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LONG-TERM INVESTMENTS | 12 Months Ended
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Dec. 31, 2021
Equity Method Investments and Joint Ventures [Abstract] |
LONG-TERM INVESTMENTS | LONG-TERM INVESTMENTS
| Ownership |  |
December 31, | Interest | 2021 | 2020
(millions of Canadian dollars) |  |  |
EQUITY INVESTMENTS |  |  |
Liquids Pipelines |  |  |
MarEn Bakken Company LLC 1 | 75.0 | % | 1,728 |  | 1,795 |
Gray Oak Holdings LLC 2 | 35.0 | % | 469 |  | 502 |
Seaway Crude Holdings LLC | 50.0 | % | 2,634 |  | 2,668 |
Illinois Extension Pipeline Company, L.L.C. 3 | 65.0 | % | 593 |  | 623 |
Cactus II Pipeline, LLC 4 | 20.0 | % | 434 |  | — |
Other | 30.0% - 43.8% | 71 |  | 73 |
Gas Transmission and Midstream |  |  |
Alliance Pipeline 5 | 50.0 | % | 504 |  | 269 |
Aux Sable 6 | 42.7% - 50.0% | 238 |  | 251 |
DCP Midstream, LLC 7 | 50.0 | % | 397 |  | 331 |
Gulfstream Natural Gas System, L.L.C. | 50.0 | % | 1,180 |  | 1,175 |
Nexus Gas Transmission, LLC | 50.0 | % | 1,724 |  | 1,745 |
PennEast Pipeline Company, LLC | 20.0 | % | 12 |  | 116 |
Sabal Trail Transmission, LLC | 50.0 | % | 1,464 |  | 1,510 |
Southeast Supply Header, LLC | 50.0 | % | 82 |  | 84 |
Steckman Ridge, LP | 50.0 | % | 88 |  | 90 |
Vector Pipeline 8 | 60.0 | % | 189 |  | 201 |
Offshore - various joint ventures | 22.0% - 74.3% | 309 |  | 338 |
Other | 33.3% | 2 |  | 4 |
Gas Distribution and Storage |  |  |
Noverco Common Shares 9 | 38.9 | % | — |  | 156 |
Other | 47.6% - 50% | 20 |  | 13 |
Renewable Power Generation |  |  |
EIH S.a.r.l. 10 | 51.0 | % | 38 |  | 96 |
Enbridge Renewable Infrastructure Investments S.a.r.l. | 51.0 | % | 54 |  | 100 |
Rampion Offshore Wind Limited | 24.9 | % | 450 |  | 599 |
NextBridge Infrastructure LP | 25.0 | % | 186 |  | 122 |
Other | 12.0% - 50.0% | 93 |  | 74 |
Eliminations and Other |  |  |
Other | 42.7% - 50.0% | 23 |  | 32 |
OTHER LONG-TERM INVESTMENTS |  |  |
Gas Distribution and Storage |  |  |
Noverco Preferred Shares 9 |  | — |  | 567 |
Renewable Power Generation |  |  |
Emerging Technologies and Other |  | 32 |  | 32 |
Eliminations and Other |  |  |
Other 11 |  | 310 |  | 252 |
|  | 13,324 |  | 13,818 |
1 Owns 49% interest in Bakken Pipeline Investments L.L.C., which owns 75% of the Bakken Pipeline System resulting in a 27.6% effective interest in the Bakken Pipeline System. 2 Owns 65% interest in Gray Oak Pipeline, LLC resulting in a 22.8% effective interest in Gray Oak Pipeline, LLC. 3 Owns the Southern Access Extension Project. 4 In October 2021 we acquired an effective 20.0% interest in Cactus II Pipeline, LLC through the acquisition of Moda Midstream Operating, LLC. See Note 8 - Acquisitions and Dispositions for further discussion. 5 Includes Alliance Pipeline Limited Partnership in Canada and Alliance Pipeline L.P. in the US. 6 Includes Aux Sable Canada LP in Canada and Aux Sable Liquid Products LP and Aux Sable Midstream LLC in the US. 7 Our ownership in DCP Midstream, LLC (DCP Midstream) holds an interest of 56.5% in DCP Midstream, LP. 8 Includes Vector Pipeline Limited Partnership in Canada and Vector Pipeline L.P. in the US. 9 On December 30, 2021, we sold our 38.9% common share and preferred share interest of Noverco Inc. 10 On March 18, 2021, we sold 49% of EIH S.a.r.l., an entity that holds our 50% interest in Éolien Maritime France SAS (EMF), to the CPP Investments. This resulted in a 25.5% effective interest in EMF. Through our investment in EMF, we own equity interests in three French offshore wind projects, including Saint-Nazaire (25.5%), Fécamp (17.9%) and Calvados (21.7%). 11 Includes investments held and valued at fair value through net income. Equity investments include the unamortized excess of the purchase price over the underlying net book value of the investees' assets at the purchase date. As at December 31, 2021, this basis difference was $2.5 billion (2020 - $2.4 billion), of which $730 million (2020 - $657 million) was amortizable. For the years ended December 31, 2021, 2020 and 2019, distributions received from equity investments were $2.2 billion, $2.1 billion and $2.2 billion, respectively. Summarized combined financial information of our interest in unconsolidated equity investments (presented at 100%) is as follows:
Year ended December 31, |  |  | 2021 |  |  | 2020 |  |  | 2019
(millions of Canadian dollars) |  |  |  |  |  |  |  |  |
Operating revenues |  |  | 19,891 |  |  |  | 13,987 |  |  |  | 15,687 |
