Enbridge signs deal with KKR and Apollo to fund Westcoast pipeline expansion

Calgary - Enbridge Inc. has entered into an accord with KKR and Apollo to create a joint venture aimed at financing the enlargement of its Westcoast natural gas pipeline network. The agreement envisions a $2.7 billion investment from KKR and Apollo, of which $700 million will be paid in cash to Enbridge upon completion of the transaction.

The remaining amount will be allocated towards the Aspen Point and Sunrise expansion programs. In exchange for their investment, KKR and Apollo will acquire a 29 percent stake in the Westcoast pipeline system once the Sunrise expansion is operational. Enbridge will maintain majority ownership and control over the Westcoast pipeline system, including supervision of the expansion projects.

The joint venture's investors will begin receiving payouts as each expansion project commences, with the Aspen Point expansion slated to commence this year, followed by Sunrise in late 2028. Enbridge will retain the option to repurchase the investors' interest in the joint venture anytime between the seventh and 14th year after the agreement's execution.