Enbridge Inc. has reached an agreement with KKR and Apollo to establish a partnership for financing the growth of its Westcoast natural gas pipeline system. The deal involves an investment of approximately $2.7 billion by KKR and Apollo towards the Aspen Point and Sunrise expansion initiatives. As part of the arrangement, $700 million will be paid in cash to Enbridge upon closure.
In exchange for their investment, KKR and Apollo will hold a 29% stake in the overall Westcoast system once the Sunrise expansion project becomes operational. Enbridge has disclosed that the investors will start receiving returns as each expansion project is completed, starting with the Aspen Point expansion slated for this year, followed by Sunrise in late 2028.
Enbridge will maintain majority ownership and control of the West Coast system, overseeing the expansion endeavors. The company will also have the opportunity to buy back the investors’ stake in the joint venture between the seventh and 14th year post-closure.