PETRONAS Gas stock linked to Malaysia LNG venture plan
Published on 10/31/2026 at 01:18 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSProject expands industrial gas infrastructure
- A PETRONAS Gas-led joint venture will develop an LNG-based air separation unit in Johor.
- The facility will supply liquid oxygen, nitrogen and argon to industrial customers in southern and central Malaysia.
PETRONAS Gas is tied to a new industrial-gas project in Malaysia after a joint venture led by the company signed an agreement with Air Products. The Star, citing Reuters, reported the agreement on Thursday, October 8, 2026.
LNG project broadens gas infrastructure scope
The facility will be designed, built and operated at the Pengerang LNG regasification terminal in Johor. It is expected to produce more than 600 tons per day of liquid oxygen, nitrogen and argon for customers in southern and central Malaysia.
The project is being developed by PG Cold Energy 1, a joint venture led by PETRONAS Gas and Dialog Group. The gases are intended for industries including electronics, manufacturing, petrochemicals and aerospace.
Cold energy supports lower-emission production
The planned plant will use cold energy released during LNG regasification to liquefy air. Air Products said this approach can improve energy efficiency and reduce production-related emissions while expanding industrial-gas supply near major Malaysian manufacturing hubs.
The agreement adds a downstream use for the Pengerang terminal beyond gas regasification. The project is described as Malaysia's first LNG-based air separation unit and is expected to begin operations in early 2027.
PETRONAS Gas project facts
- Project: LNG-based air separation unit
- Location: Pengerang LNG regasification terminal, Johor, Malaysia
- Partners: PETRONAS Gas-led PG Cold Energy 1 and Air Products
- Products: Liquid oxygen, nitrogen and argon
- Planned start: Early 2027
