Blackstone, Canadian pension funds to invest $3.1 billion in LNG Canada for Mitsubishi stake
FILE PHOTO: A screen displays Blackstone logo on the floor of the New York Stock Exchange (NYSE) in New York City, US, October 28, 2026. REUTERS/Jeenah Moon/File Photo
TOKYO, Nov 2 : Blackstone and a group of Canadian pension funds will invest $3.1 billion to acquire a 49.9 per cent interest in Japanese trading house Mitsubishi Corp 's holding company that owns its stake in the LNG Canada project, the companies said on Monday.
The holding company owns a 15 per cent stake in LNG Canada, the Shell-led export project in British Columbia that started production in June 2025. Mitsubishi said its stake is valued at about $1.6 billion. The remaining investment will be used for phase 2 expansion that will double the production's facility.
• The Blackstone-led group includes Canada Pension Plan Investment Board (CPP Investments), Ontario Municipal Employees Retirement System (OMERS), Investment Management Corporation of Ontario (IMCO) and Public Sector Pension Investment Board (PSP).
• CPP Investments' Head of Real Assets Credit Geoff Souter said the pension fund viewed this as a "compelling opportunity" to invest at scale in Canada.
• Mitsubishi said the deal would not affect its LNG offtake volumes or customer relationships.
• The holding company currently offtakes 2.1 million metric tons per year of LNG from the project, with volumes expected to double to 4.2 million tons a year after the LNG Canada expansion.
• The transaction follows the final investment decision announced by Shell and its partners in September on the LNG Canada Phase 2 expansion, a project that will double the facility's production capacity to 28 million tons a year.
• Mitsubishi said it would use Blackstone's financial resources to help advance the expansion while improving the capital efficiency of its investment.
• The deal is expected to close in November, a Mitsubishi spokesperson said.($1 = 157.8200 yen)
