LONG-TERM INVESTMENTS

12 Months Ended

Dec. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]


	Ownership
December 31,	Interest		2020	2019
(millions of Canadian dollars)
EQUITY INVESTMENTS
Liquids Pipelines
MarEn Bakken Company LLC1	75.0	%	1,795	1,892
Gray Oak Holdings LLC	35.0	%	502	463
Seaway Crude Holdings LLC	50.0	%	2,668	2,907
Illinois Extension Pipeline Company, L.L.C.2	65.0	%	623	662
Other	30.0% - 43.8%		73	73
Gas Transmission and Midstream
Alliance Pipeline3	50.0	%	269	310
Aux Sable4	42.7% - 50.0%		251	267
DCP Midstream, LLC5	50.0	%	331	2,193
Gulfstream Natural Gas System, L.L.C.	50.0	%	1,175	1,213
Nexus Gas Transmission, LLC	50.0	%	1,745	1,778
PennEast Pipeline Company, LLC	20.0	%	116	106
Sabal Trail Transmission, LLC	50.0	%	1,510	1,533
Southeast Supply Header, LLC	50.0	%	84	484
Steckman Ridge, LP	50.0	%	90	222
Vector Pipeline6	60.0	%	201	195
Offshore - various joint ventures	22.0% - 74.3%		338	362
Other	33.3% - 50.0%		4	5
Gas Distribution and Storage
Noverco Common Shares	38.9	%	156	95
Other	50.0	%	13	14
Renewable Power Generation
Éolien Maritime France SAS	50.0	%	96	67
Enbridge Renewable Infrastructure Investments S.a.r.l.	51.0	%	100	141
Rampion Offshore Wind Limited	24.9	%	599	600
Other	21.0% - 50.0%		196	127
Eliminations and Other
Other	30% - 50%		32	16
OTHER LONG-TERM INVESTMENTS
Gas Distribution and Storage
Noverco Preferred Shares			567	580
Green Power and Transmission
Emerging Technologies and Other			32	78
Eliminations and Other
Other			252	145
			13,818	16,528

1Owns 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.

2Owns the Southern Access Extension Project.

3Includes Alliance Pipeline Limited Partnership in Canada and Alliance Pipeline L.P. in the US.

4Includes Aux Sable Canada LP in Canada and Aux Sable Liquid Products LP and Aux Sable Midstream LLC in the US.

5Our ownership in DCP Midstream, LLC (DCP Midstream) holds an interest of 56.5% in DCP Midstream, LP.

6Includes Vector Pipeline Limited Partnership in Canada and Vector Pipeline L.P. in the US.

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, 2020, this was comprised of $1.8 billion in Goodwill and $657 million in amortizable assets. As at December 31, 2019, this was comprised of $2.1 billion in Goodwill and $681 million in amortizable assets.

For the years ended December 31, 2020, 2019 and 2018, distributions received from equity investments were $2.1 billion, $2.2 billion and $2.8 billion, respectively.

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


	Year Ended December 31,
	2020	2019	2018

(millions of Canadian dollars)
Operating revenues	13,987	15,687	19,217
Operating expenses	12,223	13,153	15,634
Earnings	2,306	3,016	2,954
Earnings attributable to Enbridge	1,136	1,503	1,509


	December 31, 2020	December 31, 2019
(millions of Canadian dollars)
Current assets	3,136	2,481
Non-current assets	45,955	48,942
Current liabilities	3,539	4,047
Non-current liabilities	19,639	18,126
Noncontrolling interests	3,810	2,779

Noverco Inc.

As at December 31, 2020 and 2019, we owned an equity interest in Noverco through our 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, 2020 and 2019, Noverco owned an approximate 0.2% and 0.5% reciprocal shareholding in our common shares, respectively. Noverco sold 1.0 million common shares in March 2020, 5.7 million common shares in August 2020 and 11.6 million common shares in January 2019. Shares sold 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, 2020 and 2019, we had an indirect pro-rata interest of 0.1% and 0.2%, respectively, in our own shares. Both the equity investment in Noverco and shareholders’ equity have been reduced by the reciprocal shareholding of $29 million and $51 million as at December 31, 2020 and 2019. Noverco records dividends paid by 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.

Impairment of Equity Investments

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 third quarter, 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, 2020 and 2019 was $90 million and $222 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 in the third quarter 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, 2020 and 2019 was $84 million and $484 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, 2020 and 2019 was $331 million and $2.2 billion, respectively.

Our investments in Steckman Ridge, 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.