Enbridge has agreed to acquire Tallgrass Energy’s crude oil business from Blackstone for a cash consideration of $2.55 billion.
The business includes 75 percent of the Pony Express Pipeline, a 1,050-mile, 460 thousand barrels per day (kbpd) crude system connecting Rockies production to Cushing, Okla.; 51 percent of Powder River Gateway system, including two crude pipelines capable of delivering a combined capacity of 240 kbpd;
8.4 million barrels of storage capacity across nine crude terminals connected into Pony Express, including a 60.3 percent nonoperating interest in the Deeprock Crude Terminal in Cushing; and Stanchion Energy, a crude marketing business.
Enbridge believes U.S. crude oil production will continue to play a critical role in meeting global energy demand for decades, and this transaction further positions the company to lead this mission. Specifically, this acquisition provides Enbridge with a strategic connection between the Bakken, Powder Ri
