Enbridge Inc. has finalized an agreement with KKR and Apollo to establish a partnership aimed at supporting the expansion of the Westcoast natural gas pipeline system. The collaboration entails a substantial investment of approximately $2.7 billion by KKR and Apollo towards the Aspen Point and Sunrise expansion initiatives. As part of the deal, $700 million will be provided to Enbridge upon the transaction’s completion.
In exchange for their investment, KKR and Apollo will obtain a 29 per cent 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 project progresses, with the Aspen Point expansion slated for operation this year, followed by Sunrise in late 2028.
Enbridge will uphold its majority ownership and operational oversight of the West Coast system, which includes overseeing the expansion undertakings. Additionally, the company reserves the right to repurchase the investors’ stake in the joint venture within the seventh to 14th year post-closure.
