Phillips 66 and Kinder Morgan took a decisive step toward developing the Western Gateway pipeline after successfully closing a second open season. The result secured sufficient long-term transportation commitments to proceed with the project, although definitive service agreements, joint venture pacts, and corporate approvals are still pending.
According to both companies, the system is designed to improve refined product logistics in the Western United States. The initiative seeks to connect supply from Midwest and Gulf Coast refineries with markets in Phoenix, Arizona, and California, while also providing connectivity to Las Vegas through Kinder Morgan’s CALNEV system.
Due to its scope, Western Gateway combines new infrastructure and existing assets. The plan includes the construction of a new segment between Borger, Texas, and Phoenix, Arizona. Simultaneously, it incorporates Kinder Morgan’s SFPP pipeline between Colton, California, and Phoenix, which will be reversed to allow east-to-west flow toward California.
Similarly, the logistics scheme also includes the reversal of the Gold Pipeline, operated by Phillips 66. This change will allow refined products from Midwest and Gulf Coast refineries to move toward Borger to feed the new system.
A project focused on supply flexibility
As regional demand requires greater reliability, the companies maintain that the project can provide more supply flexibility to the West Coast. Mark Lashier, President and CEO of Phillips 66, noted that the market response during the bidding process confirmed the need for long-term logistics solutions for refined products in the region.
For her part, Kim Dang, CEO of Kinder Morgan, highlighted that the company will be able to leverage existing assets across several states to address growth opportunities in Arizona and California. This installed base reduces some of the development complexity and improves the operational integration of the proposed corridor.
What does the Western Gateway pipeline contribute to the refined fuel network?
In technical terms, the project aims to strengthen the movement of gasoline, diesel, and other refined fuels from refining centers to high-demand markets. This approach makes Western Gateway a significant piece of regional energy logistics, especially in areas that depend on stable supply chains and efficient transport routes.
Furthermore, the combined use of new infrastructure with already operational pipelines can accelerate commissioning compared to projects starting from scratch. For Phillips 66 and Kinder Morgan, this strategy also opens a growth path supported by assets that are already part of their transport and storage network.
Finally, the companies indicated that the Western Gateway pipeline is expected to enter operation by mid-2029. Until then, the project’s progress will depend on closing pending contractual agreements and formal approval by the governing bodies of both companies.
Source: Phillips 66 via Business Wire
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