For most people, the image of heavy industrial complexes is one of smokestacks, massive machinery, and traditional work processes passed down through decades. But in Bintulu, Sarawak, Malaysia, those images are being challenged and rewritten by Malaysia LNG (MLNG). This 42-year-old liquefied natural gas (LNG) plant is not just a giant in the energy industry; it has transformed into one of the most remarkable prototype “Smart Factories” in the region.
Who would have imagined that within the vast 300-hectare expanse of this facility, a private 5G network covers every square inch, a fleet of nearly 50 electric vehicles (EVs) operates internally, and artificial intelligence (AI) is being developed to help manage its complex production processes? This is a story of a real-life digital transformation within a legacy organization, proving that age is not a barrier to innovation but rather an advantage that makes technology even more powerful.
This article invites our readers, especially those in the technology and engineering fields, to explore the story behind this major transformation. Through the words of Laga Jenggi, Managing Director and Chief Executive Officer, Malaysia LNG Group of Companies (MLNG), we will discover how this venerable institution of the LNG world has successfully integrated cutting-edge technology into its long-standing operations, and what lessons lie behind this success.
Private 5G Network: The Digital Arteries of a 300-Hectare Site
The starting point of this entire transformation was a challenge of scale and structure. Laga Jenggi explains, “This complex is quite big, about 300 hectares… To have a private network that is comprehensive and reliable, the only way we can do it is to have 5G for ourselves.”
MLNG’s 5G network is not a toy or a pilot project for publicity. It has become the most critical digital infrastructure, completely changing the way employees work. In the past, engineers and technicians inspecting machinery across the vast site had to carry paper checklists and clipboards. Upon completing their tasks, they had to return to the office to scan and upload documents into the system—a time-consuming and error-prone process.
Today, that scene has vanished. “Now we use tablets… Everything is digital. We don’t use manual paper checklists anymore,” says Laga. Employees can access necessary information, fill out forms, attach photos as evidence, and upload everything to the system instantly from any point in the plant, all via the fast and stable 5G network.
“It has made the people more efficient because you don’t have to scan anything or upload anymore. Everything is there in the system,” he adds.
The investment in a Private 5G network is akin to building a “digital highway.” It is a foundational step that enables MLNG to seamlessly integrate other technologies requiring high-speed, low-latency connectivity in the future. It is a forward-thinking investment to prepare for the smart factory of the next decade.
From Data to Intelligence: AI, Machine Learning, and the Self-Thinking Plant
With a robust highway in place, the next step is to run intelligent vehicles on it. MLNG is now in the process of seriously integrating AI and Machine Learning into its operations, starting with tangible applications that deliver clear results.
“We are starting to use Smart Sensors installed on motors,” Laga explains. “So you can actually know the status of the motor from a remote location. You can go to our ‘Digital Dashboard’ to check the health of the motor.” This is a prime example of leveraging the Internet of Things (IoT) proactively, shifting maintenance from a “reactive” model (fix it when it breaks) to a “predictive” one (forecast and prevent failures before they happen). This approach significantly reduces downtime and saves enormous costs.
But the most exciting leap is the automation of complex production processes. Laga recounts a challenge he once posed to his team: “I challenged our Group Digital and Group Technical Solution teams to provide us with a solution to automate… We either do it in full automation, or we don’t do anything at all.”
The result was the successful creation of a “Full Closed Loop” automation system. This is a system where Machine Learning can learn and adjust parameters in the production process autonomously to achieve maximum efficiency, with humans merely supervising the operation.
“That was probably one of the earliest gains that we got to make people believe that we can actually operate this complex in a much different, better way,” he notes.
Laga’s vision doesn’t stop there. He has even joked with his team, “Maybe we should have AI operating this whole facility, you know, so that I don’t have to have people.” Although said in jest, it reflects a deep belief in the potential of technology and the future direction in which MLNG is heading.
The EV Fleet and Smart Campus: When Sustainability is Part of Innovation
Innovation at MLNG is not confined to the production line; it extends to daily operations, most visibly demonstrated by its fleet of 45 electric vehicles (EVs) and 46 charging stations operating within the plant.
“We decided to get these EVs because it would be meaningful to drive home the point that it contributes to reducing greenhouse gas emission,” Laga states. The use of these EVs, which are for internal use only, is expected to reduce carbon dioxide emissions by approximately 100,000 tons per year.
This project is a collaboration with Gentari, a sister company within the Petronas group that focuses on clean energy and EV solutions. Laga proudly states, “We probably, if not the biggest, maybe the second biggest site that has a single [charging hub]… Even though there are still not many EVs in Bintulu, most of them are in here.”
The presence of this EV fleet is more than just a change of vehicles; it’s about fostering a “Smart Campus” culture where innovation and sustainability are integrated. It sends a clear message to employees and the public that MLNG is serious about its environmental responsibilities and is ready to lead the change, even in the smaller aspects of its overall operation.
Conclusion: Technology to ‘Unlock’ Human Potential
Amidst the rapid technological changes, the question on many employees’ minds is, “If everything is automated, what will we be doing?” Laga Jenggi provides a clear answer that lies at the heart of MLNG’s digital transformation vision.
“There are other meaningful things that we will be doing… but not doing this manual thing, which actually doesn’t add much value… It’s about freeing up their time to do other things when they become more efficient.”
This is the most powerful conclusion. The adoption of 5G, AI, IoT, and even EVs at MLNG is not aimed at “replacing” humans, but at “augmenting” and “unlocking” the potential of its highly experienced workforce. It allows them to work more safely, more efficiently, and to dedicate their intellect to more complex analysis and decision-making tasks.
The story of the Smart Factory in Bintulu is an excellent case study for any organization. It demonstrates that a successful digital transformation is not about blindly chasing the latest technology. It is about strategically combining the power of an experienced human workforce with powerful tools to build a stronger, more sustainable future and to prepare for the challenges of the next 40 years.
#SmartFactory #DigitalTransformation #5G #AI #IoT #Innovation #Industry40 #MLNG #Petronas #Technology #Sustainability #ElectricVehicles
