Enbridge Inc. has entered into a partnership with KKR and Apollo to establish a collaborative initiative aimed at financing the enhancement of its Westcoast natural gas pipeline network. As per the agreement, KKR and Apollo will collectively contribute approximately $2.7 billion towards the Aspen Point and Sunrise expansion initiatives. This investment includes a $700 million cash payment to Enbridge upon finalization.
In exchange for their financial support, KKR and Apollo will secure a 29% stake in the overall Westcoast system once the Sunrise expansion project becomes operational. Enbridge has disclosed that the investors will start receiving returns as each expansion project is completed, with the Aspen Point expansion anticipated to be operational within the current year, followed by Sunrise expected to commence operations by late 2028.
Enbridge will maintain majority ownership and operational authority over the West Coast system, which encompasses overseeing the expansion undertakings. The company also reserves the right to repurchase the investors’ stake in the joint endeavor at any point between the seventh and 14th year post the transaction’s closure.
