MANILA, Philippines — Independent oil firm Phoenix Petroleum Philippines Inc. is strengthening its network in the Southeast Asian region after it forged a deal to source liquefied petroleum gas (LPG) from Brunei.
In a disclosure, Phoenix said its wholly owned subsidiary PNX Petroleum Singapore Pte Ltd. signed a partnership with Hengyi Industries International Pte Ltd. (HYII).
The partnership will allow Phoenix to source LPG from Hengyi Brunei refinery’s future production.
This latest LPG venture is expected to support Phoenix’s LPG expansion in both the Philippines and Vietnam.
Phoenix said the offtake agreement is expected to start within the year.
In preparation for the venture, the oil firm acquired PNX Conqueror—which is the company’s first pressurized LPG carrier with 2.5 kilo tons (kT) capacity—and has a long-term charter of Chelsea, another large pressurized vessel with 4.6 kT capacity.
“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 director Henry Albert Fadullon said.
“With another milestone partnership, 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,” he said.
Given the close proximity between the two countries, the partnership is expected to improve the Philippines’ overall supply situation as Brunei would only need a day to deliver its supply to the country.
The venture would also beef up Phoenix’s petroleum source from its usual suppliers—China, Vietnam, Korea, and Middle East, among others.
Phoenix entered the LPG business in August 2017 when it acquired Petronas Energy Philippines Inc. (PEPI), now PLPI and renamed Petronas LPG to Phoenix Super LPG to reflect its brand.
Since them it has been growing its LPG business through its subsidiaries. Earlier this year, subsidiary PNX Energy International Holdings, Pte Ltd. entered the Vietnam LPG market through the establishment of Phoenix Vietnam Pte. Ltd.