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. As part of the deal, KKR and Apollo will contribute approximately $2.7 billion towards financing the Aspen Point and Sunrise expansion initiatives. Of this amount, $700 million will be paid to Enbridge in cash upon closing.
In exchange for their investment, KKR and Apollo will hold a 29 per cent 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 is completed, with the Aspen Point expansion scheduled for completion this year, followed by Sunrise in late 2028.
Enbridge will maintain majority ownership and operational authority over the West Coast system, overseeing the expansion endeavors. Additionally, the company will have the option to buy back the investors’ stake in the joint venture between the seventh and 14th year after the deal’s closure.