Enbridge Inc. has finalized an agreement with KKR and Apollo to establish a partnership aimed at supporting the expansion of its Westcoast natural gas pipeline network. The deal entails an investment of approximately $2.7 billion from KKR and Apollo to back the Aspen Point and Sunrise expansion initiatives. As part of the deal, Enbridge will receive $700 million in cash upon closure.
In exchange, 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 commences operations, with the Aspen Point expansion scheduled for this year, followed by Sunrise in late 2028.
Enbridge will maintain majority ownership and control of the West Coast system, overseeing the expansion endeavors. Additionally, the company will hold the option to buy back the investors’ stake in the partnership between the seventh and 14th year post-closure.