Canadian pipeline company Enbridge announced on September 9, 2026 that it will acquire the crude transportation business of US-based Tallgrass for approximately $2.55 billion. The deal covers assets across Wyoming, Nebraska, Colorado, and Oklahoma, with closing targeted for the end of 2026, subject to regulatory approval.
The acquisition is reported to include a 75% stake in the Pony Express pipeline (1,050 miles total, connected to the Cushing refining hub), a 51% stake in Powder River Gateway (240,000 barrels per day capacity), and 8.4 million barrels of crude oil terminal storage capacity. Pony Express is reported to connect directly to approximately 500,000 barrels per day (bpd) of refining capacity at Cushing. The acquisition also includes the Pony Express Phase 2 (PXP2) expansion project, valued at $300 million, which is planned to expand capacity to 515,000 bpd with startup targeted for the end of 2027.
The acquisition value is approximately $2.55 billion, announced on September 9, 2026. Assets include a 75% stake in the Pony Express pipeline (1,050 miles), a 51% stake in Powder River Gateway (240,000 bpd), and 8.4 million barrels of crude oil terminal storage capacity. The PXP2 expansion project is valued at $300 million and is planned to expand capacity to 515,000 bpd, targeting startup by the end of 2027. Deal closing is targeted for the end of 2026.
Enbridge is reported to be expanding its North American crude transportation asset portfolio through this acquisition. Securing pipeline assets directly connected to the Cushing refining hub is seen as a strategy to strengthen its position in crude oil transportation and storage infrastructure in the US Midcontinent region.
This acquisition illustrates the continuing consolidation of assets among major pipeline operators in the North American crude transportation infrastructure market. As Cushing is known as the delivery point for the US crude oil price benchmark (WTI), acquiring pipeline assets connected to this hub is regarded as carrying significant strategic value. The inclusion of the PXP2 expansion project in the acquisition suggests that Enbridge is looking beyond simple asset acquisition toward future capacity expansion. The active pace of mergers and acquisitions in crude transportation pipeline assets aligns with the broader trend of growing transportation infrastructure demand amid rising crude production in North American shale regions. If this deal is completed following regulatory approval, Enbridge’s North American crude oil franchise is expected to expand further.
Whether regulatory approval for this deal is completed by the end of 2026 as planned is the first point to confirm. Whether the PXP2 expansion project proceeds on schedule toward its end-2027 startup target is also worth watching. Whether Enbridge pursues further North American crude transportation asset acquisitions following this deal is another point to watch. How Cushing’s refining capacity expansion plans connect with this pipeline asset acquisition also remains to be seen.