Phillips 66, Kinder Morgan advance Western Gateway Pipeline project

Phillips 66 (PSX) and Kinder Morgan (KMI) announced the advancement of the Western Gateway Pipeline, a proposed refined products pipeline system, following a successful second open season that secured long-term shipper commitments sufficient to move the project forward, subject to the execution of definitive transportation service agreements, joint venture agreements, and respective board approvals. “Customer response during the open season underscores the importance of Western Gateway in addressing long-term refined products logistics needs in the region,” said Phillips 66 Chairman and CEO Mark Lashier. “Strong market interest validates the role this project can play in improving supply flexibility and reliability for West Coast markets.” The Western Gateway Pipeline will connect Midwest and Gulf Coast refinery supply to Phoenix, Arizona and California markets with connectivity to Las Vegas, Nevada via Kinder Morgan’s CALNEV Pipeline. The Western Gateway Pipeline will consist of a new-build pipeline from Borger, Texas to Phoenix, Arizona, combined with Kinder Morgan’s existing SFPP, L.P. pipeline from Colton, California to Phoenix, Arizona, which will be reversed to enable east to west product flows into California. The Western Gateway Pipeline will be fed from Midwest and Gulf Coast supplies connected to Borger, Texas. The Gold Pipeline, operated by Phillips 66, which currently flows from Borger to St. Louis, will be reversed to enable refined products from Midwest and Gulf Coast refineries to flow toward Borger and supply the Western Gateway Pipeline. The project is targeting an in-service date of mid-2029.