CALGARY — Blackstone Inc. and four major Canadian pension funds have agreed to pay US$3.1 billion for a 49.9% stake in the subsidiary that holds Mitsubishi Corp.’s interest in LNG Canada.The group, which is led by Blackstone, includes the Canada Pension Plan Investment Board, the Ontario Municipal Employees Retirement System, the Investment Management Corp. of Ontario, and the Public Sector Pension Investment Board.“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,” Rick Campbell, senior managing director at Blackstone Credit & Insurance, said in a news release.“This project will help meet rising energy demands across global markets.”.UPDATED: LNG Canada approves expansion as Poilievre says Carney should apologize for delays.Mitsubishi and Shell PLC — LNG Canada’s largest stakeholder — have been considering altering their stakes in the $18-billion LNG export facility in Kitimat, BC, over the past year to raise funds for the project’s expansion plans.A plan to double LNG Canada’s annual output from 14 million tonnes to 28 million tonnes was confirmed in late September. Once completed, the expansion would make the facility one of the largest LNG terminals in the world.Japan-based Mitsubishi currently owns a 15% stake in the project and is set to continue its agreement to take delivery of 2.1 million tonnes of liquefied natural gas annually.“LNG Canada is a high-quality, globally strategic asset with strong long-term fundamentals and attractive return potential for the CPP Fund,” Geoff Souter, managing director and head of real assets credit at CPP Investments, said.“We see this as a compelling opportunity to invest at scale here in Canada alongside Mitsubishi Corporation, Blackstone and our Canadian peers.”
