Enbridge Inc. has finalized an agreement with KKR and Apollo to establish a collaborative partnership aimed at supporting the extension 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, with $700 million to be disbursed to Enbridge upfront.
In exchange for their investment, KKR and Apollo will secure a 29% stake in the overall Westcoast system upon the completion of the Sunrise expansion phase. Enbridge has disclosed that the investors will start receiving returns as each expansion project becomes operational, with the Aspen Point expansion slated for completion this year, followed by the Sunrise project in late 2028.
Enbridge will uphold its majority ownership position and retain operational authority over the West Coast system, which encompasses oversight of the expansion endeavors. Moreover, Enbridge will have the prerogative to repurchase the investors’ stake in the joint venture within the timeframe ranging from the seventh to the 14th year post the transaction’s closure.
