Enbridge Inc. has entered into a partnership with KKR and Apollo to establish a joint venture aimed at financing the growth of its Westcoast natural gas pipeline network. The agreement entails KKR and Apollo injecting approximately $2.7 billion into the Aspen Point and Sunrise expansion initiatives, with a $700 million cash payment to Enbridge upon closing. In exchange, the two firms will acquire a 29 percent stake in the combined Westcoast system once the Sunrise expansion project is operational.
Enbridge has outlined that the investors will start receiving returns as each expansion undertaking becomes operational, commencing with the Aspen Point expansion slated for this year and followed by Sunrise in late 2028. The company will maintain majority ownership and operational authority over the West Coast system, overseeing the expansion projects. Additionally, Enbridge retains the option to buy back the investors’ share in the joint venture within the seventh to 14th year post-closure.