Enbridge Acquires Tallgrass Crude Transport Business Including Pony Express Pipeline for $2.6 Billion

Enbridge has agreed to buy the crude oil transportation business of Blackstone-owned Tallgrass Energy for approximately $2.6 billion, expanding the Canadian pipeline giant's footprint in the U.S. midstream sector. The deal includes a 75% stake in the Pony Express Pipeline, a 51% interest in the Powder River Gateway system, and 8.4 million barrels of storage capacity.

To help fund the acquisition, Enbridge separately announced a bought-deal offering of common shares worth CDN$2.6 billion. The Pony Express Pipeline is a major crude oil artery running from Wyoming and Colorado into Kansas, connecting Rockies and Bakken production to Midwest refining markets.

The transaction cements Enbridge's position as the dominant crude oil pipeline operator in North America, building on a series of U.S. acquisitions the company has pursued in recent years. Blackstone, which controls Tallgrass Energy, is divesting the crude transportation assets while presumably retaining other parts of the Tallgrass business.