By Myrna M. Velasco
Wholly-owned subsidiary in Singapore, Uy-led Phoenix Petroleum Philippines Inc. had cemented a deal expanding the base of its liquefied petroleum gas (LPG) procurement or off-take from Brunei Darussalam.
To concretize that, PNX Petroleum Singapore Pte. Ltd. of Philippine listed firm Phoenix Petroleum signed a partnership arrangement with Singapore-based Hengyi Industries International Pte. Ltd. (HYII) for “LPG offtake venture in Brunei,” the company has disclosed to the Philippine Stock Exchange.
The tie-up deal that was signed between Phoenix Petroleum Chief Operating Officer Henry Albert Fadullon and HYII Director Chen Lian Cai, will enable the Filipino firm to “off-take (purchase) LPG from Hengyi Brunei refinery’s future production.”
The Uy-led company indicated in a statement to the media that “the offtake agreement is expected to start within the year.”
The parties have not disclosed the volume of off-take (commodity purchase) that Phoenix Petroleum will be having as part of its overall LPG supply portfolio, but the Philippine company said this will underpin efforts in making its brand known in offshore markets.
It emphasized that such development coincides with the company’s acquisition of “PNX Conqueror” which will be the oil firm’s first pressurized LPG carrier with 2.5-kilotonne capacity.
And along with a long-term charter with affiliate firm Chelsea Shipping, another large pressurized vessel with 4.6 kT capacity is being prepared for the venture.
In this recently inked deal, Fadullon stressed this is one key development for the company “as we continue to expand internationally and establish strong connections with complementary businesses from neighboring countries.”
With a market base currently being shored up in Vietnam, the Phoenix Petroleum executive labels this deal with the Brunei-based facility as “another milestone partnership.”
Fadullon thus asserted that “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 previously unveiled five-country regional market expansion plan targeting not just Vietnam and Singapore, but also Myanmar, Thailand and Australia.