Air Products is set to expand its industrial gas production in Malaysia with a new LNG-based air separation unit (ASU) at the Pengerang LNG regasification terminal in Johor, with operations expected to begin by early 2027.

 

The company said it has concluded a definitive agreement with PG Cold Energy 1 Sdn. Bhd. (PGCE1), a joint venture led by PETRONAS Gas Berhad through PG Energia Sdn. Bhd. and DIALOG Group Berhad through DIALOG Equity (Three) Sdn. Bhd.

 

Under the agreement, Air Products will design, build and operate the ASU, which will produce more than 600 tonnes of liquid oxygen, nitrogen and argon a day.

 

The project marks Air Products’ fifth LNG-based ASU in Asia and strengthens its production footprint in Southern and Central Malaysia, as the company deepens its more than five-decade presence in the country.

 

A document exchange ceremony at the PETRONAS Twin Towers marked the project milestone. The event was attended by senior executives including PETRONAS Gas Berhad Managing Director and Chief Executive Officer Abdul Aziz Othman, DIALOG Executive Deputy Chairman Chan Yew Kai and Air Products Asia President Kurt Lefevere.

 

The new facility will supply the merchant market across Southern and Central Malaysia, targeting growing demand from the electrical and electronics, petrochemicals, aerospace and manufacturing industries.

 

The plant will also tap cold energy generated during the LNG regasification process to liquefy air at low temperatures. Air Products said the approach will improve energy efficiency and reduce production-related emissions, while providing customers with a lower-emission supply of industrial gases.

 

“Our relationship with PETRONAS Gas Berhad spans more than four decades, and we are honored by their continued trust in Air Products to support their and Malaysia’s effort to advance lower-emission industrial development,” said Ramani Velu, Air Products’ Southeast Asia President. 

 

“This investment underscores our long-term commitment to Malaysia and our focus on delivering safe, reliable, and energy-efficient solutions that support our customers’ growth. It also strengthens our ability to serve customers across the country.”