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Air Products to Build Malaysia's First LNG-Based Air Separation Unit

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APD$278.38 0.09%

Air Products and Chemicals, Inc. (APD) has signed an agreement with PG Cold Energy 1 Sdn. Bhd. to design, build, and operate Malaysia's first liquefied natural gas-based air separation unit. Located at the Pengerang LNG regasification terminal in Johor, the facility is scheduled to begin operations by early 2027.

The new plant is designed to produce over 600 tons of liquid oxygen, nitrogen, and argon per day. By utilizing cold energy from the LNG regasification process, the facility will liquefy air at low temperatures, significantly lowering energy consumption and manufacturing emissions compared to traditional methods. This allows the company to supply cleaner industrial gas solutions to the local merchant market, including the electronics, petrochemical, aerospace, and manufacturing sectors.

This expansion strengthens the company's long-term position in key Malaysian industrial hubs, where it has operated since 1974. Investors will likely watch the construction progress leading up to the 2027 launch, as well as the company's ability to secure long-term supply contracts with regional manufacturers.

Key points

  • Air Products and Chemicals, Inc. (APD) signed an agreement with PG Cold Energy 1 Sdn. Bhd. to build Malaysia's first LNG-based air separation unit.
  • The Johor-based facility is expected to start operations by early 2027 and produce more than 600 tons of liquid gases daily.
  • The unit will use cold energy from the LNG regasification process to reduce energy use and lower emissions.
  • The project aims to meet rising industrial gas demand from Malaysia's electronics, aerospace, and petrochemical sectors.

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Questions and answers

What is Air Products building in Malaysia?

Air Products and Chemicals, Inc. (APD) is building the country's first LNG-based air separation unit to produce liquid oxygen, nitrogen, and argon.

When will the new Malaysian facility open?

The new air separation unit in Johor is expected to come online by early 2027.

How does the new plant reduce emissions?

The facility will utilize cold energy from the LNG regasification process to liquefy air at low temperatures, reducing energy consumption and emissions.