Enbridge to Buy Tallgrass Energy in $2.55 Billion Cash Deal
The Canadian energy company said the purchase links Bakken, Powder River Basin and Denver-Julesburg crude through Cushing and complements its Express-Platte system.
Enbridge Inc. (ENB) agreed to acquire Tallgrass Energy, LP for U.S.$2.55 billion in cash, a move that will connect three major U.S. crude basins through the Cushing hub.
The all-cash purchase is expected to close later in 2026, subject to customary regulatory approvals and other closing conditions, including clearance from the Federal Trade Commission under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Enbridge said the acquisition provides a strategic connection between the Bakken, Powder River Basin and Denver-Julesburg basins through Cushing and complements its existing Express-Platte system. The company operates a liquids-pipelines network of 29,104 kilometres, or 18,085 miles, and transported about 5.8 million barrels a day.
“This acquisition strengthens Enbridge’s position as North America’s leading crude oil transporter and expands its footprint into the U.S. Rockies region,” said Colin Gruending, Executive Vice President and President of Enbridge Liquids Pipelines.
The deal extends Enbridge’s U.S. liquids footprint into the Rockies, a region where the company already moves crude on the Express-Platte system. Liquids Pipelines handles about 30% of crude oil produced in North America, about 70% of Canadian exports to the United States and about 40% of total U.S. crude oil imports.
Midstream peers have been buying into U.S. crude and NGL takeaway assets in recent quarters. Plains All American Pipeline, L.P. (PAA) and Plains GP Holdings (PAGP) announced a definitive agreement in September 2025 to buy a 55% non-operated interest in EPIC Crude Holdings, LP, the owner of the EPIC Crude Oil Pipeline, in a transaction valued at about $1.57 billion, inclusive of about $600 million of debt. Phillips 66 (PSX) completed a cash purchase of EPIC NGL for about $2.2 billion in April 2025. Western Midstream Partners, LP (WES) closed a $1.6 billion acquisition of Brazos Delaware II, LLC in June 2026.
Enbridge’s Liquids Pipelines segment invested $1.4 billion in capital in 2025. The Tallgrass purchase will require FTC clearance before it can close.