measures to
mitigate the risks.
The Company, through its Risk Management Department (RMD),
provides quarterly updates to the Board Audit Committee (BAC) in
the form of the Enterprise Risk Report (ERR) which reports on the
Company’s risk profi le and status of risk mitigation implementation
i.e. event mitigation, risk management framework implementation
and risk initiatives. The detailed risk events, risk rating as well as the
status updates of the mitigation actions are updated in the Company’s
INTERISK system.
event MItIGAtIOn
Detailed risk events arising from PGB’s business, together with existing
controls and risk levels are discussed and endorsed by the BAC together
with the appropriate risk mitigations to address the risks. The risk
mitigations identifi ed are monitored for completion and the resultant
residual risks are determined to reduce the risks to an acceptable level
as endorsed by the BAC.
In addition, for new business ventures, risk assessments are also
conducted and reported as part of the business development proposal
to Management.
121 annual report 2011
rISk MAnAGeMent frAMeWOrk IMpleMentAtIOn
Project Risk
The Company continues to implement Project Risk Management
processes on its critical projects in line with the PETRONAS Project
Management System (PPMS) requirements. All information relating to
project risk management activities, e.g. risk assessments, independent
reviews and lessons learnt, are captured in the Project Risk Management
(PRisMa) system to enable effi cient monitoring and reporting.
Project Risk Management reports are submitted to the relevant heads
of divisions together with the mitigation plans to eliminate or reduce
risk exposures identifi ed. During the year, Project Risk Reports were
also generated by RMD as an independent monthly reporting to the
General Manager of Technical and Facilities Development Division.
The Project Risk Reports were also incorporated into the ERR submitted
to BAC.
During the year, the project risk assessment facilitator pool was reviewed
to ensure the effectiveness of the facilitators. The selected facilitators
underwent a Project Risk Assessment Facilitator Training which was
conducted in two separate sessions during the year to develop and
enhance the capability of the facilitators to assist in the project risk
management implementation in PGB.
It is the Company’s policy to adopt an effective
and progressive enterprise risk management system
to identify, analyse, appraise and monitor the risks
facing the Company and to take specifi c measures
to mitigate the risks.

Internal Control Statement
Contractor Risk
Contractor risk is managed through technical and commercial evaluation
exercises conducted by the Company’s Supply Chain Management
Department prior to the award of contracts in line with the PETRONAS
Group Supply Chain Management Division (GSCMD) requirements.
During the year, the Company adopted the enhanced Contractor Risk
Assessment (CoRA) process that was developed by GSCMD as part of
its contractor selection process prior to awarding the contract to the
contractor. In addition, a Vendor Evaluation Committee and Contractor
Performance Review Committee were also established to ensure closer
monitoring and communication on contractor performance after
the award of the contract in order to mitigate the risk of contractor
non-performance.
Credit Risk
To reduce its credit risk exposure, the Company continues to apply the
Credit Risk Management processes whereby the customers are assessed
using the PETRONAS Credit Risk Rating System in line with the credit
assessment process adopted by the PETRONAS Group. The system
evaluates the creditworthiness and assigns credit risk ratings to all of
the Company’s external customers. Annual reviews are conducted on
the assigned credit risk ratings of these customers while the trend of
the customers’ fi nancial performance are also analysed to detect early
signs of fi nancial distress and provide early warning to Management.
In addition, Credit Value at Risk (CVaR), which measures potential loss
from customers’ overdue balances, is monitored against the established
Credit Risk Tolerance Limit (CRTL) to ensure that CVaR exceeding CRTL
is promptly highlighted to Management. Reporting on credit risk is
captured in the PGB Credit Risk Management Dashboard.
During the year, Credit Risk Reports were also generated by PGB RMD
as an independent monthly reporting to the General Manager of
Finance Division. The Credit Risk Reports were also incorporated into
the ERR submitted to BAC.
122 petronas gas berhad (101671-h)
In anticipation of new businesses which would attract new customers
for the Company, the Credit Risk Management Work Procedure was
reviewed and enhanced in order to address the risk exposures arising
from these new businesses and customers. The revised Credit Risk
Management Work Procedure was endorsed by PGB Management
Committee on 21 February 2011 to be applied to future contracts and
new customers.
The Company is represented in the PETRONAS Credit and Trading Risk
Council, which establishes and coordinates the PETRONAS Groupwide
risk management approach on credit and trading risk.
Plant and Facilities Risk and Business Continuity Plan (BCP)
The Plant and Facilities Risk and Business Continuity Plan are governed
under the Business Continuity Management (BCM) capability as part
of the Integrated Plant Operations Capability System (iPOCS) driven by
PETRONAS Group Technology Solutions (GTS). The iPOCS supports the
PETRONAS Operational Excellence (OE) Framework implementation in
PETRONAS.
In PGB, the BCM is established at the relevant Divisions, i.e. Plant
Operations Division (POD), Transmission Operations Division (TOD)
and Centralised Utility Facilities (CUF). The Plant and Facilities Risk is
assessed, monitored and reported within the respective Divisions on a
continuous basis.
During the year, three BCP drills were carried out simultaneously at
PGB and Division level on 12 January 2011 as part of a PGB Tier 3
Emergency response exercise. The objectives of the exercise include
testing the effectiveness of PGB and Division BCP as well as enhancing
the readiness of Management in handling crisis situations. In this
exercise, the BCP at PGB level as well as BCP at POD and CUF were
simultaneously activated. At the end of the exercise, feedback was
gathered from the internal as well as external evaluators invited to
observe the exercise. Good practices were acknowledged while areas
of improvement were highlighted to further improve the effectiveness
of the BCP procedures.
The iPOCS assessment was carried out by GTS at POD and TOD during
the year. Intervention plans were identifi ed to enhance operational risk
management at the plant and facilities as well as business continuity
preparedness.

Health, Safety and Environment (HSE) Risk
In carrying out all business activities, the Company adopts on the
PETRONAS HSE Management System (HSEMS) to manage HSE risk and
ensure that operations are in tandem with HSE regulatory requirements.
The HSEMS process ensures that HSE risk within the business is managed
effectively.
A Health, Safety and Environment (HSE) Tier 3 Assurance for PGB was
conducted from 16 August to 1 October 2010. The Assurance focused
on the business activities conducted throughout PGB Divisions and the
assurance concluded that HSE risk control measures are generally in
place across the business activities.
Finance Risk
Pursuant to the Board’s approval on the adoption of the PETRONAS
Corporate Financial Policy (CFP), PGB has developed the supporting
guidelines on liquidity management, fi nancing, banking, asset liability
management, foreign exchange management and Integrated Financial
Risk Management. The establishment of the CFP supporting guidelines
helps the Company to manage its fi nance risk exposures that includes
counterparty risk, liquidity risk, foreign exchange risk and interest rate
risk.
The Company is represented in the Finance Risk Council (FRC), which
reviews and monitors fi nance risk exposures at PETRONAS Group level
and makes appropriate recommendations to companies within the
Group.
rISk InItIAtIveS
123 annual report 2011
The Company continues to enhance risk management awareness
and capability building across the Company through various risk
communication sessions such as risk forum and engagement sessions.
The annual PGB Risk Management Forum was conducted as part of
the PGB Sharing Forum to promote innovation and risk management
culture. Papers addressing risk management in innovative initiatives
were shared by PGB personnel as well as invited external speakers. The
forum was attended by personnel across various functions within the
Company.
The Company benefi ts from being part of the PETRONAS Group, which
has an established Risk Management Committee that primarily provides
guidance and recommends strategies and policies. The committee also
coordinates groupwide risk management awareness and capability
building, monitors risk exposures and plans responses to potential
major risk events for the PETRONAS Group.
MOvInG fOrWArd
The Company continues to incorporate risk management within its
business processes and activities to ensure that risks are being mitigated
through effective risk management practices. In light of the Company’s
business direction for growth, the Company will continue to ensure that
the risks from new business ventures are assessed and the risk profi le as
well as the risk mitigations are reported as part of the business proposal
paper to PGB Management.
The Company will continue to conduct periodic reviews of its business
processes and activities as well as provide risk management training
for its employees to ensure full understanding and commitment on
effective risk management practices and contribute to business
excellence for the Company.
In addition, the Company will continue with its BCP drill exercises at the
Company and Division levels to enhance its readiness to address disaster
or crisis situations and its resilience to effectively resume operations.

Internal Control Statement
key prOCeSSeS Of pGb’S SySteM Of InternAl COntrOl
The Company adopts PETRONAS’ shared values of loyalty, integrity,
professionalism and cohesiveness which set the tone for an effective
internal control culture. Key processes that the Board has established
to review the adequacy and integrity of the system of internal control
are as follows:
Internal Audit Function
The internal audit function of the Company is undertaken by PETRONAS
Group Internal Audit Division (GIAD). GIAD provides assurance on the
effi ciency and effectiveness of the internal control systems implemented
by the Company, and reports its fi ndings directly to the BAC.
The internal audit function reviews the established internal controls
in selected key activities based on risk profi le and in accordance with
the annual internal audit plan which was presented and endorsed by
the BAC. The BAC has full access to reports on all audits performed by
the internal auditors.
Adequacy and effectiveness of internal controls are assessed based on
the framework and criteria established in Internal Control-Integrated
Framework, issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO).
All GIAD audit reports are reviewed by the BAC and forwarded
for Management attention and necessary corrective action. The
Management is responsible for ensuring that agreed corrective actions
are taken on the reported areas within the required time frame.
Accordingly, the status of the audit issues is reported to the BAC on a
quarterly basis.
The internal audit cost incurred for the year ended 31 March 2011 was
RM334,000. The key activities of the internal audit function are set out
in the BAC Report on page 128.
124 petronas gas berhad (101671-h)
Financial Control Framework
The Company has adopted the PETRONAS Financial Control Framework.
The framework requires the Company to document and evaluate the
effectiveness of established internal controls and provide reasonable
assurance on the reliability of the Company’s fi nancial statements.
Other SIGnIfICAnt eleMentS Of
InternAl COntrOl SySteMS
Apart from risk management and internal audit, the Company has the
following control processes in place:
• The Board meets at least once a quarter, in order to maintain full
and effective supervision. The Managing Director/Chief Executive
Offi cer 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 kept updated on the Company’s 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 signifi cant risks to
the Company. The General Manager of Finance Division provides
the Board with quarterly fi nancial 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
identifi ed, the Board considers the views and recommendations
made by the BAC and the Management.
• Best practices recommend a review of a Company’s Limits of
Authority (LOA) every fi ve years to incorporate and accommodate
changes in organisation structure, business and operational needs.
The Board has approved a revised LOA for the Company in August
2010 and it was subsequently implemented in October 2010. The
LOA Manual provides a balanced framework of authority and
accountability on strategic and operational areas of decision making
with approving authority vested with the Board and Executives of
the Company.

• The Company’s organisational structure, as set out on page 14
of the Annual Report, formally defines lines of responsibility and
delegation of authority. A process of hierarchical reporting has
been established which provides a documented and auditable trail
of accountability.
• Systems and Control Section of Finance Division conducts scheduled
governance and compliance audits in addition to the internal audits
conducted by GIAD. The audits are meant to provide assurance to
the Management on the Company’s internal control effectiveness
and compliance to PGB’s Enterprise Recourse Planning system’s
established roles and segregation of duties, LOA, policies and work
procedures. At the end of each audit, a report is presented to the
PGB Management Committee highlighting the findings and the
agreed corrective actions. All corrective actions based on the audit
findings identified will be monitored until the issues are resolved.
• Tender Committees’ structure with defined level of responsibilities
has been established to review all major contracts. Subsequent to
the review by the relevant Tender Committees, the contracts will
be subject to approval by the relevant approving authority who is
independent from the Tender Committees. Tenders are called for
and are awarded based on factors such as vendor capability, quality,
track record, speed of delivery and cost.
• Internal control procedures are documented in standard operating
procedure manuals with established guidelines on business planning,
capital expenditure, financial operations, performance reporting,
plant and transmission operations, supply chain management,
human resource, information technology and health, safety and
environment.
125 annual report 2011
WeAkneSSeS In InternAl COntrOl
thAt reSult In MAterIAl lOSSeS
There were no material losses incurred during the current financial year
as a result of weaknesses in internal control. Management continues to
take measures to strengthen the internal control environment.
revIeW Of thIS StAteMent
Pursuant to paragraph 15.23 of the Main Market Listing Requirement,
the external auditors have reviewed this Internal Control Statement
for inclusion in the Annual Report for financial year ended 31 March
2011.
This Internal Control Statement is made in accordance with the
resolution of the Board dated 11 May 2011.
Datuk Anuar bin Ahmad
Chairman
Samsudin bin Miskon
Managing Director/Chief Executive Officer
11 May 2011

Board Audit Committee Report
Dato’ Sadasivan s/o N.N. Pillay • Dato’ Chew Kong Seng • Encik Muri Muhammad • Encik Rosli Boni
The Board Audit Committee (BAC) of PETRONAS Gas Berhad is pleased
to present the Audit Committee Report for the year ended 31 March
2011 in compliance with paragraph 15.15 of the Main Market Listing
Requirement (MMLR).
COMpOSItIOn
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
(Senior Independent Non-Executive Director)
2. Dato’ Chew Kong Seng
(Independent Non-Executive Director)
3. Muri bin Muhammad
(Appointed on 22 April 2011)
(Independent Non-Executive Director)
4. Rosli bin Boni
(Appointed on 1 November 2010)
(Non-Independent Non-Executive Director)
126 petronas gas berhad (101671-h)
During the fi nancial year ended 31 March 2011, Dato’ Mohammed
Azhar bin Osman Khairuddin and Datuk Mohd Zain bin Haji Abdul
Majid resigned on 1 November 2010 and 29 March 2011 respectively.
In line with the Malaysian Code of Corporate Governance and
paragraph 15.09(1)(b) of the MMLR, all four BAC members are Non-
Executive Directors, three of whom are Independent Directors. All
three Independent Directors satisfy the test of independence under
paragraph 1.01 of the MMLR.
Dato’ Chew Kong Seng is a Fellow of the Institute of Chartered
Accountant in England and Wales and member of both the Malaysian
Institute of Accountants and the Malaysian Institute of Certifi ed
Public Accountants. In this regard, the Company is in compliance with
paragraph 15.09(1)(c)(i) of the MMLR.

terMS Of referenCe
The BAC is governed by the Terms of Reference as stipulated on pages
129 to 130 of the Annual Report. All the requirements under the Terms
of Reference were fully complied with.
MeetInGS
During the year, the BAC met four times. Meeting attendance record of
the members is as follows:
Name of Directors Attendance
Dato’ Sadasivan s/o N. N. Pillay 3/4
Dato’ Chew Kong Seng 4/4
Datuk Mohd Zain bin Haji Abdul Majid* 3/4
Dato’ Mohammed Azhar bin Osman Khairuddin** 2/2
Rosli bin Boni*** 1/2
* Resigned as BAC member on 29th March 2011.
** Resigned as BAC member on 1st November 2010
*** Appointed as BAC Audit Committee member on 1st November 2010
By invitation, the Managing Director/Chief Executive Officer (MD/CEO),
Company Secretary, General Manager of Finance Division, Head of Risk
Management Department, external and internal auditors were also
present during deliberations which required their inputs and advice.
The Head of PETRONAS Group Internal Audit Division (GIAD) was
present at all BAC meetings to present the internal audit reports to
the BAC. Relevant members of the Management were at times invited
to brief the BAC on specific issues arising from the audit findings. The
partner of the external audit firm also attends the BAC meetings to
present the external audit plan for the year as well as the outcome of
the external audit conducted on the Company.
Deliberations during the BAC meetings included performance review
of the Company, the proposed annual and interim financial reporting
to Bursa Malaysia Securities Berhad, the status of open audit findings
together with the agreed corrective actions and risk management
activities.
127 annual report 2011
It is common practice that the draft BAC minutes are circulated to
the BAC members prior to the next Board meeting. This assists the
BAC Chairman to effectively convey to the Board matters deliberated
during the BAC meeting. Minutes of the BAC meetings are tabled for
confirmation during the next BAC meeting, after which it is distributed
to the Board for notation. In addition to communicating to the Board
on matters deliberated during the BAC meeting, the BAC Chairman
also recommends to the Board the approval of annual and interim
financial statements.
SuMMAry Of ACtIvItIeS Of the bAC
The following activities were carried out by the BAC during the financial
year ended 31 March 2011:-
1. Reviewed the annual internal audit plan for the year including its
scope, basis of assessments and risk ratings of the proposed areas
of audit.
2. Reviewed and deliberated on reports of audits conducted by GIAD.
3. Monitored all corrective actions on audit findings identified by
GIAD until all issues are resolved.
4. Reviewed the quarterly financial results including quarterly
financial announcements to Bursa Malaysia Securities Berhad
before recommending the same for approval by the Board upon
being satisfied that, it complies with applicable approved Financial
Reporting Standards (FRS) issued by the Malaysian Accounting
Standards Board, Listing Requirements of Bursa Malaysia Securities
Berhad and other relevant regulatory requirements.
5. Reviewed potential impact of implementation of new FRSs to the
Company’s financial statements, which includes FRS 8 ‘Operating
Segments’, FRS 101 ‘Presentation of Financial Statements (revised)’,
and Amendment to FRS 117 ‘Leases’.
6. Reviewed the Company’s annual and quarterly management
accounts.
7. Reviewed the appointment of external auditors and their
remuneration thereof.
8. Reviewed the external auditor’s audit strategy and scope for the
statutory audit of the Company’s financial statements for the
financial year ended 31 March 2011.

