Lopez-led First Gen Corporation has formally reported to the Securities and Exchange Commission (SEC) that it will be unloading 60 percent of its gas businesses to Prime Infrastructure Capital Inc., a company owned by billionaire Enrique Razon, for ₱50 billion through the execution of a term sheet.

“The term sheet includes the parties’ agreement to enter into one or definitive agreements for the purchase by Prime Infra of 60 percent equity stake in First Gen subsidiaries relating to its gas business,” First Gen has stipulated in its May 30, 2025 SEC filing.

The Lopez firm specified that “Prime Infra has agreed to pay First Gen the amount of ₱50 billion upon closing of the transaction, subject to adjustments and modification as may be agreed by the parties.”

In addition, the deal provided that “First Gen will be entitled to receive additional amounts, subject to the fulfilment of certain conditions.

It was emphasized in the First Gen regulatory filing that “the execution of the definitive agreements is subject to the negotiation by the parties.”

With the sale of the gas assets, First Gen will be retaining 40 percent ownership of its gas businesses, indicating that such will “assure proper continuity and stability of its gas operating plants which will in turn, greatly benefit consumers by way of more stable, predictable and lower prices, far removed from the uncertainties of spot purchases.”

The facilities to be covered by Razon group’s equity acquisition will be the 1,000-megawatt Santa Rita, 500MW San Lorenzo, 450MW San Gabriel, 97MW Avion as well as the planned 1,200MW Santa Maria gas-fed plants.

On top of the power-generating assets, Prime Infra’s purchase will also include the interim offshore liquefied natural gas (LNG) terminal of First Gen.

“The partnership between First Gen and Prime Infra will enable the partners to further nurture, enhance and expand their natural gas platforms to serve as a key solution provider to the country’s program to address energy security,” First Gen said.

It expounded that “the partnership will work closely with the government to help secure our country’s energy independence.”

Prime Infra currently holds the operatorship of the Malampaya field, which is a major source of gas being fed into the First Gen plants in Batangas.

But given the depleting state of the Malampaya field, imported LNG has been resorted to as additional fuel source to sustain the operations of the Lopez-owned plants, while it has yet to be seen if the scheduled new drilling at Malampaya will yield additional commercially successful reserves.

Apart from its gas business portfolio, First Gen and its subsidiary Energy Development Corporation (EDC) also have heavy investments in the renewable energy (RE) sector, spanning geothermal, hydro, wind, and solar technologies.