Enbridge announced a C$2.7 billion financing arrangement with investment firms KKR and Apollo targeting two expansion projects on its Westcoast natural gas pipeline network in British Columbia. The transaction provides private infrastructure capital to one of Western Canada’s key gas transportation systems.
Under the terms, KKR-led capital accounts and funds managed by Apollo will finance the Aspen Point and Sunrise expansion programs. Upon completion of the Sunrise project, the investors will hold an indirect cumulative 29% stake in the broader Westcoast system, while Enbridge retains majority ownership, operational control, and project execution responsibility. The deal includes approximately C$700 million in cash flowing to Enbridge at closing, with distributions to the investors beginning as each expansion enters service. Aspen Point is targeted for 2026, while Sunrise is projected for late 2028.
The financing structure enables Enbridge to fund infrastructure expansion without bearing the full capital burden internally, supporting the company’s capital-recycling strategy, which has generated C$19 billion in proceeds since 2014. Enbridge negotiated the ability to repurchase the investors’ interest between the seventh and fourteenth years following transaction closing.
Both expansion projects have secured regulatory approval and benefit from long-term take-or-pay contracts that mitigate commercial exposure to natural gas price volatility. The Westcoast system currently transports up to 3.6 billion cubic feet per day of natural gas across more than 2,900 kilometers in British Columbia, connecting northeastern B.C. and Alberta border production regions with Lower Mainland and U.S. Pacific Northwest markets. The Sunrise expansion is expected to increase system capacity to approximately 3.9 billion cubic feet per day.
For the investors, the arrangement provides access to contracted infrastructure cash flows while avoiding operational responsibility. Enbridge characterized the transaction as consistent with its strategy of monetizing minority interests in mature infrastructure while maintaining exposure to expansion economics. The company indicated the deal would not materially impact its 2026 financial guidance or medium-term outlook, pending satisfaction of customary closing conditions.
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