Air Products has inked an agreement with PG Cold Energy 1 Sdn. Bhd. (PGCE1), a joint venture led by PETRONAS Gas Berhad via PG Energia Sdn. Bhd. and DIALOG Group Berhad via DIALOG Equity (Three) Sdn. Bhd.
Air Products, a world-leading industrial gas company that has served Malaysia for more than 50 years, will be 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 tonnes of liquid oxygen, nitrogen and argon per day and is expected to come onstream by early 2027.
A document exchange ceremony was held at the PETRONAS Twin Towers and was attended by senior executives, including PETRONAS Gas Berhad's managing director/CEO Abdul Aziz Othman, DIALOG executive deputy chair Chan Yew Kai and Air Products' Asia president, Kurt Lefevere.
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.
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.
Air Products had fiscal 2025 sales of $US12.0 billion from operations in approximately 50 countries.