Enbridge Acquires Tallgrass Crude Oil Transport Business in $2.5 Billion Deal
Enbridge has agreed to acquire the crude oil transportation business of US-based energy infrastructure company Tallgrass Energy for approximately $2.5 billion (C$3.52 billion). The acquisition includes a 75% stake in the Pony Express Pipeline system, which spans 1,050 miles and connects production areas in the Rockies with storage facilities in Cushing, Oklahoma. Enbridge will also gain a 51% interest in the Powder River Gateway system and other assets such as crude terminals and marketing subsidiaries. The deal is expected to expand Enbridge's presence in US crude operations significantly and add approximately 240,000 barrels per day of delivery capacity from the Powder River Gateway. The acquisition also includes a $300 million expansion project (PXP2) that will increase Pony Express' capacity by late 2027 to around 515,000 bpd. Enbridge plans to partially fund this and another recent purchase through an equity offering. The transaction is subject to regulatory approvals including US antitrust clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and is expected to close in late 2026.
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Topics: Acquisition Energy Oil & Gas Infrastructure Pipeline Expansion