Enbridge Inc. has inked a partnership with KKR and Apollo to establish a joint venture 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 slated to be paid to Enbridge upfront in cash. In exchange, the two entities will receive a 29% stake in the overall Westcoast system following the commencement of the Sunrise expansion.
Enbridge has disclosed that the investors will start receiving returns as each expansion project becomes operational, starting with the Aspen Point expansion expected to go live this year, followed by Sunrise in late 2028. The company will maintain majority ownership and operational authority over the West Coast system, overseeing the expansion endeavors. Moreover, it retains the option to buy back the investors’ stake in the joint venture between the seventh and 14th year post-closure.
