Enbridge Inc. has entered into a partnership with KKR and Apollo to establish a joint venture aimed at financing the expansion of its Westcoast natural gas pipeline system. The collaboration involves an investment of approximately $2.7 billion by KKR and Apollo towards the Aspen Point and Sunrise expansion initiatives. As part of the deal, Enbridge will receive $700 million in cash upon closing.

In exchange for their investment, KKR and Apollo will hold a 29% stake in the overall Westcoast system once the Sunrise expansion project becomes operational. Enbridge has outlined that the investors will start receiving returns as each expansion project is completed, with the Aspen Point expansion expected to go live this year, followed by Sunrise in late 2028.

Enbridge will maintain majority ownership and control of the West Coast system, overseeing the expansion endeavors. The company also reserves the right to buy back the investors’ stake in the joint venture within the seventh to 14th year post-closure.