4 days ago
3
Upgrade to High-Speed Internet for only ₱1499/month!
Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.
Visit Suniway.ph to learn
Brix Lelis - The Philippine Star
June 3, 2025 | 12:00am
MANILA, Philippines — Billionaire Enrique Razon Jr.’s multibillion-peso takeover of the Lopez Group’s gas assets is igniting ambitious expansion of First Gen Corp. into renewable energy (RE).
First Gen chairman and CEO Federico Lopez said the strategic deal with Razon’s Prime Infrastructure Capital Inc. is expected to provide the company with “more resources to pursue its various RE projects.”
“Our partnership with Prime Infra – built on mutual respect – is a major step in our mission to forge collaborative pathways toward a decarbonized and regenerative future,” Lopez said.
This came after First Gen signed a term sheet with Prime Infra for the sale of a 60-percent equity stake in its gas business for P50 billion, subject to adjustments and modifications.
The deal covers First Gen’s four gas-fired facilities totaling over 2,000 megawatts, along with the proposed 1,200-MW Santa Maria plant and an interim offshore liquefied natural gas (LNG) terminal in Batangas.
“We have always believed that natural gas is the most practical fuel to transition ourselves to a future of renewable energy,” Lopez said.
Upon the deal’s closing, Prime Infra will own 60 percent of the gas plants, with First Gen retaining 40 percent.
The Lopez-led firm said maintaining a 40-percent share would help ensure continuity and stable operation of the gas-operating plants.
Similarly, the Razon Group will also take a commanding 60 percent stake in the LNG terminal, while First Gen and Japan’s Tokyo Gas Co. Ltd. each hold 20 percent.
“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,” Lopez said.
The proceeds from the gas asset sale are expected to provide much-needed financial muscle to First Gen as it rolls out more green energy projects.
At present, the company is the country’s largest producer of clean energy, boasting a total capacity of over 1,600 MW from its solar, wind, geothermal and hydropower plants.
In a previous interview, First Gen president and COO Francis Giles Puno said the firm intends to invest more in RE in a bid to achieve a low-carbon capacity of 13,000 MW by 2030.
“Actually, in our balance sheet, RE accounts for the larger share. And moving forward, that’s the trend that we will continue to pursue,” Puno said.
Following news of Prime Infra’s investment, First Gen shares surged by as high as 33 percent before settling 16.48-percent higher at P19.22 apiece yesterday.
