Enbridge Inc. has finalized an agreement with KKR and Apollo to establish a partnership aimed at financing the expansion of its Westcoast natural gas pipeline system. As part of the deal, KKR and Apollo are set to inject approximately $2.7 billion into the Aspen Point and Sunrise expansion initiatives. This investment includes a $700 million cash payment to Enbridge upon completion.
In exchange for their contribution, 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 phase becomes operational, with the Aspen Point expansion scheduled for completion this year, followed by Sunrise by the end of 2028.
Enbridge will maintain majority ownership and operational authority over the West Coast system, overseeing the expansion endeavors. Additionally, the company will have the option to buy back the investors’ share in the joint venture within the seventh to fourteenth year post-closure.