Enbridge Inc. has finalized an agreement with KKR and Apollo to establish a partnership aimed at supporting the growth of the Westcoast natural gas pipeline system. The deal involves KKR and Apollo injecting approximately $2.7 billion into the Aspen Point and Sunrise expansion initiatives, with $700 million earmarked for Enbridge upon completion.
In exchange for their investment, KKR and Apollo will gain a 29 percent stake in the overall Westcoast system once the Sunrise expansion project becomes operational. Enbridge has indicated that the investors will start receiving returns as each expansion phase is completed, with the Aspen Point expansion scheduled for launch this year, followed by Sunrise in late 2028.
Despite this partnership, Enbridge will maintain majority ownership and oversee the day-to-day operations of the West Coast system, including the expansion endeavors. Additionally, Enbridge has the flexibility to repurchase the investors’ stake in the joint venture at any point between the seventh and 14th year post-closure.