Enbridge Inc. has entered into a partnership with KKR and Apollo to establish a joint venture aimed at financing the expansion of its Westcoast natural gas pipeline system. The agreement entails KKR and Apollo making a total investment of approximately $2.7 billion towards the Aspen Point and Sunrise expansion initiatives. As part of this arrangement, $700 million in cash will be paid to Enbridge upon closing.
In exchange for their investment, KKR and Apollo will hold a 29% stake in the combined Westcoast system once the Sunrise expansion project becomes operational. Enbridge has disclosed that the investors will start receiving returns as each expansion project reaches completion, with the Aspen Point expansion slated for operation this year, followed by Sunrise in late 2028.
Enbridge will maintain majority ownership and control of the West Coast system, including overseeing the expansion endeavors. Additionally, the company will have the opportunity to buy back the investors’ stake in the joint venture at any point between the seventh and 14th year after the transaction is finalized.
