Air Products and Chemicals, Inc. (Allentown, Pa.) announced it has concluded the definitive agreement with PG Cold Energy 1 Sdn. Bhd. (PGCE1), a joint venture led by PETRONAS Gas Berhad (Kuala Lumpur, Malaysia) via PG Energia Sdn. Bhd. and DIALOG Group Berhad (Petaling Jaya, Malaysia) via DIALOG Equity (Three) Sdn. Bhd. Under the arrangement, Air Products is responsible for the design, build and operation of the LNG-based air separation unit (ASU) at the Pengerang LNG regasification terminal in Johor. The facility will produce more than 600 tons of liquid oxygen, nitrogen and argon per day and is expected to come onstream by early 2027.
This project reinforces Air Products’ long-term commitment to Malaysia, expands its production capabilities in Southern and Central Malaysia, and marks its fifth LNG-based ASU in Asia.
Pengerang LNG regasification terminal in Johor. Air Products’ LNG-based ASU in Pengerang will produce more than 600 tons of liquid oxygen, nitrogen and argon per day.
A document exchange ceremony was held at the PETRONAS Twin Towers to mark this milestone. The ceremony was attended by senior executives, including PETRONAS Gas Berhad’s Managing Director/Chief Executive Officer Abdul Aziz Othman, DIALOG Executive Deputy Chairman Chan Yew Kai and Air Products’ Asia President Kurt Lefevere, underscoring the strategic importance of the project and the strength of the long-standing partnership between PETRONAS Gas Berhad and Air Products.
The new plant will supply the merchant market in Southern and Central Malaysia, strengthening Air Products’ ability to serve key industrial hubs and support growing demand from the electrical and electronics, petrochemicals, aerospace and manufacturing sectors.
By using cold energy from the LNG regasification process to liquefy air at low temperatures, the plant will improve energy efficiency and reduce production-related emissions, helping customers reduce their carbon footprint through a more energy-efficient and lower-emission supply of industrial gas solutions.
“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 efforts 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.”
Air Products has operated in Malaysia since 1974 and maintains a strong network of state-of-the-art production facilities and depots strategically located across the country. In the Northern Region, the company serves key industries, including electrical and electronics, through advanced ASUs in the Prai Industrial Area and a pipeline network in the Batu Kawan Industrial Park and Bayan Lepas Industrial Park in Penang.