Enbridge Inc. has entered into a partnership with KKR and Apollo to establish a joint venture aimed at supporting the expansion of its Westcoast natural gas pipeline system. As part of the deal, KKR and Apollo will collectively inject around $2.7 billion into the Aspen Point and Sunrise expansion initiatives. Of this amount, $700 million will be provided to Enbridge upfront in cash upon closing.
In exchange for their investment, KKR and Apollo will secure a 29 percent stake in the overall Westcoast system once the Sunrise expansion project commences operations. Enbridge has disclosed that the investors will start receiving returns as each expansion phase becomes operational, with the Aspen Point expansion anticipated to be operational this year, followed by Sunrise by late 2028.
Enbridge will maintain majority ownership and control of the West Coast system, overseeing the expansion efforts. Additionally, the company retains the flexibility to buy back the investors’ shares in the joint venture at any point between the seventh and 14th year after the deal is finalized.