Air Products to build LNG-based air separation unit for Petronas-led venture in Malaysia

Air Products and Chemicals

07/10/2026 18:48

Oct 7 (Reuters) - Air Products APD.N said on Wednesday it has signed a deal with a Petronas Gas Berhad-led joint venture to design, build and operate an LNG-based air separation unit to produce industrial gases in Malaysia.
The project comes as industrial gas producers seek to improve efficiency and lower emissions by using the energy released from the LNG regasification process.
 
Here are more details:
Air Products said the facility will produce more than 600 tons per day of liquid oxygen, nitrogen and argon, gases used in industries ranging from electronics and manufacturing to petrochemicals and aerospace
The project is being developed for PG Cold Energy 1, a joint venture led by Petronas Gas Berhad and Dialog Group.
Petronas Gas Berhad is the gas infrastructure subsidiary of Malaysia's state-owned energy company, Petronas
Air Products said the facility will be located at the Pengerang LNG regasification terminal in Johor, Malaysia, where imported liquefied natural gas is converted back into gas for use
The company said the project will be Malaysia's first LNG-based air separation unit and its fifth in Asia
Air Products said the plant will supply customers in southern and central Malaysia, including the electrical and electronics, petrochemicals, aerospace and manufacturing sectors
The plant is expected to begin operations in early 2027

 (Reporting by Varun Sahay in Bengaluru; Editing by Sahal Muhammed)
 ((Varun.Sahay@thomsonreuters.com;))