Air Products to Build Malaysia’s First LNG-Based Air Separation Unit
Event summary
- Air Products will design, build, and operate Malaysia’s first LNG-based Air Separation Unit (ASU) at the Pengerang LNG regasification terminal in Johor.
- The facility will produce over 600 tonnes per day of liquid oxygen, nitrogen, and argon, expected to come online in early 2027.
- The project is a joint venture led by PETRONAS Gas Berhad and DIALOG Group Berhad.
- This marks Air Products’ fifth LNG-based ASU in Asia, reinforcing its long-term commitment to Malaysia.
The big picture
This project underscores Air Products’ strategy of leveraging LNG regasification cold energy to improve energy efficiency and reduce emissions, aligning with global trends toward lower-emission industrial development. The deal also solidifies Air Products’ position as a key player in Malaysia’s industrial gas sector, with the ASU set to support high-growth industries like electronics and petrochemicals.
What we're watching
- Execution Risk
- Whether Air Products can deliver the ASU on time and within budget, given the complexity of LNG-based technology.
- Market Demand
- How the new facility will impact Air Products’ ability to serve growing industrial sectors in Southern and Central Malaysia.
- Strategic Expansion
- The pace at which Air Products can replicate this model in other Asian markets to strengthen its regional footprint.