Enbridge Bolsters Crude Oil Network with $2.55 Billion Acquisition

Enbridge has acquired Pony Express and strengthened its crude oil network in the US. The company will incorporate 75% of the Pony Express pipeline, a 1,690-kilometer pipeline connecting Guernsey, Wyoming, and several points in Colorado with Cushing, Oklahoma.

The acquisition includes a majority stake in Powder River Gateway, a system comprised of the Iron Horse pipeline and the Powder River Express pipeline. Together, these lines have a capacity of nearly 240,000 barrels per day and transport oil from the Powder River Basin to the Pony Express system.

In addition to the pipelines, Enbridge will take over approximately 8.4 million barrels of storage capacity distributed among nine terminals connected to Pony Express. The company also acquired Stanchion Energy, a crude oil trading company that helps move larger volumes through the acquired infrastructure.