Prime Infra to buy 60 percent stake in First Gen’s Batangas LNG terminal

First Gen is led by Federico Lopez and Prime Infra is led by Enrique Razon.

According to a statement by First Gen, Prime Infra has agreed to pay First Gen 50 billion Philippine pesos ($896 million) upon closing of the transaction, subject to adjustments and modifications as may be agreed by the parties.

Moreover, First Gen said it would be entitled to receive additional earn-out amounts, subject to the fulfillment of certain conditions.

Upon completion of the transaction, Prime Infra will own 60 percent of the issued and outstanding capital stock of five power plants, all located in Batangas City.

The company has a portfolio of four gas-fired power plants with a combined capacity of 2,017 MW that have been supplied for many years with gas from the Malampaya offshore gas field.

These include the 1000 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 1200 MW Santa Maria power plant.

The transaction also includes the interim offshore LNG terminal.

Prime Infra will own 60 percent of the Batangas gas plants, with First Gen owning 40 percent.

Meanwhile, Prime Infra will hold 60 percent in the LNG import terminal, while First Gen and Japan’s Tokyo Gas will each hold 20 percent.

Energy security

First Gen chairman and CEO 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,” he said.

First Gen is the country’s largest producer of renewable energy and accounts for about 18 percent of the country’s power supply.

On the other hand, Prime Infra is the controlling shareholder of Manila Water Company, a publicly-listed water utility that supplies water to over 7.7 million Filipinos, and Prime Energy, the operator of the Malampaya deepwater gas-to-power project.

Batangas FSRU

First Gen’s LNG terminal includes the 162,000-cbm FSRU BW Batangas, owned by BW LNG and chartered by First Gen.

PetroChina International, a unit of state-owned PetroChina, recently delivered its first cargo of liquefied natural gas to First Gen’s FSRU-based terminal in the Philippines.

First Gen also recently announced the arrival of the first Qatari LNG cargo at the FSRU BW Batangas.

Before this shipment, the FSRU BW Batangas received a cargo of LNG from Shell’s QCLNG plant in October last year.

Shell also supplied the first LNG cargo for commissioning purposes to First Gen’s FSRU-based LNG terminal in August 2023, while other suppliers include Trafigura, TotalEnergies, and CNOOC.

BW Batangas is berthed at the First Gen Clean Energy Complex (FGCEC) in Batangas City.

First Gen uses regasified LNG to fuel its gas-fired power plants located in the complex.