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Gas Pipelines
Gas Pipelines activities consist of investments in Alliance Pipeline US, Vector Pipeline and Enbridge Offshore Pipelines. Enbridge has joint control over these investments with one or more other owners. Enbridge owns a 50% interest in Alliance Pipeline US, a 60% interest in Vector Pipeline and interests ranging from 22% to 100% in the pipelines comprising Offshore.
Earnings
(millions of Canadian dollars) |
2008 | 2007 | 2006 | |||||
|---|---|---|---|---|---|---|---|---|
| Alliance Pipeline US | 24.9 | 27.7 | 29.7 | |||||
| Vector Pipeline | 14.2 | 14.9 | 13.4 | |||||
| Enbridge Offshore Pipelines | 6.6 | 21.8 | 18.1 | |||||
| Adjusted Earnings | 45.7 | 64.4 | 61.2 | |||||
| Alliance Pipeline US – shipper claim settlement | 2.8 | – | – | |||||
| Offshore – property insurance recovery from 2005 hurricanes, net of repair costs | – | 5.3 | – | |||||
| Earnings | 48.5 | 69.7 | 61.2 | |||||
Adjusted earnings from Gas Pipelines were $45.7 million for the year ended December 31, 2008 compared with $64.4 million for the year ended December 31, 2007. The decrease in adjusted earnings was substantially due to continuing natural production declines and lost revenue and clean up costs related to Hurricanes Gustav and Ike in Offshore.
Adjusted earnings from Gas Pipelines were $64.4 million for the year ended December 31, 2007 compared with $61.2 million for the year ended December 31, 2006. Adjusted earnings improved as construction of the Neptune Pipelines (within Offshore) was completed and stand-by fees were earned starting in the fourth quarter of 2007.
Gas Pipelines earnings were impacted by the following non-operating adjusting items:
- In the first quarter of 2008, Alliance Pipeline US received $2.8 million in proceeds from the settlement of a claim against a former shipper which repudiated its capacity commitment.
- Earnings for the year ended December, 2007 included insurance proceeds of $5.3 million related to the replacement of damaged infrastructure as a result of the 2005 hurricanes.
Revenues for the year ended December 31, 2008 were $359.3 million compared with $321.3 for the year ended December 31, 2007. The increase in revenues is due to higher Alliance Pipeline US tolls, Vector expansion and revenues from Neptune within Offshore.
Revenues for the year ended December 31, 2007 were $321.3 million compared with $345.9 million for the year ended December 31, 2006. The decrease in revenues was substantially due to the effect of the weaker U.S. dollar.
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Gas Pipelines Adjusted Earnings |
Earnings |
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