Canadian energy giant Enbridge is expanding its North American oil infrastructure footprint with a C$3.5-billion acquisition of Tallgrass Energy’s crude-oil business.

Enbridge announced the deal on September 9, agreeing to acquire the business from Blackstone for US$2.55 billion in cash. The transaction includes a 75% interest in the 1,050-mile Pony Express Pipeline, which has capacity to transport about 460,000 barrels of crude per day.

The acquisition also includes a 51% stake in the Powder River Gateway pipeline, approximately 8.4 million barrels of storage capacity across nine terminals, and crude marketer Stanchion Energy.

Enbridge said the transaction is expected to strengthen its position in major U.S. oil-producing regions and create operational synergies with its existing Express-Platte pipeline system.

The deal is expected to close later in 2026, subject to regulatory approval. Enbridge plans to partly finance the acquisition through an equity offering.

The transaction underscores the growing importance of North American energy infrastructure and cross-border investment as Canadian companies pursue larger transportation and storage networks.