Enbridge Inc. has entered into a partnership with KKR and Apollo to create a joint venture aimed at financing the enhancement of its Westcoast natural gas pipeline network. The collaboration involves an investment of approximately $2.7 billion by KKR and Apollo for the Aspen Point and Sunrise expansion initiatives, with $700 million to be paid upfront to Enbridge.
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 scheduled for this year, followed by Sunrise 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 opportunity to buy back the investors’ stake in the joint venture within the seventh to 14th year post-closure.
