Industry Overview

8. INDUSTRY OVERVIEW 8. INDUSTRY OVERVIEW Frost & Sullivan Malaysia Sdn Bhd (522293W)  Suite E-08-15, Block E, Plaza Mont’ Kiara,  2 Jalan Kiara, Mont’ Kiara,  50480 Kuala Lumpur,  Malaysia.  Tel: +603.6204.5800  Fax: +603.6201.7402  The Board of Directors  GAS MALAYSIA BERHAD  5, Jalan Serendah 26/17  Seksyen 26, Peti Surat 7901  40732 Shah Alam  Selangor
(Prepared for inclusion in this Prospectus) Dear Sirs, Executive Summary .of the Independent Market Research Report on the Natural Gas Distribution Industry in Malaysia for Gas Malaysia Berhad (uGMB” or the “Company”) We, Frost & Sullivan Malaysia Sdn Bhd (“Frost & Sullivan”), have prepared the Executive Summary of the Independent Market Research report on the natural gas distribution industry in 18thMalaysia (“Report”) for inclusion in GMB’s Prospectus dated May 2012 (“Prospectus”) in relation to the initial pUblic offering and the listing of GMB on the Main Market of Bursa Malaysia Securities Berhad. This research is undertaken with the purpose of proViding an overview of the natural gas distribution industry in Malaysia. Frost & Sullivan has prepared this report in an independent and objective manner and has taken adequate care to ensure the accuracy and completeness of the report. We believe that this report presents a true and fair view of the industry within the limitations of, among others, secondary statistics and primary research, and does not purport to be exhaustive. Our research has been conducted with an “overall industry” perspective and may not necessarily reflect the performance of individual companies in the industry. Frost & Sullivan shall not be held responsible for the decisions and/or actions of the readers of this report. This report should also not be considered as a recommendation to buy or not to buy the shares of any company or companies as mentioned in this report or otherwise. For and on behalf of Frost & Sullivan Malaysia Sdn Bhd:
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8. INDUSTRY OVERVIEW (Cont’d) © April 2012 Frost & Sullivan The market research process for this study has been undertaken through secondary or desktop research, as well as detailed primary research, which involves discussing the status of the industry with leading industry participants and industry experts. The research methodology used is the Expert Opinion Consensus Methodology. Quantitative market information could be sourced from interviews by way of primary research and therefore, the information is subject to fluctuations due to possible changes in the business and industry climate. This market research was completed in August 2011 with data updated in April 2012, based on availability of the same. This report is prepared for inclusion in the Prospectus of Gas Malaysia Berhad for submission to the Securities Commission Malaysia and other relevant parties. No part of this research service may be otherwise given, lent, resold, or disclosed to non­customers without our written permission. Furthermore, no part may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without our permission. Frost & Sullivan has prepared this report in an independent and objective manner and has taken adequate care to ensure the accuracy and completeness of the report. We believe that this report presents a true and fair view of the industry within the limitations of, among others, secondary statistics and primary research, and does not purport to be exhaustive. Our research has been conducted with an “overall industry” perspective and may not necessarily reflect the performance of individual companies in the industry. Frost & Sullivan shall not be held responsible for the decisions and/or actions of the readers of this report. This report should also not be considered as a recommendation to buy or not to buy the shares of any company or companies as mentioned in this report or otherwise. For further information, please contact: Frost & Sullivan Malaysia Sdn Bhd Suite E-08-15, Block E, Plaza Mont’ Kiara 2, Jalan Kiara, Mont’ Kiara 50480 Kuala Lumpur. 8. INDUSTRY OVERVIEW (Cont’d)

1 ECONOMIC OVERVIEW The global economic and financial conditions continued to experience stress in the fourth quarter of 2011, following heightened concerns over the resolution of the European sovereign debt crisis. Growth in the advanced economies was affected by high unemployment, weak housing markets and fiscal issues while growth in Asia was affected by weaker external demand. Despite the challenging external environment, the Malaysian economy expanded by 5.2% (3Q 11: 5.8%), with growth being underpinned by domestic demand. The favourable domestic demand conditions were supported by both private and public sector spending. On the supply side, the services sector recorded slower growth, while the manufacturing sector grew at a similar pace to the previous quarter, reflecting the weaker external environment amid sustained growth in domestic activity. Other sectors, however, recorded improvements during the quarter, while the agriculture sector continued to record strong growth. For the whole year, the Malaysian economy expanded by 5.1%. Domestic demand expanded by 10.5% during the quarter (3Q 11: 9.0%), driven by the continued expansion in household and business spending, and public sector expenditure. Private consumption increased by 7.1 % (3Q 11: 7.3%), supported by favourable income growth while public consumption expanded by 23.6% (3Q 11: 21.7%) following higher expenditure on emoluments and supplies and services. Gross fixed capital formation increased by 8.5% (3Q 11: 6.1 %), supported by continued expansion in capital spending by the private sector and the non-financial public enterprises. The Federal Government development expenditure during the quarter was mostly channeled into the transportation, and trade and industry sectors. On the supply side, activity in the services sector moderated in the fourth quarter, while the manufacturing sector expanded at a similar pace to the previous quarter. This trend reflected the weaker external environment amid strong performance in domestic­oriented activity. The agriculture sector continued to expand on account of strong production of crude palm oil, while mining output recorded a slower contraction. The construction sector registered higher growth, supported by the implementation of major infrastructure projects. The headline inflation rate, as measured by the annual change in the Consumer Price Index (CPI), declined to 3.2% in the fourth quarter (3Q 11: 3.4%). Inflation in the transport category was lower at 3.2% (3Q 11: 4.3%) as the impact of the one-off adjustment to the prices of RON95 petrol, diesel and LPG in December 2010 wore off. Inflation in the food and non-alcoholic beverages category, however, rose to 5.3% during the quarter (3Q 11: 4.8%), mainly due to higher prices in the fish and seafood subcategory. 