Enbridge Inc. has finalized an agreement with KKR and Apollo to establish a collaborative partnership aimed at supporting the enhancement 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, with $700 million to be disbursed to Enbridge upon completion.
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 endeavor is completed, with the Aspen Point expansion slated to be operational this year, followed by Sunrise in late 2028.
Despite the partnership, Enbridge will maintain majority ownership and operational authority over the West Coast system, including oversight of the expansion undertakings. Additionally, Enbridge will have the prerogative to buy back the investors’ stake in the joint venture within the seventh to 14th year post-closure.
