Japanese trading house Mitsubishi Corp said on Monday 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.
The holding company owns a 15% stake in LNG Canada, the Shell-led export project in British Columbia that started production in June 2025.
Mitsubishi said the deal would not affect its LNG offtake volumes or customer relationships.
The holding company currently offtakes 2.1 million metric tons per year of LNG from the project, with volumes expected to double to 4.2 million tons a year after the LNG Canada expansion.
The transaction follows the final investment decision announced by Shell and its partners in September on the LNG Canada Phase 2 expansion, a project that will double the facility’s production capacity to 28 million tons a year.
Mitsubishi said it would use Blackstone’s financial resources to help advance the expansion while improving the capital efficiency of its investment.
The deal is expected to close in November, a Mitsubishi spokesperson said.
Reuters
