Phoenix Petroleum ink fuel supply deals with Cebu Pacific, Umsumco
PHOTO FROM PHOENIXPHILIPPINES.COM
MANILA, Philippines–Publicly listed Phoenix Petroleum Philippines has inked long-term fuel supply contracts with Cebu Pacific Inc. and Universal Robina Sugar Milling Corp. (Ursumco), a move seen to further strengthen the decade-long partnership of the independent oil firm with the Gokongwei group.
In a disclosure to the Philippine Stock Exchange Monday, Phoenix Petroleum Philippines said that under a new 10-year agreement signed with Cebu Pacific, the oil firm would construct a Jet A-1 storage facility in Tayud, Consolacion, Cebu.
This facility, the cost of which has yet to be disclosed, will be used by the largest domestic airline operator in the country to store their Jet fuel.
“It is part of our agreement (to build the facility) considering it will increase our Jet A-1 fuel sales given the increase in the fleet as well as flights of CebuPac. We have yet to determine the costs of the facility after taking into account the projected fuel requirements of Cebu Pacific,” Phoenix Petroleum VP for external affairs Raymond Zorilla said in a separate text message.
Phoenix Petroleum is currently the dominant supplier of Jet A-1 fuel to Cebu Pacific. An increase in the volume to be taken from the oil company is expected given the costs of putting up a storage facility.
“Besides, we provide comparative advantage as against others given our complete logistics from storage tanks up to into-plane services,” Zorilla added.
Meanwhile, Phoenix Petroleum also signed an agreement with Ursumco, which will allow the oil company to purchase and distribute all the ethanol to be produced by the Gokongwei firm from its plant in Bais, Negros Oriental.
The company, however, did not give further details about this agreement.
Phoenix Petroleum started in 2004 as a small company in Davao involved in storing and transporting fuels. It got its biggest break when it became the exclusive logistics partner of the Cebu Pacific in Mindanao.
After 10 years of strong partnership, Phoenix Petroleum and Cebu Pacific are leaders in their own fields with Phoenix being the No. 1 independent oil firm. It has more than 400 retail fuel stations nationwide, and is the 36th largest corporation in the country.
Cebu Pacific, meanwhile, is the largest domestic airline operator in the country, flying to 24 international and 33 domestic destinations. It is the sixth-largest low-cost carrier in the Asia-Pacific region.