8. INDUSTRY OVERVIEW (Cont’d) In the external sector, the current account surplus narrowed in the fourth quarter, but remained large at RM22 billion, equivalent to 10.1 % of Gross National Income (GNI). The lower surplus reflected the lower goods surplus, higher trade deficits and larger income outflows. The goods surplus was slightly lower at RM36.9 billion as gross exports expanded at a more moderate pace (9.8%; 3Q 11: 11.4%), while import growth was sustained (7.6%; 3Q 11: 7.4%). The financial account turned around from a net outflow position to record a small net inflow of RMO.2 billion in the fourth quarter (3Q 11: -RM23.3 billion), due to the significantly smaller net outflow of portfolio funds and higher net inflow of other investments. During the quarter, foreign direct investment recorded a higher net inflow of RM6.5 billion (3Q 11: +RM5.2 billion), supported by higher retained earnings by the multinational companies (MNCs) in Malaysia and higher inflow of equity capital. Direct investments abroad by Malaysian companies increased further to -RM14.4 billion (3Q 11 :-RM12.9 billion), reflecting higher outflow of equity capital and larger earnings retained abroad for reinvestment purposes. The overall balance of payments continued to remain strong, recording a surplus of RM6.3 billion in the fourth quarter (3Q 11: RM10.9 billion), as the current account surplus remained high and the financial account registered a net inflow position. The international reserves of Bank Negara Malaysia amounted to RM423.4 billion (equivalent to USD133.6 billion) as at 31 December 2011. The reserves level as at 31 December 2011 has taken into account the quarterly adjustment of the foreign exchange revaluation loss, following the strengthening of the ringgit against some major currencies during the quarter. As at 31 January 2012, the reserves position amounted to RM424.8 billion (equivalent to USD134.1 billion), sufficient to finance 9.6 months of retained im ports and is 4.1 times the short-term external debt. For the Malaysian economy, the favourable growth in the fourth quarter was underpinned by sustained domestic demand amid weaker external demand. Going forward, the more challenging external environment could present greater downside risks to Malaysia’s growth prospects. Nevertheless, domestic demand is expected to continue to be the key driver of growth, supported primarily by the continued expansion of private sector activity. Public sector expenditure is also expected to lend strong support to the overall growth performance. Source: Extracted from the IMR Report prepared by Frost & Sullivan 8. INDUSTRY OVERVIEW (Conf’d) 1.1 TENTH MALAYSIA PLAN AND ECONOMIC TRANSFORMATION PROGRAMME The 10th Malaysia Plan (MP), launched by the Government of Malaysia in late 2010, aims to transform Malaysia into a high income nation during the plan period of 2011 and 2015. It essentially outlines the national development plan on promoting economic growth, as well as socio-economic development, building up and retaining local talent and creating an environment that enhances the quality of life for the nation, and transforming the Government of Malaysia to transform Malaysia, including driving productivity. The Government of Malaysia, via the Performance Management and Delivery Unit (“PEMANDU”), has identified 12 National Key Economic Areas (I\IKEA) which have the potential of transforming Malaysia’s economy. The identified NKEAs are: • Oil, gas and energy
• Financial services
• Wholesale and retail
• Palm oil
• Tourism
• Electronics and electrical
• Business services
• Communications content and infrastructure
• Education
• Agriculture
• Healthcare
• Greater Kuala Lumpur I Klang Valley

Under the Economic Transformation Programme (“ETP”), which is an extension of the 10MP, priority will be given towards developing these 12 NKEAs. According to ETP, the first 11 NKEAs are expected to contribute to 74% of Malaysia’s Gross National Income (“GNI”) over the next decade. To date, the Government of Malaysia has announced several projects, aimed at meeting the targets of 10MP. These include: • To connect the Greater Kuala Lumpur I Klang Valley with Singapore via the high speed rail system. PEMANDU estimates an investment requirement of RM16.5 billion for this effort, which is expected to contribute to an additional annual GNI of RM6.2 billion. 8. INDUSTRY OVERVIEW (Cont’d) • To improve intra-city connectivity within the Greater Kuala Lumpur / Klang Valley via the construction of integrated urban mass rapid transit system. This effort will require an estimated funding of RM47 billion, and translates to a potential annual GNI increase of RM21.3 billion by 2020.
• To establish 61 hyperstores, 163 superstores and 365 supermarkets within departmental stores within the next 10 years. This is expected to increase retails space in Malaysia by 50% from the present 1.4 million square metres. Private funding and investments totaling RM17.4 billion is required for this initiative, which is expected to contribute to a potential GNI of RM8.5 billion annually.
• To increase the total silicon producers in Malaysia by attracting major foreign companies and developing two domestic local companies. A cumulative funding of RM12.5 billion is expected to fund this effort, which is expected to contribute an incremental GNI of RM3.4 billion.
• To position Malaysia as a world class data centre hub and increase data centre space from 0.5 million square feet to 5.0 million square feet by 2020. This is expected to require a funding of RM4.25 billion and contribute a potential incremental GNI of RM2.4 billion annually.
• To launch the EduCity@lskandar fully integrated educational hub comprising universities, institutions of higher education, research and development (“R&D”) centres, accommodation and recreational facilities. This is a privately funded initiative of RM1.2 billion which is expected to generate RM1.0 billion in GNI by 2020.
