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Blackstone and Canadian Pension Funds Pay $3.1 Billion for Stake in LNG Canada Unit
Blackstone and four Canadian pension funds agree to pay US$3.1 billion for a minority stake in a Mitsubishi unit tied to LNG Canada.
Key points
- Blackstone and four Canadian pension funds are paying US$3.1 billion for a 49.9-per-cent non-controlling interest in a Mitsubishi
- Mitsubishi owns a 15-per-cent stake in LNG Canada and will continue its offtake agreement for 2.1 million tonnes of LNG annually.
- The US$3.1-billion investment includes costs of planned capital expenditures for the phase 2 expansion project.
Why it matters. The deal could help fund a phase 2 expansion that would double LNG Canada's annual output from 14 million to 28 million tonnes, one of the largest LNG facilities in the world.
Blackstone and four Canadian pension funds agreed to pay US$3.1 billion for a 49.9-per-cent non-controlling stake in a Mitsubishi Corp. subsidiary that owns a share of LNG Canada's liquefaction business. The US$1.6-billion stake value is part of the total, which also covers planned phase 2 expansion capital expenditures that would double the Kitimat terminal's output from 14 million to 28 million tonnes.
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Blackstone and Canadian Pension Funds Pay $3.1 Billion for Stake in LNG Canada Unit
Blackstone Inc. and four major Canadian pension funds are paying US$3.1 billion to buy a minority stake in a Mitsubishi Corp. subsidiary. The group is acquiring a 49.9 per cent non-controlling interest in that subsidiary. The subsidiary owns a share of the liquefaction business of LNG Canada, a natural gas export project in Kitimat, British Columbia. A phase 2 expansion of the facility was confirmed in late September. The deal gives the investors exposure to the project without control of the subsidiary.