What Enbridge Is Buying
Enbridge reached an agreement to buy, for about $2.6 billion, the crude oil business of Tallgrass Energy from Blackstone Inc. The deal covers a 75% stake in the Pony Express Pipeline, which moves crude roughly 900 miles from the Rocky Mountain region to Cushing, Oklahoma, which ranks among the busiest pipeline hubs globally.
Also included are a 51% interest in the Powder River Gateway system that ships barrels from the Powder River Basin to the Guernsey, Wyoming hub, plus storage facilities totaling 8.4 million barrels. Enbridge will also acquire Stanchion Energy, a crude marketing business, as part of the transaction.
In 2020, Blackstone Infrastructure Partners LP completed the take-private of Tallgrass Energy. Citigroup Inc. advised Enbridge on the deal, with Sidley Austin LLP and Sullivan & Cromwell LLP as legal counsel.
Why This Deal Stands Out
Per Bloomberg's data, this ranks as the year's No. 2 Canada-to-US M&A transaction and the largest since trade negotiations between the two nations fell apart in August. Observers view the pact as a test of if the tariff fight between the US and Canada will extend into pipeline M&A.
How Washington receives it is an open question. President Donald Trump has zeroed in on oil pipelines before, signing a presidential permit in April that authorizes expansion of the Bridger pipeline to move Canadian oil to Wyoming. That project partially revives the Keystone XL Pipeline, which he sought to bring back during his first term.
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Timeline, Market Reaction, and the Bigger Network
The companies expect to close the deal later in 2026, so integration is a ways off. Enbridge shares slipped as much as 2.6% after the announcement. Earlier, Bloomberg said Enbridge had entered advanced negotiations to purchase the pipeline.
Based in Calgary, Enbridge already has a large US footprint. Its network moves oil from Western Canada and delivers US natural gas to utilities, refineries, and LNG export terminals across North America. When Enbridge bought Spectra Energy for $28 billion in 2017, it became the continent's largest energy pipeline and storage operator.
What It Means for Your Portfolio
This adds long-haul crude capacity, storage scale, and a marketing arm to Enbridge at a moment when cross-border politics are noisy. The price tag is sizable, the timeline is long, and the initial stock drop suggests investors are parsing both policy risk and asset performance.
For energy watchers, the checklist is simple: whether the US-Canada tariff fight reaches pipeline M&A, and how volumes hold up on Pony Express and Powder River Gateway once under Enbridge's umbrella.
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