“Enbridge Teams Up with KKR and Apollo for $2.7B Pipeline Boost”

Enbridge Inc. has entered into a partnership with KKR and Apollo to establish a joint venture aimed at supporting the growth of its Westcoast natural gas pipeline network. The agreement involves KKR and Apollo injecting approximately $2.7 billion into the Aspen Point and Sunrise expansion initiatives, with $700 million to be provided to Enbridge upfront in cash. In exchange, the two firms will hold a 29 percent stake in the overall Westcoast system once the Sunrise expansion project commences operations. Enbridge has outlined that the investors will start receiving returns as each expansion scheme goes into operation, with the Aspen Point expansion scheduled to be operational this year, followed by Sunrise in late 2028. Enbridge will maintain majority ownership and operational authority over the West Coast system, encompassing oversight of the expansion efforts. Moreover, the company will have the opportunity to buy back the investors’ stake in the joint venture within the period ranging from the seventh to the 14th year after the deal’s completion.