Calgary-based Enbridge said Wednesday it will purchase the crude oil business of Denver’s Tallgrass Energy for $2.55 billion. The acquisition includes 75 percent interest in Pony Express pipeline, a 1,050-mile system connecting Rockies production to Cushing, Okla.; 51 percent interest in Powder River Gateway, two pipelines capable of delivering combined capacity of 240,000 b/d; and 8.4 million barrels of storage capacity across 9 crude terminals. It also includes crude marketing business Stanchion Energy.
Enbridge said this acquisition provides it with a strategic connection between Bakken, Power River Basin and Denver-Julesburg Basin through Cushing and complements its existing Express-Platte system.
Colin Gruending, executive vice president, said, “This acquisition strengthens Enbridge’s position as North America’s leading crude oil transporter….”
The Tallgrass deal follows Enbridge’s agreement last month to acquire the crude gathering system of Salt Creek Midstream for $600 million to add about 500 miles of crude gathering infrastructure in Delaware Basin of west Texas and extend the company’s Permian-to-export value chain.
Leave a Reply