Enbridge Inc. has finalized an agreement with KKR and Apollo to establish a collaborative venture aimed at supporting the expansion of its Westcoast natural gas pipeline system. As part of the deal, KKR and Apollo will inject approximately $2.7 billion into funding 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 gain 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 payouts as each expansion phase commences, with the Aspen Point expansion scheduled for completion this year, followed by Sunrise in late 2028.
Enbridge will maintain majority ownership and operational authority over 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 within the timeframe spanning the seventh to 14th year post-closure.