Oxagon Partners With AHG To Establish Industrial Gases Facility In NEOM

NEOM's Oxagon has announced a significant land lease agreement with Abdullah Hashim Industrial Gases & Equipment Co. Ltd (AHG). This collaboration involves a SAR600 million investment to establish an advanced industrial gases production and distribution facility in Oxagon’s Industrial Quarter. The project will unfold in phases, with the first phase set to begin construction in February 2026 and operations expected by late 2026.

The strategic partnership between NEOM and AHG marks Oxagon's readiness as an industrial hub. It aims to facilitate the production and distribution of industrial gases, enabling tenants to commence development and production from 2026. This initiative aligns with Saudi Arabia's vision for a diversified economy.

The demand for industrial gases in Oxagon is projected to rise as more industries, including manufacturing and transportation, are drawn to the region. AHG’s facility will be crucial in localizing production and distribution, reducing dependency on imports, minimizing supply chain disruptions, and cutting CO₂ emissions from transport.

CEO of Oxagon Vishal Wanchoo stated, "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. Leveraging AHG’s industrial gases expertise, we are developing a streamlined local supply chain that meets the demands of modern industry and supports the transition to sustainable energy solutions, enabling cleaner manufacturing practices."

AHG plans to produce green oxygen, nitrogen, argon, and hydrogen as part of its phased development strategy. This initiative supports Saudi Arabia's renewable energy goals while offering global manufacturers a strategic advantage by lowering operating costs and meeting environmental targets.

Khalid Abdullah Hashim, CEO of the AHG Group Companies, expressed enthusiasm about the collaboration: "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."

Economic Growth and Job Creation

This development aligns with Saudi Vision 2030 by stimulating GDP growth through specialized roles in the industrial gases sector. It also aims to equip local talent with advanced skills. The new facility will bolster ongoing construction efforts in northwest Saudi Arabia by supplying essential gases and equipment.

The release highlighted that this step addresses broader environmental impacts of manufacturing, including value chain (scope 3) emissions. By providing affordable access to essential gases, it enhances cost competitiveness for tenants within Oxagon.

A long-term partner in NEOM's development, AHG continues to support construction projects across northwest Saudi Arabia. The new facility will further these efforts while enabling efficient infrastructure advancements within Oxagon.

With inputs from SPA