Communications, Promotion, and Badak LNG: Contributing to Sustaining the Business


As mentioned in my last blog entry, I’d like to present how one organization, a DNV GL key customer, used effective communication and a focused promotional activity which contributed to continual improvement with respect to their business sustainability.

Since 2005, our Indonesian office has closely worked with Indonesia’s largest LNG plant(operating a massive natural gas liquefaction process), Badak LNG, Bontang, East Kalimantan (Borneo island), Indonesia.  Our main work was assisting them in establishing a more robust HSE management system in light of two separate fatality incidents that Badak experienced several years prior.  These deaths spurred Badak to change, i.e., to drastically improve their management system, which was kicked off by a 3-year ‘Safety Culture Change’ drive and initiative, aligned with using  DNV GL’s International Sustainability Rating System (or ISRS) as both implementation guidance and as an audit / assessment, rating, and benchmarking tool.

This started what ultimately has become an 11-year journey, with the journey and customer relationship still continuing today in terms of both ISRS and other DNV GL services to the customer, such as risk studies, technical failure investigations, etc.  In 2009/2010, DNV introduced Process Safety Management aspects into ISRS, resulting in the ISRS 8th edition, whereas prior to this, Badak was implementing the ISRS 7th edition which primarily and explicitly focused on covering health, occupational safety, environment, security, quality, and other business management processes, but NOT process safety.

Strangely enough, Badak had an ‘official’ process safety management system in the late 90’s / early 2000’s, but it had somehow drifted and became more implicit rather than explicit in their overall management system.  This does not mean integrated – aspects of PSM fell by the wayside, and these were ultimately picked up in subsequent ISRS8 annual assessments at the Badak site during 2009, 2010, and 2011.  These assessments resulted in numerous findings of gaps in PSM implementation, gaps that if not filled, threatened the sustainability of the business in that not addressing them in a suitable, adequate, and effective increased the probability of occurrence for major accident hazards (MAH) and major accidents themselves (MA).

Even more concerning, Badak LNG is a major process facility, a major contributor to the local economy, and a major ‘actor’ in the regions’s / province’s community development activities.  With a loss of plant and facilities due to a major accident, all these positive contributions to sustainable development, community development, etc., are also threatened.  Stay tuned to find out how communications and promotion contributed to Badak’s effective incorporation and ‘rebirth’ of Process Safety Management (PSM) at their facility.



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