Enbridge Acquires Tallgrass Energy’s Crude Oil Business for US$2.55 Billion
Enbridge has announced a US$2.55-billion acquisition of Tallgrass Energy LP's crude oil business, including interests in the Pony Express Pipeline and Powder River Gateway system. The deal, expected to close later in 2026, coincides with CEO Greg Ebel's plan to retire at year-end.
Enbridge has announced a US$2.55-billion agreement to acquire the crude oil business of Tallgrass Energy LP. The transaction significantly expands Enbridge’s presence in the U.S. market, particularly within the Rockies region.
The acquisition includes a 75 per cent interest in the Pony Express Pipeline, which currently has a capacity of 460,000 barrels per day. As part of the deal, Enbridge plans to invest US$300 million to expand the pipeline’s capacity to 515,000 barrels per day. Additionally, Enbridge will acquire a 51 per cent interest in the Powder River Gateway system located in Wyoming.
The assets being purchased also include approximately 8.4 million barrels of storage capacity spread across nine terminals, along with a crude marketing business. This move follows closely on the heels of another recent acquisition; just two weeks prior, Enbridge announced plans to buy Salt Creek Midstream’s crude oil gathering business in Texas for US$600 million.
The Tallgrass deal is expected to close later in 2026, subject to U.S. antitrust provisions. The announcement comes as Enbridge CEO Greg Ebel revealed his intention to retire at year end. Michele Harradence is set to succeed him as the company’s leader. The timing of these major acquisitions during a leadership transition demonstrates the strength of Enbridge’s strategic planning.