Air Products to build LNG-based gas unit in Malaysia
The Pengerang facility will produce over 600 tons of industrial gases per day by early 2027.
Air Products and Chemicals has entered a definitive agreement with PG Cold Energy 1 Sdn. Bhd. to design, build and operate Malaysia's first LNG-based air separation unit. The facility will be located at the Pengerang LNG regasification terminal in Johor and is scheduled to come online by early 2027.
The plant will produce more than 600 tons per day of liquid oxygen, nitrogen and argon. It will harness cold energy generated during the liquefied natural gas regasification process to liquefy air at low temperatures, lowering both power consumption and emissions. Air Products intends to serve the merchant market and meet demand across the electrical, electronics, petrochemical, aerospace and manufacturing industries.
The project expands Air Products' production footprint across Southern and Central Malaysia, where the company has operated since 1974. It also reinforces its commercial partnership with PETRONAS Gas Berhad.
Over the past year, shares of Air Products have risen 5.8%, compared with a 0.3% decline across its broader industry.
Share prices can rise and fall. Past performance does not guarantee future results. This article is news, not investment advice.
Newsletter
Markets in your inbox, weekly
LATAM-focused analysis, investing ideas, and the week in finance.