Board Audit Committee Report
9. Reviewed with the external auditors the results of the statutory
audit and the audit report.
10. Reviewed the audited fi nancial statements of the Group and the
Company prior to submission to the Board for their consideration
and approval, upon being satisfi ed that, inter alia, they were
drawn up in accordance with the provisions of the Companies Act
1965 and the applicable approved FRSs issued by the Malaysian
Accounting Standards Board. The review also included relevant
statements in relation to the fi nancial statements, being the
Corporate Governance Statement, Internal Control Statement,
Statement of Directors Responsibilities and Board Audit
Committee Report.
11. Reviewed the Company’s Enterprise Risk Report and deliberated on
the risk exposures and the required mitigation plans.
12. Reviewed the Company’s growth opportunities within its core
business of gas processing, gas transportation and industrial
utilities.
13. Reviewed the proposed revision and refi nement to the Company’s
Limits of Authority.
InternAl AudIt
The internal audit function of the Company was carried out by GIAD.
They maintained at all times their impartiality, profi ciency 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, effi ciency and effectiveness of the
Company’s internal control systems in anticipating potential risks
exposures over key business processes within the Company. The BAC
has full access to internal auditors and received reports on all audits
performed.
128 petronas gas berhad (101671-h)
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 to provide assurance that internal controls are
established and operating as intended to achieve effective and effi cient
operations and adherence to applicable policies, guidelines and
procedures. The audits conducted during the year were:-
• Audit on Project Management activities by PGB Technical Facilities
and Development Division on Sabah-Sarawak Gas Pipeline Project.
• Audit on PGB Transmission Operations Division (TOD) Operations
and Maintenance activities.
• Audit on PGB Plant Operations Division (POD) Production Planning
activities.
• Audit on PGB Project Management activities undertaken by
Technical Services/Engineering Department of POD, TOD and
Centralised Utility Facilities.
The resulting reports from the audits were reviewed by the BAC
and subsequently forwarded to the Management for the necessary
corrective actions. The Management is responsible for ensuring that
corrective actions are completed within the required time frame.
repOrtInG tO the eXChAnGe
During the year, the BAC is of the view that the Company is in compliance
with the MMLR and as such, the reporting to Bursa Malaysia Securities
Berhad under paragraph 15.16 of the MMLR is not required.
Dato’ Sadasivan s/o N.N. Pillay
Chairman
Board Audit Committee
11 May 2011

129 annual report 2011
Board Audit Committee’s Terms of Reference
COnStItutIOn
The Board Audit Committee (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 members. In line
with the Malaysian Code of Corporate Governance, all BAC members
including the Chairman shall be Non-Executive Directors. The majority
of the BAC members including the Chairman shall be Independent
Directors. An Independent Director shall be a director who fulfills the
requirements as provided in the Bursa Malaysia Securities Berhad Main
Market Listing Requirements (MMLR).
All BAC members must be financially literate with at least one member
of the BAC:
a) shall be a member of the Malaysian Institute of Accountants; or
b) if he/she is not a member of the Malaysian Institute of Accountants,
he/she must have at least three years’ working experience; and
i) passed the examinations specified in Part 1 of the 1st Schedule
of the Accountants Act 1967; or
ii) is a member of one of the associations of accountants specified
in Part II of the 1st Schedule of the Accountants Act 1967;
and
c) fulfills such other requirements as prescribed or approved by Bursa
Malaysia.
The members of the BAC shall elect a Chairman from amongst their
number who shall be an Independent Director.
If a member of the BAC resigns, dies or for any other reason ceases to
be a member with the result that the number of members is reduced to
below three, the Board shall within three months of that event, appoint
such number of new members as may be required to make up the
minimum number of three members.
No alternate director can be appointed as a member of the BAC.
The terms of office and performance of the BAC and each of its members
shall be reviewed by the Board periodically to determine whether the
BAC and/or its members have carried out its duties in accordance with
its Terms of Reference.
MeetInG
To form a quorum, the majority of the members present must be
Independent Directors and one of whom shall be the Chairman of the
BAC. The BAC shall be able to convene meetings with the external
auditors, internal auditors or both without the presence of any other
directors or employees whenever it deems necessary. The external
auditors and internal auditors have the right to appear and be heard at
any meeting of the BAC and shall appear before the Committee when
required to do so by the BAC.
The Company Secretary or in his/her absence, his/her deputy shall be
the Secretary of the BAC. Minutes of the meetings shall be duly entered
in the books provided therefor.
Meetings shall be held not less than four times a year. The external
auditors may request a meeting if they consider it necessary. The
Chairman of the BAC shall convene a meeting of the Committee to
consider any matters the external auditor believes should be brought
to the attention of the Board or shareholders.
AuthOrIty
The BAC is authorised by the Board to investigate any activity within its
Terms of Reference. It is authorised to seek any information it requires
from any employee and all employees are directed to cooperate with
any request made by the BAC.
The BAC is authorised by the Board to obtain outside legal or other
independent professional advice and to secure the attendance of
outsiders with relevant experience and expertise if it considers this
necessary.
The BAC is authorised by the Board to communicate directly with
internal and external auditors, as well as the members of Management
such as the Chairman of the Company and Managing Director/
Chief Executive Officer on a continuous basis in order to be informed
and updated with matters related to the Company.

Board Audit Committee’s Terms of Reference
dutIeS And funCtIOnS
The duties and functions of the BAC shall be:–
1) External Audit
a) To consider the appointment of the external auditors, the audit
fees, and any question in relation to resignation or dismissal of
the external auditors before making recommendation to the
Board; and
b) To review and 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.
2) Internal Audit
a) To review the internal audit plan, consider the major findings
of internal audits and Management’s responses, and ensure
coordination between the internal and external auditors;
b) 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;
c) To review the audit reports;
d) To direct and where appropriate supervise any special project or
investigation considered necessary;
e) To prepare periodic reports to the Board summarizing the work
performed in fulfilling the BAC’s primary responsibilities; and
f) To determine the remit of internal audit function which
reports directly to the BAC. The internal audit function should
be independent of the activities they audit and should be
performed with impartiality, proficiency and due professional
care.
3) Financial Reporting Review
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:
i. any change in accounting policies and practices;
ii. significant and unusual events;
iii. major judgemental areas;
iv. significant adjustments resulting from the audit;
v. the going concern assumption;
vi. compliance with accounting standards; and
vii. compliance with other legal requirements and MMLR.
130 petronas gas berhad (101671-h)
4) Related Party Transactions
To review any related party transaction and conflict of interest
situation that may arise in the Company including any transaction,
procedure or course of conduct that raises the questions of
management integrity.
5) Internal Control
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 Management’s responses.
6) Other Matters
a) 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;
b) 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);
c) Where the BAC is of the view that a matter reported by it to the
Board has not been satisfactorily resolved resulting in a breach
of the MMLR, the BAC must promptly report such matter to the
Securities Commission; and
d) Carrying out any other functions that may be mutually agreed
upon by BAC and the Board.
repOrtInG prOCedureS
The Secretary shall circulate the minutes of meetings of the BAC to all
members of the Board.

Statement of Directors’ Responsibility
IN RELATION TO THE FINANCIAL STATEMENTS
The fi nancial statements of the Group and of the Company as set out on pages 133 to 194, 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 2011 and of the results of its operations and cash fl ows for the year
ended on that date.
The Directors consider that in preparing the fi nancial statements of the Group and of the
Company:
• appropriate accounting policies have been used and consistently applied;
• reasonable and prudent judgments and estimates were made;
• all Financial Reporting Standards and the Malaysian Companies Act, 1965 have been followed;
and
• are prepared on a going concern basis.
The Directors are responsible for ensuring that the accounting and other records and registers
required by the Malaysian Companies Act, 1965 to be retained by the Company and its subsidiary
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 the Company, and to prevent and detect fraud
and other irregularities.
131 annual report 2011

132 petronas gas berhad (101671-h)

Financial
Statements
133 annUaL report 2011 (101671-h)
Directors’ Report 134
Statement by Directors 138
Statutory Declaration 138
Statements of Financial Position 139
Statements of Comprehensive Income 140
Statement of Changes in Equity 141
Statement of Cash Flows 142
Notes to the Financial Statements 143
Report of the Auditors 193

Directors’ Report
For the Year ended 31 MarCh 2011
134 petronas gas berhad (101671-h)
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 2011.
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 subsidiary, associate and jointly controlled entity are stated in Note 5, Note 6 and Note 7 to the financial statements
respectively.
There has been no significant change in the nature of these activities during the financial year.
Results
Group Company
RM’000 RM’000
Profit for the year 1,439,049 1,440,377
Attributable to:
Shareholders of the Company 1,439,251 1,440,377
Minority interest (202) –
Profit for the year 1,439,049 1,440,377
Dividends
During the financial year, the Company:
i) as proposed in last year’s report, paid a final dividend of 30% per share under single tier system and 5% per share tax exempt in respect of
the financial year ended 31 March 2010, altogether amounting to RM692,556,000 on 17 August 2010; and
ii) paid an interim dividend of 15% per share under single tier system in respect of the financial year ended 31 March 2011 amounting to
RM296,809,000 on 29 December 2010.
The Directors propose a final dividend of 35% per share under single tier system amounting to RM692,556,000 in respect of the financial year
ended 31 March 2011 for shareholders’ approval at the forthcoming Annual General Meeting.
The financial statements do not reflect this proposed dividend. Such dividend, if approved by the shareholders, will be accounted for in equity as
an appropriation of retained profits in the financial period ending 31 December 2011.
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.

Directors’ Report
For the Year ended 31 MarCh 2011
Directors of the Company
Directors who served since the date of the last report are:
Samsudin bin Miskon
Dato’ Sadasivan s/o N.N. Pillay
Dato’ Chew Kong Seng
Datuk Mohd Zain bin Haji Abdul Majid
Muri bin Muhammad
Datuk Anuar bin Ahmad (Appointed on 17 August 2010)
Lau Nai Tuang (Appointed on 1 November 2010)
Ramlan bin Abdul Malek (Appointed on 1 November 2010)
Rosli bin Boni (Appointed on 1 November 2010)
Mohammad Medan bin Abdullah (Appointed on 1 November 2010)
Datuk Wan Zulkifl ee bin Wan Ariffi n (Resigned on 17 August 2010)
Dato’ Mohammed Azhar bin Osman Khairuddin (Resigned on 1 November 2010)
Farehana binti Hanapiah (Resigned on 1 November 2010)
135 annUaL report 2011
In accordance with Article 93 of the Company’s Articles of Association, Samsudin bin Miskon retire by rotation from the Board at the forthcoming
Annual General Meeting, and being eligible, offer himself for re-election.
In accordance with Article 96 of the Company’s Articles of Association, Datuk Anuar bin Ahmad, Lau Nai Tuang, Ramlan bin Abdul Malek,
Rosli bin Boni and Mohammad Medan bin Abdullah retire to fi ll a casual vacancy 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, Dato’ Chew Kong Seng, Datuk Mohd Zain bin Haji Abdul Majid and
Dato’ Sadavisan s/o N.N. Pillay are retiring at the forthcoming Annual General Meeting. Dato’ Sadasivan s/o N.N. Pillay, offers himself for re-election
and is eligible to be re-elected.
Directors’ Interests
The Directors in offi ce at the end of the year who have interests in the shares of the Company and of its related corporations other than whollyowned
subsidiaries as recorded in the Register of Directors’ Shareholdings are as follows:
Number of ordinary shares of RM1.00 each in the Company
Balance at Balance at
Name 1.4.2010 Bought Sold 31.3.2011
Muri bin Muhammad 7,000 – – 7,000
Number of ordinary shares of RM1.00 each in PETRONAS Dagangan Berhad
Balance at Balance at
Name 1.4.2010 Bought Sold 31.3.2011
Muri bin Muhammad 10,000 – – 10,000
Datuk Anuar bin Ahmad 2,000 – – 2,000

Directors’ Report
For the Year ended 31 MarCh 2011
Directors’ Interests (Continued)
136 petronas gas berhad (101671-h)
Number of ordinary shares of RM0.10 each in PETRONAS Chemicals Group Berhad
Balance at Balance at
Name 1.4.2010 Bought Sold 31.3.2011
Muri bin Muhammad – 10,000 – 10,000
Datuk Anuar bin Ahmad – 20,000 – 20,000
Samsudin bin Miskon – 6,000 – 6,000
Lau Nai Tuang – 10,000 (10,000) –
Ramlan bin Abdul Malek – 10,000 – 10,000
Rosli bin Boni – 6,000 – 6,000
Mohammad Medan bin Abdullah – 6,000 – 6,000
None of the other Directors holding office at 31 March 2011 had any interest in the ordinary shares of the Company and of its related corporations
during the financial year.
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 or
the fixed salary of a full time employee of the Company or of related corporations), 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) there are no bad debts to be written off and no provision need to be made for doubtful debts, and
ii) any current assets which were unlikely to realise, in the ordinary course of business, their values as shown in the accounting records of the
Group and of the Company, 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 it necessary to write off any bad debts or provide for any doubtful debts, 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

Directors’ Report
For the Year ended 31 MarCh 2011
Other Statutory Information (Continued)
137 annUaL report 2011
iv) not otherwise dealt with in this report or the fi nancial statements, that would render any amount stated in the fi nancial statements of the
Group and of the Company misleading.
At the date of this report, there does not exist:
i) any charge on the assets of the Group or of the Company that has arisen since the end of the fi nancial 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 fi nancial 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 fi nancial 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 fi nancial year ended 31 March 2011 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 fi nancial year and the date of this report.
Signifi cant Event
The signifi cant event during the fi nancial year is in relation to signing of Heads of Agreement with Petroliam Nasional Berhad (PETRONAS) for
the development of Liquefi ed Natural Gas (LNG) Regasifi cation Facilities (the Project) by the Company and the subsequent provision of LNG
regasifi cation services by the Company to PETRONAS.
The Project will be located in the vicinity of Sungai Udang Port, Melaka and will encompass the following facilities:
i) 2 fl oating storage units (FSUs) to receive and store LNG;
ii) An island jetty and regasifi cation units to regasify LNG; and
iii) Subsea and onshore pipelines to transport the regasifi ed LNG to the Peninsular Gas Utilisation (PGU) pipeline network.
The Regasifi cation Facilities will have a maximum send-out capacity of 3.8 million tonnes per annum.
Subsequent Events
There were no material events subsequent to the end of the year.
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 Anuar bin Ahmad Samsudin bin Miskon
Kuala Lumpur,
11 May 2011

Statement by Directors
138 petronas gas berhad (101671-h)
In the opinion of the Directors, the financial statements set out on pages 139 to 192, 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 financial position of the Group and of the Company
at 31 March 2011 and of their financial performance and cash flows for the year ended on that date.
In the opinion of the Directors, the information set out in Note 38 to the financial statements has been compiled in accordance with the Guidance
on Special Matter No.1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosures Pursuant to Bursa Malaysia
Securities Berhad Listing Requirements, issued by the Malaysian Institute of Accountants, and presented based on the format prescribed by Bursa
Malaysia Securities Berhad.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:
Datuk Anuar bin Ahmad
Samsudin bin Miskon
Kuala Lumpur,
11 May 2011
Statutory Declaration
I, Karima bt Mohd Noor, 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 139 to 192, 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
Karima bt Mohd Noor in Kuala Lumpur on 11 May 2011
BEFORE ME:

Statements of Financial Position
at 31 MarCh 2011
139 annUaL report 2011
Group Company
Note 2011 2010 2011 2010
Restated Restated
RM’000 RM’000 RM’000 RM’000
ASSETS
Property, plant and equipment 3 6,830,609 6,908,208 6,702,248 6,887,262
Investment in subsidiary 5 – – 75,729 3,000
Investment in associate 6 175,087 174,036 103,336 103,336
Investment in jointly controlled entity 7 2,606 4,481 250 250
TOTAL NON-CURRENT ASSETS 7,008,302 7,086,725 6,881,563 6,993,848
Trade and other inventories 8 100,399 144,017 100,399 144,017
Trade and other receivables 9 369,997 322,228 374,513 338,373
Fund and other investments 10 275,082 100,252 275,082 100,252
Cash and cash equivalents 11 2,756,079 2,181,502 2,743,731 2,173,921
TOTAL CURRENT ASSETS 3,501,557 2,747,999 3,493,725 2,756,563
TOTAL ASSETS 10,509,859 9,834,724 10,375,288 9,750,411
EQUITY
Share capital 12 1,978,732 1,978,732 1,978,732 1,978,732
Reserves 13 6,487,024 6,037,138 6,415,176 5,964,164
Total equity attributable to the shareholders of the Company 8,465,756 8,015,870 8,393,908 7,942,896
Minority shareholder’s interests 14 49,415 1,131 – –
TOTAL EQUITY 8,515,171 8,017,001 8,393,908 7,942,896
LIABILITIES
Borrowings 15 423,580 437,682 423,580 437,682
Deferred tax 16 1,107,000 1,132,000 1,107,000 1,132,000
Deferred income 17 11,937 13,597 11,937 13,597
TOTAL NON-CURRENT LIABILITIES 1,542,517 1,583,279 1,542,517 1,583,279
Trade and other payables 18 340,030 202,230 326,728 192,022
Taxation 112,141 32,214 112,135 32,214
TOTAL CURRENT LIABILITIES 452,171 234,444 438,863 224,236
TOTAL LIABILITIES 1,994,688 1,817,723 1,981,380 1,807,515
TOTAL EQUITY AND LIABILITIES 10,509,859 9,834,724 10,375,288 9,750,411
The notes set out on pages 143 to 192 are an integral part of these fi nancial statements.

Statements of Comprehensive Income
For the Year ended 31 MarCh 2011
140 petronas gas berhad (101671-h)
Group Company
Note 2011 2010 2011 2010
RM’000 RM’000 RM’000 RM’000
Revenue 19 3,524,952 3,221,843 3,524,952 3,221,843
Cost of revenue 19 (1,737,779) (2,043,483) (1,737,779) (2,043,483)
Gross profit 19 1,787,173 1,178,360 1,787,173 1,178,360
Administration expenses (93,450) (79,082) (92,921) (78,611)
Other expenses (67,576) (81,030) (67,576) (81,030)
Other income 232,353 193,582 294,974 239,776
Operating profit 20 1,858,500 1,211,830 1,921,650 1,258,495
Financing costs 23 (20,096) (20,235) (20,096) (20,235)
Share of profit after tax of equity accounted associate
and jointly controlled entity 61,851 52,208 – –
Profit before taxation 1,900,255 1,243,803 1,901,554 1,238,260
Tax expense 24 (461,206) (303,114) (461,177) (303,066)
Profit for the year / Total comprehensive income for the year 1,439,049 940,689 1,440,377 935,194
Total comprehensive income attributable to:
Shareholders of the Company 1,439,251 940,896 1,440,377 935,194
Minority Interest 14 (202) (207) – –
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 1,439,049 940,689 1,440,377 935,194
Dividends per ordinary share - net 25 50.0 sen 50.0 sen 50.0 sen 50.0 sen
Basic and diluted earnings per ordinary share 26 72.7 sen 47.6 sen 72.8 sen 47.3 sen
The notes set out on pages 143 to 192 are an integral part of these financial statements.

Statement of Changes in Equity
For the Year ended 31 MarCh 2011
141 annUaL report 2011
Attributable to shareholders of the Company
Non- distributable Distributable
Share Share Retained Minority Total
Note Capital Premium Profi ts Total Interest Equity
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Balance at 1 April 2009 1,978,732 1,186,472 4,873,759 8,038,963 (662) 8,038,301
Total comprehensive income for the year – – 940,896 940,896 (207) 940,689
Dividends – 2009 fi nal 25 – – (667,180) (667,180) – (667,180)
– 2010 interim 25 – – (296,809) (296,809) – (296,809)
Issue of ordinary share capital
to Minority Interest – – – – 2,000 2,000
Balance at 31 March 2010 1,978,732 1,186,472 4,850,666 8,015,870 1,131 8,017,001
Total comprehensive income for the year – – 1,439,251 1,439,251 (202) 1,439,049
Dividends – 2010 fi nal 25 – – (692,556) (692,556) – (692,556)
– 2011 interim 25 – – (296,809) (296,809) – (296,809)
Issue of ordinary share capital
to Minority Interest – – – – 48,486 48,486
Balance at 31 March 2011 1,978,732 1,186,472 5,300,552 8,465,756 49,415 8,515,171
Note 12 Note 13 Note 14
Attributable to shareholders of the Company
Non- distributable Distributable
Share Share Retained
Note Capital Premium Profi ts Total
Company RM’000 RM’000 RM’000 RM’000
Balance at 1 April 2009 1,978,732 1,186,472 4,806,487 7,971,691
Total comprehensive income for the year – – 935,194 935,194
Dividends – 2009 fi nal 25 – – (667,180) (667,180)
– 2010 interim 25 – – (296,809) (296,809)
Balance at 31 March 2010 1,978,732 1,186,472 4,777,692 7,942,896
Total comprehensive income for the year – – 1,440,377 1,440,377
Dividends – 2010 fi nal 25 – – (692,556) (692,556)
– 2011 interim 25 – – (296,809) (296,809)
Balance at 31 March 2011 1,978,732 1,186,472 5,228,704 8,393,908
The notes set out on pages 143 to 192 are an integral part of these fi nancial statements.
Note 12 Note 13

Statement of Cash Flows
For the Year ended 31 MarCh 2011
142 petronas gas berhad (101671-h)
Group Company
Note 2011 2010 2011 2010
Restated Restated
RM’000 RM’000 RM’000 RM’000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers 3,562,770 3,283,369 3,562,770 3,283,369
Cash paid to suppliers and employees (990,444) (1,485,916) (989,578) (1,488,609)
2,572,326 1,797,453 2,573,192 1,794,760
Interest income from fund and other investments 63,010 36,215 62,965 36,215
Taxation paid (402,601) (295,882) (402,578) (295,834)
Net cash generated from operating activities 2,232,735 1,537,786 2,233,579 1,535,141
CASH FLOWS FROM INVESTING ACTIVITIES
Advance to subsidiary – – – (9,300)
Subscription of additional shares in subsidiary 5 – – (61,373) (3,000)
Purchase of fund and other investments (195,165) (50,033) (195,165) (50,033)
Dividends received 58,997 34,645 58,997 34,645
Purchase of property, plant and equipment (575,044) (330,281) (478,366) (314,717)
Proceeds from disposal of other investments 20,043 20,011 20,043 20,011
Proceeds from disposal of property, plant and equipment 1,421 424 1,421 424
Net cash used in investing activities (689,748) (325,234) (654,443) (321,970)
CASH FLOWS FROM FINANCING ACTIVITIES
Financing costs paid (19,961) (20,397) (19,961) (20,397)
Dividends paid (989,365) (963,989) (989,365) (963,989)
Advance from minority shareholder – 6,200 – –
Issue of ordinary share capital to Minority Interest 40,916 2,000 – –
Net cash used in financing activities (968,410) (976,186) (1,009,326) (984,386)
NET INCREASE IN CASH AND CASH EQUIVALENTS 574,577 236,366 569,810 228,785
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR 2,181,502 1,945,136 2,173,921 1,945,136
CASH AND CASH EQUIVALENTS AT END OF THE YEAR 11 2,756,079 2,181,502 2,743,731 2,173,921
The notes set out on pages 143 to 192 are an integral part of these financial statements.

