Canadian energy company Enbridge said on Thursday it had agreed to form a joint venture with KKR and Apollo to invest about C$2.7 billion in expansions of its Westcoast natural gas pipeline system in British Columbia.
KKR and Apollo are investing alongside Enbridge as demand for natural gas infrastructure in Western Canada and the U.S. Pacific Northwest grows, while the Westcoast system also provides a route to international LNG markets.
Under the agreement, the two investment companieswill receive an indirect 29% interest in the Westcoast system once the Sunrise expansion enters service, in exchange for C$0.7 billion in cash.
Enbridge will retain majority ownership and operational control of the system, according to the deal.
The Aspen Point Expansion Program is expected to enter service in 2026, followed by the Sunrise Expansion Program in late 2028.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Shreya Biswas)