• To rejuvenate existing oil and gas fields for production, to develop small fields through more intensive exploration activities, and to enhance the growth of Malaysia by unlocking the premium gas demand in Peninsular Malaysia

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8. INDUSTRY OVERVIEW (Conf’d) 2 THE NATURAL GAS DISTRIBUTION INDUSTRY . 2.1 INTRODUCTION The natural gas distribution industry is a sub-set of the oil and gas industry in Malaysia. The natural gas distribution industry involves the distribution of natural gas through a pipeline reticulation system. The molecular composition of natural gas is predominantly methane (CH4) and ethane (C2H6). Natural gas is a colourless, odourless, flammable and non-toxic gas. Natural gas is a low carbon-emitting hydrocarbon fuel. It is a relatively low polluting fossil fuel that releases relatively lower greenhouse gas emissions compared to other hydrocarbon fuels. In Peninsular Malaysia, natural gas is supplied to consumers through the national gas distribution pipelines operated by PETROI\IAS Gas Berhad (“PGB”) and Gas Malaysia Berhad (“GMB”). The natural gas industry is structured within the oil and gas industry with upstream activities involving the exploration, development and extraction of resources and downstream activities involving crude oil refining, product retailing, natural gas processing and transmission, as well as manufacturing and shipping liquefied natural gas (“LNG”). Main petroleum companies involved in the upstream sector are those with Production Sharing Contracts with Petroliam Nasional Berhad (“PETRONAS”). These include PETRONAS Carigali Sdn Bhd (“PCSB”), ExxonMobilExploration and Production Malaysia Inc., Shell Sabah Selatan Sdn Bhd, Nippon Oil Exploration (Peninsula Malaysia) Limited, Lundin Malaysia BV, Sabah Shell Petroleum Co. Ltd. and Sarawak Shell Berhad. PGB is a company involved in natural gas processing in the country. Companies involved in natural gas distribution are PGB and GMB, while the manufacturing of LNG is by Malaysia LNG Sdn Bhd, Malaysia LNG Dua Sdn Bhd, and Malaysia LNG Tiga Sdn Bhd, and the shipping of LNG is through MISC Berhad. The gas distribution industry in Malaysia has its origins as a by-product of the oil industry. In Peninsular Malaysia, the first natural gas discoveries were made by ESSO Malaysia Berhad off the coast of Terengganu in the early 1970s, and associated gas was first produced in 1973. In 1980, PCSB, the exploration arm of PETRONAS drilled its first offshore appraisal well in Terengganu at the Duyong gas field. A year later, PETRONAS commenced operating its liquefied petroleum gas (“LPG”) retail outlets. PGB was incorporated to manage gas operations under PETRONAS in 1983, and the Petronas Carigali Duyong Gas Development Project was completed to supply natural gas from the gas field in the Duyong Gas Development Project to Kertih. PETRONAS exported its first LPG shipment in 1985. 8. INDUSTRY OVERVIEW (Cont’d) .M PGB, through its Plant Operations Division, carries out the gas processing activities, and its Transmission Operations Division carries out the transmission and delivery services of gas to” customers in Peninsular Malaysia. Besides processing and delivering gas, PGB also manufactures, supply and markets industrial utility products to the Kertih Integrated Petrochemical Complex, a petrochemical hub, and Gebeng Industrial Area. GMB was incorporated in 1992 to support the sales and supply of natural gas to customers in Peninsular Malaysia which initially use natural gas in volumes below 2 million standard cubic feet per day (“MMScfd”). 2.2 . INDUSTRY SEGMENTATION The production of natural gas comprises the extraction of natural gas from oil and gas wells. The natural gas may either be in non-associated form whereby the natural gas is practically free of oil and other unwanted hydrocarbons, or it may be in associated form where the gas is either dissolved in crude oil or trapped as gas in crude oil. Natural gas from gas wells is typically non-associated, while natural gas from oil wells is typically associated. Natural gas, whether in associated or non-associated form, will need to be processed before it can be distributed. The processes that natural gas undergoes before it is distributed are the removal of impurities such as water, oil, condensates (Le., petroleum liquids), sulfur, and carbon dioxide. Natural gas liquids are also separated into different hydrocarbon components including ethane (C2H6), propane (C3H8), and butane (C4H10) which can be used to manufacture liquefied petroleum gas, fertilizers, and pesticides. [The rest of this page has been intentionally left blank] l1li111 Executive Summary of the IMR on the Natural Gas Distribution Industry in Malaysia © Frost & Sullivan 2012
8. INDUSTRY OVERVIEW (Conf’dj In Malaysia, the gas distribution companies take the odorised natural gas and distribute it as natural gas. LNG is also processed in Malaysia, but only for export purposes. LNG is created by super-refrigerating the natural gas to -160 Celcius so that it turns into liquid form, thus making it more space saving and easier to transport using LNG tankers globally. LNG is used for transporting large volumes of natural gas to different countries, where it is then regasified and piped as natural gas to consumers in those countries. LPG is also distributed in Malaysia. LPG is a mixture of hydrocarbons, typically propane and butane. It is derived from a number of processes including refinery processes, crude oil stabilisation, and natural gas processing. LPG is a result of liquefaction to allow the gas to be stored in cylinders or tankers and then distributed. LPG is typically used in homes for cooking, in camping and barbecue equipment, at industrial settings, and as transport fuel. Another type of natural gas form used is compressed natural gas (“CNG”). CNG is made by compressing natural gas to a high pressure and the resultant CNG in gaseous form is stored in high pressured cylinders or tankers. CNG is used typically in automotive vehicles, or Natural Gas Vehicles (“NGV”) in Malaysia to replace petrol and diesel fuels. A reticulation system is used to deliver natural gas to consumers. The reticulation system comprises of pipes that connect the compressor station -sometimes known as a City Gate Station in the gas distribution industry in Malaysia -and odorant station forming direct pipelines to industrial users, commercial premises. and to residential homes. Industrial consumers of natural gas include mainly power generation plants and manufacturing companies who use the natural gas as fuel for their smelters, kilns, and boilers. Malaysia constructed its national pipeline network under the Peninsular Gas Utilisation (“PGU”) project from 1984 to 1998, with additional sections being added progressively. The goals of the PGU were, amongst others, to diversify the indigenous primary energy resource in Malaysia, replace imported fuel oil as an energy source to reduce foreign exchange, provide a stable energy feedstock source for industries, produce by-products such as LPG and other condensates, increase foreign exchange earnings through the export of surplus gas resources. The PGU is owned and operated by PGB. The PGU has three sections which includes six gas processing plants and a gas transmission pipeline system that spans the length of the Peninsular: PGU I -32 kilometre (“km”) in length, and commissioned in 1984. Processing and delivery of gas in Terengganu. This included pipelines from offshore Terengganu to the LLN (now known as Tenaga Nasional Berhad (“TNB”)) Power Station in Paka, the Perwaja Terengganu Sdn Bhd steel mill in Teluk Kalong, and the pilot gas reticulation project in Kertih which included the LPG Export Terminal in Tanjung Sulong.
