Enbridge Inc. has finalized an agreement with KKR and Apollo to establish a collaborative partnership aimed at financing the expansion of its Westcoast natural gas pipeline system. As part of the deal, KKR and Apollo are set to inject approximately $2.7 billion into the Aspen Point and Sunrise expansion initiatives. Of this amount, $700 million will be disbursed to Enbridge upon the deal’s closure.
In return for their investment, KKR and Apollo will secure a 29 per cent stake in the overall Westcoast system once the Sunrise expansion is operational. Enbridge has disclosed that the investors will start receiving returns as each expansion project becomes operational. The Aspen Point expansion is scheduled to come online within the current year, followed by the Sunrise expansion in late 2028.
Enbridge will maintain majority ownership and operational oversight of the Westcoast system, which includes the expansion projects. Additionally, the company will have the option to buy back the investors’ stake in the joint venture anytime between the seventh and 14th year post the deal’s closure.
