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Enbridge signs deal with KKR and Apollo to fund Westcoast pipeline expansion
KKR and Apollo will invest about C$2.7 billion in the pipeline expansions, and Enbridge will keep majority ownership and control.
- On Thursday, Enbridge Inc. announced a definitive agreement with investment firms KKR and Apollo to form a joint venture, securing C$2.7 billion to fund the Aspen Point and Sunrise expansion programs of its Westcoast natural gas pipeline system.
- Under the agreement, KKR and Apollo will provide C$700 million in cash to Enbridge at closing, eventually receiving 29% interest in the aggregate Westcoast system once the Sunrise expansion program enters service in 2028.
- Enbridge will retain majority ownership and operational control, stated Pat Murray, Executive Vice President and Chief Financial Officer, noting the transaction allows the company to "efficiently recycle capital" and strengthen its balance sheet.
- KKR Managing Director Paul Workman cited stable cash flows as an investment driver, while Apollo Partner Jamshid Ehsani noted the Westcoast system is critical to serving growing natural gas demand across British Columbia and the Pacific Northwest.
- The Aspen Point expansion adds 535 million cubic feet per day of capacity this year, with the Sunrise project following in late 2028, collectively raising the Westcoast system's total capacity to 3.9 billion cubic feet per day.
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Enbridge and KKR Announce New Joint Venture to Support Investment in the Westcoast Pipeline System in BC
/PRNewswire/ - Enbridge Inc. ("Enbridge") (TSX: ENB) (NYSE: ENB) announced today that it has entered into a definitive agreement with KKR to form a new joint...
·Chicago, United States
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