Phoenix Petroleum Philippines will build a new jet fuel storage facility at Tayu, Cebu to be used by domestic airline Cebu Pacific.
The size and date of completion of the new storage facility have yet to be finalised. Phoenix made the commitment while renewing a 10-year jet fuel supply contract with Cebu Pacific, the largest domestic airline operator in the Philippines. The first contract ran from 2004 to 2014.
Phoenix already has depot and storage terminals at Davao, Batangas, Aklan and Surigao in the Philippines. It imports from trading firms jet fuel and gasoil on a cfr basis, with the cargoes usually loading from Taiwan.
The Philippines is net short on oil products while domestic demand continues to rise. The presence of numerous independents such as Phoenix Petroleum, which usually import from trading firms on a cfr basis, makes the country a highly sought after outlet for middle distillates cargoes loading from South Korea and Taiwan.
nhw/rjd
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