8. INDUSTRY OVERVIEW (Cant’d) PGU II -685km in length, and commissioned in 1991. Bi-coastal piping of gas from Terengganu to Port Klang, Port Dickson, and Singapore. This involved piping gas from the gas processing plant in Terengganu to power stations and industries along the West Coast of Malaysia and Johor, as well as reaching Singapore for sale. PGU III -450km in length, and commissioned in 1998. Delivery of gas through a trans-peninsular pipeline from the Klang Valley to the Prai Power Station in Penang. Peninsular Gas Utilisation Owned and Operated by PGB {Peninsular Malaysia} ____________________ Gas.Fialds in Joint Development Area
Source: Extracted from the IMR Report prepared by Frost & Sullivan 8. INDUSTRY OVERVIEW (Cont’d) PGU I, II, and III are the nation’s main natural gas pipelines, which are further supported by reticulation loops and lateral lines, forming approximately 2,505km of interconnecting natural gas pipelines throughout Peninsular Malaysia. While the PGU delivers natural gas to very large industrial users such as power plants in Peninsular Malaysia, it is primarily a gas transmission line. Connected to the PGU are the natural gas distribution pipelines through the Natural Gas Distribution System (“NGDS”) which is owned and operated by GMB. The NGDS distributes natural gas to a majority of industrial, commercial and residential users in Peninsular Malaysia. Most of these users use smaller volumes of natural gas as compared to power plants, but number higher in terms of users. The NGDS’s reticulation system begins from the City Gate Stations (predominantly owned by PGB with several owned by GMB) which connect to the GMB District Stations, Area Stations, Regulating Stations and Service Stations. The NGDS consists of pipelines, an odorant system, pressure reduction systems, metering systems, cathodic protection systems, and marker systems. 2.3 INDUSTRY SIZE AND GROWTH (I.E. CONSUMPTION) The apparent consumption of natural gas in Malaysia grew from about 315 billion cubic feet in 1990 to an estimated 1,260 billion cubic feet in 2010. This is a three-fold increase over the 21-year period, with a compound annual growth rate (“CAGR”) of about 7.2%. Peninsular Malaysia accounts for approximately 90% of natural gas consumption in Malaysia. Natural Gas Consumption (Malaysia), 1990-2010 Year  Consumption (billion cubic feet)  Growth Rate (%)  1990  315.0  – 1995  484.9  53.9  2000  819.7  69.0  2005  1144.9  39.7  2010  1,260.0  10.1  CAGR 1990-2010  7.2%
Source: Extracted from the IMR Report prepared by Frost & Sullivan While petroleum products accounted for approximately 54.5% of Malaysia’s energy consumption in 2008, natural gas only provided for approximately 23.9% of the nation’s energy use. It is noteworthy that the share of natural gas in the energy consumption mix 8. INDUSTRY OVERVIEW (Cont’d) has been steadily increasing. The use of natural gas has increased at a CAGR of 13.5% between 2000 and 2008, a significantly higher growth compared to 2.8% for petroleum products and 5.3% for total energy use. Many end-users, particularly in the industrial sector, still rely on other fuel sources such as diesel, coal and fuel oils for their needs. Going forward, with continued industrial and manufacturing growth, it is expected that supply will not be able to keep up with demand. In light of this, PETRONAS intends to import LNG into the country which can be illustrated by the following developments I trends: Construction is currently underway for the LNG regasification facility in Sungai Udang, Melaka to receive, store and regasify imported LNG for distribution to customers in Peninsular Malaysia. The project consists of two offshore floating storage units (FSUs) to receive and store LNG, an offshore LNG regasification unit, an island jetty, as well as subsea and onshore pipelines that would transport the gas to the PGU system. The Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) Contract for the LNG Regasification Unit, Island Berth and Subsea Pipeline was awarded in January 2011 to a consortium between Perunding Ranhill Worley Sdn Bhd and Muhibbah Engineering (M) Sdn Bhd. The regasification facilities are expected to be completed by July 2012 and will have maximum throughput capacity of 3.8 million tonnes per year. It is expected that PETRONAS will import LNG from the open market from 2012 onwards. Other sources of import could possibly include import contracts. The following are key import contracts: • Petronas has a 27.5% stake in the Santos-led coalseam gas-based Gladstone LNG project in the eastern Australian state of Queensland and has a 20-year contract to buy 3.5 million mUyear of LNG from the project
• Petronas has signed a contract with France’s GDF Suez for the supply of 2.5 million mt of LNG over three-and-a-half years. Shipments will start from August 2012
• Qatargas has signed an agreement with Petronas to supply the Malaysian company with 1.5 million mUyear of LNG, under a long-term contract. The agreement is for 20 years, with the first LNG cargo to be delivered in 2013.

While the allocations that will be made to consumers from this injection of natural gas has yet to be finalised, it is expected that a majority of the regasified LNG will be used to feed into TNB for electricity, with other possible recipients of the allocation being GMB. The second LNG import and regasification facility for peninsular Malaysia is being planned to be located at Pengerang in the state of Johor. This facility is part of 8. INDUSTRY OVERVIEW (Cont’d) PETRONAS’ US$20 billion Refinery and Petrochemical Integrated Development (Rapid) project. With the construction of regasification terminals, the stage is being set for other suppliers to penetrate the hither-to monopoly market. Pursuant to this expected development, any party can bring in LNG and supply gas to Tenaga Nasional Berhad or other key industrial customers. However, the transportation of such imported LNG would have to rely on the existing pipeline networks which could provide revenue opportunities for the incumbent players, namely, PGB and GMB. Energy Consumption by Non-Power Sector End Users according to Source (Malaysia), 1990-2008 Unit: thousand tonnes of oil equivalent (“ktoe”) 50,000 ..,——————————­
-+–Petroleum Products _ ••-Natural Gas ………… COal ~Electricity ~Total
Year  Petroleum Products  Natural Gas  Coal  Electricity  Total  1990  9,896  1,093  513  1,715  13,217  1995  16,142  1,934  712  3,375  22,164  2000  19,582  3,895  991  5,263  29,699  2005  23,012  6,981  1,348  6,944  38,285  2008  24,451  10,751  1,713  7,986  44,901  CAGR 1990-2008  5.2%  13.5%  6.9%  8.9%  7.0%  CAGR 2000-2008  2.8%  13.5%  7.1%  5.4%  5.3%
