Enbridge Inc (NYSE: ENB), the Calgary-based energy infrastructure company that runs oil and gas pipelines, utilities and renewable power assets across North America and Europe, has agreed a C$2.7bn deal with KKR and Apollo Global Management to fund two expansions of its Westcoast natural gas pipeline system in British Columbia.
Under the definitive agreement announced on Thursday, KKR and Apollo, both global alternative asset managers, will invest approximately C$2.7bn, including C$0.7bn in cash to Enbridge at closing, in return for a 29% indirect stake in the Westcoast system once the Sunrise expansion enters service in late 2028. The Aspen Point expansion is due in service this year. Both projects already carry regulatory approval and are backed by take-or-pay contracts, agreements guaranteeing revenue regardless of actual gas volumes moved. Enbridge keeps majority ownership and operating control, and holds an option to buy back the investors’ stake between years seven and fourteen.
The Westcoast system currently carries up to 3.6 billion cubic feet of gas a day across more than 2,900 km of pipeline in British Columbia, a figure set to rise to about 3.9 billion cubic feet a day once Sunrise is complete. Enbridge said the transaction is not material to its 2026 guidance, framing it instead as the latest instalment of a capital-recycling programme, selling stakes in existing assets to fund new growth without taking on new debt, that has generated C$19bn in proceeds since 2014.
“This transaction allows us to efficiently recycle capital, strengthen our balance sheet, and maintain financial flexibility while advancing a strong pipeline of high-returning growth opportunities,” said Pat Murray, Enbridge’s Executive Vice President and Chief Financial Officer. KKR’s Paul Workman, a managing director at the firm, said the investment reflected KKR’s strategy of “investing alongside leading operators in key infrastructure with stable, long-term cash flows”.
Apollo partner Jamshid Ehsani said the Westcoast system is “critical to serving growing natural gas demand across British Columbia, the U.S. Pacific Northwest and internationally via LNG”, underlining the strategic value both firms see in the asset even as Enbridge retains control of it.
Enbridge shares closed at $50.37 on Wednesday, up 1.27% on the session, sitting roughly midway in their 52-week range of $43.09 to $57.66. That move predates Thursday’s announcement and reflects the prior day’s trading rather than any reaction to the new deal.