Enbridge Inc. has finalized an agreement with KKR and Apollo to establish a collaborative partnership aimed at financing the enhancement of its Westcoast natural gas pipeline system. As part of the deal, KKR and Apollo will inject approximately $2.7 billion into the Aspen Point and Sunrise expansion initiatives, with $700 million slated for immediate payment to Enbridge upon completion.
In exchange for their investment, KKR and Apollo will secure a 29% stake in the overall Westcoast system once the Sunrise expansion project comes online. Enbridge has disclosed that the investors will start receiving returns as each expansion phase becomes operational, starting with the Aspen Point expansion this year, followed by Sunrise by late 2028.
Enbridge will retain predominant ownership and operational authority over the West Coast system, maintaining oversight of the expansion undertakings. Moreover, the company will have the flexibility to repurchase the investors’ stake in the joint venture within the seventh to 14th year post-closure.