Enbridge Inc. has entered into a partnership with investment firms KKR and Apollo to establish a joint venture aimed at financing the expansion of its Westcoast natural gas pipeline system. The collaboration involves KKR and Apollo committing approximately $2.7 billion towards the Aspen Point and Sunrise expansion initiatives, with an initial $700 million cash payment to Enbridge upon completion. In exchange, the investment firms will acquire a 29 per cent stake in the overall Westcoast system upon the operational commencement of the Sunrise expansion.
Enbridge has outlined that the investors will start receiving returns as each expansion project becomes operational, with the Aspen Point expansion expected to be in service this year, followed by Sunrise by late 2028. The company will retain majority ownership and control of the West Coast system, overseeing the expansion projects as well. Additionally, Enbridge will have the opportunity to buy back the investors’ share in the joint venture between the seventh and 14th year post-closing.