First Gen Corp., the power generation arm of the Lopez Group, said it expects to finalize within two to three months a deal to sell a 60 percent stake in its natural gas business to Prime Infrastructure Capital Inc., owned by billionaire Enrique Razon Jr.
The Lopez Group is divesting a controlling interest valued at approximately P50 billion. The company emphasized that the transaction “will not affect the corporate structure of First Gen.”
“The proceeds will be allocated to various capital expenditures across the First Gen group, with a primary focus on expanding our renewable energy portfolio,” the company said. “This partnership will enable growth across both our natural gas and renewable energy assets.”
Upon completion, Prime Infra will indirectly hold a 60 percent ownership of key gas assets, including the 1,000-megawatt Santa Rita Power Plant, the 500-MW San Lorenzo plant, the 450-MW San Gabriel plant, the 97-MW Avion plant, the proposed 1,200-MW Santa Maria power plant, and the Interim Offshore LNG Terminal—all strategically located in Batangas City.
First Gen underscored that these assets are nationally significant investments, vital to the Philippines’ energy security. The collaboration between First Gen and Prime Infra aims to further develop and expand their natural gas platforms, positioning them as key contributors to the country’s energy independence goals.
The company also highlighted that it will retain a 40 percent stake in the gas business, ensuring continuity and operational stability. This arrangement is expected to benefit consumers by providing more stable, predictable, and affordable energy prices, reducing reliance on volatile spot market purchases.
