LONG-TERM INVESTMENTS



	Ownership
December 31,	Interest		2017	2016
(millions of Canadian dollars)
EQUITY INVESTMENTS
Liquids Pipelines
Bakken Pipeline System¹	27.6	%	1,938	—
Eddystone Rail Company, LLC	100.0	%	—	19
Seaway Crude Pipeline System	50.0	%	2,882	3,129
Illinois Extension Pipeline Company, L.L.C.²	65.0	%	686	759
Other	30.0% - 43.8%		87	70
Gas Transmission and Midstream
Alliance Pipeline³	50.0	%	375	411
Aux Sable	42.7% - 50.0%		300	324
DCP Midstream, LLC⁴	50.0	%	2,143	—
Gulfstream Natural Gas System, L.L.C.⁴	50.0	%	1,205	—
Nexus Gas Transmission, LLC⁴	50.0	%	834	—
Offshore - various joint ventures	22.0% - 74.3%		389	435
PennEast Pipeline Company LLC⁴	20.0	%	69	—
Sabal Trail Transmission, LLC⁵	50.0	%	2,355	—
Southeast Supply Header L.L.C.⁴	50.0	%	486	—
Steckman Ridge LP⁴	49.5	%	221	—
Texas Express Pipeline	35.0	%	430	484
Vector Pipeline L.P.	60.0	%	169	159
Other⁴	33.3% - 50.0%		34	4
Gas Distribution
Noverco Common Shares	38.9	%	—	—
Other⁴	50.0	%	15	—
Green Power and Transmission
Eolien Maritime France SAS⁶	50.0	%	69	58
Hohe See Offshore Wind Project⁷	50.0	%	763	—
Rampion Offshore Wind Project	24.9	%	555	345
Other	19.0% - 50.0%		95	100
Eliminations and Other
Other	19.0% - 42.7%		26	15
OTHER LONG-TERM INVESTMENTS
Gas Distribution
Noverco Preferred Shares			371	355
Green Power and Transmission
Emerging Technologies and Other			80	90
Eliminations and Other
Other			67	79
			16,644	6,836


1	On February 15, 2017, EEP acquired an effective 27.6% interest in the Dakota Access and Energy Transfer Crude Oil Pipelines (collectively, the Bakken Pipeline System) for a purchase price of $2 billion (US$1.5 billion). The Bakken Pipeline System was placed into service on June 1, 2017. For details regarding our funding arrangement, refer to Note 19 - Noncontrolling Interests.


2	Owns the Southern Access Extension Project.


3	Certain assets of the Alliance Pipeline are pledged as collateral to Alliance Pipeline lenders.


4	On February 27, 2017, we acquired Spectra Energy's interests in DCP Midstream, Gulfstream Natural Gas System, L.L.C, Nexus, PennEast, Southeast Supply Header L.L.C., Steckman Ridge LP and other equity investments as part of the Merger Transaction (Note 7).


5	On February 27, 2017, we acquired Spectra Energy's consolidated interest in Sabal Trail as part of the Merger Transaction (Note 7). On July 3, 2017, Sabal Trail was placed into service and the assets, liabilities, and noncontrolling interests were deconsolidated as at the in-service date.


6	On May 19, 2016, we acquired a 50% equity interest in Eolien Maritime France SAS.


7	On February 8, 2017, we acquired an effective 50% interest in EnBW Hohe See GmbH & Co. KG.

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, 2017, this comprised of $2.0 billion in Goodwill and $643 million in amortizable assets. As at December 31, 2016, this comprised of $859 million in Goodwill and $687 million in amortizable assets.

For the years ended December 31, 2017, 2016 and 2015, dividends received from equity investments were $1.4 billion, $825 million and $719 million, respectively.

