Application of Enterprise Products Partners L.P. and Enbridge Inc. for Authorization to Charge Market-Based Rates under OR12-4.

STATEMENT E POTENTIAL COMPETITION FOR THE REVERSED SEAWAY PIPELINE TABLE OF CONTENTS Section Page I. Introduction...................................................................................................................... 1 II. Projects that Would Increase Competition in Both the Gulf Coast Destination Market and the Cushing Origin Market............................................................................ 2 A. TransCanadas Keystone XL Project...................................................................... 2 B. Enterprise Eagle Ford Projects............................................................................... 6 C. Magellans Proposed Cushing to Houston Pipeline................................................ 7 D. Longhorn Pipeline from Permian Basin to Houston................................................ 9 E. Incremental Rail Movements from the Bakken Oil Shale Area and Western Canada................................................................................................... 10 F. Incremental Waterborne Movements from the Upper Midwest to the Gulf Coast .................................................................................................................... 13 III. Projects that Would Increase Competition in the Gulf Coast Destination Market ......... 14 A. Kinder Morgan Pipeline from Eagle Ford Oil Shale Area to Houston ................... 14 B. NuStar Joint Ventures to Move Crude Oil from the Eagle Ford Oil Shale Area to Refineries in Three Rivers and Corpus Christi......................................... 16 C. Plains All American Eagle Ford Oil Shale Area Infrastructure Project ................. 18 D. Reversal of Shells Ho-Ho Pipeline....................................................................... 19 IV. Projects that Would Increase Competition in the Cushing Origin Market...................... 20 A. WTG Pipeline Expansion...................................................................................... 20 B. Increased Refinery Capacity in the U.S. Upper Midwest, the Rocky Mountain Area, and Western Canada .................................................................. 21 C. Increased Pipeline Capacity Out of Western Canada to New Markets ................ 22 1. Pipelines to the Canadian West Coast ........................................................ 22 2. Pipelines to the U.S. East Coast.................................................................. 25 E-1 STATEMENT E POTENTIAL COMPETITION FOR THE REVERSED SEAWAY PIPELINE I. Introduction 1 In addition to the existing competitive alternatives described in Statement D and 2 discussed in Statement G, there are numerous potential competitive alternatives in the 3 subject markets. These potential competitive alternatives further ensure that the 4 Reversed Seaway Pipeline will not be able to exercise market power in its origin market 5 or its destination market. 6 Crude oil production in North America has increased dramatically over the l