Blackstone and Canadian Pension Funds to Invest $3.1 Billion in LNG Canada
Blackstone and four of Canada’s largest pension investors will invest $3.1 billion in LNG Canada, the country’s first large scale liquefied natural gas export terminal, Blackstone announced on November 2, 2026. The deal gives big institutional investors a stake in a major energy project, and it helps fund a planned expansion that would double the terminal’s output.
What happened
Funds managed by Blackstone Credit and Insurance, together with four Canadian institutional investors, agreed to invest $3.1 billion to buy a 49.9 percent non-controlling interest in a Mitsubishi Corporation subsidiary. That subsidiary holds Mitsubishi’s interest in the LNG Canada business.
The Canadian investors in the group are the Canada Pension Plan Investment Board, the Ontario Municipal Employees Retirement System, the Investment Management Corporation of Ontario, and the Public Sector Pension Investment Board. Together they manage retirement savings for millions of Canadians.
The headline figure needs a careful read. Mitsubishi said it values the 49.9 percent stake at about $1.6 billion, Reuters reported on November 2, 2026. The rest of the $3.1 billion is expected to go toward the Phase 2 expansion of LNG Canada, which will double the terminal’s production capacity to 28 million tonnes a year. Mitsubishi will remain the controlling partner and keep its full share of gas from the project. The deal is expected to close in November 2026.
LNG Canada sits at Kitimat in British Columbia and is led by Shell, which holds a 40 percent interest. The terminal started production in June 2025. Shell and its partners approved the final investment decision for the Phase 2 expansion in September 2026. We covered a related LNG deal in our earlier post on Shell selling an Australian LNG stake to Abu Dhabi’s XRG for $1.45 billion.
Why it matters for beginners
LNG, or liquefied natural gas, is natural gas cooled into a liquid so it can be shipped by sea to buyers around the world. Canada has large gas reserves, but until LNG Canada opened it had no major terminal to export that gas by ship.
This deal matters for three reasons. First, it shows pension funds are willing to put retirement money into long lived energy infrastructure, because such projects can pay steady returns over many years. Second, it brings new money into Canada’s energy sector at a time when expanding export capacity is a national priority. Third, it confirms that the Phase 2 expansion is moving ahead, which means more construction work and more gas exports in the years to come.
For beginners, the key lesson is that big energy projects are often owned by a mix of companies, pension funds and other investors, not by one company alone. Each partner brings money, and each shares in the returns and the risks.
What to watch next
Watch for the deal to close, which Mitsubishi expects in November 2026. Watch for construction milestones on the Phase 2 expansion, which will show whether the doubling of capacity stays on schedule. And watch for more pension fund investment in energy infrastructure, which would show whether this deal is a one off or part of a wider trend.
FAQ
What is LNG Canada?
LNG Canada is Canada’s first and only large scale liquefied natural gas export terminal, at Kitimat in British Columbia. It cools natural gas into liquid form so it can be loaded onto ships and sold overseas. It started production in June 2025 and is led by Shell.
What exactly are Blackstone and the pension funds buying?
They are buying a 49.9 percent non-controlling interest in a Mitsubishi Corporation subsidiary that holds Mitsubishi’s stake in LNG Canada. Mitsubishi keeps control of the subsidiary and keeps its full share of gas from the project.
Why is the $3.1 billion figure bigger than the $1.6 billion stake value?
The $3.1 billion is the total investment the group agreed to make. Mitsubishi values the stake itself at about $1.6 billion, and the rest is expected to fund the Phase 2 expansion that will double the terminal’s capacity to 28 million tonnes a year.
Does this deal change who runs LNG Canada?
No. Shell remains the project leader with a 40 percent interest, and Mitsubishi remains the controlling partner in its own holding company. Blackstone and the pension funds are minority financial investors, not operators.