Summarized combined financial information of our interest in unconsolidated equity investments (presented at 100%) is as follows:



	Year Ended December 31,
	2017			2016				2015
	Seaway	Other	Total	Seaway	Other		Total	Seaway	Other	Total
(millions of Canadian dollars)
Operating revenues	959	15,254	16,213	938	3,164		4,102	833	3,054	3,887
Operating expenses	286	12,911	13,197	293	3,051		3,344	263	2,210	2,473
Earnings	672	2,056	2,728	643	(2	)	641	566	512	1,078
Earnings attributable to controlling interests	336	926	1,262	322	147		469	283	207	490



	December 31, 2017			December 31, 2016
	Seaway	Other	Total	Seaway	Other	Total
(millions of Canadian dollars)
Current assets	106	3,432	3,538	86	842	928
Non-current assets	3,329	41,697	45,026	3,651	12,264	15,915
Current liabilities	143	3,311	3,454	172	831	1,003
Non-current liabilities	13	13,582	13,595	13	5,121	5,134
Noncontrolling interests	—	3,191	3,191	—	—	—

Eddystone Rail Company, LLC

On October 19, 2017, we sold all assets related to Eddystone Rail Company, LLC (Eddystone Rail) in exchange for the remaining 25% interest of the joint venture. As a result, Eddystone Rail is now 100% owned and carried at nil value.

During the year ended December 31, 2016, we recorded an investment impairment of $184 million related to our 75% joint venture interest in Eddystone Rail at the time, which is held through Enbridge Rail (Philadelphia) L.L.C., a wholly-owned subsidiary. Eddystone Rail is a rail-to-barge transloading facility located in the greater Philadelphia, Pennsylvania area that delivers Bakken and other light sweet crude oil to Philadelphia area refineries. Due to a significant decrease in price spreads between Bakken crude oil and West Africa/Brent crude oil and increased competition in the region, demand for Eddystone Rail services dropped significantly, which led to the completion of an impairment test. The impairment charge is presented within Income from equity investments on the Consolidated Statements of Earnings. The investment in Eddystone Rail is a part of our Liquids Pipelines segment.

The impairment charge was based on the amount by which the carrying value of the asset exceeded fair value, determined using an adjusted net worth approach. Our estimate of fair value required us to use significant unobservable inputs representative of a Level 3 fair value measurement, including assumptions related to the future performance of Eddystone Rail.

Aux Sable

During the year ended December 31, 2016, Aux Sable recorded an asset impairment charge of $37 million related to certain underutilized assets at Aux Sable US' NGL extraction and fractionation plant.

Sabal Trail Transmission, LLC

On July 3, 2017, Sabal Trail was placed into service. In accordance with the Sabal Trail LLC Agreement, upon the in-service date, the power to direct Sabal Trail’s activities become shared with its members. We are no longer the primary beneficiary and deconsolidated the assets, liabilities and noncontrolling interests related to Sabal Trail as at the in-service date.

At deconsolidation, our 50% interest in Sabal Trail was recorded at its fair value of $2.3 billion (US$1.9 billion), which approximated its carrying value as a long-term equity investment. As a result, there was no gain or loss recognized for the year ended December 31, 2017 related to the remeasurement of the retained equity interest to its fair value. The fair value was determined using the income approach which is based on the present value of the future cash flows.

Noverco Inc.

As at December 31, 2017 and 2016, we owned an equity interest in Noverco through ownership of 38.9% of its common shares and an investment in preferred shares. The preferred shares are entitled to a cumulative preferred dividend based on the average yield of Government of Canada bonds maturing in 10 years plus a margin of 4.38%.

As at December 31, 2017 and 2016, Noverco owned an approximate 1.9% and 3.4% reciprocal shareholding in our common shares, respectively. Through secondary offerings, Noverco purchased 1.2 million common shares in February 2016. Shares purchased and sold in this transaction were treated as treasury stock on the Consolidated Statements of Changes in Equity.

As a result of Noverco’s reciprocal shareholding in our common shares, as at December 31, 2017 and 2016, we had an indirect pro-rata interest of 0.7% and 1.3%, respectively, in our own shares. Both the equity investment in Noverco and shareholders’ equity have been reduced by the reciprocal shareholding of $102 million as at December 31, 2017 and 2016. Noverco records dividends paid from us as dividend income and we eliminate these dividends from our equity earnings of Noverco. We record our pro-rata share of dividends paid by us to Noverco as a reduction of dividends paid and an increase in our investment in Noverco.