DAVAO CITY—A Singapore subsidiary of Phoenix Petroleum Philippines signed a partnership agreement with another Singaporean company to expand its operation in Brunei Darussalam, tapping the latter’s refinery in Brunei to produce and distribute the Phoenix-branded liquefied petroleum gas (LPG).
A company statement said PNX Petroleum Singapore Pte. Ltd., a wholly-owned subsidiary of Phoenix Petroleum Philippines Inc., recently signed the partnership with Singapore-based Hengyi Industries International Pte. Ltd. (HYII) “for an LPG offtake venture in Brunei.”
The partnership “essentially means that Hengyi will be the producer or will be the resource of the LPG and Phoenix will be the buyer of the future production,” the company said.
It added that the gas will be used to supply the Philippines and Vietnam. HYII maintains a refinery in Brunei.
Phoenix said the partnership agreement was a strategic move to strengthen its network.
The agreement will allow Phoenix “to offtake LPG from Hengyi Brunei refinery’s future production.” The agreement was expected to start within the year following Phoenix’s acquisition of PNX Conqueror, the company’s first pressurized LPG carrier with a 2,500-ton capacity, along with a long-term charter of Chelsea, another large pressurized vessel with 4,600-ton capacity, in preparation for the venture.
The agreement was signed by Phoenix Petroleum Singapore Pte. Ltd. Director Henry Albert Fadullon and HYII Director Chen Lian Cai.
“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,” Fadullon said.
The company said the proximity of the Philippines and Brunei was likely to improve the Philippines’s overall supply situation “as Brunei would only need a day to deliver its supply to the country.” The venture would beef up Phoenix’s petroleum source from its usual suppliers from China, Vietnam, Korea and Middle East.
Since early this year, Phoenix Petroleum subsidiaries have been growing its LPG business. In March, Phoenix LPG Philippines Inc. (PLPI) launched the “Sarap Pala Magluto” nationwide campaign for Phoenix Super LPG and started opening Phoenix Super Hubs in different parts of the Philippines, it added.
Phoenix Energy International Holdings Pte. Ltd., meanwhile, recently entered the Vietnam LPG market through the establishment of Phoenix Vietnam Pte. Ltd., the company said. The latest LPG venture in Brunei was expected to support Phoenix’s LPG expansion in both the Philippines and Vietnam, it said.