Kinder Morgan Inc. and Phillips 66 announced that they have secured sufficient long‑term shipper commitments to move forward with the Western Gateway Pipeline, a new refined‑products transport route that will deliver gasoline and diesel to Arizona and California.
The project will connect the Gulf Coast refinery network to the Southwest U.S. by building a new pipeline from Borger, Texas, to Phoenix, Arizona, and by reversing Kinder Morgan’s existing SFPP pipeline from Colton, California, to Phoenix and Phillips 66’s Gold Pipeline. The combined system will transport up to 200,000 barrels per day and is slated to be in service by mid‑2029.
The pipeline addresses the growing demand for refined products in the West Coast market and the anticipated closure of California’s refining capacity. By leveraging existing assets and reversing two pipelines, the partners reduce construction costs and accelerate deployment, positioning the project as a cost‑efficient solution to supply reliability challenges.
Kinder Morgan’s Q4 2025 net income rose to $996 million from $667 million in Q4 2024, while Phillips 66 reported an adjusted EPS of $2.47 in Q4 2025 versus $2.14 in the prior year. Both companies beat analyst expectations, underscoring the financial strength that supports the Western Gateway investment.
The project also competes with other proposed pipelines such as the Sun Belt Connector and will require definitive transportation service agreements, joint‑venture agreements, and board approvals. The partnership demonstrates a strategic shift toward expanding refined‑products infrastructure in a market with shrinking domestic refining capacity.
Mark Lashier, Phillips 66 Chairman and CEO, said: 'Customer response during the open season underscores the importance of Western Gateway in addressing long‑term refined products logistics needs in the region. Strong market interest validates the role this project can play in improving supply flexibility and reliability for West Coast markets.' Kim Dang, Kinder Morgan CEO, added: 'We're pleased to be able to use our existing assets to leverage growth opportunities for the Arizona and California markets. By utilizing existing pipeline assets across multiple states along the route, we're uniquely well‑positioned to support a refined products transportation solution.'
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