LNG Canada Stake Sale Attracts Global Infrastructure Giants

Shell is selling its 40% operating stake in LNG Canada, sparking interest from Apollo, Blackstone, and KKR. This sale is significant because LNG Canada is a major energy infrastructure asset in Canada, with a nameplate capacity of 14 million tonnes per annum. The project has already completed Phase 1, which includes the operational terminal at Kitimat, British Columbia, and the 670-kilometre Coastal GasLink pipeline.

The buyers are large-scale infrastructure capital firms that can match long-duration assets against liabilities. Apollo, for example, targets contracted cash flows in developed markets, including water utilities and port infrastructure. Blackstone's infrastructure strategy focuses on operational assets with inflation-linked revenues across transportation, energy, communications, and utilities.

Canadian pension funds are also natural buyers for this asset, given its long-duration, revenue-generating characteristics. AIMCo already has CGL equity, and other Canadian pension funds have invested in similar energy infrastructure projects abroad.