Kuala Lumpur – October 07, 2026 -- Air Products has concluded a definitive agreement with PG Cold Energy 1 Sdn. Bhd. to build and operate an LNG-based Air Separation Unit at the Pengerang LNG regasification terminal in Johor, Malaysia, with the facility expected onstream by early 2027.
Plant will produce over 600 tonnes of industrial gases daily
The ASU will generate more than 600 tonnes of liquid oxygen, nitrogen and argon per day, supplying the merchant market across Southern and Central Malaysia. The project marks Air Products' fifth LNG-based ASU in Asia and expands its production footprint beyond its existing Northern Region operations in Prai and Penang.
PETRONAS Gas and DIALOG Group back the joint venture
PG Cold Energy 1 Sdn. Bhd. is a joint venture led by PETRONAS Gas Berhad, through its unit PG Energia Sdn. Bhd., and DIALOG Group Berhad, through DIALOG Equity (Three) Sdn. Bhd. A document exchange ceremony at the PETRONAS Twin Towers was attended by PETRONAS Gas Berhad Managing Director/CEO Abdul Aziz Othman, DIALOG Executive Deputy Chairman Chan Yew Kai, and Air Products' Asia President Kurt Lefevere.
Cold-energy process cuts emissions from gas production
The ASU will use cold energy released during LNG regasification to liquefy air at low temperatures, a method Air Products says improves energy efficiency and lowers production-related emissions compared with conventional separation methods. The company positions the output as supporting customers' carbon-reduction goals in electrical and electronics, petrochemicals, aerospace and manufacturing sectors.
"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,