Blackstone and Canadian pension giants invest $3.1B in LNG Canada
A Blackstone-led investor group, joined by CPP Investments, OMERS, IMCO and PSP Investments, will invest $3.1 billion for a 49.9 per cent non-controlling interest in the Mitsubishi subsidiary that holds its stake in LNG Canada, the country’s first large-scale LNG export terminal in Kitimat, British Columbia. Mitsubishi keeps control and its full gas offtake as the terminal’s Phase 2 expansion doubles capacity to 28 million tonnes a year.
- A Blackstone-led investor group — funds managed by Blackstone Credit & Insurance, together with CPP Investments, OMERS, IMCO and PSP Investments — has agreed to invest $3.1 billion to acquire a 49.9 per cent non-controlling interest in the Mitsubishi Corporation subsidiary that holds Mitsubishi’s interest in the LNG Canada liquefaction business.
- Mitsubishi values its side of the sale at about ¥250 billion, roughly US$1.6 billion. The two companies announced different figures and did not explain the gap. Mitsubishi keeps a controlling 50.1 per cent of the holding company, and the deal does not change its LNG purchasing rights or its customers.
- Mitsubishi owns 15 per cent of LNG Canada. The Shell-led project in Kitimat, British Columbia, is also owned by Petronas (25 per cent), PetroChina (15 per cent) and Korea Gas Corporation (5 per cent), with Shell holding 40 per cent.
- LNG Canada began exporting cargoes in June 2025 and is Canada’s first and only large-scale liquefied natural gas export terminal. Mitsubishi currently takes about 2.1 million tonnes of LNG a year from the project, marketed mainly to Japanese and other Asian customers.
- The partners approved Phase 2 in September 2026. The expansion adds two liquefaction trains and doubles annual capacity from 14 million tonnes to 28 million tonnes, which would make the terminal one of the largest LNG facilities in the world. Mitsubishi’s contracted volumes would double to 4.2 million tonnes a year, with the added capacity expected in the early 2030s.
- Goldman Sachs served as lead structuring agent and financial advisor to Blackstone on the deal, with Scotiabank also acting as a financial advisor.
Sources: Reuters, Bloomberg, The Wall Street Journal, The Globe and Mail
🌟Join CANADA BRANDS® Media campaigns to get your business featured as a Top Brand & Franchise:
https://Canada-Brands.ca/products/Brands
Follow Canada Brands® for daily news and brand updates! 🇨🇦✨
Share this story with someone who follows Canadian energy — is pension-fund and Blackstone capital the right way to pay for the LNG Canada expansion, or should a project this big stay in Canadian hands?
#CanadaBrands #CanadianBusiness #CanadaNews #LNGCanada #BritishColumbia
Leave a comment