Enbridge Inc. has forged a partnership with investment firms KKR and Apollo to establish a joint venture aimed at financing the growth of its Westcoast natural gas pipeline network. As per the deal, KKR and Apollo are set to inject approximately $2.7 billion into the Aspen Point and Sunrise expansion initiatives, with $700 million earmarked for Enbridge as an initial cash payment upon closure.
In exchange for their investment, KKR and Apollo will secure a 29% stake in the overall Westcoast system once the Sunrise expansion project becomes operational. Enbridge has confirmed that the investors will start receiving returns as each expansion endeavor reaches completion, starting with the Aspen Point expansion slated for this year, followed by Sunrise in late 2028.
While Enbridge will maintain majority ownership and oversee the West Coast system, including the expansion projects, it will also retain the option to repurchase the investors’ stake in the joint venture anytime between the seventh and 14th year post-closure.