Enbridge Inc. has finalized an agreement with KKR and Apollo to establish a collaborative venture aimed at financing the expansion of its Westcoast natural gas pipeline system. In this deal, KKR and Apollo will inject approximately $2.7 billion into the Aspen Point and Sunrise expansion initiatives, with $700 million slated to be disbursed to Enbridge upon closure.
In exchange for their investment, KKR and Apollo will secure a 29% stake in the overall Westcoast system once the Sunrise expansion project commences operations. Enbridge has outlined that the investors will start receiving returns as each expansion endeavor becomes operational, starting with the Aspen Point expansion expected to be operational this year, followed by Sunrise in late 2028.
Enbridge will retain majority ownership and operational authority over the West Coast system, encompassing oversight of the expansion endeavors. Additionally, the company will have the prerogative to repurchase the investors’ stake in the joint venture within the seventh to 14th year post-closure.
