Enbridge Buys Tallgrass Energy's Crude Transportation Business for $2.55 Billion
Enbridge has agreed to acquire Tallgrass Energy's crude transportation business for $2.55 billion in cash, expanding its U.S. pipeline network and storage assets.
The deal includes a 75% interest in the Pony Express Pipeline, which spans 1,050 miles and links Rockies crude production with Cushing, Oklahoma's oil hub. The pipeline has capacity of roughly 460,000 barrels per day and connects to around 500,000 bpd of refining capacity.
Enbridge will also acquire a 51% interest in the Powder River Gateway system, which includes two pipelines with combined capacity of about 240,000 bpd, as well as approximately 8.4 million barrels of crude storage across nine terminals.
The acquisition strengthens Enbridge's connectivity between key basins and Cushing, complementing its existing Express-Platte system.