A consortium led by Blackstone has agreed to invest $3.1bn in Mitsubishi Corporation’s interest in the LNG Canada project, expanding the alternative asset manager’s exposure to large-scale energy infrastructure, according to a report by The Wall Street Journal.
Blackstone-managed funds, alongside Canadian institutional investors, will acquire a 49.9% noncontrolling stake in a Mitsubishi subsidiary holding the Japanese group’s interest in the British Columbia liquefied natural gas facility.
The investor group includes Canada Pension Plan Investment Board, Ontario Municipal Employees Retirement System, Investment Management Corporation of Ontario and Public Sector Pension Investment Board.
LNG Canada is reportedly a joint venture between Shell, Mitsubishi, Petronas, PetroChina and Korea Gas, with Shell holding 40% and Mitsubishi 15%. A planned second-phase expansion is expected to double annual production capacity to 28 million metric tons.
Mitsubishi reportedly said the investment would not affect its existing LNG offtake arrangements or customers. Its subsidiary currently receives 2.1 million tons annually from the project, with volumes expected to double following the expansion.
The transaction provides Blackstone and its institutional partners with exposure to a major North American LNG export facility as demand for energy infrastructure investment continues to expand.
