Major Deal Clears Path for $160m Industrial Gases Plant at NEOM’s Oxagon
So, here’s what’s happening at NEOM’s Oxagon, and it’s a pretty big step forward in the region’s push toward advanced, sustainable industry. A major land lease agreement has just been signed between NEOM and Abdullah Hashim Industrial Gases & Equipment Co. (AHG), one of Saudi Arabia’s leading industrial gas suppliers. This deal sets the stage for the construction of a new SAR 600 million — roughly US$160 million — industrial gases production and distribution plant right inside Oxagon’s growing industrial district.
The project is designed to roll out in multiple phases, and the groundbreaking is already scheduled for February 2026. In the early phase, the site will see the installation of core industrial gas infrastructure along with new office space, warehousing, and distribution facilities. If everything stays on schedule, operations for the first phase are expected to begin in late 2026, with later phases coming online around 2028.
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What makes this deal significant is how central it is to Oxagon’s strategy. The plant is expected to serve as one of the foundational pieces of industrial infrastructure, enabling other tenants to move from planning into actual production starting as early as 2026. Essentially, once industrial gases like oxygen, nitrogen, argon, and hydrogen can be produced locally, the entire supply chain inside Oxagon becomes faster, smoother, and far more sustainable.
Vishal Wanchoo, the CEO of Oxagon, explained that AHG’s expertise will help build a streamlined and modern supply chain within NEOM. By producing gases locally, Oxagon can cut down on long-distance imports, ease supply chain delays, and reduce transport-related CO₂ emissions. That shift supports cleaner manufacturing practices — something NEOM has been emphasizing from the start.
AHG, for its part, has laid out plans to introduce green versions of key industrial gases, including green oxygen and green hydrogen. This aligns strongly with Saudi Arabia’s broader goals for renewable energy and low-carbon industrial development. The company’s CEO, Khalid Abdullah Hashim, even emphasized that this investment reflects their commitment to supporting Oxagon’s transition into a clean, future-ready industrial hub.
Right now, AHG is already playing a role in NEOM’s broader construction efforts by supplying industrial gases to contractors across northwest Saudi Arabia. This new facility will only expand that work. Plus, as the plant comes online, it’s expected to create specialized jobs, build local technical talent, and make Oxagon an even more attractive destination for global manufacturers looking for reliable, cost-efficient, and environmentally responsible production options.
In short, this agreement isn’t just about building a plant — it’s about accelerating the next phase of NEOM’s industrial transformation.
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