Phillips 66, Kinder Morgan Move Forward on Western Gateway Fuel Pipeline

Key Details Phillips 66 and Kinder Morgan have advanced their Western Gateway pipeline project after completing a second open season for customer commitments. The pipeline will transport gasoline and diesel from Gulf Coast and Midwest refineries to California and Arizona, with operations expected to begin in mid-2029. Project Scope The network involves constructing new pipeline from Borger, Texas to Phoenix, reversing the existing Gold Pipeline from Borger to St. Louis, and connecting through Kinder Morgan's CALNEV line to Las Vegas. The route also links to Houston and Port Arthur refineries via the Explorer pipeline. Why It Matters California and Arizona face some of the nation's highest fuel prices due to limited refining capacity. California lost roughly 20% of its refining capacity after two recent closures, increasing regional dependence on out-of-state fuel imports. Western Gateway will help stabilize supply and potentially ease price pressures across the Southwest. Next Steps The successful completion of the second open season indicates sufficient customer interest to move the project forward. Additional refineries in Oklahoma, Kansas, New Mexico, and a Kansas facility owned by CHS Inc. will be positioned along the pipeline route.