Enbridge Inc. has finalized an agreement with KKR and Apollo to establish a joint venture aimed at supporting 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. An upfront payment of $700 million in cash will be made to Enbridge upon closing.
In exchange for their investment, KKR and Apollo will secure a 29% stake in the overall Westcoast system once the Sunrise expansion project becomes operational. Enbridge has confirmed that the investors will start receiving returns as each expansion project is completed. The Aspen Point expansion is slated to go live this year, with the Sunrise expansion expected to follow suit by late 2028.
Enbridge will maintain its majority ownership and operational authority over the Westcoast system, including overseeing the expansion undertakings. Additionally, the company will have the flexibility to repurchase the investors’ stake in the joint venture between the seventh and 14th year post-closure.