Enbridge Inc. has entered into a partnership with investment firms KKR and Apollo to establish a joint venture aimed at supporting the growth of its Westcoast natural gas pipeline network. The collaboration involves KKR and Apollo injecting approximately $2.7 billion into the Aspen Point and Sunrise expansion initiatives, with $700 million to be paid to Enbridge upfront.
In exchange for their investment, KKR and Apollo will acquire a 29 per cent stake in the combined Westcoast system once the Sunrise expansion project becomes operational. Enbridge has indicated that the investors will start receiving returns as each expansion project is completed, beginning with the Aspen Point expansion slated for completion this year, followed by Sunrise by late 2028.
Enbridge will maintain majority ownership and operational authority over the West Coast system, overseeing the expansion efforts. The company also holds the option to buy back the investors’ stake in the joint venture between the seventh and 14th year post-closure.