The FGEN LNG terminal and gas-fired power plants in BatangasFirst Gen has entered into a strategic partnership with Prime Infrastructure Capital Inc., under which the latter will acquire a 60% equity stake in the former’s gas business.

Upon completion of the transaction, Prime Infra will own 60% of the issued and outstanding capital stock of the following: 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 Power Plant, and the proposed 1,200-MW Santa Maria Power Plant. The transaction also includes the Interim Offshore LNG Terminal.

In consideration for the First Gen shares, Prime Infra has agreed to pay First Gen P50 billion upon closing of the transaction, subject to adjustments and modifications as may be agreed by the parties. Moreover, First Gen will be entitled to receive additional earn-out amounts, subject to the fulfillment of certain conditions.

First Gen’s gas assets, all of which are located in Batangas City, are investments of national significance and indispensable to the country’s energy security.

First Gen chairman and CEO Federico R. Lopez said: “Our partnership with Prime Infra—built on mutual respect—is a major step in our mission to forge collaborative pathways towards a decarbonized and regenerative future. We have always believed that natural gas is the most practical fuel to transition ourselves to a future of renewable energy. Our continued presence in LNG underlines our view of its important role in maintaining the country’s energy security and at the same time enabling the adoption of more renewable energy. This partnership also provides First Gen with more resources to pursue its various RE projects.”

Upon the close of the transaction, Prime Infra will own 60% of the Batangas gas plants with First Gen owning 40%. Meanwhile, ownership of the LNG terminal will be as follows: 60% Prime Infra, 20% First Gen and 20% by Japan’s Tokyo Gas.

The partnership will work closely with the government to help secure the country’s energy independence.