Blackstone has announced that funds managed by Blackstone Credit & Insurance, in partnership with leading Canadian institutional investors, have agreed to invest $3.1 billion to acquire a 49.9% non-controlling interest in a Mitsubishi Corporation (MC) subsidiary that holds MC’s stake in the LNG Canada liquefaction business.
The Blackstone-led investor group includes some of Canada’s most prominent institutional investors: Canada Pension Plan Investment Board (CPP Investments) through wholly owned subsidiaries of
CPPIB Credit Investments Inc.,
Ontario Municipal Employees Retirement System (OMERS), the
Investment Management Corporation of Ontario (IMCO), and
The Public Sector Pension Investment Board (PSP Investments).
This partnership is one of the largest infrastructure investments in Canada’s energy sector and underscores the strong appetite among Canadian institutions for strategic domestic assets with long-term growth potential.
LNG Canada: A globally strategic energy asset
LNG Canada is Canada’s first and only large-scale liquefied natural gas (LNG) export terminal. Once its Phase 2 expansion is complete, the facility’s production capacity will double to 28 million tonnes per annum, positioning it as one of the largest LNG facilities globally.
This expansion is critical to meeting rising energy demands across international markets and strengthens Canada’s role in global energy supply chains.
Leadership perspectives
Rick Campbell, Senior Managing Director at
Blackstone Credit & Insurance, 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.”
Zachary Rubenstein, Managing Director at Blackstone Credit & Insurance, said, “This announcement builds on our deep conviction in Canada, our partnership with the country’s leading institutional investors and our ability to provide large corporates with flexible solutions to unlock value from their most critical assets.”
Geoff Souter, Managing Director and Head of Real Assets Credit at
CPP Investments, said, “LNG Canada is a high-quality, globally strategic asset with strong long-term fundamentals and attractive return potential for the CPP Fund. We see this as a compelling opportunity to invest at scale here in Canada alongside Mitsubishi Corporation, Blackstone and our Canadian peers.”
Mitsubishi Corporation retains control
Mitsubishi Corporation, one of Japan’s largest LNG suppliers, would remain the controlling partner in the venture and retain its full share of LNG offtake. This will ensure operational continuity while allowing MC to unlock capital for other strategic initiatives.
Blackstone’s Infrastructure and Asset Based Credit platform manages $140 billion and employs over 100 investment professionals.
Goldman Sachs served as lead structuring agent and financial advisor to Blackstone, with
Scotiabank also providing financial advisory services.
Kirkland & Ellis and
Stikeman Elliott served as legal counsel to Blackstone.
