Phillips 66, Kinder Morgan launch second Western Gateway Pipeline open season

Phillips 66 (PSX) and Kinder Morgan (KMI) announced the launch of the second open season for the Western Gateway Pipeline, a newly proposed refined products pipeline system. As previously announced, the initial open season concluded in December with significant shipper interest, including shipper commitments. The second open season is for remaining pipeline capacity, and adds new access to the Los Angeles market via a joint tariff supported by the planned reversal of one of Kinder Morgan’s existing SFPP lines between Watson and Colton, California. In addition to expanding the offered destinations, the second open season adds additional origin points to enable supply diversification and optionality for customers. The second open season will open January 16 and will close March 31. 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 supplies connected to Borger, Texas and other origin points. The Gold Pipeline, operated by Phillips 66, which currently flows from Borger to St. Louis, will be reversed to enable refined products from midcontinent refineries to flow toward Borger and supply the Western Gateway Pipeline. The Western Gateway Pipeline will connect Midwest and other refinery supply to Phoenix and California, with connectivity to Las Vegas, Nevada via Kinder Morgan’s CALNEV Pipeline and to Los Angeles via a reversed existing Kinder Morgan SFPP line between Watson and Colton, California.