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

Pipeline operators such as Enbridge are benefiting from rising demand for natural gas, utility infrastructure and power supply for data centers, allowing the company to generate steady growth even amid geopolitical tensions and commodity price volatility.

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

($1 = 1.3805 Canadian dollars)

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.

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.

Enbridge said its will be financed through an average annual growth capital investment capacity of .