First Gen Corporation has boosted its clean energy war chest by offloading a majority stake in its Batangas gas business. In a press statement, the Lopez-led firm said its partnership with Razon-led Prime Infrastructure Capital Inc. would allow it to gain more flexibility to scale up its renewable energy projects.

“We have always believed that natural gas is the most practical fuel to transition ourselves to a future of renewable energy,” said First Gen Chairman and CEO Federico Lopez. “This partnership also provides First Gen with more resources to pursue its various RE projects.”

The transaction, once finalized, would involve Prime Infra acquiring a 60% stake in five major power assets in Batangas City—Santa Rita (1,000 MW), San Lorenzo (500 MW), San Gabriel (450 MW), Avion (97 MW), and the proposed Santa Maria plant (1,200 MW)—as well as the Interim Offshore LNG Terminal. First Gen would retain the remaining 40% of the gas portfolio, while ownership of the LNG terminal would be divided among Prime Infra (60%), First Gen (20%), and Tokyo Gas (20%). 

The Lopez-led company, which operates one of the largest renewable energy portfolios in the Philippines, is reinforcing its clean energy platform through a series of strategic moves.

Earlier this year, First Gen acquired PHP 1.007 billion worth of shares in Pi Energy Inc. through a share assignment deal with its parent company, First Philippine Holdings Corporation (FPH). The transaction, comprising 210,330 common shares and nearly 2.78 million preferred shares, supports the group’s goal of streamlining its clean energy holdings under a single entity.

Pi Energy offers microgrids, rooftop solar, energy audits, and energy efficiency services—solutions that align with First Gen’s growing portfolio of distributed energy and decarbonization services. The integration of Pi Energy is expected to strengthen First Gen’s ability to serve commercial and institutional clients aiming to cut emissions and lower power costs.

In another major development, First Gen secured a PHP 10-billion loan from BDO Unibank Inc. to acquire the 165 MW Casecnan Hydroelectric Power Plant in Nueva Ecija through its subsidiary Fresh River Lakes Corp. The facility, which was transferred from government control in February 2024, adds to First Gen’s expanding hydro portfolio and advances its shift to sustainable energy solutions.

“The bank’s proactive approach and deep understanding of our business allowed for a seamless transaction, from bid submission to closing,” said Francis Giles Puno, vice chairman and CEO of FRLC. BDO Capital President Eduardo Francisco affirmed the bank’s support for power projects that promote economic development.

The acquisition is expected to enhance First Gen’s energy reliability in Luzon and support integration with other hydro assets over the next five years. The company currently operates 33 power facilities with a combined capacity of 3,668 MW across the country.

Prime Infra, for its part, is looking to deepen its stake in the country’s energy infrastructure. It also operates the Malampaya gas field through Prime Energy and is the controlling shareholder of Manila Water. Once the transaction is completed, both companies are expected to coordinate with government and private partners to ensure long-term energy reliability while enabling the country’s clean energy transition.

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.