Source: Extracted from the IMR Report prepared by Frost & Sullivan 8. INDUSTRY OVERVIEW (Cont’d) Natural gas is used by consumers in the industrial, commercial, transportation and residential sectors, as well as by non-energy clients. The demand for natural gas is driven largely by the industrial sector, or by the increase in manufacturing activities, where natural gas is required to operate equipment such as boilers, furnaces and ovens. Excluding consumption by power plants, the industrial sector is the largest consumer of natural gas accounting for nearly 80% of consumption by non-power plant end-users in 2008, with a CAGR of approximately 17.7% between 1990 and 2008. Consumption of Natural Gas by Non-Power Sector End Users (Malaysia), 1990­2008 Unit: ktoe 12,000 J.__.._.~10,000 …+ ._…__8,000 r 6,000 4,000 +-__2,000 1990 1995 2000 2005 2008 -Industrial “‘~K” Transport -Cl-Residential & Commerical ~Non-Energy _Total
Year  Industrial  Transport  Residential & Commercial  Non-Energy  Total  1990  452  0  32  609  1,093  1995  577  4  289  1,064  1,934  2000  2327  40  16  1,512  3,895  2005  5,317  95  28  1,541  6,981  2008  8,474  194  37  2,046  10,751  CAGR 1990-2008 *CAG R 1995-2008  17.7%  34.8%*  0.8%  7.0%  13.5%  CAGR 2000-2008  17.5%  21.8%  11.0%  3.9%  13.5%
Source: Extracted from the IMR Report prepared by Frost & Sullivan 8. INDUSTRY OVERVIEW (Cont’d) 19 In terms of global consumption levels, Malaysia was ranked as the 26th largest consumer of natural gas in 2010, consuming an estimated 1,144.9 billion cubic feet. This is about 1.0% of global consumption of natural gas. The top five global consumers of natural gas are the United States, Russia, Iran, China and Japan. Together, these five countries accounted for 45.7% of the global consumption of natural gas in 2010. Global natural gas consumption grew at a CAGR of 2.4% between 2006 and 2010. 2.4 PRODUCT SUBSTITUTION Natural gas is used to provide heat and energy to consumers. In terms of a source of fuel and energy, natural gas may be substituted by other hydrocarbons such as, but not limited to, medium fuel oil (“MFO”), LPG, diesel and may potentially be substituted by synthetic or substitute natural gas (SNG) in the future. SNG can be synthesized from coal or biomass. Coal can be converted to SNG through steam and oxygen gasification, while biomass SNG (“bio-SNG”) is currently being developed to create a renewable SNG from biomass gases such as methane. The choice of substituting natural gas with these other fuels is dependent on the value that these resources provide the consumer both in terms of financial cost as well as thermal and calorific value, and the value for money that each unit of resource is able to provide the consumer. The thermal and calorific value of several common fuels during heat combustion shows that comparing by kilogram weight, the main component of ethane in natural gas provides more combustion energy (Le., 1.18 thousand tonnes of oil equivalent per metric tonne (“ktoe/t”)) compared to other fuels such as diesel oil, fuel oil, and biodiesel. Thus, the selection of natural gas as a resource for fuel, feedstock, and heat is a compelling choice due to the efficient nature of this hydrocarbon in terms of energy per weight. Estimated Average Heat Combustion for Common Fuels in Malaysia Fuel  ktoelt  Ethane1  1.180  Liquefied petroleum Qas2  1.089  Natural Qas3  1.059
1 Ethane is a hydrocarbon with the molecular formula C2H6, with two carbon and six hydrogen molecules, which is a colourless and odourless gas extracted from natural gas and refinery gas streams. 2 Liquefied petroleum gases are the light hydrocarbon fraction of the paraffin series, derived from the refinery process, crude oil stabilization plants and natural gas processing plants, comprising of either propane or butane, or a combination of the two. I HIlT Executive Summary of the IMR on the Natural Gas Distribution Industry in Malaysia © Frost & Sullivan 2012 8. INDUSTRY OVERVIEW (Cont’d) 5 Crude oil4  1.035  Dieseloil5  1.015  Bitumen6  0.999  Fueloill  0.992  Biodiesel8  0.879  Charcoal9  0.736
Source: Extracted from the IMR Report prepared by Frost & Sullivan Notwithstanding that there are substitute fuels for natural gas, it can be seen from Malaysia’s fuel mix statistics that natural gas has, in fact, been substituting other forms of fuels over the past decade. It is among the fastest growing fuel source by consumption, having registered a CAGR of 13.5% from 2000 to 2008, outpacing petroleum products and total fuel use at 2.8% and 5.3% respectively over the same period. 2.5 FUEL PRICES IN MALAYSIA The buying and selling prices of natural gas is as a whole regulated and determined by the Government of Malaysia. In Malaysia, PETRONAS subsidises the price of natural gas. For the power sector, prior to July 2008, the Government of Malaysia had set the domestic price of natural gas at RM6.40 per million British thermal units (UMMBtu”) and this was revised to RM14.31 per MMBtu in July 2008 and RM10.70 per MIVIBtu in March 2009. 3 Natural gas here refers to natural gas in liquid or liquefied hydrocarbon form produced in the manufacture, purification and stabilization of natural gas. These are those portions of natural gas which are recovered as liquids in gas fields and gas processing plants. Natural gas liquids include but are not limited to ethane, propane, butane, pentane, natural gasoline and condensate. 4 Crude oil is a mineral oil consisting of a mixture of hydrocarbons of natural origin and associated impurities, such as sulphur. 5 Diesel oil includes heavy gas oils. Gas oils are obtained from the lowest fraction from atmospheric distillation of crude oil, while heavy gas oils are obtained by vacuum redistillation of the residual from atmospheric distillation.
6 Bitumen is a solid, semi-solid or viscous hydrocarbon with a colloidal structure that is brown to black in colour. It is obtained by vacuum distillation of oil residues from atmospheric distillation of crude oil.
1 Fuel oil defines oils that make up the distillation residue. It comprises of residual fuel oils, including those obtained by blending. 8 Biodiesels include biodiesel, biodimethylether, cold pressed bio-oil, and all other liquid biofuels which are added to, blended with, or used straight as transport fuel.
9 Charcoal is produced by the heating of biomass vegetation and animal substances in the absence of oxygen to remove water to leave an impure carbon material that resembles coal.