Notes to the Financial Statements
31 MarCh 2011
143 annUaL report 2011
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 offi ce and principal place of business is:
Registered offi ce 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 fi nancial statements respectively.
The holding company as well as the ultimate holding company during the fi nancial year is Petroliam Nasional Berhad (PETRONAS), a company
incorporated in Malaysia.
The consolidated fi nancial statements as at and for the fi nancial year ended 31 March 2011 comprise the Company and its subsidiary, and the
Group’s interest in an associate and a jointly controlled entity.
1. Basis of Preparation
1.1 Statement of compliance
The fi nancial 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 fi nancial statements also comply
with the applicable disclosure provisions of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.
As of 1 April 2010, the Group and the Company have adopted the following FRSs and Statement of Interpretation which are effective
for annual periods beginning on or after 1 January 2010, unless otherwise stated.
i) FRS 8, Operating Segments (effective for annual periods beginning on or after 1 July 2009);
ii) FRS 101, Presentation of Financial Statements (revised);
iii) Amendments to FRS 1, First-time Adoption of Financial Reporting Standards and FRS 127, Consolidated and Separate Financial
Statements: Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate;
iv) Amendment to FRS 8, Operating Segments;
v) Amendment to FRS 107, Statement of Cash Flows;
vi) Amendment to FRS 108, Accounting Policies, Changes in Accounting Estimates and Errors;
vii) Amendment to FRS 110, Events After the Reporting Period;
viii) Amendment to FRS 116, Property, Plant and Equipment;
ix) Amendment to FRS 117, Leases;
x) Amendment to FRS 118, Revenue;
xi) Amendment to FRS 119, Employee Benefi ts;
xii) Amendment to FRS 127, Consolidated and Separate Financial Statements;
xiii) Amendment to FRS 128, Investments in Associates;
xiv) Amendment to FRS 131, Interests in Joint Ventures;

Notes to the Financial Statements
31 MarCh 2011
1. Basis of Preparation (Continued)
144 petronas gas berhad (101671-h)
1.1 Statement of compliance (Continued)
xv) Amendment to FRS 132, Financial Instruments: Presentation (Puttable Financial Instruments and Obligations Arising on
Liquidation/ Separation of Compound Instruments);
xvi) Amendment to FRS 134, Interim Financial Reporting;
xvii) Amendment to FRS 136, Impairment of Asset; and
xviii) Amendments to FRS 139, FRS 7 and IC Interpretation 9, Financial Instruments: Recognition and Measurement; Financial
Instruments: Disclosures; and Reassessment of Embedded Derivatives.
The adoption of the above FRSs and Amendments to FRSs other than FRS 8, FRS 101 and FRS 117 do not have any impact on these
financial statements. The principal changes in accounting policies and its effects resulting from the adoption of FRS 101, FRS 8 and
FRS 117 are set out in Note 27 and Note 34 respectively.
The Malaysian Accounting Standards Board (MASB) has also issued new pronouncement comprising FRSs, Statement of Interpretations
and Amendments to FRSs and Statement of Interpretations, which are not yet effective for the Group and the Company.
These pronouncements including their impact on the financial statements in the period of initial application are set out in Note 36.
New pronouncements that are not relevant to the operations of the Group and the Company are set out in Note 37.
The financial statements were approved and authorised for issue by the Board of Directors on 11 May 2011.
1.2 Basis of measurement
The financial statements of the Group and the Company have been prepared on the historical cost basis, unless otherwise stated.
The methods used to measure fair value are stated in Note 2.8 (iv).
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 Company’s financial statements are presented in Ringgit Malaysia (RM), which is also the Company’s 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.

Notes to the Financial Statements
31 MarCh 2011
1. Basis of Preparation (Continued)
1.4 Use of estimates and judgements (Continued)
145 annUaL report 2011
In particular, information about signifi cant areas of estimation uncertainty and critical judgements in applying accounting policies
that have the most signifi cant effect on the amount recognised in the fi nancial statements are described in the following notes:
i) Note 3 : Property, Plant and Equipment;
ii) Note 16 : Deferred Tax; and
iii) Note 32 : Financial Instruments.
2. Signifi cant Accounting Policies
The accounting policies set out below have been applied consistently to all periods presented in these fi nancial statements, and have been
applied consistently by Group entities, unless otherwise stated.
2.1 Basis of consolidation
A subsidiary is an entity controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern
the fi nancial and operating policies of an entity so as to obtain benefi ts from its activities.
The fi nancial statements of the subsidiary are included in the consolidated fi nancial statements from the date that control commences
until the date that control ceases.
All inter-company transactions are eliminated on consolidation and revenue and profi ts relate to external transactions only. Unrealised
losses resulting from inter-company transactions are also eliminated unless cost cannot be recovered.
Acquisitions of subsidiaries are accounted for using the purchase method. The purchase method of accounting involves allocating
the cost of the acquisition to the fair value of the assets acquired and liabilities and contingent liabilities assumed at the date of
acquisition.
The cost of an acquisition is measured as the aggregate of the fair values, at the date of exchange, of the assets given, liabilities
incurred or assumed, and equity instruments issued, plus any costs directly attributable to the acquisition.
Any excess of the cost of the acquisition over the Group’s interest in the net fair value of the identifi able assets, liabilities and
contingent liabilities represents goodwill.
Any excess of the Group’s interest in the net fair value of the identifi able assets, liabilities and contingent liabilities over the cost of
acquisition is recognised immediately in profi t or loss.
Minority interests at the reporting 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 statement of fi nancial
position 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 statement of comprehensive
income as an allocation of the total profi t or loss for the year between minority interests and the equity shareholders of the
Company.

Notes to the Financial Statements
31 MarCh 2011
2. Significant Accounting Policies (Continued)
146 petronas gas berhad (101671-h)
2.1 Basis of consolidation (Continued)
Where losses applicable to the minority exceed the minority’s interest in the equity of a subsidiary, the excess, and any further losses
applicable to the minority are charged against the Group’s 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, the Group’s interest is
allocated all such profits until the minority’s share of losses previously absorbed by the Group has been recovered.
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 policies of the investee company.
An associate is accounted for in the consolidated financial statements of the Group using the equity method less any impairment
losses, 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 Group’s 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 Group’s share of post-acquisition reserves and retained profits less losses is added to the carrying value of the investment in the
consolidated statement of financial position. These amounts are taken from the latest audited financial statements and management
financial statements of the associate.
When the Group’s 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 Group’s interests
in the associate. Unrealised losses on such transactions are also eliminated partially, unless cost cannot be recovered.
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.
2.4 Property, plant and equipment and depreciation
Freehold land and projects-in-progress are stated at cost and are not depreciated. Projects-in-progress is stated at cost less accumulated
impairment losses, if any, and is not depreciated. Other property, plant and equipment are stated at cost or valuation less accumulated
depreciation and accumulated impairment losses.

Notes to the Financial Statements
31 MarCh 2011
2. Signifi cant Accounting Policies (Continued)
2.4 Property, plant and equipment and depreciation (Continued)
147 annUaL report 2011
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 assets to working condition for their 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 signifi cant 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 benefi ts embodied within the part will fl ow 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 profi t or loss accordingly. The costs of the day-to-day servicing of property, plant and equipment are recognised in the profi t
or loss as incurred.
Depreciation for property, plant and equipment other than freehold land and projects-in-progress, is recognised in the profi t or loss
on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Property, plant and
equipment are not depreciated until the assets are ready for their intended use.
Buildings are depreciated over 50 years or over the remaining land lease period, whichever is shorter.
Lease properties are depreciated over the lease term or the estimated useful lives, whichever is shorter. Leasehold land is depreciated
over the lease term.
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
Offi ce equipment, furniture and fi ttings 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 profi t or loss as and when incurred.
Property, plant and equipment individually costing less than RM5,000 are expensed off in the year of purchase.
The depreciable amount is determined after deducting residual value. The residual value, useful life and depreciation method are
reviewed at each fi nancial 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 benefi ts 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 benefi ts 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 profi t
or loss.

Notes to the Financial Statements
31 MarCh 2011
2. Significant Accounting Policies (Continued)
148 petronas gas berhad (101671-h)
2.5 Leased assets - prepaid lease payments
The Group had previously classified 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 as an operating lease. The payment made on entering into or acquiring a leasehold land is
accounted for as prepaid lease payments and amortised over the lease term in accordance with the pattern of benefits provided.
Leasehold land is classified 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.
On adoption of Amendment to FRS117, leases of a leasehold land which in substance is a finance lease has been reclassified to
property, plant and equipment and measured as such retrospectively.
2.6 Investments
Long term investments in subsidiary, associate and jointly controlled entity are stated at cost less impairment loss, if any, in the
Company’s financial statements.
The carrying amount of these investments includes fair value adjustments on shareholder’s loans and advances, if any.
2.7 Intangible asset - goodwill
Goodwill arises on the acquisition of subsidiary, associate and jointly controlled entity.
Goodwill arising from acquisitions represents the excess of the cost of the acquisition over the Group’s interest in the fair values of
the net identifiable assets and liabilities and contingent liabilities of the acquiree.
When the excess is negative (negative goodwill), it is recognised immediately in the profit or loss.
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.
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.
2.8 Non-derivative financial instruments
i) Financial assets
Initial recognition
Financial assets within the scope of FRS 139: Financial Instruments: Recognition and Measurement 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, normally being the transaction price plus, in the case of financial assets
not at fair value through profit or loss, any directly attributable transaction costs.
Purchases or sales that require delivery of financial assets within a timeframe established by regulation or convention in the
marketplace (regular way purchases) are recognised on the trade date i.e. the date that the Group and the Company commit
to purchase or sell the financial asset.

Notes to the Financial Statements
31 MarCh 2011
2. Signifi cant Accounting Policies (Continued)
2.8 Non-derivative fi nancial instruments (Continued)
i) Financial assets (Continued)
149 annUaL report 2011
Initial recognition (Continued)
The Group’s and the Company’s fi nancial assets include cash and cash equivalents, trade and other receivables, fund and
other investments and derivative fi nancial instruments.
Subsequent measurement
The subsequent measurement of fi nancial assets depends on their classifi cation as follows:
Financial assets at fair value through profi t or loss
Financial assets at fair value through profi t or loss includes fi nancial assets held for trading and fi nancial assets designated
upon initial recognition at fair value through profi t or loss.
Financial assets at fair value through profi t or loss are carried in the statement of fi nancial position at fair value with gains or
losses recognised in the profi t or loss. The methods used to measure fair value are stated in Note 2.8 (iv).
Loans and receivables
Loans and receivables are non-derivative fi nancial assets with fi xed or determinable payments that are not quoted in an active
market. Subsequent to initial recognition, such fi nancial assets are carried at amortised cost, using the effective interest rate
method, less impairment losses.
Gains and losses are recognised in the profi t or loss when the loans and receivables are derecognised or impaired, as well as
through the amortisation process.
ii) Financial liabilities
Initial recognition
Financial liabilities within the scope of FRS 139: Financial Instruments: Recognition and Measurement are classifi ed as loans
and borrowings and fi nancial liabilities at fair value through profi t or loss. The Group and the Company determines the
classifi cation of its fi nancial liabilities at initial recognition.
Financial liabilities are recognised initially at fair value less, in the case of loans and borrowings, any directly attributable
transaction costs.
The Group’s and the Company’s fi nancial liabilities include trade and other payables and loans and borrowings.
Subsequent measurement
The subsequent measurement of fi nancial liabilities depends on their classifi cation as follows:
Loans and borrowings
Subsequent to initial recognition, loans and borrowings are measured at amortised cost using the effective interest rate
method as stated in Note 2.8 (v).
Gains and losses are recognised in the profi t or loss when the liabilities are derecognised as well as through the amortisation
process.

Notes to the Financial Statements
31 MarCh 2011
2. Significant Accounting Policies (Continued)
150 petronas gas berhad (101671-h)
2.8 Non-derivative financial instruments (Continued)
iii) Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial position if, and
only if, there is currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net
basis, or to realise the assets and settle the liabilities simultaneously.
iv) Fair value of financial instruments
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 reporting date. For financial instruments where there is no active
market, the fair value is determined using valuation techniques. Such techniques may include using recent arm’s length market
transactions; reference to the current fair value of another instrument that is substantially the same; discounted cash flow analysis
or other valuation models. Where fair value cannot be reliably estimated, assets are carried at cost less impairment.
v) Amortised cost of financial instruments
Amortised cost is computed using the effective interest rate method. This method uses effective interest rate that exactly
discounts estimated future cash receipts of payments through the expected life of the financial instrument to the net carrying
amount of the financial instrument. Amortised cost takes into account any transaction costs and any discount or premium
on settlement.
vi) Derecognition of financial instrument
Financial assets
A financial asset is derecognised when the rights to receive cash flows from the asset have expired or, the Group and the
Company have transferred their rights to receive cash flows from the asset or have assume an obligation to pay the received
cash flows in full without material delay to a third party under a “pass-through” arrangement without retaining control of the
asset or substantially all the risks and rewards of the asset. On derecognition of a financial asset, the difference between the
carrying amount and the sum of the consideration received (including any new asset obtained less any new liability assumed)
and any cumulative gain or loss that had been recognised in equity is recognised in the profit or loss.
Financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. On derecognition
of a financial liability, the difference between the carrying amount of the financial liabilities extinguished or transferred to
another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in
the profit or loss.
2.9 Derivative financial instruments
Initial recognition and subsequent measurement
The Group and the Company uses derivative financial instruments such as forward currency contracts to manage certain exposures
to fluctuations in foreign currency exchange rates and interest rates.
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 profit or loss.

Notes to the Financial Statements
31 MarCh 2011
2. Signifi cant Accounting Policies (Continued)
2.9 Derivative fi nancial instruments (Continued)
151 annUaL report 2011
Embedded derivatives
Derivatives embedded in other fi nancial instruments or other host contracts are treated as separate derivatives when their risks and
characteristics are not closely related to those of the host contract. Contracts are assessed for embedded derivatives when the Group
or the Company becomes a party to them, including at the date of a business combination.
Embedded derivatives are measured at fair value at each reporting date. Any gains or losses arising from changes in fair value are
taken directly to the profi t or loss.
2.10 Impairment
i) Financial assets
A fi nancial 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 fl ows of that asset. For an equity instrument, a signifi cant or prolonged decline in fair
value below its cost is also considered objective evidence of impairment.
An impairment loss in respect of a fi nancial asset measured at amortised cost is calculated as the difference between its
carrying amount, and the present value of the estimated future cash fl ows discounted at the original effective interest rate.
Individually signifi cant fi nancial assets are tested for impairment on an individual basis. The remaining fi nancial assets are
assessed collectively in groups that share similar credit risk characteristics.
All impairment losses are recognised in profi t or loss. An impairment loss is reversed if the reversal can be related objectively
to an event occurring after the impairment loss was recognised.
A fi nancial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired.
A fi nancial asset is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more
events that has occurred after the initial recognition of the asset (an incurred loss event) and that loss event has an impact
on the estimated future cash fl ows of the fi nancial asset that can be reliably estimated.
Loans and receivables
For loans and receivables carried at amortised cost, individually signifi cant fi nancial assets are tested for impairment
on an individual basis. The remaining fi nancial assets are assessed collectively in groups that share similar credit risk
characteristics.
An impairment loss is measured as the difference between an asset’s carrying amount and the present value of estimated
future cash fl ows discounted at the asset’s original effective interest rate. The carrying amount of the asset is reduced through
the use of an allowance account and the amount of the loss is recognised in the profi t or loss.
If, in a subsequent year, the amount of the estimated impairment loss increases or decreases because of an event occurring
after the impairment was recognised, the previously recognised impairment loss is increased or reduced by adjusting the
allowance account.

Notes to the Financial Statements
31 MarCh 2011
2. Significant Accounting Policies (Continued)
152 petronas gas berhad (101671-h)
2.10 Impairment (Continued)
ii) Non-financial assets
The carrying amount of assets, other than inventories (refer Note 2.12), deferred tax assets (refer Note 2.15) and financial
assets (financial assets in this context exclude investments in subsidiary, associate and jointly controlled entity), are reviewed
at each reporting date to determine whether there is any indication of impairment. For certain classes of assets, the carrying
amount are reviewed more frequently if 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 asset’s 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 profit or loss, 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.
The recoverable amount is the greater of the asset’s 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 asset’s 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 profit or loss 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 profit or loss, a reversal of that impairment loss
is also recognised in the profit or loss.

Notes to the Financial Statements
31 MarCh 2011
2. Signifi cant Accounting Policies (Continued)
2.11 Cash and cash equivalents
153 annUaL report 2011
Cash and cash equivalents consist of cash on hand and bank balances, deposits with licensed fi nancial institutions and highly liquid
investments which have insignifi cant risk of changes in value.
2.12 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 maintenance materials and spares consists of the invoiced value from suppliers and import duty charges and is determined
on a weighted average basis.
Cost of liquefi ed gases and water is determined on a weighted average basis.
2.13 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 outfl ow of economic benefi ts 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 reporting
date. Provisions are reviewed at each reporting date and adjusted to refl ect the current best estimate.
Where it is not probable that an outfl ow of economic benefi ts will be required, or the amount cannot be estimated reliably, the
obligation is disclosed as a contingent liability, unless the probability of outfl ow of economic benefi ts is remote. Possible obligations,
whose existence will only be confi rmed by the occurrence or non-occurrence of one or more future events, not wholly within the
control of the Group, are not recognised in the fi nancial statements but are disclosed as contingent liabilities unless the possibility of
an outfl ow of economic resources is considered remote.
2.14 Employee benefi ts
i) Short term benefi ts
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) Defi ned 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 profi t or loss as incurred.

Notes to the Financial Statements
31 MarCh 2011
2. Significant Accounting Policies (Continued)
154 petronas gas berhad (101671-h)
2.15 Taxation
Tax on the profit and loss for the year comprises current and deferred tax. Income tax is recognised in the profit or loss 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
reporting date, and any adjustment to tax payable in respect of previous years.
ii) Deferred tax
Deferred tax is provided for, using the liability method, on temporary differences at the reporting 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 initial recognition of 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 reporting 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.
2.16 Foreign currency transactions
In preparing financial statements of individual entities in the Group, transactions in currencies other than the entity’s functional
currency are translated to the functional currency at rates of exchange ruling on the transaction dates.
Monetary assets and liabilities denominated in foreign currencies at the reporting date have been retranslated to the functional
currency at rates of exchange ruling on the reporting date. Gains and losses on exchange arising from translation of monetary assets
and liabilities are dealt with in the profit or loss.
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.

