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Phoenix Petroleum to build bitumen-making hub ‘very soon’
PHOENIX Petroleum Philippines Inc. plans to build its own bitumen-production facility “very soon” following board approval to enter into a joint-venture agreement (JVA) with Tipco Asphalt Public Co. Ltd. and PhilAsphalt Development Corp., BusinessMirror reported.
“We are planning to put up our own plant in Calaca, Batangas, together with our joint-venture [JV] partner,” Phoenix Petroleum COO Henry Albert Fadullon said during the launch of its upgraded fuel products. “Within the year, we will be having the asphalt business in place.”
Bitumen is an oil residue used as a component for making asphalt.
“Bitumen is the base product, but I think, within the bitumen phase, there is a lot of opportunity for innovation, and I think that is where we see the opportunity in the Philippines,” Fadullon said. “There are a host of other applications where bitumen can be made for and be made.”
Phoenix Petroleum earlier said the JVA is for the purpose of operating, marketing and distribution of bitumen and bitumen-related products in the Philippines. The oil company will own 40 percent of the company, while Tipco Asphalt and PhilAsphalt will corner 40 percent and 20 percent, respectively.
Once the JV firm is formed, the partners will proceed to secure a lease from Calaca Industrial and Seaport Part for a parcel of land with access to its jetty and wharf facilities for the construction and establishment of a terminal.
Thirty 30 days after the execution of the agreement the partners will form a JV company with a total authorized capital stock of P275 million.
“Our plan with our partner is to offer different kind of technology for the construction industry and road,” Fadullon added.
Phoenix’s strategic focus will be on creating growth and opportunities in highly attractive industries and markets that are complementary to its core fuel business and are underpinned by strong macroeconomic fundamentals.
“In this instance, bitumen is one of the by-products of crude-oil refining,” the oil firm had said. “Effectively, Phoenix is expanding its portfolio of petroleum products.”
Phoenix Petroleum, the petroleum-distribution arm of Davao-based businessman Dennis Uy, launched its new fuel product it calls “Pulse Technology” under the promise of three benefits. The company claims the product would help avoid fuel-filter blockage in diesel-powered vehicles. The company added the product would remove deposits from fuel injectors, valves and piston surfaces, as well as provide engine protection. The company also claims continuous use of the product also helps result to better fuel economy.
The launch of the product “is in fulfillment of our goal to be the most credible alternative to the major brands,” Fadullon said. “We enhanced our fuel products and improved our formulation not only to be able to compete with bigger players in the oil industry but, more important, to add value to every peso fueled up at Phoenix.”
After 15 years, Phoenix Petroleum grew from five stations in Mindanao to 530 nationwide. Last year the company broadened its portfolio to include liquid petroleum gas with the acquisition of Petronas Energy Philippines Inc., now Phoenix LPG Philippines Inc., and convenience retailing with the purchase of Family Mart retail-store chain.