Enbridge Inc. has teamed up with KKR and Apollo to establish a joint venture aimed at supporting the growth of its Westcoast natural gas pipeline network. The partnership entails KKR and Apollo contributing approximately $2.7 billion towards the Aspen Point and Sunrise expansion initiatives, with $700 million to be paid to Enbridge upon completion.
In exchange for their investment, KKR and Apollo will hold a 29% stake in the combined Westcoast system upon the commencement of the Sunrise expansion. Enbridge has outlined that the investors will start receiving returns as each expansion project becomes operational, starting with the Aspen Point expansion slated for this year, followed by Sunrise by late 2028.
Enbridge will maintain majority ownership and operational authority over the West Coast system, overseeing the expansion projects. Additionally, the company will have the opportunity to repurchase the investors’ stake in the joint venture between the seventh and 14th year after the deal’s closure.