Enbridge Forms Joint Venture for C$2.7 Billion Pipeline Expansion

Enbridge formed a joint venture with private equity firms KKR and Apollo Global Management to fund a C$2.7 billion expansion of its natural gas pipeline system in British Columbia. KKR and Apollo will provide up to C$700 million in up-front cash in exchange for a 29% noncontrolling stake in the network.

The funding supports the Aspen Point and Sunrise expansion projects for the Westcoast pipeline system. These projects have already received regulatory approval and are backed by long-term take-or-pay contracts. This arrangement allows the company to secure external growth capital without increasing corporate debt while maintaining operational control.

Enbridge retains an option to repurchase the equity stake starting in seven years. Distributions to investors are expected to begin as projects come online this year and in late 2028. Chief Financial Officer Pat Murray stated the transaction allows the company to recycle capital and strengthen its balance sheet while advancing growth opportunities.