Enbridge Inc. has entered into a partnership with KKR and Apollo to establish a joint venture aimed at supporting the growth of its Westcoast natural gas pipeline system. The collaboration involves KKR and Apollo injecting approximately $2.7 billion to finance the development of the Aspen Point and Sunrise expansion initiatives. As part of the deal, $700 million will be provided upfront to Enbridge in cash upon completion.
In exchange for their investment, KKR and Apollo will acquire a 29 percent stake in the overall Westcoast system once the Sunrise expansion project becomes operational. Enbridge has outlined that the investors will start receiving returns as each expansion project progresses, with the Aspen Point expansion slated for completion within this year, followed by Sunrise in late 2028.
Enbridge will maintain majority ownership and operational authority over the West Coast system, which includes overseeing the expansion efforts. Additionally, the company will have the option to buy back the investors’ stake in the joint venture within the seventh to 14th year post-closing.