Notes to the Financial Statements
31 MarCh 2011
2. Signifi cant Accounting Policies (Continued)
2.17 Financing costs
Financing costs comprise interest payable on borrowings.
155 annUaL report 2011
All interest, fi nance charges and other costs incurred in connection with borrowings are expensed off as incurred.
2.18 Revenue
Revenue from gas processing services is recognised in the profi t or loss based on actual and estimates of work done in respect of
services rendered for separating natural gas into its components and the storing of such components.
Revenue from gas transportation services is recognised in the profi t or loss based on services rendered for transporting and distributing
of the processed gas.
Revenue from sale of industrial utilities is recognised in the profi t or loss based on certifi cation of utilities distributed to the buyer at
pre-determined rates.
2.19 Deferred income
Deferred income is recognised in the profi t or loss 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 profi t 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 profi t 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 Operating Segments
An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur
expenses (including revenues and expenses relating to transactions with other components of the same entity), whose operating
results are regularly reviewed by the entity’s chief operating decision maker to make decisions about resources to be allocated to the
segment and assess its performance, and for which discrete fi nancial information is available.

Notes to the Financial Statements
31 MarCh 2011
3. Property, Plant and Equipment
156 petronas gas berhad (101671-h)
At
1.4.2010
Effect of
adopting
Opening FRS 117 Disposals/ At
balance (Note 4) Restated Additions Write offs Transfers 31.3.2011
Group RM’000 RM’000 RM’00a0 RM’000 RM’000 RM’000 RM’000
At cost
Freehold land 1,224 – 1,224 1,872 – – 3,096
Leasehold land
– long Lease – 368,615 368,615 2,122 – – 370,737
– short Lease – 161,726 161,726 – – – 161,726
Buildings 191,259 – 191,259 242 (464) 2,032 193,069
Plant and pipelines 13,485,044 – 13,485,044 1,240 (107,297) 276,309 13,655,296
Expendable capital improvements 800 – 800 – – – 800
Office equipment, furniture and fittings 60,813 – 60,813 150 (1,370) 1,453 61,046
Other plant and equipment 99,726 – 99,726 1,620 (3,765) 8,711 106,292
Computer hardware and software 56,066 – 56,066 111 (10,573) 1,038 46,642
Motor vehicles 29,000 – 29,000 2,625 (5,511) – 26,114
Plant turnaround/major inspection 248,845 – 248,845 4,062 (41,127) 107,700 319,480
Projects-in-progress 371,576 – 371,576 644,021 (5,133) (397,243) 613,221
14,544,353 530,341 15,074,694 658,065 (175,240) – 15,557,519
At
1.4.2010
Effect of
adopting
Opening FRS 117 Charge for Disposals/ At
balance (Note 4) Restated the year Write offs Transfers Impairment 31.3.2011
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Accumulated depreciation
Freehold land – – – – – – – –
Leasehold land
– long lease – 49,861 49,861 4,761 – – – 54,622
– short lease – 33,886 33,886 2,684 – – – 36,570
Buildings 48,516 – 48,516 4,208 (214) – – 52,510
Plant and pipelines 7,746,685 – 7,746,685 540,535 (102,132) 89 83,080 8,268,257
Expendable capital improvements 800 – 800 – – – – 800
Office equipment, furniture and fittings 55,209 – 55,209 1,573 (1,368) – 1,088 56,502
Other plant and equipment 58,249 – 58,249 6,193 (3,722) (89) 6,528 67,159
Computer hardware and software 43,177 – 43,177 3,689 (10,509) – – 36,357
Motor vehicles 21,982 – 21,982 2,686 (5,511) – – 19,157
Plant turnaround/major inspection 108,121 – 108,121 67,981 (41,126) – – 134,976
Projects-in-progress – – – – – – – –
8,082,739 83,747 8,166,486 634,310 (164,582) – 90,696 8,726,910

Notes to the Financial Statements
31 MarCh 2011
3. Property, Plant and Equipment (Continued)
157 annUaL report 2011
At
1.4.2009
Effect of
adopting
Opening FRS 117 Disposals/ At
balance (Note 4) Restated Additions Write offs Transfers 31.3.2010
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At cost
Freehold land 1,224 – 1,224 – – – 1,224
Leasehold land
– long lease – 387,960 387,960 639 – (19,984) 368,615
– short lease – 141,742 141,742 – – 19,984 161,726
Buildings 187,346 – 187,346 1,017 – 2,896 191,259
Plant and pipelines 13,263,124 – 13,263,124 3,254 (96) 218,762 13,485,044
Expendable capital improvements 800 – 800 – – – 800
Offi ce equipment, furniture and fi ttings 60,015 – 60,015 474 (759) 1,083 60,813
Other plant and equipment 80,765 – 80,765 6,629 (658) 12,990 99,726
Computer hardware and software 51,319 – 51,319 642 (3,437) 7,542 56,066
Motor vehicles 28,145 – 28,145 3,228 (2,373) – 29,000
Plant turnaround/major inspection 166,655 – 166,655 – – 82,190 248,845
Projects-in-progress 394,039 – 394,039 305,834 (2,244) (326,053) 371,576
(a) This is in relation to property, plant and equipment expensed off of RM590,000.
14,233,432 529,702 14,763,134 321,717 (9,567) (590) (a) 15,074,694
At
1.4.2009
Effect of
adopting
Opening FRS 117 Charge for Disposals/ At
balance (Note 4) Restated the year Write offs Transfers Impairment 31.3.2010
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Accumulated depreciation
Freehold land – – – – – – – –
Leasehold land
– long lease – 48,975 48,975 4,257 – (3,370) – 49,862
– short lease – 28,164 28,164 2,351 – 3,370 – 33,885
Buildings 44,490 – 44,490 4,026 – – – 48,516
Plant and pipelines 7,202,836 – 7,202,836 544,210 (96) (265) – 7,746,685
Expendable capital improvements 800 – 800 – – – – 800
Offi ce equipment, furniture and fi ttings 54,452 – 54,452 1,514 (757) – – 55,209
Other plant and equipment 51,968 – 51,968 6,672 (656) 265 – 58,249
Computer hardware and software 43,493 – 43,493 3,121 (3,437) – – 43,177
Motor vehicles 22,325 – 22,325 2,010 (2,353) – – 21,982
Plant turnaround/major inspection 53,306 – 53,306 54,815 – – – 108,121
Projects-in-progress – – – – – – – –
7,473,670 77,139 7,550,809 622,976 (7,299) – – 8,166,486

Notes to the Financial Statements
31 MarCh 2011
3. Property, Plant and Equipment (Continued)
158 petronas gas berhad (101671-h)
At
1.4.2010
Effect of
adopting
Opening FRS 117 Disposals/ At
balance (Note 4) Restated Additions Write offs Transfers 31.3.2011
Company RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At cost
Freehold land 1,224 – 1,224 1,872 – – 3,096
Leasehold land
– long lease – 368,615 368,615 2,122 – – 370,737
– short lease – 161,726 161,726 – – – 161,726
Buildings 191,055 – 191,055 242 (464) 2,032 192,865
Plant and pipelines 13,485,044 – 13,485,044 1,240 (107,297) 276,309 13,655,296
Expendable capital improvements 800 – 800 – – – 800
Office equipment, furniture and fittings 60,695 – 60,695 150 (1,370) 1,453 60,928
Other plant and equipment 99,726 – 99,726 1,620 (3,765) 8,711 106,292
Computer hardware and software 55,649 – 55,649 76 (10,509) 1,038 46,254
Motor vehicles 28,822 – 28,822 2,452 (5,511) – 25,763
Plant turnaround/major inspection 248,845 – 248,845 4,062 (41,127) 107,700 319,480
Projects-in-progress 351,483 – 351,483 536,549 (5,133) (397,243) 485,656
14,523,343 530,341 15,053,684 550,385 (175,176) – 15,428,893
At
1.4.2010
Effect of
adopting
Opening FRS 117 Charge for Disposals/ At
balance (Note 4) Restated the year Write offs Transfers Impairment 31.3.2011
Company RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Accumulated depreciation
Freehold land – – – – – – – –
Leasehold land
– long lease – 49,861 49,861 4,761 – – – 54,622
– short lease – 33,886 33,886 2,684 – – – 36,570
Buildings 48,496 – 48,496 4,167 (214) – – 52,449
Plant and pipelines 7,746,685 – 7,746,685 540,535 (102,132) 89 83,080 8,268,257
Expendable capital improvements 800 – 800 – – – – 800
Office equipment, furniture and fittings 55,200 – 55,200 1,555 (1,368) – 1,088 56,475
Other plant and equipment 58,249 – 58,249 6,193 (3,722) (89) 6,528 67,159
Computer hardware and software 43,161 – 43,161 3,612 (10,509) – – 36,264
Motor vehicles 21,963 – 21,963 2,621 (5,511) – – 19,073
Plant turnaround/major inspection 108,121 – 108,121 67,981 (41,126) – – 134,976
Projects-in-progress – – – – – – – –
8,082,675 83,747 8,166,422 634,109 (164,582) – 90,696 8,726,645

Notes to the Financial Statements
31 MarCh 2011
3. Property, Plant and Equipment (Continued)
159 annUaL report 2011
At
1.4.2009
Effect of
adopting
Opening FRS 117 Disposals/ At
balance (Note 4) Restated Additions Write offs Transfers 31.3.2010
Company RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At cost
Freehold land 1,224 – 1,224 – – – 1,224
Leasehold land
– long lease – 387,960 387,960 639 – (19,984) 368,615
– short lease – 141,742 141,742 – – 19,984 161,726
Buildings 187,346 – 187,346 813 – 2,896 191,055
Plant and pipelines 13,263,124 – 13,263,124 3,254 (96) 218,762 13,485,044
Expendable capital improvements 800 – 800 – – – 800
Offi ce equipment, furniture and fi ttings 60,015 – 60,015 356 (759) 1,083 60,695
Other plant and equipment 80,765 – 80,765 6,629 (658) 12,990 99,726
Computer hardware and software 51,319 – 51,319 225 (3,437) 7,542 55,649
Motor vehicles 28,145 – 28,145 3,050 (2,373) – 28,822
Plant turnaround/major inspection 166,655 – 166,655 – – 82,190 248,845
Projects-in-progress 391,358 – 391,358 288,422 (2,244) (326,053) 351,483
14,230,751 529,702 14,760,453 303,388 (9,567) (590) (a) 15,053,684
At
1.4.2009
Effect of
adopting
Opening FRS 117 Charge for Disposals/ At
balance (Note 4) Restated the year Write offs Transfers Impairment 31.3.2010
Company RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Accumulated depreciation
Freehold land – – – – – – – –
Leasehold land
– long lease – 48,975 48,975 4,257 – (3,370) – 49,862
– short lease – 28,164 28,164 2,351 – 3,370 – 33,885
Buildings 44,490 – 44,490 4,006 – – – 48,496
Plant and pipelines 7,202,836 – 7,202,836 544,210 (96) (265) – 7,746,685
Expendable capital improvements 800 – 800 – – – – 800
Offi ce equipment, furniture and fi ttings 54,452 – 54,452 1,505 (757) – – 55,200
Other plant and equipment 51,968 – 51,968 6,672 (656) 265 – 58,249
Computer hardware and software 43,493 – 43,493 3,105 (3,437) – – 43,161
Motor vehicles 22,325 – 22,325 1,991 (2,353) – – 21,963
Plant turnaround/major inspection 53,306 – 53,306 54,815 – – – 108,121
Projects-in-progress – – – – – – – –
7,473,670 77,139 7,550,809 622,912 (7,299) – – 8,166,422

Notes to the Financial Statements
31 MarCh 2011
3. Property, Plant and Equipment (Continued)
160 petronas gas berhad (101671-h)
Carrying Amount
2011 2010
Restated
Group RM’000 RM’000
Freehold land 3,096 1,224
Leasehold land
– long lease 316,115 318,754
– short lease 125,156 127,840
Buildings 140,559 142,743
Plant and pipelines 5,387,039 5,738,359
Expendable capital improvements – –
Office equipment, furniture and fittings 4,544 5,604
Other plant and equipment 39,133 41,477
Computer hardware and software 10,285 12,889
Motor vehicles 6,957 7,018
Plant turnaround/ major inspection 184,504 140,724
Projects-in-progress 613,221 371,576
6,830,609 6,908,208
Carrying Amount
2011 2010
Restated
Company RM’000 RM’000
Freehold land 3,096 1,224
Leasehold land
– long lease 316,115 318,754
– short lease 125,156 127,840
Buildings 140,416 142,559
Plant and pipelines 5,387,039 5,738,359
Expendable capital improvements – –
Office equipment, furniture and fittings 4,453 5,495
Other plant and equipment 39,133 41,477
Computer hardware and software 9,990 12,488
Motor vehicles 6,690 6,859
Plant turnaround/ major inspection 184,504 140,724
Projects-in-progress 485,656 351,483
6,702,248 6,887,262
Impairment
The Group and the Company recognised impairment losses on property, plant and equipment amounting to RM90,696,000 (2010: Nil).

Notes to the Financial Statements
31 MarCh 2011
4. Prepaid Lease Payments
161 annUaL report 2011
At
1.4.2010
Effect of
Opening adopting At
balance FRS 117 Restated Additions Transfers 31.3.2011
Group/Company RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2011
At cost
Leasehold land
– long lease 368,615 (368,615) – – – –
– short lease 161,726 (161,726) – – – –
530,341 (530,341) – – – –
At
1.4.2010
Effect of
Opening adopting Charge for At
balance FRS 117 Restated the year Transfers 31.3.2011
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Accumulated amortisation
Leasehold land
– long lease 49,861 (49,861) – – – –
– short lease 33,886 (33,886) – – – –
83,747 (83,747) – – – –
At
1.4.2009
Effect of
Opening adopting At
balance FRS 117 Restated Additions Transfers 31.3.2010
Group/Company RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2010
At cost
Leasehold land
– long lease 387,960 (387,960) – – – –
– short lease 141,742 (141,742) – – – –
529,702 (529,702) – – – –

Notes to the Financial Statements
31 MarCh 2011
4. Prepaid Lease Payments (Continued)
Accumulated amortisation
Leasehold land
162 petronas gas berhad (101671-h)
At
1.4.2009
Effect of
Opening adopting Charge for At
balance FRS 117 Restated the year Transfers 31.3.2010
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
– long lease 48,975 (48,975) – – – –
– short lease 28,164 (28,164) – – – –
Leasehold land
77,139 (77,139) – – – –
Carrying Amount
2011 2010
(Restated)
RM’000 RM’000
– long lease – –
– short lease – –
5. Investment in Subsidiary
– –
Note 2011 2010
Company RM’000 RM’000
Investment at cost
– unquoted shares
At 1 April 3,000 –
Conversion of advance made
– during the year 61,373 3,000
– in prior years 9.5 11,356 –
At 31 March 75,729 3,000
Details of the subsidiary are as follows:
Principal Country of
Effective percentage
holding
Name of company activities incorporation 2011 2010
% %
Kimanis Power Sdn. Bhd. Generation and sale
of electricity
Malaysia 60 60
During the year, Kimanis Power Sdn. Bhd. (KPSB) shareholders have approved the increase in paid up share capital from RM5,000,000 to
RM126,215,000.

Notes to the Financial Statements
31 MarCh 2011
6. Investment in Associate
163 annUaL report 2011
Group Company
2011 2010 2011 2010
RM’000 RM’000 RM’000 RM’000
Investment at cost
– unquoted shares 103,336 103,336 103,336 103,336
Share of post-acquisition profi ts and reserves 71,751 70,700 – –
175,087 174,036 103,336 103,336
Details of the associate are as follows:
Principal Country of Accounting Effective percentage
Name of company activities incorporation period ended holding
2011 2010
% %
Gas Malaysia Sdn. Bhd. Selling, marketing,
distribution and
promotion of natural gas
Malaysia 31 December 20 20
Summary of fi nancial information on associate as per the fi nancial statements for accounting period ended 31 December is as follows:
Total Total
Revenue Profi t assets liabilities
(100%) (100%) (100%) (100%)
Gas Malaysia Sdn. Bhd. RM’000 RM’000 RM’000 RM’000
2010 1,807,475 298,278 1,616,026 448,476
2009 1,753,146 243,146 1,432,667 390,151
7. Investment in Jointly Controlled Entity
Group Company
2011 2010 2011 2010
RM’000 RM’000 RM’000 RM’000
Investment at cost
– unquoted shares 250 250 250 250
Share of post-acquisition profi ts and reserves 2,356 4,231 – –
2,606 4,481 250 250
Details of the jointly controlled entity are as follows:
Principal Country of Accounting Effective percentage
Name of company activities incorporation period ended holding
2011 2010
% %
Industrial Gases Solutions Selling, marketing, Malaysia 31 December 50 50
Sdn. Bhd. distribution and
promotion of industrial gas

Notes to the Financial Statements
31 MarCh 2011
7. Investment in Jointly Controlled Entity (Continued)
164 petronas gas berhad (101671-h)
Summary of financial information on jointly controlled entity as per the financial statements for accounting period ended 31 December is
as follows:
Total Total
Revenue Profit assets liabilities
(100%) (100%) (100%) (100%)
RM’000 RM’000 RM’000 RM’000
Industrial Gases Solutions Sdn. Bhd.
2010 17,254 2,454 8,408 4,106
2009 12,934 3,022 9,506 1,925
8. Trade and Other Inventories
2011 2010
Group/Company RM’000 RM’000
At cost:
Liquefied gases and water 663 384
Maintenance materials and spares 99,736 143,633
100,399 144,017
Maintenance materials and spares amounting to RM28,504,000 were written off during the financial year (2010 - RM2,537,000).
9. Trade and Other Receivables
Group Company
Note 2011 2010 2011 2010
RM’000 RM’000 RM’000 RM’000
Trade receivables 14,678 12,811 14,678 12,811
Other receivables 9.1 28,274 16,442 28,222 16,430
Deposits 1,021 1,021 1,021 1,021
Prepayments
Amounts due from:
16,035 20,181 16,020 20,164
Holding company 9.2 169,327 105,526 169,327 105,526
Related companies 9.3 121,481 145,203 121,481 145,203
Subsidiary
Jointly controlled entity
– – 2,061 2,296
– Trade
Related parties
3,354 931 3,354 931
– Trade 9.4 15,827 20,113 15,827 20,113
Advance to subsidiary 9.5 – – 2,522 13,878
369,997 322,228 374,513 338,373
9.1 Included in other receivables of the Group and the Company are interest receivable of RM24,202,000 (2010 - RM10,788,000).

