Enbridge and KKR Form Joint Venture to Fund Expansion of Westcoast Pipeline
Enbridge Inc (ENB) has formed a joint venture with private equity firm KKR, along with Apollo-managed funds, to finance the expansion of its Westcoast pipeline system in British Columbia. The deal involves an investment of approximately C$2.7 billion and includes a cash infusion of C$700 million for Enbridge at closing. Upon completion of the Sunrise Expansion project by late 2028, KKR and Apollo will collectively hold a 29% indirect stake in the pipeline system. The expansion projects—Aspen Point (set to begin operations in 2026) and Sunrise—are supported by long-term contracts and regulatory approvals. The Westcoast pipeline currently has a capacity of 3.6 billion cubic feet per day, which is expected to rise to 3.9bcf/d after the Sunrise Expansion becomes operational. Enbridge will retain majority ownership and control over operations. The partnership allows Enbridge to recycle capital efficiently while maintaining financial flexibility. The company emphasized that this transaction does not affect its 2026 guidance or medium-term outlook.
Topics: Energy Expansion Infrastructure Natural Gas Pipelines Partnership