Prime Infrastructure Capital Inc. will acquire a 60 percent stake in First Gen Corporation’s natural gas business for PHP50 billion following the signing of a term sheet between the two companies. The deal covers some of the country’s most critical energy assets, including several major power plants in Batangas and First Gen’s interim LNG terminal.

In a regulatory filing dated May 30, 2025, First Gen said the agreement outlines their intention to execute one or more definitive agreements involving the sale of shares in First Gen’s holding companies related to its gas business. Upon completion, Prime Infra will indirectly own 60 percent of the issued and outstanding capital stock of the Santa Rita Power Plant with 1,000 megawatts of capacity, the 500 megawatt San Lorenzo Power Plant, the 450 megawatt San Gabriel Power Plant, the 97 megawatt Avion Power Plant, and the proposed 1,200 megawatt Santa Maria Power Plant. The transaction also includes First Gen’s Interim Offshore LNG Terminal.

First Gen confirmed that the purchase price for the 60 percent equity stake will be PHP50 billion, subject to adjustments. It also disclosed that additional earnout payments may be due based on the fulfillment of certain conditions following the close of the transaction.

The company described the assets covered in the deal as investments of national significance. It added that the partnership with Prime Infra will help strengthen and expand its natural gas platform, which plays a vital role in securing stable and cleaner energy for the Philippines.

First Gen will retain 40 percent ownership in the gas business. The Lopez-led company said its continued stake in the operations will ensure continuity and help stabilize prices for consumers by reducing dependence on spot market purchases.

The transaction aligns two major players in the country’s gas sector. Prime Infra is led by Enrique K. Razon Jr. and owns Prime Energy, the operator of the Malampaya gas field. It also owns Manila Water and focuses on long-term investments in water, energy, and waste management infrastructure. First Gen is a subsidiary of First Philippine Holdings Corporation and currently has 3,668 megawatts of installed capacity. Its generation portfolio includes natural gas, geothermal, hydro, wind, and solar energy, accounting for about 18 percent of the country’s total generation.

Both companies emphasized that the proposed acquisition will allow them to complement each other’s capabilities in LNG and power generation while supporting the country’s energy transition and long-term energy security.

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