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. The agreement involves KKR and Apollo contributing approximately $2.7 billion towards the Aspen Point and Sunrise expansion initiatives, with $700 million to be paid upfront to Enbridge in cash.
In exchange for their investment, KKR and Apollo 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 phase is completed, starting with the Aspen Point expansion expected to be operational this year, followed by Sunrise in late 2028.
While maintaining majority ownership and operational jurisdiction over the West Coast system, including oversight of the expansion undertakings, Enbridge will have the opportunity to repurchase the investors’ stake in the joint venture between the seventh and 14th year post-closing.
