Enbridge Inc. has entered into a partnership with KKR and Apollo to establish a joint venture aimed at supporting the growth of its Westcoast natural gas pipeline network. As per the deal, KKR and Apollo will contribute approximately $2.7 billion towards financing the Aspen Point and Sunrise expansion initiatives, with an initial cash payment of $700 million to Enbridge upon closure.
In exchange for their investment, the two firms will hold a 29% stake in the combined Westcoast system once the Sunrise expansion project becomes operational. Enbridge has outlined that the investors will start receiving returns as each expansion segment comes online, starting with the Aspen Point expansion scheduled for this year, followed by Sunrise in late 2028.
Enbridge will maintain majority ownership and operational authority over the West Coast system, overseeing the expansion projects as well. Moreover, the company retains the right to repurchase the investors’ stake in the joint venture within the period of seven to 14 years post-closure.