A Blackstone-led investor group has agreed to invest $3.1bn for a 49.9% stake in a subsidiary holding Mitsubishi’s interest in the LNG Canada project situated in Kitimat, British Columbia.
The consortium involves the Canada Pension Plan Investment Board (CPP Investments) and Ontario Municipal Employees Retirement System (OMERS).
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The Investment Management Corporation of Ontario (IMCO) and the Public Sector Pension Investment Board (PSP Investments) are also participating in the investment in partnership with funds managed by Blackstone Credit & Insurance.
LNG Canada is currently the country’s only large-scale liquefied natural gas (LNG) export facility. The project loaded its inaugural cargo in mid-2025.
The ownership of the facility is currently divided between Shell, which holds a 40% stake, Petronas with 25%, PetroChina and Mitsubishi each holding 15%, and Korea Gas with 5%. LNG Canada Development is responsible for operating the plant.
Blackstone Credit & Insurance senior managing director Rick Campbell said: “We are proud to join Mitsubishi Corporation, a global leader with more than 50 years of experience across the LNG value chain, as a financial partner to support one of Canada’s most significant energy projects.
“This project will help meet rising energy demands across global markets.”
Mitsubishi currently secures 2.1 million tonnes per annum (mtpa) of LNG, with offtake sold primarily to Asia through its Singapore-based subsidiary Diamond Global Energy.
Following the expansion, its LNG offtake is expected to increase to 4.2mtpa.
In September 2026, a final investment decision (FID) was made to proceed with the expansion of LNG Canada. Phase 2 of the project is expected to double its annual production capacity to 28mtpa.
The transaction, which values the stake at approximately $1.6bn, enables Mitsubishi to access additional financial resources for the project’s expansion while maintaining long-term involvement in Western Canada’s integrated natural gas and LNG sector.
Mitsubishi stated the partnership with Blackstone-led funds would improve capital efficiency for its LNG investment but would not alter its supply arrangements or customer base.
Blackstone’s Infrastructure and Asset Based Credit platform currently manages $140bn in assets and has made a series of large-scale investments in Canadian and global energy infrastructure in the past two years.
Goldman Sachs acted as lead structuring agent and financial adviser to Blackstone, with Scotiabank also serving as a financial adviser.
Legal counsel for Blackstone was provided by Kirkland & Ellis and Stikeman Elliott.
Mitsubishi was advised exclusively by RBC Capital Markets.
Under its Corporate Strategy 2027, Mitsubishi is seeking sustainable growth and aims to balance capital efficiency with continued participation in the global energy supply chain.
