Prime Infra completes P50-B gas asset acquisition from First Gen

RAZON-LED Prime Infrastructure Capital, Inc. (Prime Infra) has completed its acquisition of First Gen Corp.’s gas assets in Batangas City for P50 billion.

Prime Infra has completed the financial close for its acquisition of a 60% stake in the 1,000-megawatt (MW) Santa Rita Power Plant, the 500-MW San Lorenzo Power Plant, the 450-MW San Gabriel Power Plant, the 97-MW Avion Plant, and the proposed 1,200-MW Santa Maria Power Plant, the company said in a statement on Monday.

The Lopez-led energy company will retain 40% ownership of these gas assets, it said.

With this development, Prime Infra now holds a 60% stake in the offshore liquefied natural gas (LNG) terminals, while First Gen and Japan’s Tokyo Gas each retain a 20% share.

“These gas-fired power plants have played a critical role in supporting the Philippine economy and advancing the decarbonization of our energy mix. 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,” Prime Infra President and Chief Executive Officer Guillaume Lucci said.

Prime Infra described the transaction as a strategic partnership that will help support the country’s energy security and sustainable energy growth.

“With this transaction, our Prime Infra assets are now fully connected across the energy value chain, from upstream to midstream to downstream,” Mr. Lucci added.

For First Gen, its partnership with Prime Infra will bolster its strategy to introduce more renewable energy capacity into the country’s power supply.

“First Gen’s partnership with Prime Infra will strengthen the country’s energy security and enable us to introduce more renewable energy into our country’s power supply. The synergies created by this partnership will improve shareholder value over the long term and decisively address the country’s growing demand for clean, reliable, and affordable energy,” First Gen Chairman and Chief Executive Officer Federico R. Lopez said in a statement.

At the local bourse on Monday, shares in First Gen closed four centavos, or 0.26%, higher at P15.16 apiece. — Ashley Erika O. Jose