Saudi Arabia’s NEOM has finalised a land lease agreement with supplier Abdullah Hashim Industrial Gases & Equipment (AHG) for an industrial gases plant in Oxagon’s Industrial Quarter, Saudi Arabia.
Under this SR600m ($159.91m) investment, AHG will build and operate the production and distribution facility.
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Construction is scheduled to begin in February 2026. The project will be executed in several phases.
The initial phase will provide infrastructure for the production and distribution of industrial gases, along with offices, storage, and logistics facilities.
The facility’s first phase is planned to become operational by the end of 2026.
Additional phases are planned to start operations in 2028.
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By GlobalDataThis agreement prepares NEOM’s industrial city Oxagon for tenant companies that require local sources of industrial gases before starting their development and production activities from 2026, said NEOM.
It is expected that demand for industrial gases at Oxagon will increase as it attracts manufacturers and companies from other industries such as transportation.
AHG’s new site aims to offer local sources of industrial gases, with the goal of reducing dependence on imports over long distances. This may also limit supply disruptions tied to logistics and decrease carbon dioxide emissions generated from transport, said NEOM.
The facility also intends to provide cost-effective access to necessary industrial gases for tenants and address broader environmental considerations within manufacturing supply chains.
AHG Group Companies CEO Khalid Abdullah Hashim said: “We are excited to be part of Oxagon’s development plan and are keen to play our role in supporting the industrial gases requirements of international and local investors with cost-competitive, high-reliability products and services.
“The land lease agreement, followed by our investment plan in low-carbon industrial gases production facilities, demonstrates our commitment to supporting the clean industrial transformation taking place in Oxagon.”
As part of its phased approach, AHG plans to generate green oxygen, nitrogen, argon, and hydrogen at this site.
Currently, AHG supports construction projects across north-west Saudi Arabia with industrial gases and related equipment.
The investment aligns with the Saudi Vision 2030 strategy by contributing jobs in the specialised area of industrial gas production and providing skill development opportunities for local workers.
