PHOENIX Petroleum Philippines Inc. has partnered with a Singapore-based company on purchasing liquefied petroleum gas (LPG) from Brunei Darussalam in a bid to further bolster its presence in Southeast Asia.
In a disclosure on Friday, the Dennis Uy-led independent oil company said its unit PNX Petroleum Singapore Pte. Ltd. recently signed an offtake venture agreement with Hengyi Industries International Pte. Ltd. (HYII) allowing the former to buy LPG in the future from the latter’s refinery in Brunei.
The accord is expected to take effect within the year following the subsidiary’s acquisition of PNX Conqueror, the company’s first pressurized LPG carrier with a capacity of 2.5 kilotons (kT) and another with a capacity of 4.6 kT in preparation for the venture.
“The latest LPG venture in Brunei is expected to support Phoenix’s LPG expansion in both the Philippines and Vietnam,” the oil firm said.
Given the nearness of the two nations, the transaction is expected to improve the Philippines’ overall supply, as Brunei would only need a day to deliver LPG to the country.
It is also expected to expand Phoenix’s petroleum sources. Its current suppliers include China, Vietnam, South Korea and the Middle East.
“As we continue to expand the brand internationally and establish strong connections with complementary businesses from neighboring countries, we are relentless in forging ties with companies like HYII to be able to provide quality products and services to more and more communities,” PNX Petroleum Singapore Pte. Ltd. Director Henry Albert Fadullon said.
Since early this year, Phoenix has been exerting efforts to grow its LPG business. In May, the company strengthened its presence in Vietnam after PNX Energy International Holdings Pte. Ltd. established Phoenix Vietnam Pte. Ltd.
Incorporated in 2002, Phoenix Petroleum is into trading and marketing refined oil products, including liquefied petroleum gas and lubricants; operating oil depots and storage facilities; and offering hauling and into-plane services.
Phoenix Petroleum shares increased by 18 centavos or 1.68 percent to close at P10.88 on Friday.