Prime Infra to Buy 60% of First Gen Gas Assets

Prime Infrastructure Capital Inc. will acquire a 60 percent stake in First Gen Corporation’s natural gas business for PHP50 billion, marking one of the largest energy sector deals in recent years.

The agreement was confirmed through a regulatory disclosure by First Gen on May 30, 2025, and includes critical energy assets in Batangas as well as the company’s interim liquefied natural gas (LNG) terminal.

The deal covers the 1,000-megawatt Santa Rita Power Plant, 500-megawatt San Lorenzo Power Plant, 450-megawatt San Gabriel Power Plant, 97-megawatt Avion Power Plant, and the proposed 1,200-megawatt Santa Maria Power Plant.

Also included is First Gen’s Interim Offshore LNG Terminal, a key facility for importing LNG to ensure continuous gas supply.

“The assets covered in the transaction are investments of national significance,” First Gen said in its filing.

The company added that partnering with Prime Infra will “strengthen and expand its natural gas platform,” enhancing energy reliability and supporting cleaner power generation.

Under the term sheet, the purchase price for the 60 percent equity stake is set at PHP50 billion, subject to adjustments, with possible additional earnout payments contingent on post-closing conditions.

Once finalized, Prime Infra will indirectly control the gas assets through share acquisitions in First Gen’s holding companies.

First Gen will retain 40 percent ownership in the gas business, ensuring operational continuity and price stability for consumers by minimizing dependence on the spot market.

Led by billionaire Enrique K. Razon Jr., Prime Infra owns Prime Energy, the operator of the Malampaya gas field, and has stakes in water, energy, and waste management infrastructure across the Philippines.

First Gen, a subsidiary of First Philippine Holdings Corporation, has 3,668 megawatts of installed capacity and contributes around 18 percent of the country’s total power generation.

Its diverse energy portfolio spans natural gas, geothermal, hydroelectric, wind, and solar sources, positioning it as a key player in the Philippines’ shift to cleaner energy.

“The proposed acquisition will allow both parties to complement each other’s strengths in LNG and power generation,” the companies said in a joint statement.

They emphasized that the deal will contribute to national energy security and support the country’s long-term energy transition goals.