Enbridge Inc. has announced a partnership with KKR and Apollo to establish a joint venture aimed at supporting the expansion of its Westcoast natural gas pipeline system. The deal involves investments totaling approximately $2.7 billion from KKR and Apollo, with $700 million to be paid in cash to Enbridge upon closing. As part of the agreement, the investors will acquire a 29 per cent stake in the overall Westcoast system once the Sunrise expansion project becomes operational.
According to Enbridge, the investors will start receiving returns as each expansion initiative is completed, starting with the Aspen Point expansion expected to be operational this year, followed by the Sunrise project in late 2028. Enbridge will maintain majority ownership and control of the West Coast system, overseeing the expansion endeavors. Additionally, the company will have the option to buy back the investors’ stake in the joint venture between the seventh and 14th year after the deal’s completion.