#Malaysia #Air Products #LNG #Johor #Petronas

Air Products' Historic Agreement with PETRONAS

In a significant development for the industrial gas sector in Malaysia, Air Products (NYSE: APD), a prominent global leader in industrial gases, has recently finalized a groundbreaking agreement with PG Cold Energy 1 Sdn. Bhd. (PGCE1), a consortium led by PETRONAS Gas Berhad. This pivotal project signifies a major step forward in the provision of energy solutions and is poised to transform industrial operations in the region.

Project Overview

The newly established LNG-based Air Separation Unit (ASU) will be situated at the Pengerang LNG regasification terminal located in Johor. This facility is expected to produce over 600 tonnes of liquid oxygen, nitrogen, and argon per day, with operations commencing in early 2027. By leveraging advanced technology, Air Products aims to enhance industrial gas availability and supply, catering specifically to the burgeoning needs of sectors such as electrical and electronics, petrochemicals, aerospace, and manufacturing in both Southern and Central Malaysia.

Milestone Ceremony

On October 7, 2026, a document exchange ceremony took place at the iconic PETRONAS Twin Towers, emphasizing the strategic importance of this collaboration. Esteemed executives from both companies attended, including Abdul Aziz Othman, Managing Director and CEO of PETRONAS Gas Berhad, Chan Yew Kai, Executive Deputy Chairman of DIALOG, and Kurt Lefevere, Asia President of Air Products. Their presence highlighted the solid partnership that has flourished over the years, affirming the commitment to advancing lower-emission industrial development in Malaysia.

Energy Efficiency and Sustainability

A notable feature of this new ASU is its innovative use of cold energy derived from the LNG regasification process. This approach facilitates the liquefaction of air at reduced temperatures, significantly improving energy efficiency while minimizing production-related emissions. As pressure mounts on industries to mitigate their carbon footprints, this facility will provide cleaner industrial gas solutions, supporting clients in achieving their sustainability targets.

Ramani Velu, Southeast Asia President of Air Products, stated, "Our relationship with PETRONAS spans more than four decades, and we are incredibly honored by their continued trust in Air Products. This investment reflecting our long-standing commitment to Malaysia underscores our focus on delivering safe, reliable, and energy-efficient solutions to our clients. It will also further enhance our capacity to support major industrial hubs throughout the country."

Air Products in Malaysia

With a strong operational footprint in Malaysia since 1974, Air Products has established a robust network of cutting-edge production facilities and strategically positioned depots. Their capabilities in the Northern Region cater to key industries, with the company operating advanced ASUs in the Prai Industrial Area. The establishment of the new ASU will not only bolster Air Products' production capacity but also strengthen its ability to meet growing market demands.

Air Products: A Leader in Industrial Solutions

As a leader in the industrial gases market for over 85 years, Air Products focuses on serving various sectors, including energy, environmental, and emerging markets. Their portfolio encompasses essential industrial gases, related equipment, and applications expertise that cater to numerous industries, from refining and chemicals to food and electronics. By committing to sustainable and innovative practices, Air Products is setting benchmarks in operational efficiency and customer support.

With revenues of $12.0 billion reported for fiscal 2025 and operations in approximately 50 countries, the company continues to thrive as an essential player in the global market. For more information about Air Products and their initiatives, visit airproducts.com or follow their social media channels.

Conclusion

This agreement between Air Products and PETRONAS marks a significant milestone not only for the companies involved but also for the industrial landscape of Malaysia. By integrating advanced technologies and sustainable practices, this partnership promises to drive innovation and growth while prioritizing environmental responsibility, paving the way for a more sustainable future in industrial gas solutions.