I• Executive Summary of the IMR on the Natural Gas Distribution Industry in Malaysia 17 © Frost & Sullivan 2012
8. INDUSTRY OVERVIEW (Cont’d) Gas Malaysia Berhad GMB was incorporated in 1992 as a private limited company, and converted into a public limited company in 2011 under its present name. GMB sells, markets, and distributes natural gas to industrial, commercial, and residential customers in Peninsular Malaysia who initially consume less than 2 MIVIScfd per customer, via its NGDS, tapping from the PGU. Moving forward, GMB intends to increase their distribution of natural gas to customers who consume less than 5 MMScfd in 2013. GMB also constructs and operates the NGDS. The NGDS covers approximately 1,800km of pipelines, delivering natural gas to customers in the Northern, Central, Southern and Eastern regions of Peninsular Malaysia. Apart from natural gas, GMB also supplies LPG to its customers in Peninsular Malaysia. PETRONAS Gas Berhad PGB was incorporated in 1983 as a private limited company. PGB was subsequently converted to a public limited company and listed on Bursa Malaysia Securities Berhad in 1995. PETRONAS holds 60.66% equity in PGB. PGB delivers gas to PETRONAS customers in Peninsular Malaysia and Singapore through the PGU pipeline. PGB also supplies natural gas to PETRONAS customers in East Malaysia through two pipelines in Sarawak -a 41 km pipeline in Miri and a 4km pipeline in Bintulu. In total, PGB has 2,550km of main, looping, lateral and interconnection pipelines in operation. PGB serves consumers who use a high volume (Le., greater than 2 MMScfd per customer) of natural gas, mostly to power plants operated by TNB as well as independent power producers in Peninsular Malaysia. PGB has diversified its business activities to include the manufacturing, supplying, and marketing of industrial products to the Kertih Integrated Petrochemical Complex in Terengganu and the Gebeng Industrial Area in Pahang. The natural gas distribution industry in Peninsular Malaysia is segmented in terms of volume. PGB services and supplies to PETRONAS customers who require more than 2 MMScfd of natural gas, while customers that consume less than that amount initially are serviced by GMB. Both industry players have shown positive growth in terms of revenue between 2006 and 2011. GMB has grown from RM 1.2596 billion in revenue in 2006 to RM2.0002 billion at a CAGR of 9.7% over the same period. PGB has grown from RM2.8393 billion in revenue in 2006 to about RM3.525 billion in 2011 at a CAGR of 4.4% in the same period. 8. INDUSTRY OVERVIEW (Cont’d) 2.6.1 MARKET SHARE The volume of natural gas distribution by these two industry players, as measured by the daily average volume of gas delivered to their customers, have recorded an increase annually. GMB has increased its daily average volume of gas delivered from 256 MMScfd in 2006 to 336 MMScfd in 2011, at a CAGR of 5.6%. PGB has increased its daily average volume of gas delivered from 2,122 MMScfd in 2006 to 2,146 MMScfd in 2011, at a CAGR of 0.2%. GMB’s market share has increased from 10.8% in 2006 to 13.5% in 2011. Market Share of Natural Gas Supplied (Peninsular Malaysia), 2011
Source: Extracted from the IMR Report prepared by Frost & Sullivan [The rest of this page is intentionally left blank] 8. INDUSTRY OVERVIEW (Cont’d) 3 DEMAND CONDITIONS 3.1 MARKET DRIVERS In Malaysia, the demand for natural gas is expected to be driven by the growth in the power and industrial sector, as well as the advantages that natural gas offers over other competing fuels. Growth in the industrial and manufacturing sectors in Malaysia The manufacturing sector was the second largest contributor to the economy with its share of GOP at 26.6% in 2009, and 27.7% in 2010. The manufacturing sector continued to grow, albeit at a more moderate pace, in 2011, whereby sales value in December 2011 was recorded at RM48.8 billion, which is a 1.1 % growth compared to RM48.3 billion reported in December 2010. The five major industries whose sales increased significantly namely were: • manufacturing of refined petroleum products,
• manufacturing of basic iron and steel products,
• manufacturing of machine tools,
• manufacturing of fertilisers and nitrogen compounds,
• manufacturing of domestic appliances, not elsewhere classified.

rrhe rest of this page has been intentionally left blank] • ’11m ]f FliP flRlnl Executive Summary of the IMR on the Natural Gas Distribution Industry in Malaysia © Frost & Sullivan 2012
8. INDUSTRY OVERVIEW (Cont’d) GOP for the Manufacturing Sector (Malaysia), 2000 -2011(p} RM billion Percentage 200 .—————————-,–25

Source: Extracted from the IMR Report prepared by Frost & Sullivan In 2011, the manufacturing sector in Malaysia was worth RM 161.6 billion in terms of GDP contribution, which is an increase of 4.5% from the previous year. The manufacturing sector will continue to remain key to Malaysia’s economy, in which the Government of Malaysia has outlined further growth and development in the ETP. Examples of opportunities for growth under the ETP are the semiconductor substrate manufacturing, the solar wafer, cell, and module production, fabrication plants, and home appliances manufacturing. The continued growth in the industrial and manufacturing sector will inevitably result in the increased demand for energy, and natural gas is expected to feature strongly as a fuel to meet these needs. Competitive advantages of natural gas over other fuel sources Natural gas, which consists mostly of methane and ethane, is a highly efficient energy source compared to other common fuel sources such as diesel, charcoal, and fuel oil. For example, the average heat combustion value as measured in ktoe/t is 1.180 and 1.059 for ethane and natural gas respectively, compared to 1.015 for diesel, 0.736 for charcoal, and 1.035 for crude oil. Due to this efficiency, natural gas provides more thermal power to its users, providing more energy output per unit weight. 8. INDUSTRY OVERVIEW (Cont’d) In addition, natural gas is also considered a cleaner fuel source compared to coal, diesel and MFO because it produces lesser pollutants. These properties of natural gas provide end-users with an edge over their competitors running on other fuel sources, as it enables more efficient and cost-effective operations. The appeal of natural gas is highlighted by its growth in usage over the past decade. Natural gas consumption has grown by a CAGR of approximately 13.5% from 2000 to 2008, compared to the CAGR of petroleum products at 2.81 % and total fuel consumption growth at 5.3% over the same period, illustrating that natural gas has been effectively replacing other fuel sources. Additionally, there is room for growth in the consumption of natural gas in Malaysia, as it made up approximately 23.9% of the country’s total fuel mix, as compared to about 54.5% of petroleum products, in 2008. Natural gas is targeted as one of Malaysia’s Entry Point Project The natural gas distribution industry is expected to benefit from the attention that the oil and gas industry in general will receive as an Entry Point Project (“EPP”) under the ETP. In early 2011, the Government of Malaysia announced that over RM10 billion is expected to be invested into the Malaysian oil and gas industry, including into the Telok gas development project intended to augment the country’s natural gas supply to the energy producers and industrial consumers. The intention of this EPP is, among others, to improve the energy security of the country and to encourage further growth of the natural gas industry in the nation. 