Enbridge Inc. has finalized an agreement with KKR and Apollo to establish a partnership aimed at financing the enlargement of its Westcoast natural gas pipeline network. The deal involves an investment of approximately $2.7 billion by KKR and Apollo to support the advancement of the Aspen Point and Sunrise expansion initiatives. As part of the arrangement, $700 million will be provided in cash to Enbridge upon the deal’s completion.
In exchange for their investment, KKR and Apollo will acquire a 29% stake in the overall Westcoast system once the Sunrise expansion project becomes operational. Enbridge has disclosed that the investors will start receiving returns as each expansion project is completed, with the Aspen Point expansion scheduled for completion this year, followed by Sunrise in late 2028.
Enbridge will maintain majority ownership and operational authority over the West Coast system, which encompasses overseeing the expansion endeavors. 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 after the deal is sealed.