Enbridge Inc. has entered into a partnership with KKR and Apollo to establish a joint venture aimed at financing the growth of its Westcoast natural gas pipeline network. The collaboration involves KKR and Apollo contributing approximately $2.7 billion towards the development of the Aspen Point and Sunrise expansion initiatives, with an initial cash payment of $700 million to Enbridge upon completion.
In exchange for their investment, KKR and Apollo will gain a 29% stake in the overall Westcoast system once the Sunrise expansion project is operational. Enbridge has disclosed that the investors will start receiving returns as each expansion project is completed, starting with the Aspen Point expansion slated for this year, followed by Sunrise expected to commence operations in late 2028.
Enbridge will maintain majority ownership and control of the West Coast system, overseeing the expansion endeavors. The company also holds the option to repurchase the investors’ stake in the joint venture within the seventh to 14th year post-closing.