3.2 MARKET RESTRAINTS In Malaysia, the restraints for the industry such as the limited supply of natural gas to domestic users and the competition from other fuel sources are expected to impede the growth of the natural gas distribution industry. Limited domestic natural gas supply and gas curtailments in Peninsular Malaysia Malaysia is one of the top 15 global exporters of natural gas. Even though the estimated consumption of natural gas is expected to increase, the volume of natural gas available domestically remains limited as natural gas continues to be used as an important foreign exchange revenue source. As natural gas is a key source of fuel for the electricity supply industry, there is a growing concern that the depleting resources of natural gas and gas curtailments have affected the various stakeholders in the industry, especially power plants that use 8. INDUSTRY OVERVIEW (Cont’dj natural gas for power generation. Upstream supply disruptions led to a curtailment as gas-fired independent power projects in Peninsular Malaysia faced shortages of this fuel for power generation. In 2010, Peninsular Malaysia faced 122 days of gas curtailments. The market may become more restrained as curtailments reduce the attractiveness of natural gas as a reliable fuel source for power sector consumers. To counter the limited natural gas supply in Peninsular Malaysia, PETRONAS intends to import LNG into the anticipated LNG regasification terminal off the coast of Melaka for regasification and distribution by the third quarter of 2012. However, as the LNG regasification terminal project is only expected to be completed at the end of July 2012, the limitation on the domestic natural gas supply in Malaysia is expected to continue as a restraining factor in the next couple of years. Competition with natural gas substitutes such as coal and diesel Currently, natural gas remains as a competitive source of fuel due to its subsidised price in Malaysia as well as the relatively high energy value that it can provide for the same amount of weight compared to other fuels such as coal and diesel. The low carbon content of natural gas also makes this cleaner and more environmental-friendly compared to its substitutes. Major consumers such as power plants, manufacturing plants and commercial complexes are able to choose from a number of fuel sources to meet their needs. Power plants may be coal-fired, gas-fired, diesel-fired, or they may even be powered by a non­hydrocarbon source such as water at hydropower plants. Manufacturers and commercial complex owners may also choose to power their machines and premises using natural gas substitutes, perhaps because they already have existing systems such as boilers that use natural gas substitutes. As long as these natural gas substitutes remain as viable alternative options to provide energy to consumers in Malaysia, this competitive restraint is expected to continue to influence this industry. R mPFFlPFW 111& 8. INDUSTRY OVERVIEW (Cont’d) 4 SUPPLY CONDITIONS 4.1 NATURAL GAS PRODUCTION Malaysia’s natural gas production started in 1973 and has grown by a CAGR of approximately 19.3%, from 3.2 billion cubic feet to approximately 2.2 trillion cubic feet in 2010. Today, Malaysia produces approximately 2% of global natural gas production. Production growth in the last decade has slowed due to depleting reserves, recording a CAGR of 3.1 % between 2000 and 2010. Malaysia’s natural gas is produced in gas fields off Terengganu in Peninsular Malaysia and off the coast of East Malaysia, primarily Sarawak. Annual Production of Natural Gas (Malaysia), 2000·2010 2,500.0…. u III C ~ 2,000.0:E 1,500.0
1,000.0 500.0 ·l’–T·~-:·_~:–·’–:-···’–i··–‘-“”””‘-‘:–.-,””–r—-r-: n’) Lfl C’l ….. n’) Lfl C’l M M Lfl C’l ….. n’) Lfl C’l .~,~,~.-:·—-r-T~–r ! cococococo C’l C’l C’l C’l C’l 0 0 0 0 0 “””” C’l C’l C’l C’l C’l C’l C’l C’l C’l C’l C’l C’l C’l C’l 0 0 0 0 0 “””” ….. ….. ….. ….. M ….. ….. ….. M ….. ….. ….. ….. ….. NN NN N -Production
8. INDUSTRY OVERVIEW (Conf’d) Year  Production (billion set)  Percentage Growth (%)  1982  113.6  34.1  1983  157.4  38.6  1984  272.0  72.8  1985  345.3  26.9  1986  416.1  20.5  1987  457.1  9.9  1988  463.4  1.4  1989  493.1  6.4  1990  502.5  1.9  1991  546.9  8.8
Year  Production (billion sct)  Percentage Growth (%)  2001  1,657.7  3.7  2002  1,706.8  3.0  2003  1,829.6  7.2  2004  1,901.9  4.0  2005  2,117.0  11.3  2006  2,107.7  -0.4  2007  2,147.8  1.9  2008  2,154.9  0.3  2009  2,119.4  -1.6  2010  2,160.9  2.0
CAGR 1973 -2010: 19.3% CAGR 2000 -2010: 3.1% Source: Extracted from the IMR Report prepared by Frost & Sullivan Malaysia is one of the top 15 producers of natural gas globally, ranking as the 14th largest global producer of natural gas in 2010. The top five global producers, namely United States, Russia, Canada, Iran, and Norway, produced an estimated 50% of global natural gas production in the same year. The longevity of the natural gas industry is dependent on natural gas reserves. The 2010 proven gas reserve in Malaysia was estimated to be 83.0 trillion cubic feet, ranked 16th highest worldwide and amounting to about 1.3% of global reserves. At 2009 production rates, the estimated gas reserves in both Peninsular and East Malaysia are expected to last about four decades. Natural gas in East Malaysia is expected to hold about two thirds of gas reserves in Malaysia and will be used for export and domestic consumption. The reserves on the Peninsular are expected to deplete sooner and will be predominantly used for domestic consumption. The top five countries with the largest gas reserves amounting to 62.8% of global reserves are Russia, Iran, Qatar, Turkmenistan, and Saudi Arabia. 4.2 RELIANCE ON IMPORTS Malaysia has been a net exporter of natural gas for the most part of the last decade, and is currently one of the largest exporters of LNG in the world. Almost all of the natural gas produced in East Malaysia is liquefied in Bintulu and exported as LNG. The natural gas produced off the coast of Terengganu in Peninsular Malaysia is virtually all for consumption in Peninsular Malaysia. While Malaysia has historically been self-sufficient in its natural gas needs, in recent years, demand from consumers, largely from the industrial sector, has been growing. 8. INDUSTRY OVERVIEW (Cont’d) However, a large proportion of natural gas produced in the country is exported as LNG, thus resulting in the remaining supply becoming gradually insufficient. Hence, as discussed in Sections 2.3 of this report Malaysia targets to begin importing LNG to be regasified in Melaka to satisfy this growing domestic demand. 4.3 RELEVANT LAWS AND REGULATIONS The Ministry of Energy, Green Technology and Water (KeTIHA) and the Energy Commission are the two general bodies that form the policies, laws and regulations for this industry. With regard to the management of gas supply specifically, this falls under the jurisdiction of the Minister in charge of Matters Relating to Petroleum as per the Gas Supply Act, 1993 detailed below. KeTTHA formulated the National Energy Policy of Malaysia based on three objectives, namely, (1) to extend the life of domestic depletable energy resources and diversification away from oil dependence to other forms of energy sources (2) to promote energy efficiency through regulation, provision of incentives and awareness programs and (3) to reduce the environmental impact of energy usage. All major energy development projects are subject to mandatory environmental impact assessment. Supporting this policy is the Fuel Diversification Policy, which had defined four different types of fuels for Malaysia to focus under the “four-fuel” policy, namely oil, gas, coal, and hydropower. In 2001, this was revised to the “five-fuel” policy, with the introduction of renewable energy sources due to the rise in environmental awareness in Malaysia. The National Depletion Policy, dictates that domestic gas production in Peninsular Malaysia is restricted to 2,000 MMScfd, which is expected to imbue Malaysia with a longer period of natural gas reserves. The Energy Commission is the statutory body regulating the sector which regulates the electricity supply industry and piped gas supply industry in Peninsular Malaysia and Sabah in order to ensure that the supply of these items to consumers is reliable, safe, and priced reasonably. The Energy Commission regulates the gas industry as stipulated under the following acts, circulars, and guidelines: • Gas Supply Act, 1993 (Amendment 2001) An Act to provide for the licensing of the supply of gas to consumers through pipelines and related matters, the supply of gas at reasonable prices, the control of gas supply pipelines, installations and appliances with respect to matters relating to safety of persons and for purposes connected therewith. 8. INDUSTRY OVERVIEW (Cont’d) • Gas Supply Regulations, 1997 (Amendment 2000) These regulations shall apply in relation to­(a) a gas pipeline or gas installation which is supplied or is to be supplied with gas;
(b) a gas fitting which forms part or the gas pipeline or gas installation; and
(c) a gas appliance or any part of it used in the gas pipeline or gas installation.

