Air Products (NYSE: APD) announced on Oct. 8, 2026, that it has concluded a definitive agreement with PG Cold Energy 1 Sdn. Bhd. (PGCE1), a joint venture led by PETRONAS Gas Berhad through PG Energia Sdn. Bhd. and DIALOG Group Berhad through DIALOG Equity (Three) Sdn. Bhd.

Under the arrangement, Air Products is responsible for the design, build, and operation of an LNG-based Air Separation Unit (ASU) at the Pengerang LNG regasification terminal in Johor. Air Products, a world-leading industrial gases company, has served Malaysia for more than 50 years.

Capacity and Timeline

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. The project improves energy efficiency and supports industrial growth in Malaysia.

It also reinforces Air Products' long-term commitment to the country, expands its production capabilities in Southern and Central Malaysia, and marks the company's fifth LNG-based ASU in Asia.

Document Exchange Ceremony

A document exchange ceremony was held at the PETRONAS Twin Towers to mark the milestone. The ceremony was attended by senior executives, including PETRONAS Gas Berhad's 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 Berhad and Air Products.

Market Reach and Industrial Sectors Served

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.

Cold Energy Technology and Emissions Benefits

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. This helps customers reduce their carbon footprint through a more energy-efficient and lower-emission supply of industrial gas solutions.

Executive Commentary

Ramani Velu, Air Products' Southeast Asia President, said the company's relationship with PETRONAS Gas Berhad spans more than four decades, and the company is honored by their continued trust in Air Products to support their and Malaysia's efforts to advance lower-emission industrial development.

He stated that the investment underscores the company's long-term commitment to Malaysia and its focus on delivering safe, reliable, and energy-efficient solutions that support customers' growth while strengthening its ability to serve customers across the country.

Company Background in Malaysia

Air Products has operated in Malaysia since 1974 and maintains a strong network of production facilities and depots located across the country. In the Northern Region, the company serves key industries, including electrical and electronics, through advanced ASUs in the Prai Industrial Area, and a pipeline network in the Batu Kawan and Bayan Lepas Industrial Park in Penang.

About Air Products

Air Products is a world-leading industrial gases company in operation for over 85 years, focused on serving energy, environmental, and emerging markets. The company supplies essential industrial gases, related equipment, and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, medical, and food.

As the leading global hydrogen supplier, Air Products develops, engineers, builds, owns, and operates some of the world's largest hydrogen projects. Through its sale of equipment businesses, it also provides turbomachinery, membrane systems, and cryogenic containers globally. Air Products had fiscal 2025 sales of USD 12.0 billion from operations in approximately 50 countries.

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