Gas
Blackstone-led group buys stake in LNG Canada holding
A consortium led by Blackstone and Canadian pension funds is investing $3.1 billion to acquire a 49.9 percent interest in a Mitsubishi holding company tied to LNG Canada.
Key points
- Blackstone and four Canadian pension funds are investing $3.1 billion for a 49.9 percent interest in a Mitsubishi holding company.
- The investment supports the Phase 2 expansion of the Shell-led LNG Canada export project in British Columbia.
- Mitsubishi will retain majority ownership and expects the transaction to close in November.
What happened
According to ESG News, Blackstone and a group of four Canadian pension funds have agreed to invest $3.1 billion in a holding company owned by Mitsubishi Corp. The agreement gives the consortium a 49.9 percent interest in the vehicle, which holds Mitsubishi's 15 percent stake in the LNG Canada export facility located in British Columbia.
The investor group joining Blackstone includes the Canada Pension Plan Investment Board, the Ontario Municipal Employees Retirement System, the Investment Management Corporation of Ontario, and the Public Sector Pension Investment Board. Geoff Souter, Head of Real Assets Credit at CPP Investments, described the transaction in ESG News as a compelling opportunity to invest at scale within Canada.
Project expansion and capital strategy
ESG News reported that Mitsubishi values its stake at approximately $1.6 billion. The remaining funds from the transaction will be directed toward the Phase 2 expansion of the facility. Mitsubishi stated that the partnership improves its capital efficiency while leveraging Blackstone's financial capacity to advance the development.
The final investment decision for LNG Canada Phase 2 was announced by Shell and its partners in September. The expansion will double the facility's production capacity to 28 million tons per year. Mitsubishi indicated that the agreement will not alter its customer relationships or offtake volumes. The holding company currently secures 2.1 million metric tons of LNG annually, a figure projected to reach 4.2 million tons per year following the completion of Phase 2.
Why it matters
For international energy markets, large-scale infrastructure transactions involving institutional investors and private equity highlight ongoing capital mobilization for major fossil fuel export terminals. While North American projects secure multi-billion-dollar commitments to expand liquefied natural gas capacity, emerging gas-producing nations face distinct financing landscapes. In Nigeria, where natural gas resources are critical for both domestic industrialization and export earnings, securing similar long-term capital and institutional backing remains a primary objective for policymakers and project developers navigating capital-intensive gas expansions.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
18.5% of electricity in Canada came from gas in 2025Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
