Enbridge Inc. has entered into a partnership with KKR and Apollo to create a joint venture aimed at supporting the expansion of its Westcoast natural gas pipeline system. The collaborative agreement involves an investment of approximately $2.7 billion from KKR and Apollo towards the Aspen Point and Sunrise expansion initiatives. A sum of $700 million will be paid in cash to Enbridge upon closing.

In exchange for their investment, KKR and Apollo will secure a 29% stake in the combined Westcoast system once the Sunrise expansion project becomes operational. Enbridge has outlined that the investors will start receiving returns as each expansion phase is completed, with the Aspen Point expansion anticipated to be operational within the current year, followed by Sunrise in late 2028.

Enbridge will maintain majority ownership and operational authority over the West Coast system, overseeing the expansion endeavors. Additionally, the company retains the flexibility to repurchase the investors’ stake in the joint venture at any point between the seventh and 14th year post-closure.