Enbridge buys Tallgrass crude business for 2.55 billion dollars
Enbridge signed a definitive agreement to acquire Tallgrass Energy's US crude-transportation business for 2.55 billion dollars in cash. The portfolio includes 75 per cent of the Pony Express Pipeline, 51 per cent of Powder River Gateway and about 8.4 million barrels of storage across nine terminals. Reuters reported that completion was expected later in 2026, subject to regulatory clearance.
Economics & Markets··Midday
Cash consideration is 2.55 billion dollars
Enbridge signed a definitive agreement to acquire Tallgrass Energy's crude transportation, gathering, storage, terminal and marketing assets for 2.55 billion dollars in cash. The company's filing with the US Securities and Exchange Commission and a Reuters report published by Investing.com gave the same consideration. The transaction remains subject to customary closing adjustments. Reuters reported that completion was expected later in 2026, subject to regulatory clearance. The announced agreement is not a completed transfer; the price and closing timetable remain subject to the stated conditions.[1], [2]
Pony Express and Powder River stakes are included
The portfolio includes a 75 per cent interest in the 1,050-mile Pony Express Pipeline and a 51 per cent interest in the Powder River Gateway system. Enbridge said Pony Express has capacity of about 460,000 barrels a day and connects Rockies production to the Cushing hub in Oklahoma. Powder River Gateway's two pipelines have combined capacity of about 240,000 barrels a day. Reuters also reported that the majority Pony Express stake and the Powder River Gateway interest were included. These capacities describe the systems; they do not guarantee future throughput.[1], [2]
Storage totals 8.4 million barrels across nine terminals
The agreement also covers about 8.4 million barrels of storage capacity at nine crude terminals connected to Pony Express. The portfolio includes a 60.3 per cent non-operating interest in the Deeprock terminal at Cushing and the Stanchion Energy crude-marketing business. Enbridge said the assets would connect the Bakken, Powder River and Denver-Julesburg basins through Cushing. Reuters also confirmed the storage across nine terminals and the inclusion of Stanchion Energy. The company's expectations for free cash flow and synergies are forward-looking statements, not realised results.[1], [2]
