First Gen Corporation has finally completed a major strategic move by signing a Share Purchase Agreement with Prime Infrastructure Capital, Inc. (Prime Infra) for the sale of a 60% stake in its Batangas-based gas-fired power business. The deal, which is valued at PHP50 billion, provides First Gen with significant capital to reinforce its clean energy expansion plans.

The agreement covers key assets in First Gen’s natural gas portfolio, including: 1,000-megawatt Santa Rita, 500-MW San Lorenzo, 450-MW San Gabriel, and 97-MW Avion power plants. It also includes the proposed 1,200-MW Santa Maria plant and the Interim Offshore LNG Terminal. First Gen will retain a 40% stake in the gas business, while Tokyo Gas holds the remaining 20% interest in the LNG terminal.

The sale is expected to provide First Gen with greater flexibility to scale up its renewable energy projects. Earlier this year, the company invested over PHP1 billion into Pi Energy Inc., supporting the development of distributed energy services like solar microgrids and energy audits. It also secured a PHP10-billion loan from BDO Unibank to acquire the 165-MW Casecnan Hydroelectric Power Plant through its subsidiary, Fresh River Lakes Corp.

Chairman and CEO Federico Lopez earlier said that the move to monetize its gas assets allows the company to reinforce its renewable ambitions while retaining a pivotal role in the country’s energy transition. Natural gas remains a bridge fuel in First Gen’s broader clean energy strategy.

The transaction remains subject to regulatory approval from the Philippine Competition Commission and the satisfaction of certain conditions. Additional earnout payments to First Gen may apply based on future performance and agreement between the parties.

For Prime Infra, led by businessman Enrique Razon Jr., the acquisition provides a stronger foothold in the country’s energy sector. Prime Infra also owns Prime Energy, the operator of the Malampaya gas-to-power project, and Manila Water Company.

The partnership is expected to benefit both parties. This is done by giving Prime Infra access to stable, large-scale energy infrastructure while enabling First Gen to accelerate its long-term sustainability agenda.

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