Under the agreement signed by both parties, and subject to a final agreement, Prime Infra will acquire a controlling interest in four existing gas-fired power plants and a planned fifth facility with a total capacity of 3,247 megawatts, as well as an offshore liquefied natural gas terminal. All assets are located in Batangas province, south of Manila.
The partnership will allow First Gen and Prime Infra to “further develop, improve and expand their gas platforms,” helping to ensure the country’s energy independence, according to the document.
The gas plants will boost the profile of Prime Infra, which has a significant stake in the Malampaya gas field. The company is investing $800 million in drilling and exploration to boost production at the Malampaya field, which has been declining in recent years.
Prime Infra’s energy assets include two existing solar farms with a total capacity of 128 MW and two hydroelectric power plants, the total capacity of which, upon completion, will be 2,000 MW.
The Rozon-Lopez deal is the latest strategic partnership set to shake up the Philippine energy sector after billionaire Ramon Ang’s San Miguel Corp. announced a $3.3 billion gas and LNG joint venture with Aboitiz Power and its Manila Electric Co. unit.
With a net worth of $12 billion, Razon also has interests in global port operator ICTSI and Bloomberry, which owns two casino resorts in Metro Manila.
Source: Reuters