The Razon Group’s P50-billion acquisition of 60 percent in First Gen Corporation’s natural gas segment is seen as strategic and opportunistic, underscoring its broader implications for the country’s energy landscape and corporate competition, analysts said.
The deal, made through Prime Infrastructure Capital Inc. (Prime Infra), gives the Razon Group control over four Batangas-based natural gas-fired power plants totaling 2,017 megawatts (MW). These include the 1,000 MW Santa Rita, 500 MW San Lorenzo, 420 MW San Gabriel, and 97 MW Avion plants—assets central to First Gen’s liquefied natural gas (LNG) operations.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC), characterized the transaction as “opportunistic,” citing the Lopez-led First Gen’s move to monetize valuable energy assets amid a growing pivot to renewables. “This reflects the global trend toward energy transition and compliance with environmental, social and governance (ESG) standards,” Ricafort said.
Peter Garnace, research analyst at Unicapital Securities Inc., described Prime Infra’s move as “strategic,” pointing to its existing stake in the Malampaya gas platform. “This is essentially a forward integration into the downstream LNG value chain,” Garnace said, noting it positions Prime Infra to play a larger role in the energy transition as LNG bridges the gap between fossil fuels and renewables.
Garnace said the acquisition could increase competition in the power sector and reduce the market dominance of legacy players.
The transaction also aligns with First Gen’s stated pivot toward renewables. At its annual stockholders’ meeting, the company revealed that 90 percent of its USD601-million capital expenditure for 2025 will go to Energy Development Corp. (EDC), primarily for geothermal drilling and battery storage development.
First Gen operates 1,651 MW in renewable capacity on top of its LNG operations, bringing its total generation portfolio to 3,668 MW.
