Under the agreement, the group will purchase LPG from Hengyi Brunei refinery’s future production beginning this year

Local oil companies have started implementing their highest price hike so far this year. Shell, Caltex, and Petro Gazz raised gasoline prices by P2.35 per liter, while diesel prices were raised by P1.80. Yummie Dingding

Dennis Uy-led Phoenix Petroleum Philippines Inc. is pouring in $12.6 million for its Singapore-based subsidiary to support its expansion plans.

In a filing to the Philippine Stock Exchange on Tuesday, Phoenix said proceeds would be used for PNX Petroleum Singapore Pte. Ltd. to expand its trading business.

PNX Petroleum is a new company formed by the Phoenix group in September 2018 which it described as the group’s trading and supply office.

Earlier this month, Phoenix said PNX Petroleum is venturing into a liquefied petroleum gas (LPG) offtake from Brunei to the Philippines in line with its move to strengthen its network. PNX signed a partnership with Singapore-based Hengyi Industries International Pte. Ltd. for the LPG offtake venture.

Under the agreement, the group will purchase LPG from Hengyi Brunei refinery’s future production beginning this year.

Phoenix said it was confident that the proximity of Brunei to the Philippines will improve the latter’s 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.

PNX Energy International Holdings, Pte Ltd, meanwhile, recently entered the Vietnam LPG market through the establishment of Phoenix Vietnam Pte. Ltd. The latest LPG venture in Brunei is expected to support Phoenix’s LPG expansion in both the Philippines and Vietnam.

Phoenix Petroleum is engaged in the trading of refined petroleum products on wholesale and retail basis and operating of gas stations, oil depots, storage facilities and allied services. Its operation is divided between trading, and terminal and hauling services.