Enbridge Brings KKR and Apollo Into C$2.7 Billion Westcoast Pipeline Deal

Enbridge has secured a financing arrangement worth C$2.7 billion with KKR and Apollo to fund the expansion of its Westcoast natural gas pipeline network in British Columbia. The agreement involves KKR-led capital, along with Apollo's funds and affiliates, to finance the Aspen Point and Sunrise expansion initiatives. Following completion, KKR and Apollo will own an indirect stake of 29% in the entire Westcoast system, while Enbridge will maintain majority ownership, operational control, and responsibility for executing the projects.

Enbridge will receive approximately C$700 million in cash at closing, and distributions will commence as each expansion comes online, with Aspen Point set to begin operations in 2026 and Sunrise in late 2028. The financing strategy allows Enbridge to grow the network without bearing the full capital load. The Westcoast pipeline system, currently capable of handling up to 3.6 billion cubic feet per day of natural gas, is projected to increase capacity to around 3.9 Bcf/d with the completion of Sunrise.

Both expansion projects have received regulatory approval and are secured by long-term take-or-pay contracts, limiting exposure to fluctuations in natural gas prices. The Westcoast pipeline spans more than 2,900 kilometers across British Columbia, connecting producing areas in northeastern B.C. and near the Alberta border with markets in the Lower Mainland and the Pacific Northwest United States.

The expansion is particularly significant given the growing demand for natural gas in British Columbia, the Pacific Northwest, and international liquefied natural gas (LNG) markets. Apollo highlighted strong demand in these regions as part of the investment justification. For KKR and Apollo, the deal offers exposure to infrastructure cash flows without operational control of the pipeline.

Enbridge sees it as an opportunity to monetize a minority interest in mature infrastructure while still benefiting from the economics of expansion. The transaction is not projected to impact Enbridge's 2026 financial guidance or medium-term outlook, and is still subject to customary closing conditions.