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8 min ago 2 min read
Air Products will design, build, and operate Malaysia’s first liquefied natural gas (LNG)-based air separation unit (ASU) to meet merchant demand under an agreement with a joint venture (JV) involving Petronas’ local transmission subsidiary.
The industrial gas major signed a definitive agreement with PG Cold Energy 1, a JV formed by subsidiaries of Petronas Gas Berhad and Dialog Group.
The facility at the regasification terminal in Johor will produce over 600 tonnes of liquid oxygen, nitrogen, and argon per day, with operations expected to begin in early 2027.
Gases from the plant will be supplied to customers across southern and central Malaysia in the electronics, petrochemical, aerospace and manufacturing sectors.
Unlike conventional ASUs, which generate their own refrigeration to separate atmospheric gases, LNG-based systems use recovered during LNG regasification to reduce electricity consumption.
Air Products said the Johor facility will be its fifth LNG-based ASU in Asia.
The company’s existing Malaysian infrastructure serves electronics manufacturers in the Prai Industrial Area, alongside pipeline networks supplying customers in and Bayan Lepas industrial park in Penang.
Malaysia’s growing electronics, semiconductor and petrochemical industries are driving industrial gas demand, encouraging suppliers to expand production capacity and distribution networks around the country’s major manufacturing hubs.
Earlier this year, German-headquartered completed acquisitions of WKS Group and Wipso, and signed a deal to acquire Kobewel, to expand its presence in the region’s manufacturing and semiconductor markets.
