Blackstone and Canadian Pension Funds to Acquire 49.9% Stake in Mitsubishi LNG Canada Unit for US$3.1 Billion
Blackstone Inc. and four major Canadian pension funds are investing US$3.1 billion to acquire a 49.9-per-cent non-controlling interest in a Mitsubishi Corp. subsidiary that holds a 15-per-cent stake in LNG Canada, the country's first natural-gas export terminal.
Blackstone Inc. and four major Canadian pension funds are paying US$3.1 billion to acquire a 49.9-per-cent non-controlling interest in a Mitsubishi Corp. subsidiary that owns a share of LNG Canada’s liquefaction business. Mitsubishi will remain the controlling partner of the subsidiary following the transaction.
The Canadian pension funds participating in the investment group are the Canada Pension Plan Investment Board, Ontario Municipal Employees Retirement System, Investment Management Corp. of Ontario, and the Public Sector Pension Investment Board. The stake in Mitsubishi’s subsidiary being acquired is valued at US$1.6 billion, with the total US$3.1-billion investment including costs for planned capital expenditures related to the Phase 2 expansion project.
LNG Canada operates the country’s first natural-gas export terminal, an $18-billion facility located in Kitimat, B.C., which opened in June 2025. Mitsubishi owns a 15-per-cent stake in LNG Canada and will continue its agreement to offtake 2.1 million tonnes of liquefied natural gas annually.
An expansion plan to build a second phase that will double LNG Canada’s annual output from 14 million tonnes to 28 million tonnes was confirmed in late September. The investment includes funding for capital expenditures tied to those Phase 2 plans.
RBC advised Mitsubishi on the transaction, while Goldman Sachs and Scotiabank advised Blackstone.