Deal signed ahead of $160m industrial gases plant build at Neom’s Oxagon

Digital render of how the Port of Neom and Oxagon will look (Image: Neom)

The news comes after Neom signed a land lease agreement with industrial gases supplier Abdullah Hashim Industrial Gases & Equipment Co. (AHG).

Groundbreaking on the multi-phase project is scheduled for February 2026. The first phase will include essential industrial gases infrastructure, offices, warehousing and distribution capabilities.

Operations are expected to start in late 2026 with subsequent phases expected to start in 2028.

The production and distribution of industrial gases at Oxagon is expected to pave the way for other tenants to ramp up development and begin operations from 2026 onwards.

Vishal Wanchoo, CEO of Oxagon, said, “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.”

Neom said AHG’s new facility would reduce reliance on long-distance imports, minimise supply chain disruptions and reduce carbon dioxide (CO₂) emissions from transport.

As part of its phased development plan, AHG plans to produce green oxygen, nitrogen, argon and hydrogen.

AHG currently supports the broader construction underway in northwest Saudi Arabia by supplying industrial gases and equipment to contractors.