Enbridge Inc. has entered into a partnership with KKR and Apollo to establish a joint venture aimed at financing the growth 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 projects, with $700 million to be paid upfront to Enbridge in cash.
In exchange for their investment, KKR and Apollo will hold a 29% stake in the combined Westcoast system upon the completion of the Sunrise expansion project. Enbridge disclosed that the investors will start receiving returns as each expansion initiative becomes operational, starting with the Aspen Point expansion expected to be operational this year, followed by Sunrise in late 2028.
Enbridge will retain majority ownership and control of the West Coast system, overseeing the expansion endeavors. Moreover, the company will have the flexibility to repurchase the investors’ stake in the joint venture at any point between the seventh and 14th year post-closing.
