Air Products (NYSE: APD) has signed a definitive agreement with PG Cold Energy 1 Sdn. Bhd., a joint venture led by PETRONAS Gas Berhad and DIALOG Group Berhad, to design, build and operate a liquefied natural gas-based Air Separation Unit (ASU) at the Pengerang LNG regasification terminal in Johor, Malaysia.

The facility is expected to produce more than 600 tonnes of liquid oxygen, nitrogen and argon per day and is projected to come onstream by early 2027. Air Products describes the project as Malaysia's first LNG-based ASU and its fifth such unit in Asia.

The plant will use cold energy from the LNG regasification process to liquefy air at low temperatures, a method the company says improves energy efficiency and reduces production-related emissions. Output will supply the merchant market in Southern and Central Malaysia, targeting industries including electrical and electronics, petrochemicals, aerospace and manufacturing.

A document exchange ceremony was held at the PETRONAS Twin Towers in Kuala Lumpur and was attended by PETRONAS Gas Berhad Managing Director and CEO Abdul Aziz Othman, DIALOG Executive Deputy Chairman Chan Yew Kai, and Air Products Asia President Kurt Lefevere.

"Our relationship with PETRONAS Gas Berhad spans more than four decades, and we are honored by their continued trust in Air Products to support their and Malaysia's effort to advance lower-emission industrial development," said Ramani Velu, Air Products' Southeast Asia President.

Air Products has operated in Malaysia since 1974. The company reported fiscal 2025 sales of $12.0 billion from operations in approximately 50 countries.