Enbridge formed a joint venture with KKR and Apollo-managed funds to expand its Westcoast natural gas pipeline. The total investment for the British Columbia system reaches C$2.7 billion.
Enbridge will receive approximately C$0.7 billion in cash at the deal's closing. The investment group will hold a 29% indirect stake after the Sunrise expansion is operational. Enbridge retains majority ownership and full operational control of the pipeline.
This capital recycling strategy funds growth without increasing corporate debt. The Aspen Point project is expected to begin service in 2026. The Sunrise project is scheduled to enter service in late 2028. Enbridge has an option to repurchase the stake between the seventh and fourteenth years.