Enbridge Snags Crude Oil Business from Tallgrass Energy for $2.55 Billion

Enbridge has announced a $2.55-billion deal to buy the crude oil business of Tallgrass Energy LP, expanding its reach into the US market.

The acquisition includes a 75% interest in the Pony Express Pipeline, which connects oil from the Rockies region to Cushing, Okla., a major storage hub, and has a capacity of 460,000 barrels per day. Enbridge also gets a 51% interest in the Powder River Gateway system in Wyoming, along with 8.4 million barrels of storage capacity across nine terminals and a crude marketing business.

As part of the deal, Enbridge plans to invest $300 million to expand Pony Express to 515,000 barrels per day of capacity. This acquisition comes two weeks after Enbridge announced plans to buy Salt Creek Midstream's crude oil gathering business in Texas for $600 million.

'Both acquisitions represent the types of opportunities that do not come along very often, and even more rarely meet our disciplined evaluation criteria,' said CEO Greg Ebel on a conference call. The Tallgrass deal is expected to close later in 2026, subject to closing conditions including US antitrust provisions.