Notes to the Financial Statements
31 MarCh 2011
9. Trade and Other Receivables (Continued)
9.2 The amount due from holding company relates to:
165 annUaL report 2011
2011 2010
Group/Company RM’000 RM’000
Trade 202,557 129,221
Non-trade (33,230) (23,695)
9.3 The amounts due from related companies relate to:
169,327 105,526
2011 2010
Group/Company RM’000 RM’000
Trade 70,778 118,979
Non-trade 50,703 26,224
121,481 145,203
9.4 The amounts due from related parties are in relation to associates and jointly controlled entities of the holding company.
9.5 Advance made in prior year amounting to RM11,356,000 was converted to ordinary shares in KPSB during the year. The balance of
advance to subsidiary amounting to RM2,522,000 will be converted to ordinary shares in KPSB, upon obtaining necessary approvals
from the shareholders of KPSB.
The credit period granted for trade receivables is 30 days (2010 - 30 days). The trade and non-trade receivables arose from the normal course
of business.
10. Fund and Other Investments
2011 2010
Group/Company RM’000 RM’000
Current
Fair value through profi t or loss fi nancial assets:
Malaysian Government Securities 89,891 60,036
Other unquoted securities 185,191 40,216
275,082 100,252
11. Cash and Cash Equivalents
Group Company
2011 2010 2011 2010
RM’000 RM’000 RM’000 RM’000
Deposits with licensed fi nancial institutions:
Banks 2,307,835 2,123,746 2,295,492 2,123,746
Other corporations 447,918 50,112 447,918 50,112
2,755,753 2,173,858 2,743,410 2,173,858
Cash and bank balances 326 7,644 321 63
2,756,079 2,181,502 2,743,731 2,173,921

Notes to the Financial Statements
31 MarCh 2011
12. Share Capital
166 petronas gas berhad (101671-h)
2011 2010
Group/Company RM’000 RM’000
Authorised:
2,000,000,000 ordinary shares of RM1 each 2,000,000 2,000,000
Issued and fully paid:
13. Reserves
1,978,732,000 ordinary shares of RM1 each 1,978,732 1,978,732
Non-distributable:
Group Company
2011 2010 2011 2010
RM’000 RM’000 RM’000 RM’000
Share premium 1,186,472 1,186,472 1,186,472 1,186,472
Distributable:
Retained profits 5,300,552 4,850,666 5,228,704 4,777,692
6,487,024 6,037,138 6,415,176 5,964,164
Subject to agreement by the Inland Revenue Board, the Company has sufficient tax exempt account to distribute approximately
RM101,003,000 of its unappropriated profits at 31 March 2011, 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 at 31 March 2011,
Section 108 tax credit has been fully utilised.
14. Minority Shareholder’s Interest
This consists of the minority shareholder’s proportion of share capital and reserves of the subsidiary.
15. Borrowings
2011 2010
Group/Company RM’000 RM’000
Non-current
Term loan - unsecured 587,314 566,640
Derivative asset - Currency Exchange Agreement (CEA) (163,734) (128,958)
Total 423,580 437,682
Terms and debt repayment schedule
Total 2 - 5 years
RM’000 RM’000
Term loan - unsecured (net of CEA)
2011 - 3.4% 423,580 423,580
2010 - 3.4% 437,682 437,682

Notes to the Financial Statements
31 MarCh 2011
15. Borrowings (Continued)
167 annUaL report 2011
The unsecured term loan comprising the 6th series 3.4% Samurai Bond 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
fi xed exchange rate of 100 Yen – RM2.838. The loan is due for payment in year 2013 at contracted amount of RM454.1 million.
The CEA being an embedded derivative attached to the Yen 16 billion term loan is valued and accounted separately at each reporting
date due to the risks and characteristics not being closely related to the host contract. The term loan is translated at the spot rate at the
reporting date whereas the CEA is measured at fair value. The fair value of the CEA is based on the discounted cash fl ow of the difference
between forward exchange rate and contracted rate. Any increase or decrease in the translation or valuation is recorded accordingly in the
fi nancial statements.
The market risk on the fair value or future cash fl ows of the term loan and CEA will fl uctuate depending on the exchange rate and interest
rate movement.
For the purpose of presentation of the fi nancial 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 gain arising from retranslation of term loan and revaluation of CEA during the year was RM14,102,000 (2010 - net
unrealised gain of RM11,943,000).
16. Deferred Tax
The components and movements of deferred tax during the fi nancial year are as follows:
As at
Charged/
(Credited)
to Profi t As at
1.4.2010 or Loss 31.3.2011
Group/Company RM’000 RM’000 RM’000
Property, plant and equipment 1,131,418 (28,940) 1,102,478
Financial instrument valuation 32,530 8,694 41,224
Deferred income (3,814) 415 (3,399)
Foreign currency translation (28,134) (5,169) (33,303)
Total 1,132,000 (25,000) 1,107,000
Charged/
(Credited)
As at to Profi t As at
1.4.2009 or Loss 31.3.2010
Group/Company RM’000 RM’000 RM’000
Property, plant and equipment 1,148,818 (17,400) 1,131,418
Financial instrument valuation 35,742 (3,212) 32,530
Deferred income (4,228) 414 (3,814)
Foreign currency translation (34,332) 6,198 (28,134)
Total 1,146,000 (14,000) 1,132,000

Notes to the Financial Statements
31 MarCh 2011
17. Deferred Income
168 petronas gas berhad (101671-h)
Note 2011 2010
Group/Company RM’000 RM’000
At 1 April 16,337 19,438
Addition 1,830 –
Less: Recognised in the statement of comprehensive income (3,761) (3,101)
At 31 March 14,406 16,337
Analysis of deferred income:
Current 18 2,469 2,740
Non-current 11,937 13,597
14,406 16,337
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 Company’s 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 2011 2010 2011 2010
RM’000 RM’000 RM’000 RM’000
Trade payables 18.1 184 154 184 154
Other payables and accruals 18.2 321,254 182,223 309,634 181,267
Amount due to related companies 18.3 14,441 7,861 14,441 7,861
Advance from minority shareholder 18.4 1,682 9,252 – –
Deferred income 17 2,469 2,740 2,469 2,740
340,030 202,230 326,728 192,022
18.1 The credit period granted to the Company is 30 days (2010 - 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 RM250,771,000 (2010 - RM167,750,000) for the Group and RM237,004,000 (2010 - RM164,985,000) for the
Company. Also included in other payables are interest payable of RM3,835,000 (2010 - RM3,700,000).
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 advance from minority shareholder relates to capital contribution which will be converted to ordinary share capital, upon obtaining
necessary approvals from shareholders of KPSB.

Notes to the Financial Statements
31 MarCh 2011
19. Gross Profi t
169 annUaL report 2011
Note 2011 2010
Group/Company RM’000 RM’000
Revenue
– gas processing fees 1,609,411 (*)
– gas transportation fees 1,114,566 (*)
Throughput fees 19.1 2,723,977 2,475,042
Sale of industrial utilities 800,975 746,801
Total 3,524,952 3,221,843
Cost of revenue
– cost of gas processing 738,925 (*)
– cost of gas transportation 366,495 (*)
Cost of throughput fees 19.1 1,105,420 1,449,505
Cost of industrial utilities 632,359 593,978
Total 1,737,779 2,043,483
Gross profi t 1,787,173 1,178,360
19.1 On 31 March 2010, the Company entered into an Addendum to the Gas Processing and Transmission Agreement (GPTA) with
PETRONAS, for the period of 1 April 2010 to 31 March 2014. It provides clearer demarcation of terms and remuneration structure
between gas processing and transportation of gas.
(*) Prior to 1 April 2010, the Company’s total remuneration under the GPTA was classifi ed as Throughput Services with no separation
between gas processing and gas transportation remuneration.

Notes to the Financial Statements
31 MarCh 2011
20. Operating Profit
Operating profit is arrived at after charging:
170 petronas gas berhad (101671-h)
Group Company
2011 2010 2011 2010
RM’000 RM’000 RM’000 RM’000
Audit fees 193 184 187 178
Under provision of audit fees in prior years – 6 – –
Contribution to Employees Provident Fund 45,596 48,938 45,596 48,938
Depreciation of property, plant and equipment 634,310 622,976 634,109 622,912
Impairment loss on property, plant and equipment 90,696 – 90,696 –
Maintenance materials and spares written off 28,504 2,537 28,504 2,537
Property, plant and equipment expensed off 635 936 635 894
Property, plant and equipment written off 10,208 2,248 10,144 2,248
Rental of equipment and motor vehicles 6,926 8,250 6,926 8,241
Rental of land and buildings 7,034 6,103 6,959 6,054
Loss on disposal of other investments 61 – 61 –
Unrealised loss on retranslation of term loan 20,674 – 20,674 –
Unrealised loss on CEA Revaluation – 12,849 – 12,849
Unrealised loss on changes in values of Malaysia Government
Securities and other unquoted securities 231 644 231 644
and crediting:
Dividend income from associate – – 59,650 46,194
Dividend income from jointly control entity – – 3,025 –
Gain on realised foreign exchange 68 735 68 735
Gain on disposal of other investments – 11 – 11
Gain on disposal of property, plant and equipment 971 404 971 404
Interest income from fund and other investments 76,424 45,150 76,379 45,150
Rental income on land and buildings 206 293 197 293
Unrealised gain on retranslation of term loan – 24,792 – 24,792
Unrealised gain on CEA Revaluation 34,776 – 34,776 –
21. Employee Information
Group Company
2011 2010 2011 2010
RM’000 RM’000 RM’000 RM’000
Staff costs 323,878 321,691 318,509 318,946
Included in staff costs are manpower expenses capitalised to projects-in-progress of RM38,413,000 (2010 - RM31,547,000) for the Group
and RM33,044,000 (2010 - RM28,802,000) for the Company.

Notes to the Financial Statements
31 MarCh 2011
22. Key Management Personnel Compensation
171 annUaL report 2011
2011 2010
Group/Company RM’000 RM’000
Directors
Fees
Other short term employee benefi ts
550 653
(including estimated monetary value of benefi ts-in-kind) 23 44
573 697
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
2011 2010
Group/Company RM’000 RM’000
Interest expense on:
Term loan - unsecured 20,096 20,235
24. Tax Expenses
Group Company
2011 2010 2011 2010
RM’000 RM’000 RM’000 RM’000
Current tax expense
– current year 508,645 317,013 508,616 316,983
– (over)/under provision in prior year (22,439) 101 (22,439) 83
486,206 317,114 486,177 317,066
Deferred tax expense
– reversal of temporary differences (21,042) (8,369) (21,042) (8,369)
– over provision in prior year (3,958) (5,631) (3,958) (5,631)
(25,000) (14,000) (25,000) (14,000)
Tax expense 461,206 303,114 461,177 303,066
Tax expense 461,206 303,114 461,177 303,066
Tax expense on share of profi t of associate 16,717 17,353 – –
Tax expense on share of profi t of jointly controlled entity 406 532 – –
Total tax expense 478,329 320,999 461,177 303,066
Corporate tax rate for year of assessment 2011 is at 25% (2010 - 25%). Deferred tax assets and liabilities are measured using this tax rate.

Notes to the Financial Statements
31 MarCh 2011
24. Tax Expenses (Continued)
172 petronas gas berhad (101671-h)
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
2011 2010 2011 2010
RM’000 RM’000 RM’000 RM’000
Profit before taxation 1,900,255 1,243,803 1,901,554 1,238,260
Income tax using Malaysian statutory tax rate at 25% (2010 - 25%) 475,064 310,951 475,389 309,565
Non-deductible expenses 37,133 21,262 30,161 3,723
Income not subject to tax – – (11,991) –
Utilisation of reinvestment allowance (5,986) (4,674) (5,986) (4,674)
Utilisation of unabsorbed capital allowance (69) (104) – –
506,142 327,435 487,573 308,614
Over provision in prior years (27,813) (6,436) (26,396) (5,548)
Tax expense 478,329 320,999 461,177 303,066
25. Dividends
2011 2010
Group/Company RM’000 RM’000
Ordinary
Final paid:
2010 - 30% per share under single tier system and 5% per share tax exempt
(2009 - 9.9% per share under single tier system, 20% per share tax exempt and
5.1% per share less 25% tax) 692,556 667,180
Interim paid:
2011- 15% per share under single tier system
(2010 - 15% per share under single tier system) 296,809 296,809
989,365 963,989
The proposed final dividend of 35% per share under single tier system (2010 - 30% per share under single tier system and 5% per share tax
exempt) amounting to RM692,556,000 (2010 - RM692,556,000) has not been accounted for in the financial statements.
The net dividend per ordinary share as disclosed in the statement of comprehensive income for the financial year ended 31 March 2011 on
page 140 takes into account the total interim and proposed final dividends for the financial year as follows:
2011 2010
Group/Company Sen Sen
Interim dividend per ordinary share paid - net 15.0 15.0
Final dividend per ordinary share proposed - net 35.0 35.0
50.0 50.0

Notes to the Financial Statements
31 MarCh 2011
26. Earnings per Share
173 annUaL report 2011
Basic earnings per share
The earnings per share (EPS) is derived based on the net profi t attributable to ordinary shareholders of RM1,439,251,000 (2010 -
RM940,896,000) and on the number of ordinary shares outstanding during the year of 1,978,732,000 (2010 - 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.
27. Changes in Accounting Policies
As of 1 April 2010, the Group and the Company had adopted new and revised FRS and Amendment to FRS 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:
i) FRS 8, Operating Segments
The adoption of FRS 8 has resulted in a change in accounting policy relating to presentation of result of operating segments.
FRS 8, which replaces FRS 114 Segment Reporting, requires the Group to determine and present operating segments based on the
2004
information that is internally provided to the Group’s Chief Operating Decision Maker for the purpose of allocating resources to the
segments and assessing their performance. It also sets out the required disclosures for operating segments.
The adoption of FRS 8 has no effect on the Group’s reported income or net assets, other than extended disclosures on operating
segment results.
ii) FRS 101, Presentation of Financial Statements (Revised)
The adoption of revised FRS 101 has resulted in a change in accounting policy relating to presentation of fi nancial statements.
Following the adoption of revised FRS 101, the Group presents all non-owner changes in equity in the consolidated statements of
comprehensive income.
The adoption of revised FRS 101 has no effect on the Group’s reported income or net assets, other than certain extended disclosures.
Comparative information has been re-presented so that it is in conformity with the revised standard.
iii) Amendment to FRS 117, Leases
The adoption of Amendment to FRS 117 has resulted in a change in the accounting policy relating to the classifi cation of leases of land.
Prior to the adoption of Amendment to FRS 117, the Group had classifi ed leasehold land that normally has an indefi nite economic
life and title is not expected to pass to the lessee by the end of the lease term as an operating lease. The payment made on entering
into or acquiring a leasehold land is accounted for as prepaid lease payments and amortised over the lease term in accordance with
the pattern of benefi ts provided.
On adoption of Amendment to FRS 117, leases of a leasehold land which in substance is a fi nance lease has been reclassifi ed to
property, plant and equipment. The effects of adopting Amendment to FRS 117 had been accounted for retrospectively in accordance
with transitional provisions of the standard, and comparatives have been restated (Note 34).
This change in accounting policy does not have material impact on current year profi t or loss.

Notes to the Financial Statements
31 MarCh 2011
28. Capital Commitments
174 petronas gas berhad (101671-h)
Outstanding commitments in respect of capital expenditure at reporting date not provided for in the financial statements are:
Property, plant and equipment:
Approved and contracted for
Group Company
2011 2010 2011 2010
RM’000 RM’000 RM’000 RM’000
Less than one year 1,168,795 96,199 1,031,065 50,933
Between one and five years 2,092,600 60,113 1,150,044 23,579
Approved but not contracted for
Less than one year 147,519 75,405 132,426 75,405
Between one and five years 481,060 1,323,025 169,282 1,323,025
29. Related Party Transactions
3,889,974 1,554,742 2,482,817 1,472,942
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:
2011 2010
Group/Company RM’000 RM’000
Holding company:
Throughput fee income 2,723,977 2,475,042
Purchase of fuel gas (338,171) (758,091)
Rental of office premises (6,699) (5,610)
Management fees (737) (737)
Fees for representation in the Board of Directors (205) –
Related companies:
Aromatics Malaysia Sdn. Bhd.
Sale of industrial utilities
Vinyl Chloride (Malaysia) Sdn. Bhd.
37,331 37,672
Sale of industrial utilities
PETRONAS Ammonia Sdn. Bhd.
57,038 53,759
Sale of industrial utilities
MTBE Malaysia Sdn. Bhd.
94,250 98,207
Sale of industrial utilities
Petlin (Malaysia) Sdn. Bhd.
92,098 89,393
Sale of industrial utilities 64,730 53,301

Notes to the Financial Statements
31 MarCh 2011
29. Related Party Transactions (Continued)
175 annUaL report 2011
2011 2010
Group/Company RM’000 RM’000
Bekalan Air KIPC Sdn. Bhd.
Purchase of treated water (11,599) (10,235)
Management fee income
PETRONAS Carigali Sdn. Bhd.
500 500
Lease income on equipment 1,080 1,441
Project management fee
CEFS Response
46,055 44,876
Contribution for emergency response services
Optimal Group of Companies
(12,749) (8,661)
Sale of industrial utilities
Ethylene Malaysia Sdn. Bhd.
242,945 105,008
Sale of industrial utilities 3,339 –
Jointly controlled entity:
Industrial Gases Solutions Sdn. Bhd.
Sale of industrial utilities 6,590 5,839
Associates and jointly controlled entities of the holding company:
Kertih Terminal Sdn. Bhd.
Sale of industrial utilities
BASF PETRONAS Chemicals Sdn. Bhd.
6,020 6,651
Sale of industrial utilities
BP PETRONAS Acetyls Sdn. Bhd.
81,596 73,836
Sale of industrial utilities
Optimal Group of Companies
31,444 37,409
Sale of industrial utilities – 109,160
Trans Thai-Malaysia (Malaysia) Sdn. Bhd.
Access right of way fee 1,020 945
Annual operations and maintenance fee 945 1,000
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.
Included in the management fees paid to the holding company is payment for services of certain key management personnel of the
Company.
Included in the fees for representation in the Board of Directors are fees paid directly to holding company in respect of certain directors who
are appointees of the holding company.
Information regarding outstanding balances arising from related party transactions as at 31 March 2011 is disclosed in Note 9 and
Note 18.

Notes to the Financial Statements
31 MarCh 2011
30. Operating Segments
176 petronas gas berhad (101671-h)
Following the adoption of FRS 8: Operating Segments, an operating segment is a component of the Group that engages in business
activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the
Group’s other components. An operating segment’s operating results are reviewed regularly by the Chief Operating Decision Maker, which
in this case is the Board of Directors of the Group, to make decisions about resources to be allocated to the segment and assess the Group’s
performance, and for which discrete financial information is available.
Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation
and performance assessment. Segment performance is evaluated based on operating profit or loss and is measured consistently with
operating profit or loss in the consolidated financial statement.
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 statement of comprehensive income and statement of financial position of the Group. Details of the associate and jointly
controlled entity are disclosed in Note 6 and Note 7 to the financial statements respectively.
The Group’s 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 Group’s operations is not presented.
On 31 March 2010, the Company entered into an Addendum to the Gas Processing and Transmission Agreement (GPTA) with PETRONAS,
for the period of 1 April 2010 to 31 March 2014. It provides clearer demarcation of terms and remuneration structure between gas
processing and transportation of gas.
Prior to 1 April 2010, the Company’s total remuneration under the GPTA was classified as Throughput Services with no separation between
gas processing and gas transportation remuneration.
To ensure ease of comparability between financial year ended 31 March 2011 and financial year ended 31 March 2010, the segmental
information results for gas processing and gas transportation revenue have also been disclosed in a combined manner as Throughput
Services.

Notes to the Financial Statements
31 MarCh 2011
30. Operating Segments (Continued)
177 annUaL report 2011
Gas Gas
Business segments Processing Transportation Throughput Services Utilities Total
2011 2011 2011 2010 2011 2010 2011 2010
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Revenue 1,609,411 1,114,566 2,723,977 2,475,042 800,975 746,801 3,524,952 3,221,843
Segment results 870,486 748,071 1,618,557 1,025,537 168,616 152,823 1,787,173 1,178,360
Unallocated income 71,327 33,470
Operating profi t 1,858,500 1,211,830
Financing costs
Share of profi t after tax of equity
accounted associate and
(20,096) (20,235)
jointly controlled entity 61,851 52,208
Profi t before taxation 1,900,255 1,243,803
Tax expense (461,206) (303,114)
Profi t for the year 1,439,049 940,689
Segment assets 3,017,500 2,400,215 5,417,715 5,524,085 1,617,626 1,813,094 7,035,341 7,337,179
Investment in associate 175,087 174,036
Investment in jointly controlled entity 2,606 4,481
Unallocated assets 3,296,825 2,319,028
Total assets 10,509,859 9,834,724

Notes to the Financial Statements
31 MarCh 2011
30. Operating Segments (Continued)
178 petronas gas berhad (101671-h)
Gas Gas
Business segments Processing Transportation Throughput Services Utilities Total
2011 2011 2011 2010 2011 2010 2011 2010
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Segment liabilities 77,197 44,442 121,639 169,038 40,086 38,015 161,725 207,053
Unallocated liabilities 1,832,963 1,610,670
Total liabilities 1,994,688 1,817,723
Other Disclosures
Capital expenditure 393,526 33,181 426,707 267,379 30,500 36,009 457,207 303,388
Unallocated capital expenditure – – – – – – 200,858 18,329
Depreciation and amortisation 330,503 141,029 471,532 465,150 162,332 157,762 633,864 622,912
Unallocated depreciation
and amortisation – – – – – – 446 64
Impairment losses – 90,696 90,696 – – – 90,696 –
Other unallocated non-cash
(income)/expenses – – – – – – (14,102) (11,943)

Notes to the Financial Statements
31 MarCh 2011
30. Operating Segments (Continued)
179 annUaL report 2011
Segment results
The total segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
Unallocated items mainly comprise fair value gain or loss on fi nancial asset, fi nance income, income taxes and other corporate expenses.
Segment assets
The total of segment assets are measured based on all assets of a segment, as included in the internal management reports that are reviewed
by the Group’s Board of Directors. Segment total asset is used to measure the return of assets of each segment, excluding interest-earning
assets and corporate assets as these are managed on a group basis.
Segment liabilities
The total segment liabilities are measured based on all liabilities, excluding deferred tax, current tax payable and borrowings as these
liabilities are managed on a group basis.
Other disclosures
The Group does not have signifi cant non-cash expenses other than those disclosed above. Other unallocated non-cash (income)/expenses
consist of net unrealised (gain)/loss from the retranslation of term loan and revaluation of CEA.
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
Categories of fi nancial instruments
The table below provides an analysis of fi nancial instruments categorised as follows:
i) Loans and receivables (“L&R”);
ii) Fair value through profi t or loss (“FVTPL”);
– Designated upon initial recognition (“DUIR”);
iii) Loans and borrowings (“L&B”).

