Enbridge Inc. has finalized an agreement with KKR and Apollo to establish a partnership aimed at financing the development of its Westcoast natural gas pipeline system. 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 upfront cash payment of $700 million to Enbridge upon closure.
In exchange for their investment, KKR and Apollo will gain a 29 per cent stake in the total Westcoast system once the Sunrise expansion project becomes operational. Enbridge has disclosed that the investors will start receiving returns as each expansion endeavor goes into operation, starting with the commencement of the Aspen Point expansion within this year, followed by the Sunrise expansion scheduled for late 2028.
Enbridge will maintain majority ownership and control of the West Coast system, overseeing the expansion projects. Additionally, the company holds the option to buy back the investors’ share in the joint venture anytime between the seventh and 14th year post-closure.