Prime Infra completes P50-B acquisition of First Gen's 60% gas assets

Razon-led Prime Infrastructure Capital Inc. has completed its acquisition of majority of gas assets of Lopez-led First Gen Corp. (First Gen) in Batangas City.

In a statement, Prime Infrastructure said it has reached a financial close of the P50-billion transaction with First Gen on Monday, November 17, acquiring 60% controlling stake of the latter's 1000-megawatt (MW) Santa Rita Power Plant, 500-MW San Lorenzo Power Plant, 450-MW San Gabriel Power Plant, 97-MW Avion Power Plant, and the proposed 1200-MW Santa Maria Power Plant. 

Following the transaction, First Gen retains 40% ownership of the gas assets.

Prime Infra added it also now controls 60% of the offshore liquified natural gas (LNG) terminal, with 20% owned by First Gen and 20% by Japan's Tokyo Gas.

"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," said Prime Infra president and CEO Guillaume Lucci.

With the transaction, Prime Infra has synergized its gas assets under its subsidiary Prime Energy Resources Development B.V.—the operator of the Malampaya deep-water gas-to-power project.

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," said Lucci.

"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," said First Gen President and Chief Operating Officer Francis Giles Puno.

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 Company Inc., a publicly 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.

Meanwhile, First Gen is the publicly listed power generation company of the Lopez Group. 

Aside from its newly established partnership with Prime Infra in natural gas, First Gen operates a 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. — VDV, GMA Integrated News