Blackstone-led group pays $3.1bn for 49.9% of Mitsubishi's LNG Canada vehicle

A Blackstone-led investor group will invest $3.1bn for a 49.9% stake in a subsidiary holding Mitsubishi's 15% interest in LNG Canada at Kitimat, British Columbia. The transaction values the stake at roughly $1.6bn, according to the companies. The gap between those two figures reflects structured financing, not a simple equity sale. Neither side has disclosed how the proceeds split between the parent and the project.

Who is in the consortium?

Blackstone Credit & Insurance funds anchor the group. Four Canadian pension heavyweights join them: CPP Investments, OMERS, IMCO and PSP Investments. Blackstone's Infrastructure and Asset Based Credit platform manages $140bn in assets and has stacked up large Canadian and global energy infrastructure bets over the past two years.

The deal follows LNG Canada's first cargo in mid-2025. It is still the country's only large-scale liquefied natural gas (LNG, gas chilled to liquid form for shipping) export facility.

Takeaway: Canadian pension capital is deepening its hold on a flagship West Coast export asset.

What does Mitsubishi get out of it?

Cash and capital efficiency, mostly. Mitsubishi said the partnership frees additional financial resources for the Kitimat expansion while keeping it invested in Western Canada's integrated gas and LNG chain for the long term. The company was explicit on what does not change: supply arrangements and the customer base stay untouched.

Mitsubishi currently lifts 2.1 million tonnes per annum (mtpa) of LNG, sold mainly into Asia through its Singapore-based subsidiary Diamond Global Energy. After the expansion, its offtake is expected to double to 4.2mtpa. Expected, note. Volume forecasts at pre-completion expansions have slipped before.

Takeaway: Mitsubishi keeps the barrels, sells half the financial exposure.

Where does Phase 2 stand?

A final investment decision (FID, the board-level go-ahead committing capital) on LNG Canada's expansion was taken in September 2026 per the announcement's framing, with Phase 2 designed to double annual capacity to 28mtpa. Phase 1 shareholders remain Shell at 40%, Petronas at 25%, PetroChina and Mitsubishi at 15% each, and Korea Gas at 5%. LNG Canada Development operates the plant.

No Phase 2 cost figure, construction schedule or contractor scope appears in the release. A doubling of capacity without a published capex line invites skepticism until numbers land.

Takeaway: the expansion is sanctioned in name; the money details stay private.

What did the dealmakers say?

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."

He added: "This project will help meet rising energy demands across global markets." Demand commentary, of course, is analysis — Asian spot buying has been uneven, and buyers have pushed back on contract terms this cycle.

Who advised whom?

Goldman Sachs acted as lead structuring agent and financial adviser to Blackstone, with Scotiabank also advising. Kirkland & Ellis and Stikeman Elliott handled Blackstone's legal work. RBC Capital Markets advised Mitsubishi exclusively.

What to watch

Mitsubishi frames the deal inside its Corporate Strategy 2027, which targets growth balanced against capital efficiency. The watch items are concrete: Phase 2 construction milestones at Kitimat, confirmation that Mitsubishi's 4.2mtpa offtake actually materialises, and whether further LNG Canada partners replicate this monetisation to fund their own expansion shares.