Key Takeaways
- • Blackstone-led consortium agreed to invest $3.1bn to acquire a 49.9% noncontrolling stake in a Mitsubishi subsidiary holding Mitsubishi's interest in the LNG Canada project, according to The Wall Street Journal.
- • Co-investors include Canada Pension Plan Investment Board, Ontario Municipal Employees Retirement System, Investment Management Corporation of Ontario and Public Sector Pension Investment Board.
- • LNG Canada, a British Columbia liquefied natural gas export facility, is reportedly owned by Shell (40%), Mitsubishi (15%), Petronas, PetroChina and Korea Gas.
- • Mitsubishi's subsidiary receives 2.1 million tons annually from the project, with volumes expected to double after a planned second-phase expansion to 28 million metric tons per year.
- • Mitsubishi reportedly said the deal would not affect its existing LNG offtake arrangements or customers.
Summary
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. Under the arrangement, Blackstone-managed funds alongside Canadian institutional investors will acquire a 49.9% noncontrolling stake in a Mitsubishi subsidiary that holds the Japanese group's interest in the British Columbia liquefied natural gas facility.
The investor group includes the Canada Pension Plan Investment Board, Ontario Municipal Employees Retirement System, Investment Management Corporation of Ontario and Public Sector Pension Investment Board. The participation of major Canadian pension and public-sector institutions highlights domestic institutional appetite for large-scale energy infrastructure assets.
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's subsidiary currently receives 2.1 million tons annually from the project, with volumes expected to double following the expansion.
Mitsubishi reportedly said the investment would not affect its existing LNG offtake arrangements or customers. The transaction gives Blackstone and its institutional partners exposure to a major North American LNG export facility as demand for energy infrastructure investment continues to expand.
The investor group includes the Canada Pension Plan Investment Board, Ontario Municipal Employees Retirement System, Investment Management Corporation of Ontario and Public Sector Pension Investment Board. The participation of major Canadian pension and public-sector institutions highlights domestic institutional appetite for large-scale energy infrastructure assets.
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's subsidiary currently receives 2.1 million tons annually from the project, with volumes expected to double following the expansion.
Mitsubishi reportedly said the investment would not affect its existing LNG offtake arrangements or customers. The transaction gives Blackstone and its institutional partners exposure to a major North American LNG export facility as demand for energy infrastructure investment continues to expand.
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