“Enbridge Secures $2.7B Investment for Westcoast Pipeline Expansion”

Enbridge Inc. has partnered with KKR and Apollo to establish a joint venture aimed at financing the expansion of its Westcoast natural gas pipeline network. The agreement entails KKR and Apollo contributing approximately $2.7 billion toward the Aspen Point and Sunrise expansion initiatives, with an initial cash payment of $700 million to Enbridge upon closing. In exchange, they will receive a 29% stake in the overall Westcoast system once the Sunrise expansion project becomes operational. Enbridge has confirmed that the investors will start receiving returns as each expansion phase is completed, starting with the Aspen Point expansion this year, followed by Sunrise in late 2028. Enbridge will maintain majority ownership and operational authority over the West Coast system, which includes overseeing the expansion endeavors. Moreover, the company retains the option to repurchase the investors’ stake in the joint venture between the seventh and 14th year post-closing.