Enbridge has struck a C$2.7 billion financing deal with KKR and Apollo for two previously approved expansions of its Westcoast natural gas pipeline system in British Columbia, bringing private infrastructure capital into one of Western Canada’s most important gas transportation…
tworks. Under the agreement, KKR-led capital accounts, together with funds and affiliates managed by Apollo, will fund the Aspen Point and Sunrise expansion programs
The investors will receive an indirect cumulative 29% interest in the broader Westcoast system once Sunrise enters service, while Enbridge will retain majority ownership, operating control and responsibility for executing the projects. The transaction includes roughly C$700 million in cash payable to Enbridge at closing. KKR and Apollo will begin receiving distributions as each expansion enters service, with Aspen Point expected online in 2026 and Sunrise targeted for late 2028.
The structure gives Enbridge a way to finance growth without carrying the entire capital burden on its own balance sheet. The company said the transaction supports its capital-recycling strategy, which has generated C$19 billion in proceeds since 2014, while preserving financial flexibility for other investments. Enbridge also negotiated the right to repurchase the investors’ interest between the seventh and fourteenth years following closing.