Enbridge and KKR have agreed to form a new joint venture to fund the previously sanctioned Aspen Point and Sunrise Expansion Programs of the Westcoast natural gas pipeline system.
The joint venture will be led by capital accounts advised by KKR in collaboration with funds and affiliates managed by Apollo. The firms will invest approximately C$2.7 billion ($2 billion) to fund the expansion programs, including C$700 million ($505 million) of cash to Enbridge at closing, in exchange for an indirect cumulative 29 percent interest in the aggregate Westcoast system after Sunrise enters service.
The expansions have secured regulatory approval and are commercially underpinned by long-term take-or-pay contracts.
“We are pleased to welcome KKR and Apollo as strategic partners to support the funding of Aspen Point and Sunrise,” said Pat Murray, executive vice president and CFO of Enbridge. “This transaction allows us to efficiently recycle capital, strengthen our bal
