Enbridge Inc. has reached an agreement with investment firms KKR and Apollo to establish a joint venture aimed at financing the enhancement of its Westcoast natural gas pipeline network. The partnership involves a total investment of approximately $2.7 billion to support the Aspen Point and Sunrise expansion initiatives. As part of the deal, KKR and Apollo will provide $700 million in cash to Enbridge upon closing.
In exchange for their investment, the two firms will acquire a 29% stake in the combined Westcoast system once the Sunrise expansion project becomes operational. Enbridge has stated that the investors will start receiving returns as each expansion phase is completed, with the Aspen Point expansion slated for completion this year, followed by Sunrise by late 2028.
Enbridge will maintain majority ownership and operational oversight of the West Coast system, which includes overseeing the expansion projects. Additionally, the company retains the option to buy back the investors’ stake in the joint venture between the seventh and 14th year post-closing.