First Gen Corporation has announced a landmark strategic partnership with Prime Infrastructure Capital, Inc., under which Prime Infra will acquire a 60 percent equity stake in First Gen’s gas business. The transaction marks a significant development in the Philippine energy landscape, particularly for the country’s natural gas and energy security sectors.
Upon closing, Prime Infra will hold a majority interest in several of First Gen’s key gas-fired power assets: the 1,000 MW Santa Rita Power Plant, the 500 MW San Lorenzo Power Plant, the 450 MW San Gabriel Power Plant, the 97 MW Avion Power Plant, and the proposed 1,200 MW Santa Maria Power Plant. The agreement also covers the Interim Offshore LNG Terminal in Batangas City.
As consideration for the equity, Prime Infra has agreed to pay PHP 50 billion to First Gen, subject to customary closing adjustments and mutually agreed modifications. In addition, First Gen will be eligible to receive earn-out payments, contingent on the fulfilment of agreed performance conditions.
All the gas assets included in the deal are located in Batangas City, a strategic hub for the Philippines’ energy infrastructure. These assets are considered critical to national energy security and are seen as vital components in the transition to a low-carbon energy future.
Federico Lopez, chairman and CEO of First Gen, commented:
“Our partnership with Prime Infra—built on mutual respect—is a major step in our mission to forge collaborative pathways towards a decarbonised and regenerative future. We have always believed that natural gas is the most practical fuel to transition to renewable energy. Our continued involvement in LNG highlights its essential role in maintaining energy security while enabling the greater adoption of renewables. This partnership also provides First Gen with additional resources to pursue our expanding portfolio of renewable energy projects.”
Following the transaction, ownership of the Batangas gas-fired power plants will be divided with Prime Infra holding 60 percent and First Gen retaining 40 percent. For the LNG terminal, ownership will be shared between Prime Infra (60 percent), First Gen (20 percent), and Japan’s Tokyo Gas (20 percent).
The new partnership is expected to work closely with the Philippine government to enhance national energy independence and ensure a stable, secure supply of power to support the country’s development goals.
First Gen is the Philippines’ largest producer of renewable energy, contributing around 18 percent of the country’s total power generation. Prime Infra, meanwhile, is the majority shareholder in Manila Water Company, Inc. and the operator of the Malampaya deep-water gas-to-power project through Prime Energy, further reinforcing its position in the country’s energy and utility sectors.
For more information visit www.firstgen.com.ph
