Oxagon seals land lease to develop SAR 600M industrial gases facility

The signing ceremony

Oxagon, NEOM’s clean and advanced industries city, signed a land lease with Abdullah Hashim Industrial Gases & Equipment Co. Ltd. (AHG) to invest SAR 600 million in the development of an advanced industrial gases production and distribution facility in Oxagon’s Industrial Quarter — the city’s dedicated industrial district.

Construction will start in February 2026, with the first phase covering core infrastructure, offices, warehousing, and distribution channels, the Saudi Press Agency (SPA) reported.

Operations are expected to commence by late 2026, with subsequent phases following in 2028.

AHG will produce green oxygen, nitrogen, argon, and hydrogen, supplying Oxagon’s industrial tenants, boosting supply chains, cutting imports, and lowering emissions, while also supporting Saudi Arabia’s energy diversification drive.

The project will accelerate tenants’ development and production, enhance local output, and improve cost competitiveness by providing essential gases at affordable rates. It also addresses wider environmental impacts, including indirect carbon emissions from manufacturing.