Enbridge to acquire Tallgrass Energy assets for $2.55 billion

Enbridge Inc. has agreed to acquire the crude oil business of Tallgrass Energy LP for $2.55 billion in cash. The deal aims to expand the Canadian company’s U.S. liquids pipeline network and strengthen its presence in key oil-producing regions, including the Bakken, Powder River, and Denver-Julesburg basins.

Key assets in the acquisition include a 75% interest in the 1,050-mile Pony Express Pipeline, which connects Rockies crude production to the Cushing, Oklahoma, distribution hub. Enbridge also plans to invest $300 million to expand the Pony Express capacity to approximately 515,000 barrels per day. Additionally, the company will acquire a 51% interest in the Powder River Gateway system and approximately 8.4 million barrels of crude storage capacity across nine terminals, alongside the Stanchion Energy marketing business.

The transaction follows Enbridge’s recent $600 million acquisition of Salt Creek Midstream’s gathering business in Texas. The Tallgrass deal is expected to close later in 2026, pending regulatory and antitrust approvals. The announcement coincides with a leadership transition at Enbridge, as CEO Greg Ebel prepares to retire at the end of the year, with Michele Harradence set to succeed him.