GASCO extends SAR 59 mln deal with affiliate

National Gas & Industrialization Co. (GASCO) renewed an agreement worth SAR 59.3 million for one year with its 37.57 percent-owned affiliate, Saudi Gas Cylinder Factory, to manufacture cylinders and gas tanks.

Under the deal, GASCO has the right to modify annual volumes by 20 percent maximum of the agreed quantity, the company said in a statement to Tadawul on Tuesday.

The related financial impact is expected to reflect on GASCO’s results during the agreement term.

GASCO board member Sattam Amer Alharbi is also a board member of the Saudi Gas Cylinder Factory, but the agreement was not given any preferential treatment, the statement said.

The original agreement was signed by both parties last November, Argaam reported.