Enbridge in talks for Pony Express pipeline

Enbridge Inc. is in advanced negotiations to acquire the Pony Express crude oil pipeline in the United States from Tallgrass Energy for about $2 billion. Tallgrass Energy is owned by investment firm Blackstone (BX), placing the potential deal within a broader private equity exit from energy infrastructure assets.

The Pony Express Pipeline is described as a major crude oil conduit, and the ongoing talks position Enbridge to expand its U.S. pipeline footprint if an agreement is reached. The discussions are characterized as advanced, suggesting key commercial terms are under consideration between the parties.

People familiar with the matter have indicated that a transaction could be announced in the coming days. The potential timing underscores how far the negotiations have progressed, even though the parties have not yet confirmed any agreement publicly.

Despite the advanced nature of the talks, no final decision has been made on the sale of the Pony Express Pipeline. The negotiations could still fall through, and any prospective announcement may be delayed or altered as discussions continue.

Those familiar with the situation emphasise that the information about the potential transaction is not public. They spoke on condition of anonymity, reflecting the sensitivity of ongoing deal-making and the absence of any formal disclosure so far.

Enbridge, Blackstone (BX) and Tallgrass Energy did not immediately respond to requests for comment regarding the status or details of the talks. The lack of public statements means that, for now, the deal remains unconfirmed and subject to change.

If completed, the roughly $2 billion acquisition would mark a significant addition to Enbridge’s U.S. crude oil pipeline portfolio. Control of Pony Express could strengthen the company’s position in North American oil transportation, pending final agreement and any required approvals.

For Blackstone-owned Tallgrass Energy, the proposed sale would represent a sizable monetization of a major crude pipeline asset. However, until a definitive agreement is signed and announced, the transaction’s structure, timing and final valuation remain uncertain.