KKR and Apollo to invest C$2.7B in our Westcoast Pipeline growth projects in British Columbia
Enbridge’s commitment to Western Canadian LNG exports just got a C$2.7-billion shot in the arm.
On Aug. 27, Enbridge and KKR announced a new joint venture to fund our previously sanctioned Aspen Point Program and Sunrise Expansion Program along our Westcoast natural gas pipeline system in British Columbia.
KKR, in collaboration with funds and affiliates managed by Apollo, will invest approximately C$2.7 billion to fund the expansion programs, including C$700 million in cash to Enbridge at closing, in exchange for an indirect, cumulative 29% interest in the aggregate Westcoast system upon the Sunrise program entering service.
“Enbridge is one of the largest and most reputable energy infrastructure companies in North America, and the Westcoast Pipeline system is critical to serving growing natural gas demand across British Columbia, the U.S. Pacific Northwest and internationally via LNG. We are pleased to collaborate with KKR to provide long-term, flexible capital that supports Enbridge's expansion plans,” says Jamshid Ehsani, Partner at Apollo.
"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."
Pat Murray
Enbridge EVP
and Chief Financial Officer
In recent years, Enbridge has announced investments of more than C$7 billion in British Columbia, supporting the burgeoning LNG export industry on Canada’s West Coast while meeting growing demand in BC and the U.S. Pacific Northwest. They include:
- The Aspen Point Program on Westcoast’s T-North segment, adding about 535 million cubic feet per day (MMcf/d) of transportation capacity, expected to enter service in 2026.
- The Sunrise Expansion Program on Westcoast’s T-South segment, providing about 300 MMcf/d of additional capacity, with an in-service date of late 2028.
- The Birch Grove Program, on Westcoast’s T-North segment, which will add another 178 MMcf/d of capacity, by late 2028.
- A 40-billion-cubic-feet (Bcf) expansion of our Aitken Creek facility—the province’s only underground gas storage facility—which will bring storage capacity to about 120 Bcf by spring 2028.
Canada’s West Coast LNG export terminals include the operational LNG Canada facility in Kitimat, and the Woodfibre LNG (Squamish) and Cedar LNG (Kitimat) facilities, both under construction with ISDs of 2027 and late 2028, respectively. Enbridge has a 30%, non-operating interest in Woodfibre.
The 2,953-kilometer (1,835-mile) Westcoast system moves up to 3.6 billion cubic feet a day (Bcf/d) of safe, secure and affordable natural gas, and will move up to 4.6 Bcf/d once our Westcoast expansion projects are complete.
In addition to supporting Western Canadian natural gas production and LNG exports, the joint venture with KKR allows us to continue pursuing growth projects, while at the same time managing debt and preserving financial capacity for future investments.
“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,” says Pat Murray, Enbridge’s Executive Vice President and Chief Financial Officer.
“It also underscores our ongoing commitment to portfolio optimization and disciplined capital allocation. With this strategic partnership, we continue our longstanding capital recycling program, which has generated C$19 billion in proceeds since 2014.”
Enbridge will retain majority ownership and operational control over the Westcoast system. We also retain the option to repurchase the investors’ interest in this joint venture at any time between the seventh and 14th year, following close.
