Phoenix Pet inks 10-yr supply deal with CebuPac

MANILA, Philippines - Phoenix Petroleum Philippines has signed a supply agreement with Cebu Pacific, the low-cost carrier owned by the Gokongwei Group.

The deal involves a 10-year renewable power supply contract under which Phoenix will construct a Jet A-1 storage facility in Tayud, Consolacion, Cebu, to be used by Cebu Pacific to store its Jet A-1 fuel.

In its disclosure to the stock exchange, Phoenix said the Gokongwei Group’s Universal Robina Sugar Milling Corp. (URSUMCO) also signed a contract with Phoenix for the latter to purchase and distribute all the ethanol production of URSUMCO.

This is the not the first agreement between Phoenix and Cebu Pacific.

In 2004, the oil company, which started as a small company in Davao involved in storing and transporting fuels, got its biggest break when it became the exclusive logistics partner of Cebu Pacific in Mindanao.

Today, Phoenix is the dominant supplier of Jet A?1 fuel to Cebu Pacific nationwide.

Phoenix said both companies have shared strengths, making their partnership effective.

Both are Filipino-owned companies and both started as small players in huge fields.

Both are also entrepreneurial companies that started in the provinces but eventually expanded throughout the country.

Phoenix currently has more than 400 retail stations nationwide, and is now the 36th largest corporation in the country.

Cebu Pacific, on the other hand, is a domestic airline that services 24 international and 33 domestic destinations. It is the sixth largest low-cost carrier in the Asia-Pacific region.