Blackstone Inc., Apollo Global Management and KKR are competing to acquire a substantial portion of Shell’s 40 % ownership in the LNG Canada offshore project, according to a Reuters report that was released on April 30 2026. The three asset managers are targeting a stake that could represent up to 30 % of the project, or roughly 12 % of the overall LNG Canada portfolio, which would give the winning bidder a significant foothold in one of North America’s largest LNG export facilities.
The transaction is expected to be valued between $10 billion and $15 billion, reflecting the high demand for LNG as a bridge fuel to a lower‑carbon future and the project’s strategic Pacific access to Asian markets. Shell’s 40 % stake is the largest single ownership block in the joint venture, which also includes Petronas (25 %), PetroChina (15 %), Mitsubishi Corporation (15 %) and Korea Gas (5 %). Phase 1 of LNG Canada began production in June 2025 and is slated to export 14 million tonnes of LNG per year, with a planned Phase 2 expansion that could raise capacity to 26 million tonnes.
Shell’s decision to divest part of its LNG Canada stake follows the company’s recent $16.4 billion acquisition of Canadian natural‑gas producer ARC Resources, a deal that was valued at $22 billion including debt. The ARC purchase secures a steady feedstock supply for LNG Canada and signals Shell’s confidence in the project’s long‑term viability, while the stake sale allows Shell to monetize lower‑return assets and free capital for other strategic initiatives.
Blackstone’s interest is reinforced by its recent €2 billion investment in renewable‑energy developer Eurowind Energy, announced on April 29 2026. The investment underscores Blackstone’s broader strategy of deploying capital in infrastructure assets that benefit from secular tailwinds such as electrification, data‑center demand and the transition to cleaner energy sources. Apollo and KKR have similarly positioned themselves as leaders in energy transition, with Apollo targeting over $100 billion in transition investments by 2030 and KKR maintaining a sizable LNG portfolio despite environmental scrutiny.
The competitive bidding process highlights the growing appetite among institutional investors for large‑scale energy infrastructure that offers stable, long‑term cash flows. The potential sale of a 30 % stake in LNG Canada would not only reshape the ownership structure of the project but also signal to the market that major asset managers are willing to commit significant capital to LNG assets, reinforcing the perception of LNG as a key component of the global energy mix during the transition to net‑zero.
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