VARIABLE INTEREST ENTITIES |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Equity Method Investments and Joint Ventures [Abstract] | |
| VARIABLE INTEREST ENTITIES | 7. VARIABLE INTEREST ENTITIES
CONSOLIDATED VARIABLE INTEREST ENTITIES Our consolidated variable interest entities (VIEs) consist of legal entities of which we are the primary beneficiary. We are the primary beneficiary when our variable interest(s) provide(s) us with (i) the power to direct the activities of the VIE that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses, or the right to receive benefits, from the VIE that could potentially be significant to the VIE. We determine whether we are the primary beneficiary of a VIE by considering qualitative and quantitative factors, including, but not limited to: decision-making responsibilities, the VIE capital structure, risk and reward sharing, contractual agreements with the VIE, voting rights and level of involvement of other parties.
Westcoast Expansion Financing Limited Partnership Westcoast Expansion is a BC limited partnership which holds an ownership interest in Westcoast LP for the purpose of funding construction costs associated with the Expansions. The limited partners, WELP and Tuscan Issuer Ltd. (an affiliate of KKR), hold 19.99% and 80.0% interests in Westcoast Expansion, respectively. The remaining 0.01% general partner interest is held by Westcoast Expansion Financing GP Inc., our wholly-owned subsidiary.
Westcoast Expansion is considered a VIE as it does not have sufficient equity at risk to finance its activities without additional subordinated financial support and its limited partners lack substantive participating rights and kick-out rights. In addition to having the obligation to absorb losses and the right to expected returns, we, through WELP's direct interests and the provisions of the limited partnership agreement, have the ability to direct the activities of Westcoast Expansion's principal operations, thereby making us the primary beneficiary of the VIE. Westcoast Expansion is a consolidated VIE of Enbridge.
The assets of Westcoast Expansion primarily consist of its investment in Westcoast LP, which eliminates upon Enbridge's consolidation. We did not provide any additional financial support to Westcoast Expansion during the period ended September 30, 2026. |