Air Products has announced a definitive agreement with PG Cold Energy 1 Sdn. Bhd. (PGCE1), a joint venture led by PETRONAS Gas Berhad, to design, build, and operate Malaysia’s first LNG-based Air Separation Unit (ASU). The facility, located at the Pengerang LNG regasification terminal in Johor, is set to produce over 600 tonnes of liquid oxygen, nitrogen, and argon daily, with operations expected to commence by early 2027.
The collaboration involves PGCE1, a joint venture between PETRONAS Gas Berhad via PG Energia Sdn. Bhd. and DIALOG Group Berhad via DIALOG Equity (Three) Sdn. Bhd. Air Products, a global leader in industrial gases, will leverage its extensive experience of over 50 years in Malaysia to execute this project.
The new ASU is anticipated to significantly improve energy efficiency and support industrial growth in Malaysia. The production of essential gases like oxygen, nitrogen, and argon is crucial for various industries, including manufacturing and healthcare, thereby bolstering the country’s industrial capabilities.
Air Products’ involvement underscores its commitment to advancing energy solutions in Malaysia. The company’s spokesperson stated, “This project represents a significant milestone in our long-standing relationship with Malaysia, and we are proud to contribute to the country’s industrial growth and energy efficiency.”
As the project progresses, it is expected to create numerous opportunities for local businesses and enhance Malaysia’s position in the global energy market. The successful implementation of this LNG-based ASU could pave the way for similar initiatives in the region, promoting sustainable industrial development.
