Enbridge Inc. has announced 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 injecting approximately $2.7 billion into the Aspen Point and Sunrise expansion initiatives, with $700 million to be paid upfront to Enbridge. In exchange, the two firms will acquire 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 in the current year, followed by the Sunrise expansion in late 2028. Enbridge will maintain majority ownership and operational authority over the West Coast system, overseeing the expansion endeavors. Additionally, the company retains the option to buy back the investors’ stake in the joint venture within seven to 14 years after the deal’s conclusion.