Enbridge to Buy Tallgrass Crude Assets for $2.55B
Enbridge has agreed to acquire Tallgrass Energy’s crude oil transportation business for $2.55 billion in cash, adding pipeline, storage, terminal and crude marketing assets across the U.S. Rockies-to-Cushing corridor.
By Carolina Curiel
Published [INSERT OILMONSTER PUBLICATION DATE]
What Readers Should Know
- Enbridge will pay $2.55 billion in cash for Tallgrass Energy’s crude oil transportation business.
- The deal includes a 75% interest in the 1,050-mile Pony Express Pipeline.
- Enbridge will acquire interests in nine connected crude terminals with about 8.4 million barrels of storage.
- The acquisition also includes a 51% stake in the Powder River Gateway network and a 60.3% non-operated interest in the Deeprock Crude Terminal.
- The $300 million PXP2 expansion is expected to increase Pony Express capacity to roughly 515,000 barrels per day in late 2027.
Deal Expands Enbridge’s U.S. Crude Logistics Network
MONTREAL (Oil Monster): Enbridge has reached an agreement to purchase Tallgrass Energy’s crude oil transportation business for $2.55 billion in cash. The transaction is expected to expand the company’s presence in the U.S. crude oil logistics market.
The acquisition will give Enbridge a 75% ownership interest in the 1,050-mile Pony Express Pipeline, which transports crude oil from the Rocky Mountain region to the Cushing, Oklahoma, storage and trading hub.
Pony Express Assets Include Nine Crude Terminals
The agreement also covers nine crude terminals connected to Pony Express, providing approximately 8.4 million barrels of storage capacity.
Enbridge will acquire a 51% stake in the Powder River Gateway network. Its two pipelines can transport a combined 240,000 barrels per day.
The transaction also includes a 60.3% non-operated interest in the Deeprock Crude Terminal at Cushing and Tallgrass subsidiary Stanchion Energy, which handles crude marketing activities.
PXP2 Expansion Could Lift Capacity to 515,000 Bpd
The acquisition will bring the $300 million PXP2 expansion into Enbridge’s secured project pipeline.
Scheduled for completion in late 2027, the project is expected to increase Pony Express capacity to approximately 515,000 barrels per day.
Enbridge Expects First-Year Cash Flow Benefit
Enbridge expects the transaction to be accretive to distributable cash flow per share during the first full year of ownership.
Because the deal is expected to close later in the year, Enbridge said its 2026 financial guidance is not materially affected by the transaction.
Deal Expected to Close Later in 2026
The transaction is expected to close later in 2026, subject to customary regulatory approvals and closing conditions, including U.S. antitrust clearance.
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