Air Liquide and Gas Malaysia to Explore Low-Carbon Hydrogen and Bio-LNG Projects

Air Liquide Engineering & Construction and Gas Malaysia Berhad have signed a Memorandum of Understanding (MoU) to explore energy-transition projects focused on low-carbon hydrogen, carbon dioxide (CO₂) off-take and Bio-LNG in Malaysia. The agreement was signed on the sidelines of Gastech 2026 in Bangkok on September 17, 2026.

The collaboration brings together Gas Malaysia's market reach and gas infrastructure with Air Liquide's expertise in industrial gas technologies, engineering, gas separation and liquefaction. The companies will assess potential projects aimed at providing lower-carbon energy solutions for industrial customers.

Focus on Low-Carbon Hydrogen

One of the main areas of cooperation will be the development of low-carbon hydrogen solutions. Hydrogen is increasingly being considered for industries where direct electrification can be technically or economically challenging.

Air Liquide has extensive experience across the hydrogen value chain, including production, storage, transportation and distribution. Its technologies include hydrogen production through electrolysis, natural-gas reforming combined with carbon capture, and biomethane reforming.

Through the new partnership, Air Liquide and Gas Malaysia will examine opportunities to apply these technologies within Malaysia's industrial sector.

Exploring Bio-LNG Opportunities

The MoU also covers Bio-LNG, a renewable gas produced by upgrading biogas and subsequently liquefying it. Bio-LNG can provide an alternative lower-carbon fuel for applications that continue to require gaseous or liquid energy sources.

For Gas Malaysia, exploring Bio-LNG represents an opportunity to expand its activities beyond conventional natural gas supply and participate in renewable-gas solutions.

The partnership will assess potential Bio-LNG projects and opportunities involving Gas Malaysia's existing market and infrastructure capabilities.

CO₂ Off-Take and Carbon Management

Another important component of the agreement is the exploration of CO₂ off-take opportunities. This involves assessing potential ways to collect, handle and utilize or otherwise manage captured carbon dioxide from industrial facilities.

CO₂ management can play an important role in industrial decarbonisation, particularly in sectors where eliminating emissions completely through electrification is difficult.

Air Liquide has developed technologies for carbon capture and CO₂ processing, while Gas Malaysia can contribute its knowledge of the Malaysian market and infrastructure network.

Combining Technology and Infrastructure

The partnership is designed to combine complementary capabilities from both companies.

Air Liquide will contribute its global experience in industrial gases, engineering and technologies for hydrogen, gas separation and liquefaction. Gas Malaysia will contribute its established market presence, infrastructure and understanding of the energy requirements of industrial customers in Malaysia.

By combining these capabilities, the companies can evaluate projects based on the specific energy and decarbonisation needs of industrial users.

Supporting Malaysia's Energy Transition

The collaboration comes as Malaysia works to diversify its energy system and reduce emissions from industrial activities. The partnership is aligned with the objectives of Malaysia's National Energy Transition Roadmap (NETR), which includes developing lower-carbon energy sources and supporting the country's transition toward a more sustainable energy system.

Gas Malaysia has also been expanding its activities in areas related to renewable gas and industrial decarbonisation. Its recent initiatives include work involving biomethane and other technologies intended to reduce the carbon footprint of gas-related operations.

Opportunities for Malaysian Industry

Industrial companies are increasingly looking for energy solutions that can reduce emissions while maintaining reliability and competitiveness. Low-carbon hydrogen, Bio-LNG and CO₂ management could provide additional options for companies seeking to reduce the carbon intensity of their operations.

The Air Liquide-Gas Malaysia collaboration will allow both companies to evaluate where these technologies can be commercially and technically applied.

Rather than announcing a specific project at this stage, the MoU establishes a framework for identifying and assessing potential opportunities.

Broader Implications for the Energy Sector

The partnership reflects a broader shift in the energy industry toward integrated solutions that combine conventional infrastructure with emerging low-carbon technologies.

Hydrogen can serve as both an industrial feedstock and an energy carrier, while Bio-LNG can provide a renewable alternative for selected applications. At the same time, CO₂ management can support industries where process emissions remain difficult to eliminate.

Developing these technologies together could create new opportunities for Malaysia's industrial and energy sectors while supporting the country's longer-term decarbonisation objectives.

Looking Ahead

The MoU between Air Liquide Engineering & Construction and Gas Malaysia marks an initial step toward exploring low-carbon energy projects in Malaysia. The companies will assess opportunities in low-carbon hydrogen, CO₂ off-take, Bio-LNG and related engineering and technology solutions.

As Malaysia continues its energy transition, partnerships that combine local infrastructure and market knowledge with international technology expertise could help identify practical pathways for industrial decarbonisation.

The next stage will depend on the technical and commercial assessment of potential projects. If viable opportunities are identified, the collaboration could contribute to the development of new low-carbon energy and gas solutions for Malaysian industry.