Enbridge Inc. has finalized an agreement with KKR and Apollo to establish a collaborative effort aimed at supporting the expansion of its Westcoast natural gas pipeline network. As part of the deal, KKR and Apollo are set to inject approximately $2.7 billion into the Aspen Point and Sunrise expansion initiatives, with $700 million slated for immediate payment to Enbridge upon closing.
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 phase comes online, starting with the Aspen Point expansion expected to be operational this year, followed by the Sunrise expansion in late 2028.
While Enbridge will maintain majority ownership and control of the West Coast system, along with overseeing the expansion endeavors, it retains the option to buy back the investors’ stake in the joint venture between the seventh and 14th year post-closure.