Asset management firm Blackstone has announced that funds managed by Blackstone Credit & Insurance, alongside a syndicate of major Canadian institutional investors, have agreed to invest $3.1 billion to acquire a 49.9 per cent non-controlling interest in a subsidiary of Mitsubishi Corporation that holds its equity stake in the LNG Canada export facility.
The investor group led by Blackstone includes Canada Pension Plan Investment Board (CPP Investments)—acting through CPPIB Credit Investments Inc.—the Ontario Municipal Employees Retirement System (OMERS), the Investment Management Corporation of Ontario (IMCO), and The Public Sector Pension Investment Board (PSP Investments).
Located in Kitimat, British Columbia, LNG Canada represents the country’s first large-scale liquefied natural gas export terminal. Following the completion of its planned Phase 2 expansion, the facility’s total production capacity is set to double to 28 million tonnes per annum, positioning it among the world’s largest operating LNG export hubs. Mitsubishi Corporation will retain controlling ownership of the subsidiary and maintain its full share of physical LNG off-take agreements.
Key financial, strategic, and transaction details include:
- Sovereign capital partnership: Combines Blackstone’s credit platform with four of Canada’s major pension and institutional asset managers to fund domestic energy infrastructure.
- Corporate governance: Mitsubishi Corporation preserves operational control and equity consolidation while securing long-term capital for ongoing platform expansion.
- Capital scale and deployment: Expands Blackstone’s Infrastructure and Asset Based Credit platform, which manages $ 140 billion in assets globally, following recent Canadian transactions including a CDN7 billion commitment to Rogers and a CDN$2.5 billion investment in Aeroplan.
- Advisory syndicate: Goldman Sachs acted as lead structuring agent and financial advisor to Blackstone, supported by Scotiabank, with legal counsel provided by Kirkland & Ellis and Stikeman Elliott.
Rick Campbell, Senior Managing Director at Blackstone Credit & Insurance, stated that the transaction establishes a financial partnership with Mitsubishi Corporation to support a major Canadian energy asset intended to serve expanding global energy demand.
Zachary Rubenstein, Managing Director at Blackstone Credit & Insurance, added that the deal reflects strong conviction in Canadian infrastructure assets and provides large corporate entities with flexible capital solutions for core infrastructure.
Geoff Souter, Managing Director and Head of Real Assets Credit at CPP Investments, noted that LNG Canada offers strong long-term fundamentals and strategic returns for the CPP Fund, marking a significant domestic co-investment alongside regional institutional peers and global asset managers.
