Enbridge Inc. has reached an agreement with KKR and Apollo to establish a partnership aimed at financing 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 an initial $700 million payment to Enbridge upon closing.
In exchange for their investment, KKR and Apollo will acquire a 29 percent stake in the combined Westcoast system once the Sunrise expansion project becomes operational. Enbridge has outlined that the investors will start receiving returns as each expansion phase is completed, starting with the Aspen Point expansion slated for this year, followed by Sunrise in late 2028.
Enbridge will maintain majority ownership and operational authority over the West Coast system, overseeing the expansion endeavors. Furthermore, Enbridge has the prerogative to buy back the investors’ stake in the collaboration within the seventh to 14th year post-closing.