PHOENIX Petroleum Philippines, Inc. is teaming up with Singapore-based Hengyi Industries International Pte. Ltd. (HYII) for a liquefied petroleum gas (LPG) offtake venture in Brunei.
In a statement issued Friday, Phoenix Petroleum said its wholly owned unit PNX Petroleum Singapore Pte. Ltd has signed an agreement that will allow the company to offtake from the future production of HYII’s refinery. The offtake agreement will start within the year.
This is in line with Phoenix Petroleum’s recent acquisition of PNX Conqueror, its first pressurized LPG carrier with 2.5 kilotonnes (kT) capacity, along with a long-term carter of Chelse, a large pressurized vessel with 4.6kT capacity.
Hengyi Industries is the trading arm of privately-run Chinese firm Hengyi Group that will start operating a refinery-petrochemical project in Brunei this year.
Phoenix Petroleum expects the venture to help improve the country’s overall supply situation since it only takes a day to deliver supply from Brunei. This also gives the firm more options for its petroleum sources, which are usually taken from China, Vietnam, Korea, and the Middle East, among others.
“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,” Phoenix Petroleum Chief Operating Officer Henry Albert R. Fadullon said in a statement.
“We are optimistic and excited about the future of this project as it opens new opportunities and possibilities for growth and progress for both companies and countries.”
Phoenix Petroleum has been beefing up its LPG operations since the start of the year. Its unit PNX Energy International Holdings Pte. Ltd has recently set up Phoenix Vietnam Pte. Ltd for its presence in the Vietnam LPG market.
The company has also initiated marketing efforts succh as the launch of the “Sarap Pala Magluto” nationwide campaign for Phoenix Super LPG, alongside the opening of Phoenix Super Hubs in different parts of the country.
Phoenix Petroleum’s net income attributable to the parent went down seven percent to P903.94 million in the first half of 2019, due to higher costs and expenses. This followed a 27% increase in gross revenues to P51.2 billion. — Arra B. Francia