NEOM Oxagon city has inked an agreement with Saudi-based Abdullah Hashim Industrial Gases & Equipment Co. (AGH) for industrial gases plant. The agreement is a land lease agreement between both parties valued at $160 million. Furthermore, AGH will develop in multiple phases a state-of-the-art industrial gases production and distribution facility. The plant will be in Oxagon’s Industrial Quarter, the city’s dedicated industrial district. Groundbreaking is scheduled for February 2026 where the first phase will include various amenities.
These include industrial gases infrastructure, offices, warehousing and distribution capabilities. Operations are also due to commence in late 2026 with subsequent phases expected to start in 2028. This strategic partnership also signals Oxagon’s readiness as an industrial city. The production and distribution of industrial gases paving the way for tenants to ramp up development and begin production from 2026 onwards, a statement said. “Our partnership with AHG exemplifies Oxagon’s readiness to welcome world-class tenants and accelerate the Kingdom’s transition to a diversified, future-ready economy,” said Vishal Wanchoo, CEO of Oxagon. NEOM is making strides in projects around Oxagon such as data center projects which are gradually taking shape.
Project Factsheet
Significance:
• A $160 million industrial gases production and distribution facility being developed in Oxagon City, NEOM, Saudi Arabia.
• Established through a land lease agreement between Oxagon and Abdullah Hashim Industrial Gases & Equipment Co. (AGH).
• Support Oxagon’s position as a major industrial hub
Infrastructure:
• Located within Oxagon’s Industrial Quarter, the city’s dedicated industrial district.
• Phase 1 will include industrial gases infrastructure, administrative offices, warehousing facilities, and distribution systems.
• Designed to enhance cost efficiency and reduce CO₂ emissions. It will also provide reliable supply for industrial tenants.
Developer/Consortium:
• Developer/Operator: Abdullah Hashim Industrial Gases & Equipment Co. (AGH), a long-term industrial gases supplier for NEOM.
• Oxagon, NEOM’s advanced industrial city, supporting the project through land provision and strategic collaboration.
Funding/Timeline:
• Estimated investment: $160 million.
• Groundbreaking: Scheduled for February 2026.
• Operations (Phase 1): Expected to commence in late 2026, with additional phases beginning in 2028.
Significance of NEOM Oxagon City Industrial Gases Plant
NEOM Oxagon city fulfill the demand for industrial gases and is anticipated to grow as the region continues to attract industries. These include areas such as manufacturing and beyond. AHG’s new facility will play a vital role in localized production and distribution. It will also reduce reliance on long-distance imports. Furthermore, it minimizes supply chain disruptions and reducing carbon (IV) oxide (Co2) emissions from transport. Additionally, it will enhance cost competitiveness for tenants by providing them with more affordable and reliable access to essential industrial gases. This is also a step forward in addressing some of the broader environmental impacts of manufacturing, including value chain (scope 3) emissions.
As part of its phased development plan, AHG plans to produce green oxygen, nitrogen, argon and hydrogen. This further supports Saudi Arabia’s broader renewable energy transition goals. It will also offer a strategic advantage for global manufacturers seeking to lower operating costs while meeting environmental targets. A long-term partner of NEOM’s development, AHG currently supports the broader construction underway in northwest Saudi Arabia. Furthermore, it supplies industrial gases and equipment to contractors. This new facility will strengthen those efforts. Furthermore, it will enable tenants in Oxagon to advance infrastructure projects more efficiently.
