Enbridge Inc. has forged an agreement with KKR and Apollo to establish a joint venture aimed at financing the enhancement of its Westcoast natural gas pipeline network. The deal entails KKR and Apollo injecting approximately $2.7 billion into the Aspen Point and Sunrise expansion initiatives, with $700 million to be paid upfront to Enbridge. In exchange, they will gain a 29 percent stake in the overall Westcoast system upon the commencement of the Sunrise expansion project.
Enbridge has disclosed that the investors will start receiving returns as each expansion endeavor becomes operational, with the Aspen Point expansion slated for completion this year, followed by Sunrise in late 2028. The company will maintain majority ownership and operational oversight of the West Coast system, including the expansion undertakings. Additionally, Enbridge retains the option to buy back the investors’ stake in the joint venture between the seventh and 14th year post-closure.
