European Investor
08 Oct 2026, 16:27
Air Products to Build Malaysia’s First LNG-Based Air Separation Unit for PETRONAS-Led Venture
Air Products announced a definitive agreement with PG Cold Energy 1, a joint venture led by PETRONAS Gas Berhad and DIALOG Group, to design, build and operate Malaysia’s first LNG-based air separation unit at the Pengerang LNG regasification terminal in Johor.
The facility will produce more than 600 tonnes per day of liquid oxygen, nitrogen and argon and is expected to begin operations in early 2027. It will become Air Products’ fifth LNG-based air separation unit in Asia.
The project is designed to use cold energy from the LNG regasification process to liquefy air, improving energy efficiency and reducing production-related emissions compared with conventional processes.
The new plant will serve industrial customers across Southern and Central Malaysia, including the electrical and electronics, petrochemical, aerospace and manufacturing sectors.
For Air Products, the project expands regional production capacity while deepening a relationship with PETRONAS Gas that spans more than four decades. It also strengthens the company’s position in energy-efficient industrial gas infrastructure as Malaysian industrial demand continues to grow.
Air Products announced a definitive agreement with PG Cold Energy 1, a joint venture led by PETRONAS Gas Berhad and DIALOG Group, to design, build and operate Malaysia’s first LNG-based air separation unit at the Pengerang LNG regasification terminal in Johor.
The facility will produce more than 600 tonnes per day of liquid oxygen, nitrogen and argon and is expected to begin operations in early 2027. It will become Air Products’ fifth LNG-based air separation unit in Asia.
The project is designed to use cold energy from the LNG regasification process to liquefy air, improving energy efficiency and reducing production-related emissions compared with conventional processes.
The new plant will serve industrial customers across Southern and Central Malaysia, including the electrical and electronics, petrochemical, aerospace and manufacturing sectors.
For Air Products, the project expands regional production capacity while deepening a relationship with PETRONAS Gas that spans more than four decades. It also strengthens the company’s position in energy-efficient industrial gas infrastructure as Malaysian industrial demand continues to grow.
