Philippine energy company PNOC Exploration Corp. (PEC.PH) said Wednesday it signed a deal to take over the compressed natural gas facilities of Shell Philippines, the local unit of Royal Dutch Shell PLC (RDSA.LN).

"PNOC-EC plans to upgrade the existing facilities," the company said in a statement to the stock exchange. The facilities are located in Tabangao, in Batangas province, south of Manila.

The company also plans to build anther CNG station.

It plans to spend PHP400 million over the next two years for the project, it added.

-By Rhea Sandique-Carlos, Dow Jones Newswires; 632-848-5051; rhea.sandique-carlos@dowjones.com