For the purpose of these regulations, a reference to the installation of a gas pipeline includes a reference to the conversion of a pipe, fitting, metre, equipment, apparatus or appliances in order to use the gas supplied through the pipeline. • Gas Supply (Compoundable Offences) Order 2006
• Gas Supply (Compounding of Offences) Regulations 2006
• Efficient Management of Electrical Energy Regulations 2008
• Energy Commission Act 2001 (Amendment 2010)
(a) to regulate all matters relating to the supply of gas through pipelines and to protect any person from dangers arising from the supply of gas through pipelines and the use of gas as provided under the gas supply laws;
(b) to promote efficiency, economy and safety in the generation, production, transmission, distribution, supply and use of electricity and in the supply of gas through pipelines and the use of gas supplied through pipelines;
(c) to promote and safeguard competition and fair and efficient market conduct or, in the absence of a competitive market, to prevent the misuse of monopoly or market power in respect of the generation, production, transmission, distribution and supply of electricity and the supply of gas through pipelines.


• Occupational Safety and Health Act 1994 (“OSHA”)

The industry is subject to the OSHA. Under the OSHA, the industry has a general duty to employees to provide and maintain the plants and systems of work that are, so far as is practicable, safe and without risks to health, provide information, instruction, training and supervision to ensure, so far as is practicable, the safety and health of employees at work, and to provide a working environment, which is as far as possible safe, without risks to health, and adequate as regards facilities for their welfare at work. Industry players also have a duty to ensure, so far as is practicable, that other persons, not being their employees, who may be affected thereby are not thereby exposed to risks to their safety or health.
8. INDUSTRY OVERVIEW (Cont’d) Under OSHA a safety and health officer is tasked with ensuring the due observance of the statutory obligations as regards to workplace health and safety and the promotion of a safe” conduct of work at the place of work. Industry players may set up a health and safety committee to consult in promoting and developing measures to ensure the safety and health at the place of work of the employees, and in checking the effectiveness of such measures. • Environmental Quality Act 1974 The Environmental Quality Act 1974 restricts pollution of the atmosphere, noise pollution, pollution of the soil, pollution of inland waters without a license, prohibits the discharge of oil into Malaysian waters, discharge of wastes into Malaysian waters without a licence and prohibits open burning. The agency responsible for implementing and monitoring Malaysia’s environmental regulations and policies is the Malaysian Department of Environment and the local environmental authority. [The rest of this page has been intentionally left blank] lIn I III 8. INDUSTRY OVERVIEW (Cont’d) II I 5 PROSPECTS AND OUTLOOK FOR GMB Natural gas consumption in Malaysia grew from about 315 billion cubic feet in 1990 to an estimated 1,260 billion cubic feet in 2010, at a CAGR of about 7.2% during this period. Going forward, it is expected that there will be a shortage in natural gas supply domestically. To address this shortfall, the country is expected to import LNG from the open market from mid-2012 onwards. This is a positive move for the industry, as potential demand is already outweighing current supply, and this new LNG supply will help develop the industry further. Being the only licensed distributor of natural gas in Malaysia, GMB will benefit from this increased gas supply as it will be able to address future growth in consumer demand. The demand for natural gas supplied by GMB is driven by the industrial sector, or by the increase in manufacturing activities, where natural gas is required to operate equipment such as boilers, furnaces and ovens. The industrial sector is the largest consuming sector of natural gas, accounting for nearly 80% of consumption by non-power plant end-users in 2008 with a CAGR of approximately 17.7% between 1990 and 2008. Petroleum products accounted for approximately 54.5% of Malaysia’s energy consumption while natural gas only provided for approximately 23.9% of the nation’s energy use in 2008. Many end-users, particularly in the industrial sector, still rely on other fuel sources such as diesel, coal and fuel oils for their needs, but due to the advantages that natural gas offers, including higher energy efficiency and cleaner burning, many could be persuaded to switch to natural gas. Over the last decade, the share of natural gas in the energy consumption mix in Malaysia has been steadily increasing, growing at a CAGR of 13.5% between 1990 and 2008, significantly higher compared to 5.2% for petroleum products and 7.0% for total energy use. All of the above factors bode well for GMB as it looks to strengthen its position as a key player in the natural gas industry in Malaysia. Demand will remain strong as Malaysia’s economic transformation takes place, with the industrial and manufacturing sector continuing to be critical to the overall growth of the country. nI n UP I Executive Summary of the IMR on the Natural Gas Distribution Industry in Malaysia © Frost & Sullivan 2012



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