Razon-led Prime Infrastructure Capital Inc. (Prime Infra) has secured a stronger foothold in the natural gas sector after closing the P50-billion acquisition of First Gen Corp.’s (FGEN) gas assets.
In a joint statement on Monday, Prime Infra and FGEN confirmed the financial closing of the transaction, which gives the Razon group a 60 percent controlling stake in five gas-fired power plants, namely, the 1000-megawatt (MW) Santa Rita, 500-MW San Lorenzo, 450-MW San Gabriel, 97-MW Avion, and the proposed 1200-MW Santa Maria facility.
The Lopez family-led FGEN retains a 40 percent stake.
Offshore LNG terminal
The deal also transfers 60 percent ownership of the offshore liquefied natural gas (LNG) terminal to Prime Infra, with First Gen and Japan’s Tokyo Gas holding 20 percent each.
Prime Infra president and CEO Guillaume Lucci said the acquisition positions the company to grow its gas platform while accelerating the country’s shift away from coal.
“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.
He added that the newly acquired assets complement Prime Infra’s existing operations through its subsidiary, Prime Energy Resources Development B.V., which operates the Malampaya deep-water gas-to-power project, the country’s only indigenous gas field.
Phase 4 drilling and exploration under the Malampaya consortium aims to maximize domestic gas production.
Decarbonized energy future
Meanwhile FGEN president and COO Francis Giles Puno described the partnership as a step toward a regenerative and decarbonized energy 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.
Prime Infra, the Razon Group’s infrastructure arm, invests in sustainable energy, water, and waste management, including Manila Water, the Malampaya gas project, and Prime Waste Solutions.
FGEN, the Lopez Group’s publicly listed power company, operates the country’s largest renewable energy portfolio and is developing geothermal projects in Indonesia with PT DSSR Daya Mas Sakti.