Saudi Basic Industries Corporation (Sabic) has extended its contract with Tristar Groups joint venture in Saudi Arabia, United Stars, for an additional period of two years. Tristars mandate will be to continue to transport liquid industrial gases to Sabics diverse portfolio of clients across the GCC.
Tristar, a global integrated energy logistics company, has a long-standing relationship with Sabic. In December 2017, United Stars Country Manager Aous Ali signed a three-year contract to transport liquid gases from Sabics plants in Jubail in the Eastern Province and Yanbu in the Western Province to Sabic affiliates inside the Kingdom, Gulf Cooperating Council (GCC) and Jordan.
Under the initial contract, Tristar had invested in 30 gas-carrying road tankers and Cryogenic ISO tankers to meet Sabics requirements, however, with the extension, an additional 11 tankers will be deployed this month. Furthermore, in the second phase of the contract, the company will provide around 20 tankers for an additional 28,000 MT requirement, which will be deployed in the second quarter.
Eugene Mayne, Group CEO of Tristar said: We pride ourselves on our long-standing relationships and repeat business with our blue-chip clients globally, which have enabled our business to grow steadily, leading to a strong track record of growth with a consistent EBITDA margin between 20.1% to 22.8% in the years 2018 to 2020.
The extension of our contract with Sabic, a leading player in the Middle East, is testament to our expertise in energy logistics, and plays a key role as we continue to grow our business in Saudi Arabia. We look forward to continuing to demonstrate best practice in safety that ensures a consistent level of safe and high quality service to Sabic and all our customers, and I look forward to reporting on further business developments in due course.
United Stars operates a yard at the Dammam Modon Second Industrial Area, with an area of 40,000 sq m and a 10,000 sq m warehouse for both Dangerous Goods and Non-Dangerous Goods. Tristar also operates two additional yards in Jubail with an area of 10,000 sq m, and Riyadh with an area of 10,000 sq m.
In 2020, Tristar established its Cryogenic Gas Transport division in the Kingdom, which offers the leasing of cryogenic ISO tanks and road tankers, in addition to consultation, engineering and intermodal transport services for cryogenic gas. It will open a specialised maintenance and repair centre for cryogenic assets at the Dammam yard later this year.-TradeArabia News Service
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