Enbridge Inc. has inked a partnership agreement with KKR and Apollo to establish a collaborative effort aimed at supporting the expansion of the Westcoast natural gas pipeline system. The deal entails an investment of approximately $2.7 billion by KKR and Apollo to back the Aspen Point and Sunrise expansion initiatives, with $700 million designated for cash payment to Enbridge upon closing. In exchange, the two firms will secure a 29 per cent stake in the overall Westcoast system once the Sunrise expansion project is operational.

Enbridge has disclosed that the investors will start receiving returns as each expansion endeavor commences operations, with the Aspen Point expansion expected to be operational this year, followed by Sunrise in late 2028. Enbridge will maintain majority ownership and operational authority over the Westcoast system, which encompasses oversight of the expansion projects. Additionally, the company will have the opportunity to repurchase the investors’ stake in the joint venture within the period spanning the seventh to the fourteenth year post-closure.