Razon-led Prime Infrastructure Capital Inc. and Lopez-led First Gen Corp. have reached financial close for the acquisition of the latter’s gas assets worth P50 billion.
With the financial close on Monday, Prime Infra now owns a 60-percent controlling stake in the 1,000-megawatt (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 1200-MW Santa Maria Power Plant. First Gen retains 40-percent ownership of these gas assets.
Moreover, Prime Infra now controls 60 percent of the offshore liquified natural gas (LNG) terminal, with 20 percent owned by First Gen, and 20 percent by Japan’s Tokyo Gas.
Prime Infra President and CEO Guillaume Lucci said the strategic partnership with First Gen will support energy security and the growth of sustainable energy in the Philippines.
‘These gas-fired power plants have played a critical role in supporting the Philippine economy and advancing the decarbonization of our energy mix. Our goal is to continue growing this platform together with First Gen to accelerate the country’s transition away from a power system that is still coal-dependent,’ Lucci said.
Lucci also highlighted the synergy of the gas assets with Prime Infra subsidiary Prime Energy Resources Development B.V., operator of the Malampaya deep-water gas-to-power project, the country’s only indigenous gas field. Together with the Malampaya consortium, Prime Energy is undertaking Phase 4 drilling and exploration to maximize the country’s indigenous gas resources.
‘With this transaction, our Prime Infra assets are now fully connected across the energy value chain, from upstream to midstream to downstream,’ Lucci said.
First Gen President and Chief Operating Officer Francis Giles Puno expressed optimism for the strategic partnership and highlighted its push towards a decarbonized and regenerative future.
‘This partnership marks not just a new chapter, but a renewed commitment to the work that powers this nation every day, to grow our gas platform responsibly, to strengthen our country’s energy security, and to help ensure that the Philippines transitions to clean energy,’ Puno said.
Lucci and Puno led a joint Prime Infra-First Gen town hall for gas plant employees, outlining the strategic vision for the gas assets and emphasizing their commitment to operational excellence and safety.
Prime Infra is the infrastructure arm of the Razon Group, investing in, developing, and operating critical assets in essential sectors such as sustainable energy, water, and waste management. Among its assets are Manila Water Co. Inc., a listed water utility that supplies water to over 7.7 million Filipinos; Prime Energy, the operator of the Malampaya deep water gas-to-power project, and Prime Waste Solutions, a company focused on turning waste into value.
First Gen is the listed power generation company of the Lopez Group. Aside from its newly established partnership with Prime Infra in natural gas, First Gen operates the country’s largest portfolio of renewable energy which includes geothermal, hydro, wind, and solar power. Through its geothermal power unit Energy Development Corporation, it is also developing geothermal prospects in Indonesia in partnership with PT DSSR Daya Mas Sakti, a subsidiary of Sinar Mas Group of Indonesia.