Prime Infra closes $850m acquisition in First Gen’s gas business

The projects affected include an interim offshore LNG terminal.

Prime Infrastructure Capital, Inc. has completed its $850m (PHP50b) acquisition of a 60% stake in First Gen Corporation’s subsidiaries related to the latter’s gas business.

In a disclosure, First Gen said the portfolio of projects owned by the affected companies includes the 1,000 megawatt (MW) Santa Rita Power Plant, 500 MW San Lorenzo Power Plant, 450 MW San Gabriel Power Plant, 97 MW Avion Power Plant, the proposed 1,200 MW Santa Maria Power Plant, and an interim offshore LNG terminal.

“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,” said First Gen Chairman and CEO Federico Lopez.

“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,” he added.3

Aside from the natural gas platform, First Gen also has renewable energy assets, of which 1,189.34 MW are geothermal, 298.6 MW are hydro, and 156.82 MW are wind and solar capacities located across Ilocos Norte, Leyte, Bicol, Negros, Cotabato, and Nueva Ecija.

“Its strategic alliance with Prime Infra will ensure indigenous natural gas from Malampaya continues to address the imperative need for clean and reliable fuel for the power sector. The two companies together shall endeavour to develop the natural gas industry to its full potential in accordance with the country’s energy transition pathway,” First Gen said.

PHP1 = $0.017