U.S. asset manager Blackstone and four major Canadian pension funds have jointly invested $3.1 billion US to acquire a 49.9 per cent stake in a Mitsubishi Corp. subsidiary that participates in LNG Canada, the country’s first liquefied natural gas export terminal located in Kitimat, British Columbia.
How the LNG Canada investment works
- LNG Canada is a joint venture owned by Shell, PetroChina, Malaysia’s Petronas, Japan’s Mitsubishi Corp., and South Korea’s KOGAS.
- Mitsubishi, through its subsidiary, holds a 15 percent interest in LNG Canada and will continue to manage its full supply of liquefied natural gas from the plant.
- Blackstone and the four Canadian pension funds — Canada Pension Plan Investment Board, Ontario Municipal Employees Retirement System, Investment Management Corp. of Ontario, and Public Sector Pension Investment Board — purchased a combined 49.9 percent stake in Mitsubishi's subsidiary related to LNG Canada.
- LNG Canada recently approved a Phase 2 expansion to double its export capacity to 28 million tonnes per year, with some materials sourced internationally and approval overseen by Canada's federal major projects office.
This investment places significant Canadian retirement assets into an energy infrastructure project with long-term strategic value, though it has raised concerns from environmental groups about alignment with clean energy goals and associated climate risks.
Source: CBC News
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