Blackstone, a U.S. asset manager, and four Canadian pension funds have finalized a $3.1 billion US deal to acquire a 49.9% stake in a Mitsubishi Corp. subsidiary that holds an interest in LNG Canada, the country's first liquefied natural gas export facility. The investor group 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.
Geoff Souter, managing director at CPP Investments, described LNG Canada as a high-quality asset with strong long-term fundamentals and attractive return potential. Rick Campbell, senior managing director at Blackstone Credit & Insurance, called the project one of Canada's most significant energy initiatives, noting its role in meeting global energy demands.
LNG Canada is a joint venture involving Shell, PetroChina, Petronas, Mitsubishi Corp., and KOGAS. Mitsubishi retains its full share of the plant's LNG supply despite the partial sale. The facility recently announced plans to expand its capacity to 28 million tonnes per year through a Phase 2 project, which has been referred to the federal major projects office for expedited approval.
Environmental groups have criticized the investment, with Richard Brooks of Stand.earth warning that pension funds are prioritizing LNG over clean energy projects. Brooks argued that the investment risks long-term returns and undermines efforts to reduce dependence on fossil fuels. Adam Scott of Shift Action for Pension Wealth and Planet Health accused the pension funds of breaking trust with their members by funding projects harmful to the climate.