Razon’s Prime Infra Acquires 60% Stake in First Gen’s Natural Gas Assets in Landmark USD 895mn Deal

In a transformative deal that underscores the shifting dynamics of the Philippine energy sector, Prime Infrastructure Capital Inc., the infrastructure investment arm of billionaire Enrique Razon Jr., has agreed to acquire a 60% stake in First Gen Corporation’s natural gas portfolio for PHP 50bn (USD 895mn).

Confirmed by First Gen in a stock exchange filing, the agreement is being hailed as one of the most significant energy transactions in recent Philippine history. The deal establishes a long-term partnership between Prime Infra and First Gen, with the latter retaining a 40% stake in the assets. Together, the two companies aim to bolster the country's energy transition, particularly in scaling cleaner and more reliable power sources.

First Gen, part of the Lopez Group and chaired by Federico Lopez, operates 33 power plants with a combined capacity of 3,668 megawatts and has long championed a shift toward low-carbon energy. This partnership will play a critical role in advancing First Gen’s goal of growing its low-emission portfolio to 13,000 MW by 2030, of which 9,000 MW is expected to come from renewables like wind, solar, hydro, and geothermal energy.

Central to the transaction are some of the country’s most strategic gas-fired assets, including the Interim Offshore LNG Terminal and four key Batangas-based power plants: the 1,000 MW Santa Rita, 500 MW San Lorenzo, 97 MW Avion, and 420 MW San Gabriel. These facilities are vital to stabilizing the Luzon power grid and replacing coal with cleaner alternatives.

For Prime Infra, the acquisition marks a major bet on natural gas as a critical transition fuel. The company plans to continue investing in renewables while leveraging LNG infrastructure to secure long-term energy reliability. This move not only strengthens its position in the growing clean energy market but may also shake up the competitive landscape, driving innovation and potentially improving energy cost-efficiency.

Coming at a time of surging energy demand and rising pressure to decarbonize, the deal places both companies at the heart of the Philippines’ clean energy transformation.

The transaction is subject to regulatory approval by the Philippine Competition Commission, and First Gen may receive additional performance-based earnouts as part of the agreement.

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