First Gen, Prime Infra seal P50-Billion Gas Deal to bolster Energy Security

Lopez-led First Gen Corporation and Razon-led Prime Infrastructure Capital, Inc. have formalized a landmark P50-billion agreement, marking a significant shift in the country’s natural gas sector. In a disclosure to the Philippine Stock Exchange, First Gen confirmed the signing of a Share Purchase Agreement with Prime Infra, which will acquire a 60-percent stake in the company’s gas business.

The deal, subject to approval by the Philippine Competition Commission (PCC), includes Prime Infra’s entry into several of First Gen’s key gas assets. These include the 1,000-megawatt Santa Rita, 500-MW San Lorenzo, 450-MW San Gabriel, and 97-MW Avion power plants, as well as the planned 1,200-MW Santa Maria facility and the interim offshore liquefied natural gas (LNG) terminal.

Once approved, Prime Infra will become the majority stakeholder in these critical assets, all of which are currently supplied by the Malampaya gas field operated by Razon-led Prime Energy Resources Development B.V. First Gen will retain a 40-percent stake and shift its focus to expanding its renewable energy portfolio, including geothermal, hydro, wind, and solar power.

First Gen President and COO Francis Giles Puno reiterated the company’s commitment to a clean energy transition. “While gas remains important for energy balance, our strategic focus moving forward will be on renewables,” he said.

With a current installed capacity of 3,668 MW—representing 18 percent of the country’s gross generation—First Gen sees the partnership as pivotal in supporting the Philippines’ energy security goals. “This collaboration will allow both parties to expand the natural gas platform and work closely with the government in securing energy independence,” the company said.

Prime Infra is expected to pay the full P50 billion upon transaction close, with First Gen entitled to additional earnout payments based on certain performance conditions.

Industry analysts view the Lopez-Razon partnership as a major development that could spur competition in the gas sector and attract more investment, especially following President Ferdinand Marcos Jr.’s recent move to renew the Malampaya gas contract—a signal of renewed investor confidence in the country’s upstream energy landscape.