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15 min ago 2 min read
Mitsubishi Corporation will sell a 49.9% stake in its LNG Canada infrastructure holding company to funds managed by Blackstone Credit & Insurance for around $1.6bn.
The deal will bring the asset manager in as a financial partner to support the expansion of the LNG Canada liquefaction facility in Kitimat, British Columbia, while Mitsubishi retains majority ownership of the holding company.
The subsidiary holds a 15% interest in the 14 million tonnes per annum (mtpa) liquefied natural gas (LNG) facility, which is set to double its capacity to 28 mtpa under a second phase.
The expansion, which reached final investment decision in September, will add two liquefaction trains, an LNG storage tank, a condensate tank, a loading berth, and processing infrastructure.
Operations of are expected to begin in the early 2030s.
Mitsubishi currently receives 2.1 mtpa of LNG through its project interest, with the volume set to double to 4.2 mtpa .
The Japanese conglomerate said the Blackstone investment would improve capital efficiency and help advance the expansion programme, without affecting its LNG offtake volumes or customers.
Mitsubishi will continue selling LNG to Asia customers through its Singapore-based subsidiary Diamond Global Energy.
LNG Canada began and is jointly owned by Shell, Petronas, PetroChina, Mitsubishi, and Kogas.
