First Gen sells 60% gas stake to Prime Infra

First Gen Corp. has signed a PHP50-billion Share Purchase Agreement with Prime Infrastructure Capital Inc. for a 60% stake in its Batangas-based gas-fired power portfolio, marking a major realignment of its clean energy investment strategy.

The deal includes four operational power plants—1,000-megawatt Santa Rita, 500-MW San Lorenzo, 450-MW San Gabriel, and 97-MW Avion—as well as the planned 1,200-MW Santa Maria plant and the Interim Offshore LNG Terminal.

First Gen will retain a 40% interest in the gas business, while Tokyo Gas Co. holds a 20% stake in the LNG terminal project.

“The move to monetize our gas assets allows us to reinforce our renewable ambitions while retaining a pivotal role in the country’s energy transition,” said First Gen Chairman and CEO Federico Lopez.

The transaction provides First Gen with fresh capital to accelerate its renewable energy expansion, which has already seen significant developments this year.

In early 2025, the company invested over PHP1 billion in Pi Energy Inc. to develop distributed energy services, including solar microgrids and energy audit solutions.

It also secured a PHP10-billion loan from BDO Unibank to finance the acquisition of the 165-MW Casecnan Hydroelectric Power Plant through its subsidiary, Fresh River Lakes Corp.

The agreement is still subject to regulatory clearance from the Philippine Competition Commission and fulfillment of other closing conditions.

First Gen noted that additional earnout payments may be triggered based on the future performance of the gas business and mutual terms between the parties.

For Prime Infra, led by tycoon Enrique Razon Jr., the acquisition significantly deepens its position in the energy sector and complements its existing assets, including Prime Energy—the operator of the Malampaya gas-to-power project—and Manila Water Company.

“The acquisition gives Prime Infra a strong and strategic presence across the country’s energy value chain, enhancing long-term energy security,” the company said in a statement.

First Gen’s decision to partially divest from natural gas is in line with its strategy of treating the fuel as a transitional source while increasing investment in sustainable energy.

The company is a pioneer in Philippine clean energy, with a diversified portfolio including hydro, geothermal, wind, and solar power assets.

Natural gas currently plays a key role in balancing intermittent renewable sources and providing grid stability, making it essential in the country’s path to net-zero emissions.