“Enbridge Teams Up with KKR & Apollo in $2.7B Pipeline Venture”

Enbridge Inc. has entered into a partnership with KKR and Apollo to establish a collaborative venture aimed at supporting the expansion of its Westcoast natural gas pipeline network. The deal involves KKR and Apollo committing approximately $2.7 billion towards the Aspen Point and Sunrise expansion initiatives, with an upfront cash payment of $700 million to Enbridge upon closing. In exchange, the two firms will obtain a 29% stake in the total Westcoast system once the Sunrise expansion becomes operational. Enbridge has disclosed that the investors will start receiving returns as each expansion project is completed, starting with the Aspen Point expansion slated for this year, followed by the Sunrise expansion in late 2028. Enbridge will maintain majority ownership and operational authority over the West Coast system, assuming responsibility for overseeing the expansion projects. Additionally, the company will have the option to buy back the investors’ stake in the joint venture within the seventh to 14th year post-closing.