Business & Markets
Enbridge agrees to buy Tallgrass crude assets for $2.55 billion
The package includes a 75% stake in the Pony Express Pipeline, a controlling interest in Powder River Gateway and 8.4 million barrels of storage.
Executive summary
- The deal: Enbridge agreed to acquire Tallgrass Energy's crude oil business for $2.55 billion in cash, subject to closing conditions.[1][2][3]
- The main asset: The transaction includes a 75% interest in the 1,050-mile Pony Express Pipeline, which can move about 460,000 barrels per day toward Cushing, Oklahoma.[1][3]
- The footprint: Enbridge would also gain 51% of the Powder River Gateway system, 8.4 million barrels of terminal storage and a crude marketing business.[1][2][3]
- The timing: The companies expect the transaction to close later in 2026 after customary regulatory approvals and other conditions.[1][2][3]
Enbridge agreed Wednesday to pay $2.55 billion in cash for Tallgrass Energy's crude oil transportation, gathering, storage, terminaling and marketing business, expanding the Canadian pipeline operator's footprint across major U.S. producing regions. Enbridge announced the definitive agreement, and Reuters and the Canadian Press independently reported its central terms.[1][2][3]
The largest asset is a 75% interest in Pony Express, a 1,050-mile system capable of moving about 460,000 barrels per day from the Rockies toward the Cushing, Oklahoma, oil hub. Enbridge says the line provides direct access to roughly 500,000 barrels per day of refining capacity.[1][3]
The package also includes a 51% interest in the Powder River Gateway system, whose two pipelines can deliver a combined 240,000 barrels per day, plus approximately 8.4 million barrels of storage across nine connected terminals and a crude marketing operation. Enbridge says the assets link production from the Bakken, Powder River and Denver-Julesburg basins through Cushing and complement its Express-Platte system.[1][2][3]
Enbridge also outlined a proposed $300 million expansion that would raise Pony Express capacity to about 515,000 barrels per day. That project and the broader operating-synergy case remain company plans rather than completed results.[1][3]
The acquisition is expected to close later in 2026, subject to customary conditions including U.S. antitrust clearance. Until those approvals are secured and the transaction closes, Tallgrass continues to own and operate the business.[1][2][3]