The Globe and Mail reports in its Friday, Aug. 28, edition that Enbridge has secured a $2.7-billion investment for its British Columbia natural gas pipeline expansion from two major U.S. private equity funds. The Globe's Andrew Willis writes that KKR & Co. and Apollo Global Management are acquiring a 29-per-cent interest in Enbridge's West Coast pipeline network, linking natural gas fields in Northern B.C. and Alberta to southern provinces and the northwestern United States.
In April, Enbridge received approval to extend the West Coast pipeline by 139 kilometres through the Sunrise and Aspen expansions, costing $4-billion and expected to be completed by the end of 2028. This will add 300 million cubic feet per day of natural gas transportation capacity to the existing 3.8 billion-cubic-feet-per-day system.
The West Coast pipeline spans over 2,900 kilometers from northeast B.C. and northwest Alberta to the Canada-U.S. border near Chilliwack, B.C. "This investment aligns with our strategy of partnering with leading operators in key infrastructure for stable cash flows and growth," said Paul Workman, managing director at KKR. Enbridge will receive $700-million from the two fund mangers when the transaction closes.
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