Blackstone, USA News: A Blackstone-led investor group has agreed to invest $3.1 billion to acquire a 49.9% non-controlling interest in a Mitsubishi Corporation subsidiary that holds Mitsubishi’s stake in the LNG Canada liquefaction project.
Blackstone Credit & Insurance is leading the transaction alongside several major Canadian institutional investors. Participants include CPP Investments, OMERS, the Investment Management Corporation of Ontario, and the Public Sector Pension Investment Board. Mitsubishi Corporation will remain the subsidiary’s controlling partner and retain its full share of the project’s LNG offtake.
LNG Canada is Canada’s first and only large-scale liquefied natural gas export terminal. The planned Phase 2 expansion is expected to double production capacity to 28 million tonnes per year, making the project one of the world’s largest LNG facilities. The investment gives Blackstone and its Canadian partners exposure to a strategic energy infrastructure asset expected to supply natural gas to international markets.
Blackstone described the deal as part of a broader strategy to provide large companies with flexible capital structures that unlock value from major infrastructure assets. Blackstone’s Infrastructure and Asset Based Credit platform manages approximately $140 billion and has more than 100 investment professionals. The firm has announced several large corporate and infrastructure transactions in recent years, including investments involving Rogers, Aeroplan, Kuwait Oil Company, Sempra Infrastructure Partners’ Port Arthur LNG Phase 2, Williams, and EQT. The LNG Canada transaction also reflects Blackstone’s continued focus on Canadian assets and partnerships with institutional investors in the country.
Goldman Sachs served as lead structuring agent and financial advisor to Blackstone, while Scotiabank also provided financial advice. Kirkland & Ellis and Stikeman Elliott served as Blackstone’s legal counsel.
