Enbridge Inc. has finalized an agreement with investment firms KKR and Apollo to establish a partnership aimed at supporting the expansion of its Westcoast natural gas pipeline system. The deal involves KKR and Apollo injecting approximately $2.7 billion into the Aspen Point and Sunrise expansion initiatives. As part of the arrangement, Enbridge will receive $700 million in cash from the investors upon closing.
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 outlined that the investors will start receiving returns as each expansion phase is completed, starting with the Aspen Point expansion slated for this year, followed by Sunrise expected to be operational by late 2028.
Enbridge will maintain majority ownership and control of the West Coast system, overseeing the expansion efforts. Additionally, the company will have the option to repurchase the investors’ stake in the joint venture within the seventh to 14th year post-closing.