Mitsubishi Corporation has announced plans to sell a 49.9% stake in its subsidiary holding interest in Canada's LNG Canada export project to a group led by Blackstone Credit & Insurance. The deal, valued at approximately $1.6 billion, will allow Mitsubishi to free up capital while retaining a controlling 50.1% stake in the holding company.
The investor group, which includes Canadian institutional investors CPP Investments, OMERS, IMCO, and PSP Investments, has committed $3.1 billion to acquire the minority interest. The discrepancy in the transaction values disclosed by Mitsubishi and Blackstone was not explained. Mitsubishi emphasized that the transaction will not affect its LNG purchasing rights or existing customer relationships.
The investment comes after LNG Canada's partners approved the project's second phase in September 2026, which will double its annual production capacity from 14 million tonnes to 28 million tonnes. The expansion, expected to begin operations in the early 2030s, will add two liquefaction trains to the existing facility in Kitimat, British Columbia.
Mitsubishi currently receives 2.1 million tonnes of LNG annually from LNG Canada, with volumes expected to double following the expansion. The LNG is primarily marketed to Japanese and other Asian customers through Mitsubishi's Singapore-based subsidiary, Diamond Global Energy. The expansion will also require upgrades to the Coastal GasLink pipeline to support increased natural gas transportation capacity.