Air Products Wins Contract for Air Separation Unit with Over 600 Tons Per Day Capacity in Malaysia

en.Wedoany.com Reported - On October 7, U.S. industrial gas supplier Air Products signed a formal agreement with Malaysia's PG Cold Energy 1 to design, build, and operate an air separation unit utilizing LNG cold energy at the Pengerang LNG regasification terminal in Johor. The facility is planned to produce more than 600 tons per day of liquid oxygen, liquid nitrogen, and liquid argon, and is expected to commence operations in early 2027. The project is Malaysia's first air separation facility to utilize cold energy from LNG regasification. The specific contract value and construction investment have not yet been disclosed.

The project counterparty PG Cold Energy 1 was established with participation from Malaysia Gas Company, a subsidiary of Petronas, through PG Energia, and from the DIALOG Group through DIALOG Equity (Three). Under the agreement, Air Products will undertake the engineering design, construction, and subsequent operation of the air separation unit. The signing and document exchange ceremony was held at the Petronas Twin Towers in Kuala Lumpur, attended by the management of the partnering parties.

The unit will recover cryogenic cold energy released during LNG regasification for use in cryogenic air liquefaction and gas separation. Compared with air separation processes that rely on conventional refrigeration systems for air liquefaction, this solution can reduce energy demand in the refrigeration stage. Air Products plans to produce liquid industrial gases through this facility for supply to markets in southern and central Malaysia, serving customer industries including electronics and electrical, petrochemical, aerospace, and manufacturing.

This will be Air Products' fifth LNG cold energy air separation project in Asia.