Petronas Gas Launches Malaysia's First LNG-Driven Air Separation Unit

KUALA LUMPUR, Jan 17 (Bernama) -- Petronas Gas Bhd, through wholly owned unit Regas Terminal (Pengerang) Sdn Bhd, has launched Malaysia's first liquefied natural gas (LNG)-driven air separation unit (ASU) in Pengerang, Johor, and invited Dialog Group Bhd to participate by taking up a 27.78 per cent stake.

Petronas Gas said the ASU launched by marked a major technological advancement in sustainable energy.

“Final investment decision (FID) for the project was obtained in December 2023 with target commercial operation date in November 2026, The total awarded engineering, procurement, construction, and commissioning (EPCC) cost is RM368 million,” it said in a filing with Bursa Malaysia today.

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Petronas Gas said the project emphasises its role in advancing environmental stewardship and technological progress aligned with the group’s growth objectives, driving profitability while furthering its commitment to sustainability as a key pillar of its long-term corporate strategy.

“Dialog Group Bhd has been invited to participate in this project due to the project’s location on the Pengerang Deep Water Terminal plot and accordingly, Dialog Equity (Three) Sdn Bhd, a wholly owned subsidiary of Dialog Group, will subscribe to a 27.78 per cent equity stake in Regas Terminal,” it said.

 Regas Terminal has executed and completed a share subscription agreement with Dialog Equity, which will subscribe to 500 ordinary shares for RM500,000 and 9,724 redeemable preference shares for RM9.7 million.

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The project will be developed based on a design, build, and lease (DBL) model where the ASU will be constructed and leased to a qualified and experienced industrial gas market operator for a 25-year period.

During this tenure, it said, the operator will assume responsibility for the operation, maintenance, and marketing of the industrial gases produced by the ASU while in return, Regas Terminal will generate a consistent revenue stream through fixed monthly facility charges paid by the operator.

“The project is expected to reduce electricity consumption by approximately 25 per cent and lower carbon emissions by 15,000 tonnes annually, compared to traditional ASU plants.

“The proposed venture aligns with one of the overarching ambitions of Petronas Gas’ Sustainability Blueprint of growing profit through new sustainable investments,” it said.

-- BERNAMA