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Air Products to Build Malaysia’s First LNG-Based Air Separation Unit

A document exchange at the PETRONAS Twin Towers has finalized a deal for Air Products to design and operate a new air separation unit at the Pengerang LNG terminal in Johor. The facility, expected to launch in early 2027, will leverage cold energy to produce daily industrial gases for Malaysia.

Air Products to Build Malaysia’s First LNG-Based Air Separation Unit
Photo: Bio & News

The project is a collaboration with PG Cold Energy 1 Sdn. Bhd., a joint venture led by PETRONAS Gas Berhad and DIALOG Group Berhad. Once operational, the plant will generate over 600 tonnes of liquid oxygen, nitrogen, and argon daily. By utilizing cold energy from the LNG regasification process to liquefy air, the facility aims to improve energy efficiency and lower production-related emissions for regional industrial clients.

This marks the fifth LNG-based air separation unit Air Products has developed in Asia. The company intends to use the new output to satisfy rising demand across the electrical, electronics, petrochemical, and aerospace sectors in Southern and Central Malaysia. Air Products Asia President Kurt Lefevere, PETRONAS Gas Berhad CEO Abdul Aziz Othman, and DIALOG Executive Deputy Chairman Chan Yew Kai attended the signing ceremony, highlighting a partnership that has spanned more than four decades.

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