Western Gateway Pipeline Advances Following Strong Open Season Interest

The Western Gateway Pipeline, a joint venture project between Kinder Morgan and Phillips 66, will advance following a “successful” second open season that secured sufficient long-term shipper commitments, the companies said on Monday.

The Western Gateway is a proposed refined products pipeline that aims to connect Midwest and Gulf Coast refinery supply to the Arizona and California markets. The targeted in-service date for the project is mid-2029.

“Customer response during the open season underscores the importance of Western Gateway in addressing long-term refined products logistics needs in the region,” Phillips 66 Chairman and CEO Mark Lashier said in a company statement. “Strong market interest validates the role this project can play in improving supply flexibility and reliability for West Coast markets.”

Connectivity to Las Vegas will be through the existing Kinder Morgan CalNev Pipeline, according to company statements. The Phillips 66 Gold Pipeline that flows from Borger to St. Louis will be reversed. The Kinder Morgan SFPP pipeline from Colton, Calif., to Phoenix will be reversed, providing flow from east to west. Refineries in the Midwest and Gulf Coast will feed into a new-build pipeline from Borger, Texas, to Phoenix.

Western Gateway aims to supply 200,000 b/d of Midwest-sourced refined products into Arizona. This would replace the 125,000 b/d Phoenix currently receives via the Kinder Morgan SFPP line from California.

Arizona relies on California for as much as 50 percent of its fuel supply, according to analyst firm Stillwater Associates. Nevada depends on California for close to 90 percent of its fuel, the state’s Fuel Resiliency Committee has said.

Reporting by Bayan Raji, braji@opisnet.com; Editing by Rachel Stroud-Goodrich, rstroud-goodrich@opisnet.com