Enbridge to acquire 75% of Pony Express Pipeline in US$2.55bn Tallgrass crude oil deal
Canadian energy infrastructure company Enbridge has agreed to acquire Tallgrass Energy’s crude oil transportation business for US$2.55 billion, expanding its pipeline and storage footprint across key US producing regions.
The transaction will give Enbridge a 75% interest in the Pony Express Pipeline, a 1,050-mile crude oil system with capacity of about 460,000 barrels per day (bpd), linking oil production in the Rocky Mountain region to the Cushing storage hub in Oklahoma.
The acquisition also includes a 51% interest in the Powder River Gateway system, which comprises two crude pipelines with combined capacity of about 240,000 bpd.
In addition, Enbridge will acquire about 8.4 million barrels of crude storage capacity across nine terminals connected to the Pony Express system, as well as Stanchion Energy, Tallgrass’ crude oil marketing business.
Expanding US liquids infrastructure
Enbridge said the acquisition would strengthen its position in the Bakken, Powder River and Denver-Julesburg basins, while complementing its existing Express-Platte pipeline system.
The Pony Express system provides access to about 500,000 bpd of refining capacity through its connection to Cushing, one of the major crude oil storage and trading hubs in the US.
Enbridge expects the acquired assets to generate additional cash flow and provide opportunities for operational synergies across its broader liquids pipeline network.
The company said the transaction would also support its strategy of expanding its presence in major North American crude-producing regions.
Deal financing and completion
The US$2.55-billion transaction is expected to close later in 2026, subject to regulatory approvals and other customary closing conditions.
Enbridge said it plans to partially fund the acquisition through an equity offering, while maintaining financial capacity for other growth investments.
The transaction follows Enbridge’s recently announced US$600-million acquisition of Salt Creek Midstream’s crude gathering business, further expanding its US oil infrastructure portfolio.
The company said its secured growth backlog stood at about C$41 billion, supported by annual growth capital investment capacity of between C$10 billion and C$11 billion.