Notes to the Financial Statements
31 MarCh 2011
32. Financial Instruments (Continued)
180 petronas gas berhad (101671-h)
Categories of financial instruments (Continued)
L&R/ Carrying
(L&B) FVTPL Amount
Group Note RM’000 RM’000 RM’000
2011
Financial assets
Trade and other receivables 9 369,997 – 369,997
Fund and other investments 10 – 275,082 275,082
Cash and cash equivalents 11 2,756,079 – 2,756,079
Financial liabilities
3,126,076 275,082 3,401,158
Borrowings 15 (587,314) 163,734 (423,580)
Other long term liabilities * (11,937) – (11,937)
Trade and other payables 18 (340,030) – (340,030)
(939,281) 163,734 (775,547)
L&R/ Carrying
(L&B) FVTPL Amount
Group Note RM’000 RM’000 RM’000
2010
Financial assets
Trade and other receivables 9 322,228 – 322,228
Fund and other investments 10 – 100,252 100,252
Cash and cash equivalents 11 2,181,502 – 2,181,502
Financial liabilities
2,503,730 100,252 2,603,982
Borrowings 15 (566,640) 128,958 (437,682)
Other long term liabilities * (13,597) – (13,597)
Trade and other payables 18 (202,230) – (202,230)
(782,467) 128,958 (653,509)
* These balances exclude non-financial instruments balances which are not within the scope of FRS 139: Financial Instruments: Recognition
and Measurement.

Notes to the Financial Statements
31 MarCh 2011
32. Financial Instruments (Continued)
181 annUaL report 2011
Categories of fi nancial instruments (Continued)
L&R/ Carrying
(L&B) FVTPL Amount
Company Note RM’000 RM’000 RM’000
2011
Financial assets
Trade and other receivables 9 374,513 – 374,513
Fund and other investments 10 – 275,082 275,082
Cash and cash equivalents 11 2,743,731 – 2,743,731
3,118,244 275,082 3,393,326
Financial liabilities
Borrowings 15 (587,314) 163,734 (423,580)
Other long term liabilities * (11,937) – (11,937)
Trade and other payables 18 (326,728) – (326,728)
(925,979) 163,734 (762,245)
L&R/ Carrying
(L&B) FVTPL Amount
Company Note RM’000 RM’000 RM’000
2010
Financial assets
Trade and other receivables 9 338,373 – 338,373
Fund and other investments 10 – 100,252 100,252
Cash and cash equivalents 11 2,173,921 – 2,173,921
2,512,294 100,252 2,612,546
Financial liabilities
Borrowings 15 (566,640) 128,958 (437,682)
Other long term liabilities * (13,597) – (13,597)
Trade and other payables 18 (192,022) – (192,022)
(772,259) 128,958 (643,301)
* These balances exclude non-fi nancial instruments balances which are not within the scope of FRS 139: Financial Instruments: Recognition
and Measurement.

Notes to the Financial Statements
31 MarCh 2011
32. Financial Instruments (Continued)
182 petronas gas berhad (101671-h)
Financial Risk Management
The Group and the Company are 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 Group and the Company’s business.
The Group has a Group Risk Management Framework and Guideline that sets the foundation for the establishment of effective risk
management across the Group.
The Group and the Company’s goal in risk management is to ensure that the management understands, measures and monitors the various
risks that arise in connection with their operations. Policies and guidelines have been developed to identify, analyse, appraise and monitor
the dynamic risks facing the Group and the Company. Based on this assessment, the Group and the Company adopts appropriate measures
to mitigate these risks in accordance with its view of the balance between risk and reward.
The Group and the Company have exposure to credit risk, liquidity risk and market risk arising from its use of financial instruments in the
normal course of the Group and the Company’s business.
Credit Risk
Credit risk is the potential exposure of the Group and the Company to losses in the event of non-performance by counterparties. Credit
risk arises from its operating activities, primarily from trade receivables and long term receivables and from its investing activities, primarily
for fund and other investment excluding Malaysia Government Securities and Treasury Bills. The credit risk arising from the Group and the
Company’s normal operations are controlled by individual operating units within the Group Risk Management Framework and Guideline.
Receivables
The Group and the Company minimises credit risk by entering into contracts with highly credit rated counterparties. Counterparties credit
evaluation is done systematically using quantitative and qualitative criteria on credit risks specified. Depending on the creditworthiness of
the counterparty, the Group and the Company shall determine terms of credits consisting of credit period, security requirements and credit
limit, and frequency of creditworthiness review.
The maximum exposure to credit risk for the Group and the Company are represented by the carrying amount of each financial asset.
A significant portion of these receivables are related companies.
The Group and the Company uses ageing analysis and credit term review to monitor the credit quality of the receivables. Any receivables
having any significant balances past due are monitored closely.
Receivables from third party customers are secured by financial guarantee given by bank. No collateral is required for amounts due from
related parties.
At the reporting 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 95% of the total trade
receivables of the Group.

Notes to the Financial Statements
31 MarCh 2011
32. Financial Instruments (Continued)
183 annUaL report 2011
Receivables (Continued)
The ageing of trade receivables as at the reporting date is as follows:
2011 2010
Group/Company RM’000 RM’000
Current 300,854 273,156
Past due 1 to 30 days 499 4,738
Past due 31 to 60 days 801 987
Past due 61 to 90 days 689 461
Past due more than 90 days 4,351 2,713
307,194 282,055
There were no renegotiated balances outstanding as at 31 March 2011.
Fund and other investments
The Group has a Group Treasury Investment Guideline that defi nes the parameters within which the investment activities shall be undertaken
to achieve the Group’s investment objective of preserving capital and generating optimal returns above appropriate benchmarks within
allowable risk parameters. In accordance with the guideline, investments are only allowed with highly credit rated counterparties.
The treasury function undertakes a credit risk management activity similar to the credit management and monitoring procedures for
receivables.
The maximum exposure to credit risk is represented by the carrying amounts in the statement of fi nancial position.
As at the reporting date, the Group and the Company has only invested in domestic securitites.
In view of the sound credit rating of counterparties, management does not expect any counterparty to fail to meet its obligation.
The fund and other investments are unsecured.
Liquidity Risk
Liquidity risk is the risk that suitable sources of funding for the Group’s business activities may not be available. In managing its liquidity risk,
the Group maintains suffi cient cash and liquid marketable assets.

Notes to the Financial Statements
31 MarCh 2011
32. Financial Instruments (Continued)
Maturity analysis
184 petronas gas berhad (101671-h)
The table below summarises the maturity profile of the Group’s and the Company’s financial liabilities as at the reporting date based on
undiscounted contractual payments:
Carrying Effective Contractual Within 1 1 - 2 2 - 5
amount interest rate cash flow* year years years
Group RM’000 % RM’000 RM’000 RM’000 RM’000
2011
Financial liabilities
Unsecured term loan from holding company
Fixed rate loan 423,580 3.4 504,023 19,969 19,969 464,085
Trade and other payables 337,561 – 337,561 337,561 – –
2010
Financial liabilities
Unsecured term loan from holding company
Fixed rate loan 437,682 3.4 521,531 19,266 19,266 482,999
Trade and other payables 199,490 – 199,490 199,490 – –
* The contractual cashflow is inclusive of the principal and interest due to FRS 139 measurements.
Carrying Effective Contractual Within 1 1 - 2 2 - 5
amount interest rate cash flow* year years years
Company RM’000 % RM’000 RM’000 RM’000 RM’000
2011
Financial liabilities
Unsecured term loan from holding company
Fixed rate loan 423,580 3.4 504,023 19,969 19,969 464,085
Trade and other payables 324,259 – 324,259 324,259 – –
2010
Financial liabilities
Unsecured term loan from holding company
Fixed rate loan 437,682 3.4 521,531 19,266 19,266 482,999
Trade and other payables 189,282 – 189,282 189,282 – –
* The contractual cashflow is inclusive of the principal and interest due to FRS 139 measurements.

Notes to the Financial Statements
31 MarCh 2011
32. Financial Instruments (Continued)
185 annUaL report 2011
Market Risk
Market risk is the risk or uncertainty arising from changes in market prices and their impact on the performance of the business. The market
price changes that the Group and the Company is exposed to include interest rates, foreign currency exchange rates and other indices that
could adversely affect the value of the Group’s and the Company’s fi nancial assets, liabilities or expected future cash fl ows.
Market risk is the risk that the fair value or future cash fl ows of a fi nancial instrument will fl uctuate because of changes in market prices.
Market prices comprise three types of risk: interest rate risk, currency risk and other price risk.
Financial instruments affected by market risk include loans and borrowings, deposits and derivative fi nancial instruments.
Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash fl ows of a fi nancial instrument will fl uctuate because of changes in market
interest rates.
The Group’s investments in fi xed-rate debt securities are exposed to a risk of change in their fair value due to changes in interest rates.
All interest rate risks are monitored and managed proactively by PETRONAS Group Treasury Division based on guidance from Group Risk
Management Framework and Guideline.
The interest rate profi le of the Group’s and the Company’s interest-bearing fi nancial instruments based on carrying amount as at reporting
date is as follows:
2011 2010
Group/Company RM’000 RM’000
Financial assets
Fixed rate instruments 240,081 100,252
Floating rate instruments 35,001 –
275,082 100,252
As at 31 March 2011, 87% of the fi nancial instruments of the Group and the Company are fi xed rate instruments.
Since most of the Group’s and the Company’s fi nancial assets and liabilities are fi xed rate instruments measured at amortised cost, a change
in interest rate is not expected to have material impact on the Group’s and the Company’s profi t or loss.
Fair value sensitivity analysis for fi xed rate instruments
Sensitivity analysis for a given market variable provided in this note, discloses the effect on profi t or loss and equity as at 31 March 2011
assuming that a reasonably possible change in the relevant market variable had occurred at 31 March 2011 and been applied to the risk
exposures in existence at that date to show the effects of reasonably possible changes in price on profi t or loss and equity to the next annual
reporting date. Reasonably possible changes in market variables used in the sensitivity analysis are based on implied volatilities, where
available, or historical data for equity and commodity prices and foreign exchange rates. Reasonably possible changes in interest rates are
based on management judgment and historical experience.

Notes to the Financial Statements
31 MarCh 2011
32. Financial Instruments (Continued)
186 petronas gas berhad (101671-h)
Fair value sensitivity analysis for fixed rate instruments (Continued)
The sensitivity analysis is hypothetical and should not be considered to be predictive of future performance because the Group’s actual
exposure to market prices is constantly changing with changes in the Group’s portfolio of among others, commodity, debt and foreign
currency contracts. Changes in fair values or cash flows based on a variation in a market variable cannot be extrapolated because the
relationship between the change in market variable and the change in fair value or cash flows may not be linear. In addition, the effect of
a change in a given market variable is calculated independently of any change in another assumption and mitigating actions that would
be taken by the Group. In reality, changes in one factor may contribute to changes in another, which may magnify or counteract the
sensitivities.
The following table demonstrates the indicative pre-tax effects on the profit or loss and equity of applying reasonably foreseeable market
movements in the following securities:
+/-
Change in Profit or
interest loss
Group/Company b.p.s. RM’000
2011
Local securities 47.39 b.p.s 1,877
2010
Local securities 44.54 b.p.s 813
This analysis assumes that all other variables, in particular foreign currency rates, remain constant.
Cash flow sensitivity analysis for floating rate instruments
The following table demonstrates the indicative pre-tax effects on the profit or loss and equity of applying reasonably market movements
in the following interbank offered rates:
+/-
Change in Profit or loss
Group/Company b.p.s. RM’000
2011
KLIBOR 60.00 b.p.s 210
2010
KLIBOR – –
Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign
exchange rates.
The Group and the Company are exposed to varying levels of foreign exchange risk when they enter into transactions that are not
denominated in the respective companies’ functional currencies or when foreign currency monetary assets and liabilities are translated at
the reporting date.
The Group and the Company operates predominantly in Malaysia and transacts mainly in Malaysian Ringgit. As such, it is not exposed to
any significant foreign currency risk.

Notes to the Financial Statements
31 MarCh 2011
32. Financial Instruments (Continued)
187 annUaL report 2011
Foreign Currency Risk (Continued)
The Group’s and Company’s exposure to foreign currency risk, based on carrying amounts as at the reporting date is as follows:
2011 2010
Group/Company RM’000 RM’000
Financial Liabilities
Trade and other payables (denominated in)
USD 45,659 26,026
GBP – 6,134
EUR 2,089 1,052
SGD – 66
JPY – 30,780
47,748 64,058
Borrowings (denominated in)
JPY 5,969 1,620
53,717 65,678
Currency risk sensitivity analysis
The following table demonstrates the indicative pre-tax effects on the profi t or loss and equity of applying reasonably foreseeable market
movements in the following currency exchange rates:
+/-
Change in Effect on
currency rate profi t or loss
Group/Company % RM’000
2011
USD 5 2,283
EUR 10 209
JPY 5 298
2010
USD 5 1,301
GBP 10 613
EUR 5 53
SGD 5 3
JPY 5 1,620
This analysis assumes that all other variables, in particular interest rates, remain constant.
A decrease in change in currency rate above would have had equal but opposite effect, on the basis that all other variables remain
constant.

Notes to the Financial Statements
31 MarCh 2011
32. Financial Instruments (Continued)
188 petronas gas berhad (101671-h)
Fair Value
The Group’s and the Company’s financial instruments consist of cash and cash equivalents, investments and loans, trade and other receivables,
borrowings, trade and other payables and various debt and currency management instruments.
Cash and cash equivalents, trade and other receivables and trade and other payables are carried at amortised costs, which are not materially
different from their fair values.
The fair value of financial liabilities measured at amortised cost, together with the carrying amounts are as follows:
2011 2010
Carrying Fair Carrying Fair
amount value amount value
Group RM’000 RM’000 RM’000 RM’000
Financial assets
Fair value through profit or loss:
Malaysian Government Securities 89,891 89,891 60,036 60,036
Other unquoted securities
Loan and receivables:
185,191 185,191 40,216 40,216
Trade and other receivables 369,997 369,997 322,228 322,228
Cash and cash equivalents 2,756,079 2,756,079 2,181,502 2,181,502
Financial liabilities
Financial liabilities measured at amortised cost:
Term loan – unsecured (net of CEA) 423,580 437,763 437,682 446,453
Trade and other payables 340,030 340,030 202,230 202,230
2011 2010
Carrying Fair Carrying Fair
amount value amount value
Company RM’000 RM’000 RM’000 RM’000
Financial assets
Fair value through profit or loss:
Malaysian Government Securities 89,891 89,891 60,036 60,036
Other unquoted securities
Loan and receivables:
185,191 185,191 40,216 40,216
Trade and other receivables 374,513 374,513 338,373 338,373
Cash and cash equivalents 2,743,731 2,743,731 2,173,921 2,173,921
Financial liabilities
Financial liabilities measured at amortised cost:
Term loan – unsecured (net of CEA) 423,580 437,763 437,682 446,45
Trade and other payables 326,728 326,728 192,022 192,022

Notes to the Financial Statements
31 MarCh 2011
32. Financial Instruments (Continued)
189 annUaL report 2011
Fair Value (Continued)
The fair value of fi nancial instruments that are actively traded in organised fi nancial markets is determined by reference to quoted market
bid prices at the close of business on the reporting date.
As at 31 March 2011, 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 reporting date. The fair value of the CEA (Note 15) is netted off against the fair value
of the term loan.
33. Capital Management
The Group and the Company defi ne capital as its total equity and debt. The objective of the Group and the Company’s capital management
is to maintain an optimal capital structure and ensuring availability of funds in order to support its business and maximises shareholder value.
As a subsidiary of PETRONAS, the Group’s and the Company’s approach in managing capital is set out in the PETRONAS Group Corporate
Financial Policy.
The Group and the Company monitor and maintain a prudent level of total debt to total asset ratio to optimise shareholder value and to
ensure compliance with covenants under debt and shareholders’ agreements and regulatory requirements if any.
There were no changes in the Group’s and the Company’s approach to capital management during the year.
Under the requirement of Bursa Malaysia Practice Note 17, the Group and the Company are required to maintain consolidated shareholders’
equity to or not less than RM40 million. The Group and the Company have complied with this requirement.
34. Comparative Figures
Amendment to FRS 117, Leases
The adoption of Amendment to FRS 117 has resulted in a change in the accounting policy relating to the classifi cation of leases of land and
did not have material impact on current year statement of comprehensive income.
Prior to the adoption of Amendment to FRS 117, the Group had classifi ed leasehold land that normally has an indefi nite economic life and
title is not expected to pass to the lessee by the end of the lease term as an operating lease. The payment made on entering into or acquiring
a leasehold land is accounted for as prepaid lease payment that is amortised over the lease term in accordance with the pattern of benefi ts
provided.

