CHELSEA Logistics Holdings Corp. said on Tuesday that it was exploring a possible joint development of a fuel and liquefied natural gas (LNG) storage and terminal with Philippine National Oil Co. (PNOC) in the state-run company’s site in Mabini, Batangas.
Chelsea, a listed company chaired by Davao City businessman Dennis A. Uy, told the stock exchange that the development of the facility is for commercial and logistics use.
“This collaboration with PNOC provides opportunities for both Chelsea’s shipping and logistics businesses. Further to the potential inclusion of a fuel and LNG storage and terminal to our logistics arm, we are studying how to serve the future vessel requirements for the transportation of PNX’s (Phoenix Petroleum Philippines, Inc.’s) LNG products,” said Chryss Alfonsus V. Damuy, Chelsea president and chief executive officer.
The announcement is the latest development in the LNG terminal planned by Phoenix Petroleum, another company led by Mr. Uy.
In March, the listed oil company disclosed that it had signed a memorandum of understanding (MoU) with PNOC, along with China’s CNOOC Gas and Power Group Co. Ltd. (CNOOC G&P), to jointly explore business opportunities in the LNG hub project.
The MoU signing, which came after a series of engagement talks among the three parties, will allow the companies to explore and discuss business opportunities and cooperation in relation to the equity investment in Tanglawan Philippine LNG, Inc., the project entity for the LNG project.
In Chelsea’s disclosure, the company said the fuel and LNG terminal project would be part of the development plan for a downstream LNG network among Phoenix Petroleum, CNOOC G&P and PNOC.
Chelsea said it continues to build its logistics portfolio, which currently consists of warehouse and distribution facilities through Worklink Services, Inc. and 2GO Group, Inc., with a potential inclusion of a logistics facility for holding and distribution of fuel and LNG products.
“To date, Chelsea operates 16 tankers, 23 RoPax vessels, 11 cargo vessels and 16 tugboats through Chelsea Shipping, Starlite Ferries, Trans-Asia Shipping Lines, Inc. and Fortis Tugs. In addition, its investee 2GO Group, Inc. operates 8 RoPax vessels, 5 cargo vessels, and 11 fastcrafts,” the company said.
On Tuesday, shares in Chelsea rose by 2.12% to close at P5.77 each. — Victor V. Saulon