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LONG-TERM INVESTMENTS | 12 Months Ended
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Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract] |
LONG-TERM INVESTMENTS | LONG-TERM INVESTMENTS
| Ownership |  |
December 31, | Interest | 2022 | 2021
(millions of Canadian dollars) |  |  |
EQUITY INVESTMENTS |  |  |
Liquids Pipelines |  |  |
MarEn Bakken Company LLC 1 | 75.0 | % | 1,968 |  | 1,752 |
DCP Midstream, LLC (Class B Units)2 | 90.0 | % | 1,394 |  | 469 |
Seaway Crude Holdings LLC | 50.0 | % | 2,744 |  | 2,634 |
Illinois Extension Pipeline Company, L.L.C.3 | 65.0 | % | 622 |  | 593 |
Cactus II Pipeline LLC 4 | 30.0 | % | 658 |  | 434 |
Other | 30.0% - 43.8% | 76 |  | 71 |
Gas Transmission and Midstream |  |  |
Alliance Pipeline 5 | 50.0 | % | 430 |  | 504 |
Aux Sable 6 | 42.7% - 50.0% | 214 |  | 238 |
DCP Midstream, LLC (Class A Units)7 | 23.4 | % | 317 |  | 397 |
Gulfstream Natural Gas System, L.L.C. | 50.0 | % | 1,274 |  | 1,180 |
Nexus Gas Transmission, LLC | 50.0 | % | 1,813 |  | 1,724 |
Sabal Trail Transmission, LLC | 50.0 | % | 1,535 |  | 1,464 |
Southeast Supply Header, LLC | 50.0 | % | 86 |  | 82 |
Steckman Ridge, LP | 50.0 | % | 91 |  | 88 |
Vector Pipeline 8 | 60.0 | % | 195 |  | 189 |
Woodfibre LNG Limited Partnership | 30.0 | % | 635 |  | — |
Offshore - various joint ventures | 22.0% - 74.3% | 314 |  | 309 |
Other | 20.0% - 33.3% | — |  | 14 |
Gas Distribution and Storage |  |  |
Other | 47.6% - 50.0% | 20 |  | 20 |
Renewable Power Generation |  |  |
EIH S.à.r.l.9 | 51.0 | % | 37 |  | 38 |
Enbridge Renewable Infrastructure Investments S.à.r.l. | 51.0 | % | 163 |  | 54 |
Rampion Offshore Wind Limited | 24.9 | % | 413 |  | 450 |
NextBridge Infrastructure LP | 25.0 | % | 241 |  | 186 |
Other | 15.8% - 50.0% | 107 |  | 92 |
OTHER LONG-TERM INVESTMENTS |  |  |
Gas Transmission and Midstream |  |  |
Fairwood Peninsula Energy Corporation |  | 22 |  | 20 |
Gas Distribution and Storage |  |  |
Oakville Enterprises Corporation 10 |  | 48 |  | — |
Renewable Power Generation |  |  |
Emerging Technologies and Other |  | 31 |  | 32 |
Eliminations and Other |  |  |
Other 11 |  | 488 |  | 290 |
|  | 15,936 |  | 13,324 |
1 Owns a 49.0% interest in Bakken Pipeline Investments L.L.C. Bakken Pipeline Investments L.L.C. owns 75.0% of the Bakken Pipeline System, resulting in a 27.6% effective interest in the Bakken Pipeline System by us. 2 We own 90.0% of the Class B units of DCP Midstream, LLC. These units track to a 65.0% ownership in Gray Oak Pipeline, LLC (Gray Oak), resulting in a 58.5% effective interest in Gray Oak by us. In 2021, we owned a 35.0% interest in Gray Oak Holdings LLC, which owned a 65.0% interest in Gray Oak, resulting in a 22.8% effective interest in Gray Oak by us. 3 Owns the Southern Access Extension Project. 4 On October 12, 2021, we acquired an effective 20.0% interest in Cactus II through the acquisition of Moda. Refer to Note 8 - Acquisitions and Dispositions for further discussion. On November 2, 2022, we acquired an additional 10.0% ownership in Cactus II for cash payment of $241 million (US$177 million), bringing our total non-operating ownership to 30.0%. 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 We own 23.4% of the Class A units of DCP Midstream, LLC. These units track to a 56.5% ownership in DCP Midstream, LP (DCP), resulting in a 13.2% effective interest in DCP by us. In 2021, we owned an effective 28.3% interest in DCP. 8 Includes Vector Pipeline Limited Partnership in Canada and Vector Pipeline L.P. in the US. 9 On March 18, 2021, we sold 49.0% of EIH S.à.r.l., an entity that holds our 50.0% interest in Éolien Maritime France SAS (EMF), to the Canada Pension Plan Investment Board. 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 effective interests in Saint-Nazaire (25.5%), Fécamp (17.9%) and Calvados (21.7%). 10 On August 2, 2022, we acquired a 10.0% interest in Oakville Enterprises Corporation. 11 Consists of investments in debt and equity securities held by our wholly-owned captive insurance subsidiaries. Refer to Note 24 -Risk Management and Financial Instruments. 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, 2022, this basis difference was $3.4 billion (2021 - $2.5 billion), of which $1.5 billion (2021 - $730 million) was amortizable. For the years ended December 31, 2022, 2021 and 2020, distributions received from equity investments were $2.6 billion, $2.2 billion and $2.1 billion, respectively. Summarized combined financial information of our interest in unconsolidated equity investments (presented at 100%) is as follows:
