Canada's Enbridge to buy Tallgrass crude oil business for $2.55 billion - Reuters

Canada's Enbridge to buy Tallgrass crude oil business for $2.55 billion | Reuters

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Canada's Enbridge to buy Tallgrass crude oil business for $2.55 billion

By

Pooja Menon

September 9, 2026

7:49 PM UTC

Updated ago

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!Storage tanks are seen at Enbridge’s terminal located outside Manhattan

Storage tanks are seen at Enbridge’s terminal located outside Manhattan, Illinois, U.S., June 26, 2024. REUTERS/Nicole Jao/File Photo Purchase LicensingRights , opens new tab

* Companies

* Tallgrass Energy, Lp
* Blackstone Inc.
* Enbridge Inc.

Sept 9 (Reuters) - Enbridge (ENB.TO), opens new tab said on Wednesday it will acquire Blackstone (BX.N), opens new tab\-owned Tallgrass Energy's crude oil business for $2.55 billion in ​cash, expanding its U.S. liquids pipeline network by buying a majority ‌stake in the Pony Express Pipeline and other assets.

The Canadian pipeline operator said the deal would strengthen its presence in key U.S. crude-producing regions, including the Bakken, Powder River and ​Denver-Julesburg basins, while creating operational synergies with its existing Express-Platte pipeline ​system.

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Enbridge will acquire a 75% interest in the Pony Express Pipeline, ⁠a 1,050-mile (1,690-km), 460,000-barrel-per-day (bpd) crude system that links production in the Rockies to ​the Cushing, Oklahoma, storage hub and provides access to about 500,000 bpd of ​refining capacity.

U.S. President Donald Trump had issued several pipeline permits in April, including one for construction of a new pipeline, to facilitate the transportation of crude oil and petroleum products between the ​U.S. and Canada.

The acquisition, expected to close later in 2026, subject to ​regulatory clearance, also includes a 51% stake in the Powder River Gateway pipeline system, nearly 8.4 ‌million ⁠barrels of storage across nine crude terminals connected to Pony Express, and the crude marketing business Stanchion Energy.

Enbridge said the acquisition is expected to be accretive to distributable cash flow per share in the first full year of ownership, ​while leaving its ​2026 financial guidance ⁠unchanged.

The company added that it plans to partially fund the acquisition through an equity offering, alongside its August 26 purchase of ​Salt Creek Midstream's crude gathering business.

Executives said on a conference ​call that ⁠Enbridge was taking a conservative approach to funding the acquisitions to preserve capacity for future growth projects, while maintaining flexibility through asset sales, partnership structures and other ⁠financing ​options.

Enbridge said its C$41 billion ($29.70 billion) secured growth ​backlog will be financed through an average annual growth capital investment capacity of C$10 billion to C$11 ​billion.

($1 = 1.3805 Canadian dollars)

Reporting by Pooja Menon in Bengaluru; Editing by Tasim Zahid

Our Standards: The Thomson Reuters Trust Principles., opens new tab

* Suggested Topics:
* Energy
* Grid & Infrastructure
* Pipelines & Transport
* Mergers & Acquisitions
* Gas

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