Phoenix Park Energy Marketing LLC (PPEM), a wholly owned subsidiary of Phoenix Park Gas Processors Ltd (PPGPL), signed a non-binding letter of intent with its largest customer – Intersim SA (SIMSA group, Mexico) – on August 9.
PPEM, in a release, said the letter of intent, which was signed in Mexico, is effective for three years.
It documents the intention of both parties to collaborate towards increasing the number of rail cars of propane PPEM delivers to SIMSA, from the current volume, 300 cars a month to 650 and beyond.
Once realised, PPEM will experience a significant impact on its overall product volumes traded and consequently its financial performance, the release said.
SIMSA runs a diversified conglomerate of companies across Mexico and is one of the largest propane distributor and retailer in the Mexican market.
This latest development comes on the heels of PPGPL signing a technical services agreement with a Ghanaian consortium to provide technical and commercial advisory services, drawing on its expertise in process and mechanical engineering, commercial, project management and process operations.
According to the release, PPGPL and its subsidiary are pursuing these commercial activities to diversify revenue streams, while continuing to grow the business along the energy value chain.