Year ended December 31, |  |  | 2022 |  |  | 2021 |  |  | 2020
(millions of Canadian dollars) |  |  |  |  |  |  |  |  |
Operating revenues |  |  | 27,043 |  |  |  | 20,021 |  |  |  | 14,096 |
Operating expenses |  |  | 23,043 |  |  |  | 16,706 |  |  |  | 12,411 |
Earnings |  |  | 4,334 |  |  |  | 3,022 |  |  |  | 2,324 |
Earnings attributable to Enbridge |  |  | 2,056 |  |  |  | 1,711 |  |  |  | 1,136 |
December 31, |  |  | 2022 |  |  | 2021
(millions of Canadian dollars) |  |  |  |  |  |
Current assets |  |  | 4,196 |  |  |  | 3,639 |
Non-current assets |  |  | 53,405 |  |  |  | 44,863 |
Current liabilities |  |  | 4,843 |  |  |  | 3,741 |
Non-current liabilities |  |  | 18,595 |  |  |  | 16,979 |
Noncontrolling interests |  |  | 3,785 |  |  |  | 3,786 |
DCP Midstream, LLC On August 17, 2022, we completed a joint venture merger transaction with Phillips 66 (P66) resulting in a single joint venture, DCP Midstream, LLC, holding both our and P66's indirect ownership interests in Gray Oak and DCP. Our ownership in DCP Midstream, LLC consists of Class A and Class B Interests which track to our investments in DCP, included in the Gas Transmission and Midstream segment, and Gray Oak, included in the Liquids Pipelines segment, respectively. Through our investment in DCP Midstream, LLC, we increased our effective economic interest in Gray Oak to 58.5% from 22.8% and reduced our effective economic interest in DCP to 13.2% from 28.3%. As a result of the transaction, Enbridge will assume operatorship of Gray Oak in the second quarter of 2023. We determined the fair value of our decrease in economic interest in DCP based on the unadjusted quoted market price of DCP’s publicly traded common units on the transaction closing date. The fair value of our increased economic interest in Gray Oak was determined using the fair value prescribed to the change in our economic interest in DCP. As a result of the merger transaction and the realignment of our economic interests in DCP and Gray Oak, we also received cash consideration of approximately $522 million (US$404 million) and recorded an accounting gain of $1.1 billion (US$832 million) to Gain on joint venture merger transaction in the Consolidated Statements of Earnings. Both DCP and Gray Oak continue to be accounted for as equity method investments. Woodfibre LNG Limited Partnership On November 29, 2022, Enbridge acquired, for cash payment of $533 million (US$392 million), an effective 30.0% interest in Woodfibre. Woodfibre will operate a liquified natural gas export facility in BC being constructed by us and our partners. 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. 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 20.0% 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, 2022 and 2021 was nil and $12 million, respectively. Steckman Ridge, LP Steckman Ridge, LP (Steckman Ridge) is engaged in the storage of natural gas, is owned 50.0% 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. As a result, we recorded an other-than-temporary impairment loss of $221 million on our investment for the year ended December 31, 2020 based on a discounted cash flow analysis. The carrying value of this investment as at December 31, 2022 and 2021 was $91 million and $88 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, is owned 50.0% 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. As a result, we recorded an other-than-temporary impairment loss of $394 million on our investment for the year ended December 31, 2020 based on a discounted cash flow analysis. The carrying value of this investment as at December 31, 2022 and 2021 was $86 million and $82 million, respectively. DCP Midstream, LLC DCP Midstream, LLC, an entity of which we had a 50.0% ownership interest in prior to the joint venture merger transaction with P66, holds an equity interest in DCP. A decline in the market price of DCP's publicly traded units during the first quarter of 2020 resulted in an other-than-temporary impairment loss on our investment in DCP Midstream, LLC 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. The carrying value of our investment in DCP Midstream, LLC (Class A Units) as at December 31, 2022 and 2021 was $317 million and $397 million, respectively. Our investments in PennEast, Steckman, SESH and DCP Midstream, LLC (Class A Units) 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 https://asc.fasb.org/topic&trid=2196965 + Details
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