Operating expenses |  |  | 16,514 |  |  |  | 12,223 |  |  |  | 13,153 |
Earnings |  |  | 2,952 |  |  |  | 2,306 |  |  |  | 3,016 |
Earnings attributable to Enbridge |  |  | 1,711 |  |  |  | 1,136 |  |  |  | 1,503 |
December 31, |  |  | 2021 |  |  | 2020
(millions of Canadian dollars) |  |  |  |  |  |
Current assets |  |  | 3,581 |  |  |  | 3,136 |
Non-current assets |  |  | 44,497 |  |  |  | 45,955 |
Current liabilities |  |  | 3,678 |  |  |  | 3,539 |
Non-current liabilities |  |  | 16,950 |  |  |  | 19,639 |
Noncontrolling interests |  |  | 3,786 |  |  |  | 3,810 |
Noverco Inc. On June 7, 2021, IPL System Inc., a wholly owned subsidiary of Enbridge, entered into a purchase and sale agreement to sell its 38.9% common share and preferred share interest in Noverco to Trencap L.P. for $1.1 billion in cash. On December 30, 2021, we closed the sale of Noverco for cash proceeds of $1.1 billion. After closing adjustments, a gain on disposal of $303 million before tax was included in Other income/(expense) in the Consolidated Statements of Earnings for the year ended December 31, 2021. Noverco was previously included in our Gas Distribution and Storage segment. IMPAIRMENT OF EQUITY INVESTMENTS PennEast Pipeline Company, LLC PennEast Pipeline Company, LLC (PennEast) is a joint venture formed to develop a natural gas transmission pipeline to serve local distribution companies and power generators in Southeastern Pennsylvania and New Jersey, is owned 20% by Enbridge, and is recorded as an equity method investment. In the third quarter of 2021, PennEast determined further development of the project was no longer viable and development of the project was ceased. As a result, we recorded an other-than-temporary impairment loss of $111 million on our investment for the year ended December 31, 2021 based on the estimated fair value of our share of the net assets. The carrying value of this investment as at December 31, 2021 and 2020 was $12 million and $116 million, respectively. Steckman Ridge, LP Steckman Ridge, LP (Steckman Ridge) is engaged in the storage of natural gas, is owned 50% by Enbridge and is recorded as an equity method investment. During the year ended December 31, 2020, Steckman Ridge’s forecasted performance was adjusted for the expectation that future available capacity will be re-contracted at lower than expected rates and an other than temporary impairment loss on our investment of $221 million for the year ended December 31, 2020 was recorded based on a discounted cash flow analysis. The carrying value of this investment as at December 31, 2021 and 2020 was $88 million and $90 million, respectively. Southeast Supply Header, L.L.C. Southeast Supply Header, L.L.C. (SESH) provides natural gas transmission services from east Texas and northern Louisiana to the southeast markets of the Gulf Coast. SESH is owned 50% by Enbridge and is recorded as an equity method investment. The forecasted performance of SESH was revised during the year ended December 31, 2020 to reflect downward revisions to future negotiated rates as well as higher than expected available capacity levels, caused primarily by a significant contract expiry. An other than temporary impairment loss on our investment of $394 million for the year ended December 31, 2020 was recorded based on a discounted cash flow analysis. The carrying value of this investment as at December 31, 2021 and 2020 was $82 million and $84 million, respectively. DCP Midstream, LLC DCP Midstream, a 50% owned equity method investment of Enbridge, holds an equity interest in DCP Midstream, LP. A decline in the market price of DCP Midstream, LP’s publicly traded units during the first quarter of 2020 resulted in an other than temporary impairment loss on our investment in DCP Midstream of $1.7 billion for the year ended December 31, 2020. In addition, we incurred losses of $324 million through our equity earnings pick up in relation to asset and goodwill impairment losses recorded by DCP Midstream, LP. The carrying value of our investment in DCP Midstream as at December 31, 2021 and 2020 was $397 million and $331 million, respectively. Our investments in PennEast, Steckman, SESH and DCP Midstream form part of our Gas Transmission and Midstream segment. The impairment losses were recorded within Impairment of Equity Investments in the Consolidated Statements of Earnings.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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