Enbridge Inc. has finalized an agreement with KKR and Apollo to create a partnership aimed at financing the expansion of its Westcoast natural gas pipeline network. The collaboration involves an investment totaling approximately $2.7 billion to support the Aspen Point and Sunrise expansion initiatives. As part of the deal, KKR and Apollo will contribute $700 million in cash to Enbridge upon closing.
In exchange for their investment, both KKR and Apollo will hold a 29% stake in the overall Westcoast system once the Sunrise expansion project is operational. Enbridge has disclosed that the investors will start receiving returns as each expansion phase is completed, with the Aspen Point expansion anticipated to come online this year, followed by the Sunrise expansion in late 2028.
Enbridge will maintain majority ownership and control over the West Coast system, along with the primary responsibility for overseeing the expansion endeavors. Additionally, the company will have the option to buy back the investors’ stake in the joint venture at any point between the seventh and 14th year post the transaction’s closure.
