Enbridge Inc. has entered into a partnership with KKR and Apollo to create a joint venture aimed at supporting the expansion of its Westcoast natural gas pipeline network. The deal involves KKR and Apollo injecting approximately $2.7 billion to finance the Aspen Point and Sunrise expansion initiatives, with $700 million allocated to Enbridge upon completion.
In exchange for their investment, KKR and Apollo will acquire a 29% stake in the overall Westcoast system once the Sunrise expansion project is operational. Enbridge has outlined that the investors will start receiving profits as each expansion phase is completed, with the Aspen Point extension scheduled for completion this year and Sunrise expected to be operational by late 2028.
Enbridge will maintain majority ownership and control of the Westcoast system, overseeing all expansion activities. Additionally, the company will have the option to buy back the investors’ share in the joint venture within the seventh to 14th year post-closing.