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 involves KKR and Apollo contributing approximately $2.7 billion towards the Aspen Point and Sunrise expansion initiatives, with $700 million to be paid to Enbridge in cash upon closing. In exchange, they will hold a 29% stake in the combined Westcoast system once the Sunrise expansion project becomes operational.
Enbridge has outlined that the investors will start receiving returns as each expansion project is completed, 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, which includes overseeing the expansion endeavors. Additionally, the company has the option to repurchase the investors’ stake in the joint venture within the seventh to 14th year post-closure.