Enbridge buys Tallgrass crude oil assets for $2.6B
What's the deal? EnbridgeDealroom has a profile for this one. Try Dealroom → has agreed to acquire crude oil transportation, gathering, storage, and terminal assets from Tallgrass EnergyDealroom has a profile for this one. Try Dealroom → for $2.55 billion. The deal hands Enbridge a majority stake in the Pony Express pipeline and the Powder River Gateway system, expanding its footprint in the US Rocky Mountains.
What's included? Enbridge picks up 75% of Pony Express, a roughly 1,690km pipeline linking Wyoming and Colorado to Cushing, Oklahoma, with capacity of about 460,000 barrels per day. It also takes a 51% stake in Powder River Gateway, plus around 8.4 million barrels of storage across nine terminals and crude trader Stanchion Energy.
What's the endgame? Enbridge wants to connect production from the Powder River and Denver-Julesburg basins more directly to Cushing, a major US oil storage and trading hub. The purchase also includes PXP2, a $300 million expansion set to lift Pony Express capacity to roughly 515,000 barrels per day by the end of 2027.
Why now? Enbridge already runs the Express-Platte system, which moves crude from Hardisty, Alberta, to Wood River, Illinois. Adding Pony Express and Powder River Gateway deepens its presence in Wyoming, Colorado, and other Rocky Mountain markets.
The assets "strengthen its position within crude oil transportation in North America," said Colin Gruending, executive vice president and president of liquids pipelines at Enbridge. The company values the deal at 10 to 11 times future enterprise value relative to EBITDA and expects to close during 2026.
The signal: Enbridge is consolidating control over the corridors that carry Rocky Mountain and Canadian crude to central US refining and trading centres. By stacking pipelines, storage, and a trading arm, it is betting on steady long-haul flows into Cushing for years to come.
Read more: inspenet.com
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