Key Takeaways
- • Mitsubishi Corp will sell a 49.9% interest in the holding company that owns its 15% stake in LNG Canada to funds managed by Blackstone Credit & Insurance for about $1.6 billion, according to Reuters.
- • The holding company currently offtakes 2.1 million metric tons per year of LNG, with volumes expected to double to 4.2 million tons per year after the LNG Canada expansion.
- • Mitsubishi says the deal will not affect its LNG offtake volumes or customer relationships, and that it will improve the capital efficiency of its investment.
- • The transaction follows Shell and its partners' September final investment decision on LNG Canada Phase 2, which will lift the facility's capacity to 28 million tons per year.
- • The deal is expected to close in November, per a Mitsubishi spokesperson.
Summary
Japanese trading house Mitsubishi Corp said on Monday that it will sell a 49.9% interest in a holding company that owns its stake in the LNG Canada project to funds managed by Blackstone Credit & Insurance, a unit of Blackstone, for about $1.6 billion, according to Reuters. The holding company holds a 15% stake in LNG Canada, the Shell-led export project in British Columbia that began production in June 2025.
Mitsubishi said the transaction would not affect its LNG offtake volumes or customer relationships. The holding company currently offtakes 2.1 million metric tons per year from the project, and those volumes are expected to double to 4.2 million tons per year following the LNG Canada expansion.
The deal follows the final investment decision announced by Shell and its partners in September on LNG Canada Phase 2, an expansion that will double the facility's production capacity to 28 million tons per year. Mitsubishi said it would draw on Blackstone's financial resources to help advance the expansion while improving the capital efficiency of its investment. A Mitsubishi spokesperson said the deal is expected to close in November.
Mitsubishi said the transaction would not affect its LNG offtake volumes or customer relationships. The holding company currently offtakes 2.1 million metric tons per year from the project, and those volumes are expected to double to 4.2 million tons per year following the LNG Canada expansion.
The deal follows the final investment decision announced by Shell and its partners in September on LNG Canada Phase 2, an expansion that will double the facility's production capacity to 28 million tons per year. Mitsubishi said it would draw on Blackstone's financial resources to help advance the expansion while improving the capital efficiency of its investment. A Mitsubishi spokesperson said the deal is expected to close in November.
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