Phillips 66 and Kinder Morgan announced that they have secured enough long‑term shipper commitments to move forward with the Western Gateway Pipeline, a refined‑products system that will link Midwest and Gulf Coast supplies to Phoenix, Arizona and California markets.
The new‑build segment will run from Borger, Texas, to Phoenix, while Kinder Morgan’s existing SFPP, L.P. line from Colton, California, to Phoenix will be reversed to enable east‑to‑west product flows into California. Phillips 66’s Gold Pipeline will also be reversed to feed the new system, creating a 200,000‑barrel‑per‑day corridor that complements the 125,000‑bpd Phoenix supply currently provided by the SFPP line.
The project addresses a growing supply gap caused by a projected 17‑20% decline in California’s refining capacity by mid‑2026, while Arizona and Nevada remain heavily dependent on California for fuel. By providing an alternative route, the pipeline enhances supply reliability and reduces price volatility for West Coast markets.
Phillips 66 and Kinder Morgan will jointly own the Western Gateway Pipeline and the SFPP East Line once the open season concludes. The partnership leverages existing infrastructure to reduce construction costs and accelerate deployment, with an expected in‑service date of mid‑2029 that aligns with Phillips 66’s broader midstream expansion strategy and fee‑based revenue goals.
"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."
"We're pleased to be able to use our existing assets to leverage growth opportunities for the Arizona and California markets," said Kinder Morgan CEO Kim Dang. "By utilizing existing pipeline assets across multiple states along the route, we're uniquely well‑positioned to support a refined products transportation solution."
"This project is about more than barrels — it's about building resilience. By connecting our midcontinent Refineries to Kinder Morgan's Arizona and California terminals, we're creating a corridor that's not only efficient but scalable, with further optionality into Nevada," said Michael Andrew, Managing Director of Midstream Commercial and Business Development, Phillips 66.
"That optionality and scalability which allows barrels to move beyond the Phoenix market is what sets this project apart from other announced projects to Phoenix," said Mike Garthwaite.
The joint venture positions both companies to capture growing demand in the West Coast region, while the reversal of existing lines reduces environmental impact and capital outlay. The project’s completion will provide a critical supply route that mitigates the risk of supply disruptions from California’s shrinking refining footprint.
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