“Enbridge partners with KKR, Apollo for $2.7B pipeline expansion”

Enbridge Inc. has announced a partnership with KKR and Apollo to establish a joint venture aimed at financing the expansion of its Westcoast natural gas pipeline system. The deal involves KKR and Apollo injecting approximately $2.7 billion into the Aspen Point and Sunrise expansion initiatives, with $700 million to be paid to Enbridge in cash upon closing. In exchange, the two firms will gain a 29% stake in the overall Westcoast system once the Sunrise expansion becomes operational. Enbridge disclosed that the investors will start receiving returns as each expansion project comes online, starting with the Aspen Point expansion expected to be operational this year, followed by Sunrise by late 2028. Enbridge will maintain majority ownership and operational authority over the West Coast system, which includes oversight of the expansion endeavors. Additionally, Enbridge will have the option to repurchase the investors’ stake in the joint venture within the seventh to 14th year post-closing.