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 system. The collaboration involves an investment of approximately $2.7 billion by KKR and Apollo to back the expansion initiatives of the Aspen Point and Sunrise programs. As part of the deal, Enbridge will receive $700 million in cash upon closing.
In exchange for their investment, KKR and Apollo will acquire a 29 percent stake in the consolidated 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, with the Aspen Point expansion slated for completion this year, followed by Sunrise in late 2028.
Enbridge will maintain majority ownership and control of the Westcoast system, overseeing the expansion endeavors. Additionally, the company will have the flexibility to repurchase the investors’ stake in the joint venture at any point between the seventh and 14th year after finalization.
