Mitsubishi Corporation has agreed to sell a 49.9% stake in its LNG Canada infrastructure holding company to funds managed by Blackstone Credit & Insurance for approximately $1.6 billion. This transaction brings Blackstone on board as a financial partner to support the expansion of the LNG Canada liquefaction facility located in Kitimat, British Columbia. Despite the sale, Mitsubishi will retain majority ownership of the holding company.
The deal underscores Blackstone's growing interest in energy infrastructure investments, particularly in the liquefied natural gas (LNG) sector. The asset manager's involvement is expected to provide additional financial backing for the ongoing and future development projects at the LNG Canada facility.
Mitsubishi's decision to divest a significant portion of its stake while maintaining control reflects a strategic move to leverage external capital for expansion while retaining operational oversight. The transaction is part of a broader trend of energy companies partnering with private equity firms to fund large-scale infrastructure projects.