Enbridge Inc. has finalized an agreement with investment firms KKR and Apollo to create a partnership aimed at financing the expansion of its Westcoast natural gas pipeline system. The deal entails KKR and Apollo injecting approximately $2.7 billion into the Aspen Point and Sunrise expansion initiatives, with $700 million to be disbursed to Enbridge upfront.
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 outlined that the investors will start receiving returns as each expansion phase is completed, with the Aspen Point expansion slated for this year and Sunrise expected to be operational by late 2028.
Enbridge will maintain majority ownership and operational authority over the West Coast system, overseeing the expansion endeavors. Additionally, the company will have the flexibility to repurchase the investors’ stake in the joint venture within the seventh to 14th year post-closure.