Notes to the Financial Statements
31 MarCh 2011
34. Comparative Figures (Continued)
190 petronas gas berhad (101671-h)
Amendment to FRS 117, Leases (Continued)
On adoption of Amendment to FRS 117, lease of a leasehold land which is in substance a finance lease has been reclassified to property,
plant and equipment and measured as such retrospectively as follows:
Statement of
Statement of Effect on Financial
Financial adoption of Position as at
Position as at Amendment to 31.03.2010
31.03.2010 FRS 117 (restated)
RM’000 RM’000 RM’000
Group
Property, plant and equipment 6,461,614 446,594 6,908,208
Prepaid lease payments 446,594 (446,594) –
Company
Property, plant and equipment 6,440,668 446,594 6,887,262
Prepaid lease payments 446,594 (446,594) –
35. Change of Financial Year End
The Group and the Company will change their financial year end from 31 March to 31 December which will be effective after the close of
financial year ended 31 March 2011. Accordingly, the financial statements of the Group and the Company for the financial period ended
31 December 2011 will cover a 9-month period. Thereafter, the Group and the Company will revert to a 12 months reporting period from
1 January to 31 December.
36. New and Revised Pronouncements Yet in Effect
The following new and revised FRSs, Statement of Interpretations and amendments to FRS and Statement of Interpretations (collectively
referred to as “pronouncements”) from the Malaysian Accounting Standards Board will become effective for future financial reporting
periods and have not yet been adopted by the Group.
Effective for annual periods beginning on or after 1 July 2010
FRS 1 First-time Adoption of Financial Reporting Standards (revised)
FRS 3 Business Combinations (revised)
FRS 127 Consolidated and Separate Financial Statements (revised)
Amendments to IC 9 Reassessment of Embedded Derivatives
IC Interpretation 12 Service Concession Agreements
Effective for annual periods beginning on or after 1 January 2011
Amendment to FRS 1 First-time Adoption of Financial Reporting Standard – Limited Exemption from Comparative FRS 7
Disclosures for First-time Adopters and Additional Exemptions for First Time Adopters
Amendment to FRS 1 First-time Adoption of Financial Reporting Standard [Improvements to FRSs (2010)]
Amendments to FRS 3 Business Combinations [Improvements to FRSs (2010)]
Amendments to FRS 7 Financial Instruments: Disclosures - Improving Disclosures about Financial Instruments
Amendments to FRS 7 Financial Instruments: Disclosures [Improvements to FRSs (2010)]
Amendments to FRS 101 Presentation of Financial Statements [Improvements to FRSs (2010)]
Amendments to FRS 121 The Effects of changes in Foreign Exchange Rates [Improvements to FRSs (2010)]
Amendments to FRS 128 Investment in Associates [Improvements to FRSs (2010)]
Amendments to FRS 131 Interests in Joint Ventures [Improvements to FRSs (2010)]

Notes to the Financial Statements
31 MarCh 2011
36. New and Revised Pronouncements Yet in Effect (Continued)
Effective for annual periods beginning on or after 1 January 2011 (Continued)
Amendments to FRS 132 Financial Instruments: Presentation [Improvements to FRSs (2010)]
Amendments to FRS 134 Interim Financial Reporting [Improvements to FRSs (2010)]
Amendments to FRS 139 Financial Instruments: Recognition and Measurement
IC Interpretation 4 Determining Whether an Arrangement contains a Lease
Effective for annual periods beginning on or after 1 January 2012
FRS 124 Related Party Disclosures (revised)
191 annUaL report 2011
Initial application of these pronouncements for the Group and the Company will be effective from the annual period beginning:
i) 1 April 2011 for pronouncements which are effective for annual periods beginning on or after 1 July 2010 and 1 January 2011.
ii) 1 January 2012 for pronouncements which are effective for annual periods beginning on or after 1 January 2012.
By virtue of the exemptions in paragraph 30AA of IC 12, the impacts of applying IC 12 on the fi nancial statements upon fi rst adoption of
this standard as required by para 30(b) of FRS 108: Accounting Policies, Changes in Accounting Estimates and Errors is not disclosed.
The adoption of other FRSs, Statement of Interpretations and amendments to FRSs and Statement of Interpretations other than IC 4, are not
expected to have any material impact on the fi nancial statements of the Group and of the Company in the period of initial application.
37. New Pronouncements Not Applicable to the Group and the Company
The MASB has issued FRSs, Interpretations and Amendments to FRSs and Interpretations which are not yet effective, but for which are not
relevant to the operations of the Group and the Company and hence, no further disclosure is warranted.
Effective for annual periods beginning on or after 1 July 2010
Amendments to FRS 2 Share Based Payment
Amendments to FRS 5 Non-current Assets Held for Sale and Discontinued Operations
Amendments to FRS 138 Intangible Assets
IC Interpretation 16 Hedges of a Net investment in a Foreign Operation
IC Interpretation 17 Distribution of Non-cash Assets to Owner
Effective for annual periods beginning on or after 30 August 2010
Amendments to IC 15 Agreements for the Construction of Real Estate
Effective for annual periods beginning on or after 1 January 2011
Amendments to FRS 2 Share Based Payment - Group Cash-settled Share-based Payment Transactions
IC Interpretation 18 Transfers of Assets from Customers
Amendments to IC 13 Customer Loyalty Programmes [Improvements to FRSs (2010)]
Effective for annual periods beginning on or after 1 July 2011
Amendments to IC 14 Prepayments of a Minimum Funding Requirement
IC Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments
Effective for annual periods beginning on or after 1 January 2012
IC Interpretation 15 Agreements for the Construction of Real Estate

Notes to the Financial Statements
31 MarCh 2011
38. Disclosure of Realised and Unrealised Profit
192 petronas gas berhad (101671-h)
On 25 March 2010, Bursa Malaysia Securities Berhad (Bursa Malaysia) issued a directive to all listed issuers pursuant to Paragraphs 2.06
and 2.23 of Bursa Malaysia Main Market Listing Requirements. The directive requires all listed issuers to disclose the breakdown of the
unappropriated profits or accumulated losses as at the end of the reporting period, into realised and unrealised profits or losses.
On 20 December 2010, Bursa Malaysia further issued another directive on the disclosure and the prescribed format of presentation.
The breakdown of the retained earnings of the Group as at 31 March 2011, into realised and unrealised profits, pursuant to the directive,
is as follows:
2011
Group Company
RM’000 RM’000
Total retained earnings/(accumulated losses) of the Company and its subsidiary:
– realised 6,302,192 6,304,870
– unrealised (1,076,166) (1,076,166)
5,226,026 5,228,704
Total share of retained earnings/(accumulated losses) from associated company:
– realised 272,676 –
– unrealised (12,620) –
Total share of retained earnings from jointly controlled entity:
– realised 5,350 –
– unrealised 30 –
5,491,462 5,228,704
Consolidation adjustments (190,910) –
Total retained earnings 5,300,552 5,228,704
The determination of realised and unrealised profits is based on the Guidance of Special Matter No.1, Determination of Realised and
Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia Securities Berhad Listing Requirements, issued by
Malaysian Institute of Accountants on 20 December 2010.
The disclosure of realised and unrealised profits above is solely for complying with the disclosure requirements stipulated in the directive of
Bursa Malaysia and should not be applied for any other purpose.

Report of the Auditors
to the MeMbers
Report on the Financial Statements
193 annUaL report 2011
We have audited the fi nancial statements of PETRONAS GAS BERHAD, which comprise the statements of fi nancial position as at
31 March 2011 of the Group and of the Company, and the statements of comprehensive income, changes in equity and cash fl ows of the Group
and of the Company for the year then ended, and a summary of signifi cant accounting policies and other explanatory information, as set out on
pages 139 to 191.
Directors’ Responsibility for the Financial Statements
The Directors of the Company are responsible for the preparation of fi nancial statements that give a true and fair view in accordance with Financial
Reporting Standards and the Companies Act, 1965 in Malaysia, and for such internal control as the Directors determine are necessary to enable
the preparation of fi nancial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these fi nancial 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 about whether the fi nancial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements. The procedures
selected depend on our judgement, including the assessment of risks of material misstatement of the fi nancial statements, whether due to fraud
or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation of fi nancial statements that give a true
and fair view 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 entity’s 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 fi nancial statements.
We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the fi nancial 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 fi nancial position of the Group and of the Company as of 31 March 2011 and of their
fi nancial performance and cash fl ows 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 of which
we have acted as auditors have been properly kept in accordance with the provisions of the Act.
b) We are satisfi ed that the accounts of the subsidiary that have been consolidated with the Company’s fi nancial statements are in form
and content appropriate and proper for the purposes of the preparation of the fi nancial 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 qualifi cation or any adverse comment made under Section 174(3) of
the Act.

Report of the Auditors
to the MeMbers
Other Reporting Responsibilities
194 petronas gas berhad (101671-h)
Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The information set out in Note
38 to the financial statements has been compiled by the Company as required by the Bursa Malaysia Securities Berhad Listing Requirements
and is not required by the Financial Reporting Standards. We have extended our audit procedures to report on the process of compilation of
such information. In our opinion, the information has been properly compiled, in all material respects, in accordance with the Guidance
on Special Matter No.1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosures Pursuant to
Bursa Malaysia Securities Berhad Listing Requirements, issued by the Malaysian Institute of Accountants and presented based on the
format prescribed by Bursa Malaysia Securities Berhad.
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: 2583/08/12(J)
Chartered Accountants Chartered Accountant
Petaling Jaya,
11 May 2011

Other
Information
195 annUaL report 2011
Summary of Landed Property, Plant and Equipment 196
Training Programmes Attended by Directors 203
Analysis of Shareholdings 205
Corporate Directory 209
Notice of Annual General Meeting 210
Proxy Form

Summary of Landed Property,
Plant and Equipment
196 petronas gas berhad (101671-h)
A summary of the landed property, plant and equipment of PETRONAS Gas Berhad as at 31 March 2011 as set out below:-
Location
TERENGGANU
Gas Processing Plants,
Kertih
Km 105, Jalan Kuantan-
Kuala Terengganu
24300 Kertih, Kemaman,
Terengganu Darul Iman
Lot No. 1903
Lot No. 3541
Lot No. 1902
Gas Processing Plants, Paka
Km 8, Kg. Tok Arun,
Off Jalan Santong
23100 Paka, Dungun,
Terengganu Darul Iman
Lot No. 7346
Lot No. 7220
Acquisition
Date Tenure
30.09.1991
30.09.1991
30.09.1991
03.08.1997
03.08.1997
Leasehold
Expiry :
28.02.2043
(Sub-Lease
60 years)
03.04.2050
(60 years)
26.02.2082
(99 years)
Leasehold
Expiry :
13.07.2058
(60 years)
20.06.2058
(60 years)
Description
and usage
Leasehold land
Plant
GPP 1
GPP 2
GPP 3
GPP 4 / DPCU2
Compressor Station
Office
Administration
building 1
Administration
building 2
Fire station
Leasehold land
Plant
GPP 5
GPP 6
DPCU 3
Office
Administration
building
(Vacant)
Land Area
(hectare)
87.7
34.6
2.7
189.6
27.0
Age of Plant
and Building
(years)
26.5
18.6
18.4
16.7
19.3
25.6
20.9
23.0
12.1
11.4
12.6
13.4
Build-up
Area
(sq. m)
95,998
123,310
123,310
266,400
65,010
1,282
6,892
3,248
200,000
220,000
60,000
12,220
Net Book
Value as at
31 March 2011
(RM’000)
873,183
1,235,240

197 annUaL report 2011
A summary of the landed property, plant and equipment of PETRONAS Gas Berhad as at 31 March 2011 as set out below (Continued):-
Location
Export Terminal Operation
Tanjung Sulong,
24000 Kemaman,
Terengganu Darul Iman
Lot No. 1314
Lot No. 1333
Centralised Utility
Facilities (CUF)
Operations, Kertih
Kertih Integrated
Petrochemical Complex,
Km 105, Jalan Kuantan
- Kuala Terengganu,
24300 Kertih, Kemaman,
Terengganu Darul Iman
Acquisition
Date Tenure
24.07.1993
24.07.1993
Lot No. 8065 21.12.1999
PAHANG
Kuantan Regional
Operations Offi ce Lot 1,
Sector 1,
Bandar Indera Mahkota,
25200 Kuantan,
Pahang Darul Makmur
Lot No. PT16756 04.01.1989
Leasehold
Expiry :
19.03.2025
(40 years)
11.03.2027
(40 years)
Leasehold
Expiry :
19.08.2060
(60 years)
Leasehold
Expiry :
04.01.2088
(99 years)
Description
and usage
Leasehold land
Plant
Unit 1,2,3,4
Offi ce
Administration
building
Marine facility
Breakwater
Jetty
Leasehold land
Plant
CGN B
CGN C
CGN D, E, F
Water Plant
CGN G
ASU
Lab & Workshop
Control Room
Offi ce
Administration
building
Leasehold land
Offi ce
Regional Offi ce
Land Area
(hectare)
9.7
2.7
37.1
Age of Plant
and Building
(years)
26.4
26.4
11.3
11.3
10.8
10.8
10.9
10.0
10.0
9.8
10.1
Build-up
Area
(sq. m)
1,146
667
667
2,000
2,000
667
15,451
729
1,820
514
11.2 19.4 2,428
Net Book
Value as at
31 March 2011
(RM’000)
156,540
995,768
9,065

Summary of Landed Property,
Plant and Equipment
198 petronas gas berhad (101671-h)
A summary of the landed property, plant and equipment of PETRONAS Gas Berhad as at 31 March 2011 as set out below (Continued):-
Location
Kuantan Compressor
Station,
Kampung Mahkota,
Km 19, Jalan Gambang,
26070 Kuantan,
Pahang Darul Makmur
Lot No. PT60398 04.01.1989
Centralised Utility
Facilities (CUF)
Operations, Gebeng
Lot 139A,
Gebeng Industrial Area,
Phase III
26080 Kuantan,
Pahang Darul Makmur
Lot No. PT15127
JOHOR
Segamat Operation
Centre,
Gas Transmission System,
Km 10, Lebuhraya
Segamat-Kuantan
85000 Segamat,
Johor Darul Takzim
Lot No. PTD564 22.09.1991
Acquisition
Date Tenure
Leasehold
Expiry :
26.08.2101
(99 years)
17.11.1999 Leasehold
Expiry :
08.01.2100
(99 years)
Leasehold
Expiry :
18.02.2102
(99 years)
Description
and usage
Leasehold land
Plant
Compressor Station
Compressor Station
Leasehold land
Plant
CGN A
CGN B
CGN C
N2GEN
Water Plant
Office
Maintenance
building
Warehouse
Leasehold land
Plant
Compressor
Station
Office
Operation Centre
Land Area
(hectare)
20.1
18.8
61.3
Age of Plant
and Building
(years)
17.3
1.4
11.3
11.3
11.3
11.3
10.8
9.8
9.8
13.2
19.6
Build-up
Area
(sq. m)
1,142
4,378
667
667
667
360
2,000
1,015
1,004
2,792
8,080
Net Book
Value as at
31 March 2011
(RM’000)
181,374
470,710
93,943

199 annUaL report 2011
A summary of the landed property, plant and equipment of PETRONAS Gas Berhad as at 31 March 2011 as set out below (Continued):-
Location
Pasir Gudang Regional
Operations Offi ce,
PLO 332, Jalan Perak 4,
Pasir Gudang Industrial
Area, 81700 Pasir Gudang,
Johor Darul Takzim
Lot No. PTD84942 23.04.1989
NEGERI SEMBILAN
Seremban Regional
Operations Offi ce, Km 11,
Jalan Seremban - Tampin,
71450 Sg. Gadut,
Seremban,
Negeri Sembilan
Darul Khusus
Acquisition
Date Tenure
Leasehold
Expiry :
22.04.2088
(99 years)
Lot No. PT1131 16.02.1994 Freehold
SELANGOR
Shah Alam Regional
Operations Offi ce,
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
Meru Compressor Station,
Lot 1586 (G3907),
Mukim of Jeram,
District of Kuala Selangor,
Selangor Darul Ehsan
Lot No. PT6875 04.08.1998
Leasehold
Expiry :
11.10.2089
(99 years)
Leasehold
Expiry :
10.08.2107
(99 years)
Description
and usage
Leasehold land
Offi ce
Regional Offi ce
Freehold land
Offi ce
Regional Offi ce
Leasehold land
Offi ce
Regional Offi ce
Leasehold land
(Vacant)
Land Area
(hectare)
4.1
15.1
2.9
Age of Plant
and Building
(years)
Build-up
Area
(sq. m)
19.7 2,428
19.6 2,428
19.3 2,428
Net Book
Value as at
31 March 2011
(RM’000)
6,284
7,390
7,854
5.4 N/A N/A 1,140

Summary of Landed Property,
Plant and Equipment
200 petronas gas berhad (101671-h)
A summary of the landed property, plant and equipment of PETRONAS Gas Berhad as at 31 March 2011 as set out below (Continued):-
Location
PERAK
Sitiawan Regional
Operations Office,
Lot 33263, Jalan Dato’
Ahmad Yunus,
32000 Sitiawan,
Perak Darul Ridzuan
Lot No. PT4535 04.11.1997
KEDAH
Gurun Regional
Operations Office,
PO Box 31,
Km 1, Jalan Jeniang
08300 Gurun,
Kedah Darul Aman
Lot No. PT5841 18.12.1997
8.0 km TTM Pipeline land
at District of Kubang
Pasu, Kedah Darul Aman
SARAWAK
Miri Operations Office,
Lot 2075, Block 4,
Jalan Cattleya 2B,
Piasau Industrial Area,
PO Box 1504, 98008 Miri,
Sarawak
Bintulu Gas Meter Station,
Kidurong Industrial Area,
Part of Lot 155
Block 20
Kemena Land District,
97007 Bintulu, Sarawak
Acquisition
Date Tenure
Leasehold
Expiry :
27.06.2101
(99 years)
Leasehold
Expiry :
22.04.2102
(99 years)
1.11.2006 Leasehold
Expiry :
31.10.2105
(99 years)
Lot No. 1646 21.10.2004 16.07.2067
(60 years)
Description
and usage
Leasehold land
Office
Regional Office
Leasehold land
Office
Regional Office
Pipeline
Pipeline across
8.0 km
N/A Pipeline
Meter Station
Pipeline across
42.2 km
Pipeline
Meter Station
Pipeline across
4.2 km
Land Area
(hectare)
3.2
2.9
24.3
N/A –
located
along road
reserve
area
0.1
Age of Plant
and Building
(years)
Build-up
Area
(sq. m)
13.4 1,604
12.5 1,604
6.0 N/A
21 2,066
14.4 630
Net Book
Value as at
31 March 2011
(RM’000)
4,758
5,278
895
10,600
3,437

201 annUaL report 2011
A summary of the landed property, plant and equipment of PETRONAS Gas Berhad as at 31 March 2011 as set out below (Continued):-
Location
PIPELINES
PGU I – total gas
pipeline comprises 6
km from Kertih to Paka,
Terengganu and 32 km
from Kertih to Teluk
Kalong, Terengganu and
two 40kms of lateral
line from the GPPs to
the Export Terminal
in Tanjung Sulong,
Terengganu Darul Iman
PGU II – total gas pipeline
comprises
Sector 1 – 233 km from
Teluk Kalong, Terengganu
to Segamat, Johor,
Sector 2 – 241 km from
Segamat, Johor to Kapar,
Selangor, &
Sector 3 - 211 km from
Segamat, Johor to
Singapore.
Acquisition
Date Tenure
20.03.1985 Leasehold
Expiry :
(40,60 and
99 years)
01.01.1992 Leasehold
Expiry :
(99 years)
Description
and usage
Pipelines
Pipelines in
leasehold land
Terengganu :
49 lots
Pipelines
Pipelines in
leasehold land
Terengganu :
20 lots
Pahang :
325 lots
Johor :
641 lots (Inclusive
Loop 1 & Loop 2)
Melaka :
141 lots
Negeri Sembilan :
267 lots
Selangor :
137 lots
Land Area
(hectare)
Terengganu :
272.1
Terengganu :
81.1
Pahang :
516.0
Johor :
961.7
Melaka :
192.4
Negeri
Sembilan :
462.7
Selangor :
278.9
Age of Plant
and Building
(years)
Build-up
Area
(sq. m)
Net Book
Value as at
31 March 2011
(RM’000)
26.5 N/A 27,231
19.3 N/A 530,328

Summary of Landed Property,
Plant and Equipment
202 petronas gas berhad (101671-h)
A summary of the landed property, plant and equipment of PETRONAS Gas Berhad as at 31 March 2011 as set out below (Continued):-
Location
PGU III – total gas pipeline
comprises
Sector 1 - 184 km from
Meru, Selangor to Lumut,
Perak, Sector 2 - 176 km
from Lumut, Perak to
Gurun, Kedah,
Sector 3 - 90 km of NPS
36” mainline from Gurun
to Pauh, Perlis.
PGU Loop 1 – total gas
pipeline of 265 km from
Kertih, Terengganu to
Segamat, Johor.
PGU Loop 2 – total gas
pipeline of 226 km from
Segamat, Johor to Meru,
Selangor.
Acquisition
Date Tenure
06.01.1996 Leasehold
Expiry :
(99 years)
Description
and usage
Pipelines
Pipelines in
leasehold land
Selangor :
92 lots
WP Kuala Lumpur :
14 lots
Perak :
360 lots
Penang :
97 lots
Kedah :
265 lots
Perlis :
74 lots
04.10.1999 Pipelines
Pipelines in
leasehold land
Terengganu:
77 lots
Pahang:
363 lots
01.11.2000 Pipelines
Pipelines in leasehold
land (Part of PGU’s
document of title)
Land Area
(hectare)
Selangor :
178.6
WP Kuala
Lumpur :
17.9
Perak :
543.7
Penang :
119.5
Kedah :
492.2
Perlis :
87.3
Terengganu :
142.2
Pahang :
127.6
Age of Plant
and Building
(years)
Sector 1 :
15.3
Sector 2&3 :
13.4
Build-up
Area
(sq. m)
N/A
N/A
Net Book
Value as at
31 March 2011
(RM’000)
588,688
11.6 N/A 365,756
10.6 N/A 396,360
TOTAL 5,971,822
Abbreviations:
CGN : Cogenerator Plant
DPCU : Dew Point Control Unit Plant
GPP : Gas Processing Plant
N2GEN : Nitrogen Generator
ASU : Air Separation Unit

