SABIC extends contract with Tristar Group’s JV, United Stars
Saudi Basic Industries Corporation (SABIC) has extended its contract with Tristar Group’s joint venture in Saudi Arabia, United Stars, for an additional period of two years. Tristar’s mandate will be to continue to transport liquid industrial gases to SABIC’s 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 SABIC’s 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 SABIC’s 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.”