Canadian pension funds join Blackstone in $3.1-billion U.S. LNG Canada investment

VANCOUVER — Four major Canadian institutional investors are joining American investment firm Blackstone in a US$3.1-billion transaction involving LNG Canada, one of the country’s largest energy infrastructure projects.

Announced November 2, the agreement will see the Blackstone-led group acquire a 49.9 per cent non-controlling interest in a Mitsubishi Corporation subsidiary that holds the Japanese company’s 15 per cent ownership stake in the LNG Canada export facility in Kitimat, British Columbia.

The Canadian participants include CPP Investments, the Ontario Municipal Employees Retirement System (OMERS), the Investment Management Corporation of Ontario (IMCO) and the Public Sector Pension Investment Board (PSP Investments).

According to Mitsubishi, approximately US$1.6 billion represents the value of the ownership transaction, with additional financing supporting the facility’s planned second-phase expansion.

LNG Canada began exporting liquefied natural gas in June 2025. The project, led by Shell and its international partners, represents a major component of Canada’s strategy to expand energy exports to Asian and other global markets.

The approved expansion is expected to double annual production capacity from approximately 14 million to 28 million tonnes, substantially increasing Canada’s presence in international LNG markets.

Blackstone and its Canadian partners describe the investment as an opportunity to participate in a strategically important energy project with long-term growth potential.

However, environmental organizations, including Stand.earth, have criticized the involvement of Canadian pension funds, warning that the investment carries financial and climate-related risks amid forecasts of a possible global oversupply of liquefied natural gas.

Mitsubishi will retain control of the subsidiary and maintain its existing LNG purchase arrangements.

The transaction highlights the growing role of Canadian pension capital in major energy infrastructure projects, even as questions persist about the long-term economic and environmental implications of expanding fossil-fuel production.