Enbridge Inc. has entered into a partnership with KKR and Apollo to establish a joint venture aimed at supporting the expansion of its Westcoast natural gas pipeline system. As part of the deal, KKR and Apollo will inject approximately $2.7 billion into funding the Aspen Point and Sunrise expansion initiatives, with $700 million slated to be paid to Enbridge in cash upon closure.
In exchange for their investment, KKR and Apollo will acquire a 29 percent stake in the overall Westcoast system once the Sunrise expansion project becomes operational. Enbridge has outlined that the investors will start receiving returns as each expansion endeavor goes into service, starting with the Aspen Point expansion scheduled for this year, followed by Sunrise in late 2028.
Enbridge will maintain majority ownership and operational management of the West Coast system, overseeing the expansion projects. Additionally, the company will have the opportunity to repurchase the investors’ stake in the joint venture at any point between the seventh and 14th year post-closure.