KKR Announces New Joint Venture with Enbridge to Support Investment in Westcoast Pipeline System in British Columbia

KKR has entered into a definitive agreement to form a new joint venture with Enbridge Inc., led by capital accounts advised by KKR, in collaboration with funds and affiliates managed by Apollo. Under the agreement, KKR and Apollo will invest approximately C$2.7 billion to fund the previously sanctioned Aspen Point and Sunrise Expansion Programs of the Westcoast Pipeline System.

The Westcoast Pipeline System is an essential piece of Western Canadian energy infrastructure, stretching more than 2,900 kilometres and transporting natural gas across British Columbia and the US Pacific Northwest. The Aspen Point and Sunrise Expansion Programs encompass approximately 157 kilometres of new pipelines and associated facilities, adding up to 535 MMcf/d and 300 MMcf/d of new natural gas transmission capacity, respectively. The expansions are designed to meet growing demand for natural gas, including demand associated with the Woodfibre LNG export facility, and are commercially underpinned by long-term take-or-pay contracts. 

Bennett Jones is acting as Canadian counsel to KKR.

The Bennett Jones team is led by John M. Mercury, Ben Rogers, Kevin Myson, Kristos J. Iatridis and John Lawless, and includes Jon C. Truswell, Drew C. Broughton, Sarah Harper, Steven Bodi, Nicholas A. Emter, Eunize Lao, Rebecca M. Taylor, Nolan Okrusko, Zaafar Mahmood, Akshay Kulkarni, Blake Miller, David Hodge and Minah Rashid (M&A), Greg M. Johnson, Marshall R. Haughey and Zachary Thacker (Tax), Martin Ignasiak KC, Sara Houston and Jayden Robinson (Energy Regulatory), Mark Rasile, Noriko Shimura and Karly Descoteaux (Financial Services), Zirjan (Zee) J. Derwa (Competition & Antitrust), and Artem N. Barsukov (Arbitration).

Read the transaction press release.