Enbridge Inc. has reached an agreement with KKR and Apollo to establish a joint venture aimed at financing the growth of its Westcoast natural gas pipeline network.
As part of this arrangement, KKR and Apollo will contribute approximately $2.7 billion to support the Aspen Point and Sunrise expansion initiatives, which includes a cash payment of $700 million to Enbridge upon closing.
In exchange, they will acquire a 29 percent stake in the overall Westcoast system once the Sunrise expansion is operational.
According to Enbridge, the investors will start to receive distributions as each expansion project becomes operational, with the Aspen Point expansion expected to launch this year, followed by Sunrise in late 2028.
Enbridge will maintain majority ownership and operational oversight of the West Coast system, along with the responsibility for the expansion efforts.
Additionally, it will have the right to buy back the investors’ stake in the joint venture at any time between the seventh and fourteenth year after closing.