Prime Infrastructure Capital Inc., led by businessman Enrique Razon Jr., has finalized its P50-billion acquisition of a controlling stake in gas assets from Lopez-owned First Gen Corp. in Batangas City.
The financial close on Monday gives Prime Infra a 60-percent controlling stake in four operating gas-fired power plants: the 1,000-megawatt (MW) Santa Rita, the 500-MW San Lorenzo, the 450-MW San Gabriel and the 97-MW Avion.
Prime Infra also now holds a 60-percent stake in the proposed 1,200-MW Santa Maria Power Plant. First Gen retains 40-percent ownership of these power generation assets.
Prime Infra now also controls 60 percent of the offshore liquefied natural gas (LNG) terminal, with First Gen owning 20 percent and Japan’s Tokyo Gas holding the remaining 20 percent.
Prime Infra president and chief executive Guillaume Lucci cited the deal’s role in strengthening energy security and accelerating the country’s transition to sustainable energy.
“These gas-fired power plants have played a critical role in supporting the Philippine economy and advancing the decarbonization of our energy mix,” Lucci said.
“Our goal is to continue growing this platform together with First Gen to accelerate the country’s transition away from a power system that is still coal-dependent,” he said.
The acquisition fully connects Prime Infra’s assets across the energy value chain, from upstream to downstream, according to Lucci.
The gas assets are synergistic with the company’s subsidiary, Prime Energy Resources Development B.V., which operates the Malampaya deep-water gas-to-power project, the country’s only indigenous gas field.
Prime Energy and its consortium partners are undertaking phase 4 drilling and exploration to maximize Malampaya’s indigenous gas resources.
First Gen president and chief operating officer Francis Giles Puno expressed optimism for the strategic partnership.
“This partnership marks not just a new chapter but a renewed commitment to the work that powers this nation every day, to grow our gas platform responsibly, to strengthen our country’s energy security and to help ensure that the Philippines transitions to clean energy,” Puno said.
Lucci and Puno led a joint town hall for gas plant employees, outlining the strategic vision for the assets and emphasizing a commitment to operational excellence and safety.
Prime Infra is the infrastructure arm of the Razon Group, focusing on sustainable energy, water and waste management. Its other assets include publicly listed water utility Manila Water Company Inc. which supplies water to over 7.7 million Filipinos and Prime Waste Solutions.
First Gen operates the country’s largest portfolio of renewable energy, including geothermal, hydro wind and solar power.
