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ANNOUNCEMENT DETAILS:

STRATEGIC & FINANCIAL MATTERS

1. PGB has entered into the new Gas Processing Agreement (GPA) and Gas Transportation Agreement (GTA) with PETRONAS for a period of 5 years effective from 1 April 2014, being the first term from 2014 to 2019

How would the new fees structure in the new agreement benefit PGB in terms of revenue?

  • As an infrastructure company, the GPA has been structured to provide a stable revenue base through higher reservation charge. The Performance Based Structure income from liquid by-products are now focusing on improving PGB own efforts and capability to enhance liquid extraction efficiency, which is free from external factors.

  • The new GTA postage tariff is in line with the anticipated implementation of Third Party Access (TPA) which will provide level playing field for shippers end users throughout the nation.

  • The new GPA and GTA are expected to provide revenue stability and delivering sustainable and steady returns to PGB.

2. During the year, the Regasification business had started to contribute to PGB's revenue and earnings.

(i) Is there any indicative timeline on the progress of the Lahad Datu LNG Regasification Terminal (RGT)?

  • The progress of the regasification terminal project in Lahad Datu, Sabah, would be dependent on finalisation of the gas-fired power plant in Lahad Datu, of which PGB is currently awaiting further decision from the Ministry of Energy, Green Technology and Water.

(ii) What would be the capacity of this RGT?

  • The capacity will also be dependent on the finalisation of the size of gas-fired power plant in Lahad Datu, which is expected to be smaller than our existing LNG Regasification Terminal in Sungai Udang, Melaka.

3. The revenue of the Utilities segment had decreased by RM 79 million (8.3%) in 2013 compared to the previous year due to lower offtake by customers. What would be the expected performance of this segment for 2014?

  • We are expecting better petrochemicals customers' offtake in FY2014, in view of lesser customers' planned turnaround maintenance activities.

CORPORATE GOVERNANCE

We would also like to encourage the Minutes of the AGM be published on the Company's website to be in line with the spirit of transparency and good Corporate Governance practices based on the ASEAN CG Scorecard which is being used to assess the level of CG standards of PLCs in Malaysia by MSWG

We take note and thank MSWG for the recommendation on the publishing of the Minutes of the AGM on our Company's website in line with the spirit of transparency and good corporate governance practice. We will take the matter into due consideration for future practice.

PGB's Reply to MSWG Queries is also available at the Investor Relations Section of this website. Alternatively, you may click here to go to the section.

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