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Phillips 66, Kinder Morgan Advance Western Gateway Pipeline
Second Open Season Clears Path for Fuel Shipments to Western States
Key Takeaways:
- Phillips 66 and Kinder Morgan will proceed with the Western Gateway pipeline after completing a second open season, the companies said April 20.
- California and Arizona face some of the highest fuel prices after two California refinery closures cut about 20% of capacity, increasing reliance on out-of-state supplies.
- The project targets mid-2029 startup, building a Borger-to-Phoenix line, reversing the Gold Pipeline and linking to Las Vegas via Kinder Morgan’s CALNEV system.
Phillips 66 and Kinder Morgan Inc. will move ahead with the Western Gateway pipeline that will ship fuel from U.S. Gulf Coast and Midwest refiners to California.
The proposed pipeline has successfully completed its second so-called open season where would-be customers indicate their desire to reserve capacity on the conduit, according to a joint statement released by the companies April 20.
California and Arizona boast some of the country’s highest gasoline and diesel prices, owing in part to a loss of West Coast refining capacity. Two refineries have closed in California in recent months, sapping roughly 20% of the state’s refining capacity and heightening the region’s dependence on fuel from other states and nations.
The Western Gateway network, slated to begin operations in mid-2029, will involve building a new stretch of pipeline from Borger, Texas, to Phoenix. It’ll also reverse the existing Gold Pipeline that flows from Borger to St. Louis and connect to Las Vegas through Kinder Morgan’s CALNEV conduit, the companies said.
A proposed map on the project’s website also shows a connection to refineries in Houston and Port Arthur, Texas, on the Explorer pipeline. It also shows that the line would run alongside three HF Sinclair refineries in Oklahoma, Kansas and New Mexico, as well as a Kansas refinery owned by CHS Inc.
A spokesperson for Phillips 66 declined to comment on the map. Spokespeople for HF Sinclair, Explorer, and CHS did not immediately respond to requests for comment.
The first open season for Western Gateway that concluded in December was followed by a second round that added more delivery destinations.
