Enbridge Inc. has reached an agreement with KKR and Apollo to establish a partnership aimed at financing the expansion of its Westcoast natural gas pipeline network. As part of the deal, KKR and Apollo will inject approximately $2.7 billion into the Aspen Point and Sunrise expansion initiatives, with an upfront cash payment of $700 million to Enbridge upon closing.
In exchange for their investment, KKR and Apollo will hold a 29% stake in the overall Westcoast system once the Sunrise expansion project becomes operational. Enbridge disclosed that the investors will start receiving returns as each expansion phase is completed, starting with the Aspen Point expansion slated for this year, followed by Sunrise by the end of 2028.
Enbridge will maintain majority ownership and managerial authority over the West Coast system, overseeing the expansion efforts. Additionally, the company retains the option to repurchase the investors’ stake in the joint venture within the seventh to 14th year post-closure.
