Air Products to Develop LNG-based Air Separation Unit in Malaysia

Plant Engineering Air Products to Develop LNG-based Air Separation Unit in Malaysia

2026-10-13 Source: Press release Air Products 2 min Reading Time

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Malaysia’s first LNG-based air separation unit will be designed, developed and operated by Air Products for PG Cold Energy, a joint venture led by Petronas Gas and Dialog Group. The facility is expected to produce more than 600 tonnes of liquid oxygen, nitrogen and argon per day and is expected to come onstream by early 2027.

Air Products’ LNG-based ASU in Pengerang will produce more than 600 tonnes of liquid oxygen, nitrogen and argon per day.(Source: Air Products) — Air Products’ LNG-based ASU in Pengerang will produce more than 600 tonnes of liquid oxygen, nitrogen and argon per day.
(Source: Air Products)

Kuala Lumpur/Malaysia – Air Products has recently concluded the definitive agreement with PG Cold Energy (PGCE1), a joint venture led by Petronas Gas via PG Energia and Dialog Group via Dialog Equity (Three). 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 tonnes 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.

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’ 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 and Air Products.

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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 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,” 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.”

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