Saudi Basic Industries Corporation (SABIC) has extended Tristar Group’s Saudi joint-venture, United Stars’ contract to to transport liquid industrial gases to SABIC’s diverse portfolio of clients across the GCC.
Tristar has enjoyed a long-standing relationship with SABIC over a number of years. 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 newly agreed deal, United Stars will now continue the role for a further two years.
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, said the firm in a statement.
For the second phase of the contract, the company will commit to providing around 20 tankers for an additional 28,000 MT requirement. The expanded fleet is expected to be deployed in the second quarter.
“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,” said Eugene Mayne, group CEO, Tristar.
“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 sqm and a 10,000 sqm warehouse for both Dangerous Goods and Non-Dangerous Goods. The Company also operates two additional yards in Jubail with an area of 10,000 sqm, and Riyadh with an area of 10,000 sqm.
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.