Calgary-based Enbridge Inc. is further expanding its reach into the U.S. market with a US$2.55-billion deal to buy the crude oil business of Tallgrass Energy LP.
The acquisition announced Wednesday includes a 75 per cent interest in the Pony Express Pipeline, a 460,000-barrel-per-day system that connects oil from the Rockies region to Cushing, Okla., a major storage hub.
It also includes a US$300 million plan to expand Pony Express to 515,000 barrels per day of capacity.
Also through the deal, Enbridge gets a 51 per cent interest in the Powder River Gateway system in Wyoming, about 8.4 million barrels of storage capacity across nine terminals and a crude marketing business.
The Tallgrass deal comes two weeks after Enbridge announced plans to buy Salt Creek Midstream’s crude oil gathering business in Texas for US$600 million.
“Both acquisitions … represent the types of opportunities that do not come along very often, and even more rarely meet our disciplined evaluation criteria,” chief executive Greg Ebel said on a conference call on Wednesday.
In a news release, Enbridge said it believes U.S. crude oil production will continue to play a critical role in meeting global energy demand for decades, and the Tallgrass deal “positions the company to lead this mission.”
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The Tallgrass deal is expected to close later in 2026, subject to closing conditions that include U.S. antitrust provisions.
The acquisition was announced a day after Ebel said he plans to retire at year end, handing the reins to the current head of Enbridge’s gas utilities business, Michele Harradence.
“Our continued momentum on these strategically important transactions during a time of CEO succession reflects the strength of Enbridge’s planning, deep bench strength and execution capabilities,” Ebel told the call.
© 2026 The Canadian Press