Enbridge Forms C$2.7 Billion Joint Venture with KKR, Apollo to Expand British Columbia Pipeline

By Adriano Marchese

Enbridge has partnered with private equity companies KKR and Apollo Global Management to fund a 2.7 billion Canadian dollar ($1.95 billion) expansion of its natural gas pipeline system in British Columbia.

Under the joint venture agreement, the investment group will provide up to C$700 million in up-front cash to support Enbridge's sanctioned Aspen Point and Sunrise expansion projects for the Westcoast natural gas pipeline system.

In exchange, KKR and Apollo will receive a cumulative 29% noncontrolling stake in the network.

The expansions have already received regulatory approvals and are commercially underpinned by long-term take-or-pay contracts, Enbridge said Thursday. Investors will begin to receive their distributions as they the projects come online this year and in late 2028.

The investment by KKR and Apollo comes as federal and provincial governments push to advance major infrastructure projects to spur economic growth and reduce Canada's reliance on U.S. trade.

The move allows the Calgary, Alberta-based energy infrastructure company to bring in external funding for its growth pipeline without increasing corporate debt, while retaining operational control and securing an option to repurchase the equity stake starting in seven years.

"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 Enbridge Chief Financial Officer Pat Murray.

Enbridge noted that the transaction isn't material to its 2026 guidance or medium-term outlook.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

August 27, 2026 07:39 ET (11:39 GMT)