Blackstone-Led Consortium to Buy 49.9% Stake in Mitsubishi's LNG Canada Holding for $3.1 Billion

A Blackstone-led consortium has agreed to pay $3.1 billion for part of Mitsubishi Corporation's interest in the LNG Canada project. According to Sina Finance, Blackstone funds and several Canadian institutional investors will acquire a 49.9% non-controlling stake in a Mitsubishi subsidiary that holds all of Mitsubishi Corporation's interest in the project. Mitsubishi said the funds are participating solely as financial investors and that the deal will not change its LNG procurement volume or affect its customers. The subsidiary currently buys 2.1 million metric tons of LNG from the project annually, a volume expected to double after the second-phase expansion is completed. LNG Canada, in British Columbia, is described as Canada's first and currently only large-scale LNG export terminal. The project announced plans for a second-phase expansion in September; upon completion, annual capacity is expected to double to 28 million metric tons. Its shareholders include Shell, Mitsubishi Corporation, Petronas, China National Petroleum Corporation and Korea Gas Corporation. Shell owns 40%, while Mitsubishi holds 15%. Mitsubishi entered the LNG industry in 1969 and has interests in 13 LNG projects worldwide, spanning exploration and production, liquefaction, transportation and sales. The consortium also includes the Canada Pension Plan Investment Board, Ontario Municipal Employees Retirement System, Investment Management Corporation of Ontario and Public Sector Pension Investment Board.