Enbridge Inc. has finalized an agreement with investment firms KKR and Apollo to establish a collaborative venture aimed at supporting the enhancement of its Westcoast natural gas pipeline system. The partnership involves KKR and Apollo injecting approximately $2.7 billion into the Aspen Point and Sunrise expansion initiatives, with $700 million to be paid 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 is operational. Enbridge has disclosed that the investors will start receiving returns as each expansion phase becomes operational, starting with the Aspen Point expansion in the current year and the Sunrise expansion in late 2028.
Enbridge will maintain majority ownership and control of 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 between the seventh and 14th year post-closure.