Enbridge Inc. has reached an agreement with KKR and Apollo to establish a joint venture aimed at financing the expansion of its Westcoast natural gas pipeline system. As part of the deal, KKR and Apollo will inject approximately $2.7 billion into funding the Aspen Point and Sunrise expansion initiatives, with $700 million to be paid in cash to Enbridge upon closing.
In exchange for their investment, KKR and Apollo will secure a 29% stake in the overall Westcoast system once the Sunrise expansion project is operational. Enbridge has outlined that the investors will start receiving returns as each expansion phase comes online, starting with the Aspen Point expansion later this year, followed by Sunrise in late 2028.
Enbridge will maintain its majority ownership and operational authority over the West Coast system, overseeing the expansion endeavors. The company also holds the option to buy back the investors’ stake in the joint venture between the seventh and 14th year post-closing.