First Gen Corporation and Prime Infrastructure Capital have officially closed their fifty billion peso gas asset transaction, marking one of the most significant energy sector deals in recent years and reshaping the country’s natural gas landscape at a time when energy security is becoming a national priority. The closing transfers majority ownership of First Gen’s gas platform to Prime Infra, giving the Enrique Razon led group control over five gas fired power plants and a key offshore liquefied natural gas terminal.
Under the finalized structure, Prime Infra now holds sixty percent of the gas portfolio while First Gen retains meaningful stakes that ensure continued involvement. First Gen will keep forty percent ownership in the gas fired power plants and twenty percent in the LNG terminal, a setup that preserves its long standing expertise in gas operations while allowing Prime Infra to take the lead in expansion and future development.
Executives from both companies framed the partnership as a strategic alignment of strengths. First Gen brings decades of operational experience in natural gas and a reputation as one of the country’s most consistent clean energy providers. Prime Infra provides scale, capital, and a track record in large infrastructure projects. Together they aim to expand the Philippines natural gas capacity and accelerate the country’s transition toward cleaner fuels.
Francis Giles Puno, President and Chief Operating Officer of First Gen, said the transaction marks a renewed commitment to growing the gas platform responsibly and supporting national energy security. He highlighted the importance of gas as a bridge fuel in the country’s ongoing shift from coal to cleaner sources.
The deal also underscores the growing importance of LNG in the Philippines energy mix. With the Malampaya field steadily declining, the country needs stable alternatives to support both household and industrial electricity demand. The LNG terminal included in the transaction gives the Philippines greater flexibility in importing fuel from global markets and reduces dependence on a single domestic source.
Energy analysts said the partnership could shape the next decade of power generation. Prime Infra is expected to invest heavily in expansion and modernization, including new LNG infrastructure and updated gas facilities. First Gen’s remaining stake ensures the continuity of its environmental commitments and operational standards.
For consumers, the impact will be gradual but meaningful. A stronger and more diversified gas sector could reduce supply disruptions and temper the long term cost pressures of imported fuel. Stable gas capacity also helps limit overreliance on coal, which remains vulnerable to global price swings.
For the broader economy, the deal is a signal that private capital still sees long term opportunity in the country’s energy transition. At a time when political noise and regulatory uncertainty have slowed investment in other sectors, the size and significance of this transaction provide a rare moment of confidence.
Whether this partnership becomes the catalyst for a more secure and cleaner power grid will depend on how quickly new LNG infrastructure can be completed and how consistently regulators support long term planning. But for now, the First Gen and Prime Infra deal stands as one of the most consequential moves in the country’s evolving energy strategy.