Training Programmes
Attended by Directors
1. Datuk Anuar bin Ahmad
• 15 th Asia Oil and Gas Conference
203 annUaL report 2011
• Corporate Governance & Boardroom Issues in Challenging Times Workshop February 2011
2. Samsudin bin Miskon
• 15 th Asia Oil and Gas Conference
• Petronas GHSE Forum
• MC Expectation Setting (MCES) Workshop
• Gas Conference 2010
• Young Leaders Forum FY10/11
• Leadership Behaviours by Cubiks
• Corporate Governance & Boardroom Issues in Challenging Times Workshop
• Program Tamrin Qiadi BAKIP
• Nurturing Leadership Edge Workshop
3. Dato’ N. Sadasivan s/o N. N. Pillay
• Khazanah Megatrends Forum - “Reclaiming the Commons : Collaborating and Competing
in The New Economic Order”
• Board Dialogue on Human Capital Leadership - “New Business Frontier : Innovative Human Capital”
• Workshop on GST and Transfer Pricing “MIA-Continuing Professional Education”
• Boardroom Experience
• Sustainability Programme for Corporate Malaysia - on Trading Services and Industrial Products
4. Dato’ Chew Kong Seng
• Competency as the Backbone of Transformation
• Banking Insights
• Corporate Governance Week – Roundtable and Independent Directors – Actual vs Perceived Independent
• Risk Management – Things Can Still Go Wrong
• Powering Business Sustainability
• Sustainability Session for Directors
• Innovate or Stagnate
• Assessing Risk and Control Environment
June 2010
August 2010
October 2010
December 2010
January 2011
January 2011
February 2011
February 2011
March 2011
October 2010
October 2010
October 2010
November 2010
March 2011
May 2010
June 2010
June 2010
October 2010
November 2010
February 2011
March 2011
March 2011

Training Programmes
Attended by Directors
5. Datuk Mohd Zain bin Haji Abdul Majid
• Directors Duties & Governance Conference 2010 “Towards Boardroom Excellence
& Corporate Governance Best Practices”
6. Muri bin Muhammad
• NIL
7. Rosli bin Boni
• Offshore Technology Conference
• MAP Course
• Corporate Governance & Boardroom Issues in Challenging Times Workshop
• Offshore Asia Conference
8. Ramlan bin Abdul Malek
• 15 th Asia Oil and Gas Conference
• Corporate Governance & Boardroom Issues in Challenging Times Workshop
9. Mohammad Medan bin Abdullah
• 15 th Asia Oil and Gas Conference
• Corporate Governance & Boardroom Issues in Challenging Times Workshop
10. Lau Nai Tuang
204 petronas gas berhad (101671-h)
January 2010
May 2010
January 2011
February 2011
March 2011
June 2010
February 2011
June 2010
February 2011
• 15 th Asia Oil and Gas Conference June 2010

Analysis of Shareholdings
as at 31 May 2011
Category No. of Shareholders
205 annUaL report 2011
% of Total
Shareholders No. of Shares
% of Total
Shareholdings
Less than 100 115 1.02 1,880 0.00
100 - 1,000 8,125 72.27 7,776,509 0.39
1,001 - 10,000 2,399 21.34 8,152,526 0.41
10,001 - 100,000 394 3.50 14,443,448 0.73
100,001 to less than 5% of issued shares 207 1.84 399,417,552 20.19
5% and above of issued shares 3 0.03 1,548,940,000 78.28
Total 11,243 100 1,978,731,915 100
Classification of Shareholders
No. of Shareholders No. of Shares Shares Percentage
Malaysian Foreigner Malaysian Foreigner Malaysian Foreigner
INDIVIDUAL 9,769 92 15,938,923 355,127 0.80 0.02
BODY CORPORATE
Banks/fi nance companies 43 – 373,283,700 – 18.87 –
Investments trusts/foundation/charities 7 – 145,000 – – –
Other types of companies 238 6 5,158,902 102,000 0.26 0.01
GOVERNMENT AGENCIES/INSTITUTIONS 10 – 1,641,000 – 0.08 –
NOMINEES 737 341 1,496,914,100 85,193,163 75.65 4.31
OTHERS – – – – – –
Total 10,804 439 1,893,081,625 85,650,290 95.66 4.34
List of Directors’ Shareholdings
No. Name No. of Shares
% of Total
Shareholdings
1 Datuk Anuar bin Ahmad – 0.00
2 Dato’ Sadasivan s/o N.N. Pillay – 0.00
3 Dato’ Chew Kong Seng – 0.00
4 Datuk Mohd Zain bin Haji Abdul Majid – 0.00
5 Muri bin Muhammad - *Mayban Securities Nominees (Tempatan) Sdn Bhd 7,000 0.00
6 Samsudin bin Miskon – 0.00
7 Lau Nai Tuang – 0.00
8 Ramlan bin Abdul Malek – 0.00
9 Mohammad Medan bin Abdullah – 0.00
10 Rosli bin Boni – 0.00
* Shares held in nominees’ name

Analysis of Shareholdings
as at 31 May 2011
List of Directors’ Shareholdings in PetronaS Dagangan Berhad
206 petronas gas berhad (101671-h)
No. Name No. of Shares
% of Total
Shareholdings
1 Datuk Anuar bin Ahmad 2,000 0.00
2 Dato’ Sadasivan s/o N.N. Pillay – 0.00
3 Dato’ Chew Kong Seng – 0.00
4 Datuk Mohd Zain bin Haji Abdul Majid – 0.00
5 Muri bin Muhammad - *Mayban Securities Nominees (Tempatan) Sdn Bhd 10,000 0.00
6 Samsudin bin Miskon – 0.00
7 Lau Nai Tuang – 0.00
8 Ramlan bin Abdul Malek – 0.00
9 Mohammad Medan bin Abdullah – 0.00
10 Rosli bin Boni – 0.00
* Shares held in nominees’ name
List of Directors’ Shareholdings in KLCC Property Holdings Berhad
No. Name No. of Shares
% of Total
Shareholdings
1 Datuk Anuar Bin Ahmad – 0.00
2 Dato’ Sadasivan s/o N.N. Pillay – 0.00
3 Dato’ Chew Kong Seng – 0.00
4 Datuk Mohd Zain bin Haji Abdul Majid – 0.00
5 Muri bin Muhammad – 0.00
6 Samsudin bin Miskon – 0.00
7 Lau Nai Tuang – 0.00
8 Ramlan bin Abdul Malek – 0.00
9 Mohammad Medan bin Abdullah – 0.00
10 Rosli bin Boni – 0.00

Analysis of Shareholdings
as at 31 May 2011
List of Directors’ Shareholdings in PetronaS Chemicals Group Berhad
207 annUaL report 2011
No. Name No. of Shares
% of Total
Shareholdings
1 Datuk Anuar bin Ahmad 20,000 0.00
2 Dato’ Sadasivan s/o N.N. Pillay – 0.00
3 Dato’ Chew Kong Seng – 0.00
4 Datuk Mohd Zain bin Haji Abdul Majid – 0.00
5 Muri bin Muhammad 10,000 0.00
6 Samsudin bin Miskon 6,000 0.00
7 Lau Nai Tuang – 0.00
8 Ramlan bin Abdul Malek 10,000 0.00
9 Mohammad Medan bin Abdullah 6,000 0.00
10 Rosli bin Boni 6,000 0.00
List of top 30 Shareholders
No. Names No. of Shares %
1 Cartaban Nominees (Tempatan) Sdn Bhd
(Petroliam Nasional Berhad (Strategic Inv))
2 Citigroup Nominees (Tempatan) Sdn Bhd
(Employees Provident Fund Board)
1,199,768,000 60.63
236,322,100 11.94
3 Kumpulan Wang Persaraan (Diperbadankan) 112,849,900 5.70
4 Amanahraya Trustees Berhad (Skim Amanah Saham Bumiputera) 84,012,900 4.25
5 Amanahraya Trustees Berhad (Amanah Saham Wawasan 2020) 45,114,600 2.28
6 Valuecap Sdn Bhd 38,066,700 1.92
7 Amanahraya Trustees Berhad (Amanah Saham Malaysia) 31,607,800 1.60
8 Amanahraya Trustees Berhad (Amanah Saham Didik) 13,355,600 0.67
9 Malaysia Nominees (Tempatan) Sendirian Berhad
(Great Eastern Life Assurance (Malaysia) Berhad (PAR 1))
12,233,800 0.62
10 Amanahraya Trustees Berhad (As 1Malaysia) 11,700,000 0.59
11 Cartaban Nominees (Asing) Sdn Bhd
(Exempt An For State Street Bank & Trust Company (West CLTOD17 )
10,586,160 0.53
12 Permodalan Nasional Berhad 10,338,100 0.52
13 Citigroup Nominees (Tempatan) Sdn Bhd
(Exempt An For Prudential Fund Management Berhad)
14 HSBC Nominees (Asing) Sdn Bhd
(BBH and Co. Boston for Vanguard Emerging Markets Stock Index Fund)
9,900,000 0.50
8,309,924 0.42
15 Lembaga Tabung Haji 7,019,900 0.35

Analysis of Shareholdings
as at 31 May 2011
List of top 30 Shareholders
208 petronas gas berhad (101671-h)
No. Names No. of Shares %
16 Citigroup Nominees (Tempatan) Sdn Bhd
(Exempt An For American International Assurance Berhad)
6,416,900 0.32
17 Pertubuhan Keselamatan Sosial 4,381,500 0.22
18 HSBC Nominees (Asing) Sdn Bhd
(Exempt An For JPMorgan Chase Bank, National Association (U.A.E))
19 Amanahraya Trustees Berhad
(Sekim Amanah Saham Nasional)
20 HSBC Nominees (Asing) Sdn Bhd
(HSBC-FS for the Navis Asia Navigator Master Fund)
21 Mayban Nominess (Tempatan) Sdn Bhd
(Mayban Trustees Berhad For Public Ittikal Fund (N14011970240))
22 Amanahraya Trustees Berhad
(PNB Structured Investment Fund)
23 Amanahraya Trustees Berhad
(Public Islamic Dividend Fund)
24 Citigroup Nominees (Asing) Sdn Bhd
(CBLDN for Stitching PGGM Depository)
25 HSBC Nominees (Asing) Sdn Bhd
(BNY Brussels for the Wisdomtree Emerging Markets Equity Income Fund)
26 HSBC Nominees (Asing) Sdn Bhd
(Exempt An For JPMorgan Chase Bank, National Association (USA)
27 HSBC Nominees (Asing) Sdn Bhd
(Morgan Stanley & Co International PLC (Firm A/C)
28 HSBC Nominees (Asing) Sdn Bhd
(Credit Suisse (Hong Kong) Limited)
29 Citigroup Nominees (Tempatan) Sdn Bhd
(Employees Provident Fund Board (HDBS))
30 HSBC Nominees (Asing) Sdn Bhd
(BNY Brussels for City of New York Group Trust)
4,141,465 0.21
4,114,200 0.21
3,707,800 0.19
2,985,800 0.15
2,650,000 0.13
2,296,300 0.12
2,279,700 0.12
2,243,672 0.11
1,989,400 0.10
1,946,733 0.10
1,897,800 0.10
1,862,000 0.09
1,734,400 0.09
TOTAL 1,875,833,154 94.80
List of Substantial Shareholders
No. Names No. of Shares % of Total Shareholdings
1 Cartaban Nominees (Tempatan) Sdn Bhd
(Petroliam Nasional Berhad (Strategic Inv) & Petroleum Research Fund)
1,200,304,400 60.66
2 Employees Provident Fund Board 243,958,900 12.33
3 Kumpulan Wang Persaraan (Diperbadankan) 113,669,900 5.74

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 6555 (Corporate Secretary), + 6 03 2051 6992 (General)
Operations / Regional Offi ces:
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
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 Offi ce
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 Offi ce
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 Offi ce
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 Offi ce
Lot 33263, Jalan Dato’ Ahmad Yunus
32000 Sitiawan
Perak Darul Ridzuan
Telephone : + 6 05 692 5611/12/13/14
Fax : + 6 05 692 5615
Gurun Regional Operations Offi ce
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 Offi ce
Lot 1, Sector 1, Bandar Indera Mahkota
25200 Kuantan
Pahang Darul Makmur
Telephone : + 6 09 573 2802
Fax : + 6 09 573 2813
209 annUaL report 2011
Kertih Regional Operations Offi ce
Level 1, PETRONAS East Coast Regional
Offi ce, 24300 Kertih, Kemaman
Terengganu Darul Iman
Telephone : + 6 09 867 3500
Fax : + 6 09 864 0375
Miri Operations Offi ce
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 Offi ce
Lot 1622 & 1623, Ground Floor
Jalan Sommerville, P.O. Box 2190
97011 Bintulu
Sarawak
Telephone : + 6 086 316 517
Fax : + 6 086 311 960
Kimanis Power Sdn. Bhd.
Suite B-12-3a, Block B,
Level 3a, KK Times Square,
Off Coastal Highway,
88100 Kota Kinabalu,
Sabah
Telephone : +6 088 324 200
Fax : +6 088 324 223

Notice of Annual General Meeting
NOTICE IS HEREBY GIVEN that the Twenty Eighth Annual General Meeting
of the Company will be held at Ballroom 2 & 3, Intercontinental Hotel,
Jalan Ampang, Kuala Lumpur on Friday, 22 July 2011 at 9.30 a.m. to
consider the following matters:
Agenda
As Ordinary Business
1. To receive the Audited Financial Statements for the financial year
ended 31 March 2011 together with the Reports of the Directors
and Auditors thereon. (Resolution 1)
2. To approve the payment of final dividend of 35% per ordinary
share under the single tier system in respect of the financial year
ended 31 March 2011. (Resolution 2)
3. To re-elect the following Director pursuant to Article 93 of the
Company’s Articles of Association:
(a) Encik Samsudin bin Miskon (Resolution 3)
4. To re-elect the following Directors pursuant to Article 96 of the
Company’s Articles of Association:
(a) Datuk Anuar bin Ahmad (Resolution 4)
(b) Ramlan bin Abdul Malek (Resolution 5)
(c) Rosli bin Boni (Resolution 6)
(d) Mohammad Medan bin Abdullah (Resolution 7)
5. To approve the Directors’ fees in the sum of RM755,000 in respect
of the financial year ended 31 March 2011. (Resolution 8)
6. To re-appoint Messrs. KPMG Desa Megat & Co. as Auditors of the
Company and to authorise the Directors to fix their remuneration.
(Resolution 9)
210 petronas gas berhad (101671-h)
As Special Business
7. 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’ Sadasivan s/o N.N. Pillay 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.”
(Resolution 10)
8. To transact any other business for which due notice has been
given.
Notice of Dividend Entitlement and Payment
NOTICE IS ALSO HEREBY GIVEN that subject to the approval of members
at the Twenty Eighth Annual General Meeting to be held on 22 July
2011, a final dividend of 35% per ordinary share under the single tier
system will be paid on 17 August 2011 to the shareholders whose
names appear in the Register of Depositors on 29 July 2011.
A Depositor shall qualify for entitlement only in respect of:
(a) Shares transferred into the Depositor’s Securities Account before
4.00 p.m. on 29 July 2011 in respect of ordinary transfers.
(b) Shares bought on Bursa Malaysia Securities Berhad on a cum
entitlement basis according to the Rules of Bursa Malaysia Securities
Berhad.
By Order of the Board
Noryati binti Mohd Noor (LS 0008877)
Yeap Kok Leong (MAICSA 0862549)
Company Secretaries
Kuala Lumpur
30 June 2011

Notice of Annual General Meeting
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 defi ned
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 offi cer or attorney duly authorised and shall be deposited at the
offi ce of the Company’s Share Registrar, Symphony Share Registrars Sdn.
Bhd., Level 6, Symphony House, Pusat Dagangan Dana 1, Jalan PJU 1A/46,
47301 Petaling Jaya, Selangor Darul Ehsan, at least 48 hours before the
meeting, or if the meeting is adjourned at least 48 hours before the time
fi xed for the adjourned meeting.
211 annUaL report 2011
If this Proxy Form is signed under the hand of an offi cer duly authorised,
it should be accompanied by a statement reading “signed as authorised
offi cer 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:
(i) Section 129 of the Companies Act, 1965
Pursuant to Section 129 of the Companies Act, 1965 in Malaysia,
the proposed Resolution 11 is to seek shareholders’ approval on the
re-appointment of Directors who are over the age of seventy.
(ii) Datuk Mohd Zain bin Haji Abdul Majid and Dato’ Chew Kong Seng
are not seeking re-appointment as Directors of the Company.

petronas gas berhad (101671-h)
Proxy Form
I/We
of
(Full Name In Capital Letters)
(Full Address)
being a *Member/Members of PETRONAS GAS BERHAD, do hereby appoint
of
of
or failing him
(Full Address)
(Full Address)
(Full Name In Capital Letters)
(Full Name In Capital Letters)
or failing him, the CHAIRMAN OF MEETING, as *my/our proxy to vote for *me/us and on *my/our behalf at the Twenty Eighth Annual General
Meeting to be held at Ballroom 2 & 3, Intercontinental Hotel, Jalan Ampang, Kuala Lumpur on Friday, 22 July 2011 at 9.30a.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 2011 together
with the Reports of the Directors and Auditors.
2. To approve the payment of final dividend of 35% per ordinary share under the single tier system
in respect of the financial year ended 31 March 2011.
3. To re-elect Samsudin bin Miskon as Director under Article 93 of the Company’s Articles of Association.
4. To re-elect Datuk Anuar bin Ahmad as Director under Article 96 of the Company’s Articles
of Association.
5. To re-elect Ramlan bin Abdul Malek as Director under Article 96 of the Company’s Articles
of Association.
6. To re-elect Rosli bin Boni as Director under Article 96 of the Company’s Articles of Association.
7. To re-elect Mohammed Medan bin Abdullah as Director under Article 96 of the Company’s Articles
of Association.
8. To approve the Directors’ fees in the sum of RM755,000 in respect of the financial year ended
31 March 2011.
9. To re-appoint Messrs. KPMG Desa Megat & Co. as Auditors of the Company and to authorise
the Directors to fix their remuneration.
SPECIAL BUSINESS
10. To re-appoint Dato’ Sadasivan s/o N.N. Pillay as Director in accordance with Section 129 (6)
of the Companies Act, 1965.
11. To transact any other business for which due notice has been given.
* Strike out whichever not applicable.
No. of Shares Held
As witness my/our hand this day of 2011.
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 question 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
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 Company’s Share Registrar, Symphony Share Registrars Sdn Bhd, Level 6, Symphony House, Pusat Dagangan Dana 1,
Jalan PJU 1A/46, 47301 Petaling Jaya, Selangor, at least 48 hours before the meeting, or if the meeting is adjourned at least 48 hours before the time fixed for the a
djourned 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.

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Symphony Share Registrars Sdn Bhd
Level 6, Symphony House, Pusat Dagangan Dana 1,
Jalan PJU 1A/46, 47301 Petaling Jaya,
Selangor Darul Ehsan, Malaysia
Affix
Stamp

PETRONAS Gas Berhad (101671-H)
Tower 1, PETRONAS Twin Towers
Kuala Lumpur City Centre
50088 Kuala Lumpur
Tel : (+603) 2051 5000
Fax : (+603) 2051 6555
www.petronasgas.com