Enbridge Inc. has finalized a partnership agreement with KKR and Apollo to establish a collaborative venture aimed at financing the growth of its Westcoast natural gas pipeline network. This strategic deal entails KKR and Apollo injecting approximately $2.7 billion into the Aspen Point and Sunrise expansion initiatives, with $700 million earmarked for immediate payment to Enbridge upon closure.
In exchange for their investment, KKR and Apollo will secure a 29% stake in the overall Westcoast system once the Sunrise expansion project becomes operational. Enbridge has outlined that the investors will start receiving returns as each expansion project progresses, commencing with the Aspen Point expansion slated for completion this year, followed by Sunrise by late 2028.
While Enbridge will maintain majority ownership and operational authority over the West Coast system, encompassing oversight of the expansion endeavors, it retains the option to repurchase the investors’ stake in the partnership between the seventh and 14th year post-closure.