Content
Other
The adjusted operating loss in Other was $6.8 million in 2008 compared with $0.3 million in 2007. Losses in Other for the year ended December 31, 2008 primarily reflected lower earnings from CustomerWorks which resulted from the April 2007 transition of customer care services related to EGD to a third-party service provider pursuant to an OEB recommendation.
Adjusted operating loss in Other was $0.3 million in 2007 compared with adjusted earnings of $8.1 million in 2006. Lower earnings in 2007 were primarily due to the change at Customer Works.
Strategy
Other Natural Gas Distribution Strategies
Enbridge intends to pursue natural gas business development opportunities complementary to the existing gas distribution and services businesses through:
- developing LNG regasification projects and related pipeline infrastructure;
- pursuing marketing and storage opportunities that optimize existing assets; and
- exploring gas-fired generation opportunities that are underpinned by long-term contracts and improve the utilization of existing assets. The approach is to slowly build this business and utilize partners to share development risks.
Further to this strategy, Enbridge is developing a number of projects, which are described below.
Rabaska LNG Facility
In the second quarter of 2008, the Rabaska partners signed a Letter of Intent with Gazprom Marketing & Trading USA, Inc. (GMTUSA) regarding supply for the proposed Rabaska LNG regasification terminal. The Letter of Intent outlines the major terms under which GMTUSA will become an equity partner in the proposed Rabaska LNG project and will contract for 100% of the Rabaska terminal's capacity. The Rabaska LNG facility has all major authorizations, including project and land use approvals from the province of Quebec in October 2007 and federal government approvals in March 2008. Pending commercial advancement of GMTUSA's upstream development, the project is schedule to be in service in 2013 or 2014.
NetThruPut
In 2007, the Company and its partner in NetThruPut (NTP) entered into an agreement with the TSX Group granting the TSX Group the option to purchase NTP, an internet-based crude oil trading and clearing platform. Proceeds of $9.5 million were received from the sale of the option. The option may be exercised at a time after March 15, 2009 for a price of approximately $60 million. The agreement also provides the Company and its partner in NTP an option to sell NTP under the same terms to the TSX Group. The Company has a 52% ownership interest in NTP.
CAPITAL EXPENDITURES
Capital expenditures in Gas Distribution and Services, excluding EGD, were $73 million in 2008 (2007 – $86 million). Capital expenditures for 2009 are expected to be $93 million.